DO NOT buy any housing right now.
By Daniel at 29 May, 2009, 10:01 pm
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There is no stabilization in housing until we get back to early 1990’s prices, possibly even early 1980’s. Let housing prices collapse and don’t get in the way.
Don’t forget that many banks had agreed to not foreclose for 3 months at the request of Congress during the banking hearings. That time is up and may have some impact on the foreclosures but, not the number of homes underwater. That and the fact the prime are going to foreclosure more and more is the real bad news. As the article points out, this is while unemployment hasn’t even peaked and more people will see hours cut and declining paychecks.
Food stockpiles are not that great and farms are cutting back big time on planting..
quote:
Across the nation, farmers are making plans to cut their production of corn, wheat, rice, peanuts, beef, pork, poultry and milk… Also, some farmers plan to grow just one crop on land that normally produces two each year, and to let some land lie fallow throughout the year.
Production of meat in every category will fall for the first time since 1973. Meanwhile, consumption of grains keeps rising. Globally, wheat demand should rise 6% this year. No surprise that retail food prices rose nearly 6% last year. I think they could rise as much this year.
http://www.agorafinancial.com/afrude/2009/05/28/the-best-investment-opportunity-of-2009/
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So, while the mortgage is still there and needs to be paid, wages are falling and food will be rising. Farmers are having trouble getting credit and there are other problems that will create problems sometime this fall, according to this author.
Classic stagflation. Wages falling, economy down, assets dropping in value, but prices rising on food and imports and if the dollar falls faster, it all gets worse for the worker. The more the dollar falls, the higher the price oil will be.
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