I don't know if you noticed, but I've been writing some negative thoughts about the economy lately. But this morning I read the cnn.com business section and realized the mass media is onto the housing bubble, decline of the dollar, coming stagflation, etc. Is there a point in me writing stuff that's pasted all over cnn? I was only writing this as an early warning to y'all; get your financial houses in order before the banks quit lending. Get debts into fixed interest rate loans before inflation kicks in. Attempt to diversify your savings so you own gold and foreign stocks. I hope you did and think it's not too late to do some more of it.
Anyhow, as I told The Sidekick about the housing bubble, the media would have three phases to reporting on it. First, they'd falsely discount it as an non-issue and they'd report it was 'contained.' Second, they'd understand the seriousness of this and their coverage would be dead-on accurate. Third, they'd fail to see the natural limits of things and fail to report that housing was stabalizing. Currently, the media is well into stage 2 and what you see on cnn.com is what is really happeneing. I think I can let cnn do the reporting now and I'll let you know when the mass media is overly pessimistic on this.
So, the last thoughts on this...DOW will continue to free fall and I see it dropping below 10,000 in the next 9 months and to hover around 10,000 for a decade. I will buy gold until two ounces equals the DOW Jones average (currently 12:1) and sell it when the DOW equals 1.5 ounces. Don't expect housing prices to stop falling nationally until 2012 and don't expect Raleigh prices to rise until 2012. Don't count on getting a bank loan until 2011 for anything. Prepare for inflation to hit 10-15% in the coming years.
And to HE Pennymaker, get a State Employee's Credit Union account for your future home purchase. It will look so great when the times comes.