2012 U.S. fiscal budget...will re be a safe haven?

the problem with real estate being a "safe haven" (and I confess I have not watched the video) is that it is an easy way for local governments to raise money. people in positions of power in local government rarely make any real money, and often lose their positions during poor economic times. unlike presidents (or the egomaniac Bloomberg, or the rare congress hopeful that has been told by the party that they have backing) they have little to no incentive to placate the masses, particularly now. they just need to get the f'ng bills paid.

Sobering video.

>the problem with real estate being a "safe haven" (and I confess I have not watched the video) is that it is an easy way for local governments to raise money. people in positions of power in local government rarely make any real money, and often lose their positions during poor economic times. unlike presidents (or the egomaniac Bloomberg, or the rare congress hopeful that has been told by the party that they have backing) they have little to no incentive to placate the masses, particularly now. they just need to get the f'ng bills paid.

Amen. We should eliminate the ability of politicians to levy taxes.

Falco: If you follow the financial pundits, this is well known, much discussed economic fodder. The stock market is up because the hedge fund guys know the only way out in the short term is money printing -- Fed, ECB, China. Maybe even in a synchronous event. Basically, the only real way out is to go Full Weimar (much akin to Full Retard).

Even if they all blink (unlikely) it is clear that taxes will be raised no matter who is President. And entitlements will be cut to the point of social unrest (we will be revisiting the 60's, only this time to the beat of EDM and deb steps)

But the end game is unknown. What will happen when China -- and maybe Europe-- dumps tons of product in the US. How will deflation play against the predicted inflation? What if there is conflagration in the Mid East? Even Ray Dalio, one of the most circumspect and sanguine investor gurus is suggesting the odds of a disorderly end to Europe are more than 50%. Spanish Banks --as I suggested in SE many, many months ago-- are insolvent and they are currently taking trash as collateral (and the sovereign state is on the hook as per Der Speigel). If Draghi convinces the other countries to help buy more bonds they will all be taking on trash. And only if German courts don't pull the plug on the whole shebang.

So owning assets will be the answer but which ones. And more importantly -- what is the timing. I really don't think you buy RE now at a 4 year high in the market when everyones finances are about to change drastically. Right now, homes in Arizona and FL and Atlanta might be buys. But NY? I don't think so. Not yet. If things don't unravel in an orderly fashion, you might want to have very liquid assets. You might find that NY prices become very favorable if you are able to buy RE in gold terms rather than dollars. Or other assets. (Sprint stock?)

Which is why I just signed a lease to rent for another two years until it all unwinds and I can make decisions with a little clarity. I am renting a larger apt in same building for same price psf. But the person who will be renting my current apt is paying 15% over what I am paying. There are bubbles everywhere because there are people who are not prudent. So when things get really crazy, there are sure to be opportunities.

Whatever happened to Mr. Apt23? Did he finish his prison sentence?

This is not news.. some get it.. some are starting too.. taxes will go up.. and this is why I agree with Apt23 and have said it before.. Stay liquid, mobile and thirsty.. things will change they have to.

be ready for it.... buying RE in NY right now..I don't think is a good idea..

brooks2 and apt23, don't fight against city hall

the fed (freemasons, rothschilds, etc) wants RE and stock continue to pump up

Real Estate will be a safe haven, not because it should but because eliminating the mortgage interest tax deduction and the capital gains exclusions would result in an election loss for anyone who proposed/enacted it and that it goes contrary to the administration's unstated goal of propping up the banks. Removing the subsidies and incentives would make homes more affordable(in other words lower the price of homes) and saddle the banks with increased foreclosures with less recoverable value. Geithner summed up the policy best, "foam the runway" for the banks

I swear to god I am considering joining the survivalists.... or, applying for dual citizenship in costa rica.

Venezuela has no extradition treaty