The Housing Bubble (1/10)
Amer·i·ca·na
Pronunciation: \ə-ˌmer-ə-ˈkä-nə, -ˌmər-, -ˌme-rə-, -ˈka-nə\
Function: noun plural
Date: 1841
1: Materials concerning or characteristic of America, its civilization, or its culture ; broadly : things typical of America
2: American culture
In this series, I’d like to explore various aspect of life in North America. Each topic will be illustrated by a black and white picture.
A Burst Bubble
Owning a house. The true American dream.
North America is a land of settlers, a place where everything is possible, even buying one’s little piece of heaven. Land and a house on it. Far from expensive Europe or overcrowded Asia. A lot of households make it. Home sweet home.
Some weren’t that lucky this year. Subprime crisis, economic crisis, and the bubble burst. For a while.
Houses already built are waiting for buyers. Rows and rows of them, neatly lined up.
Picture: Ottawa, Neapan area, October 2008.
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It’s scary that people were so quick to think it was ok to buy back in 2008. I’ve been yelling and screaming at people to get out of the market back in 2004…they all laughed at me. I reminded them again in 2007.…they laughed harder. During that time I took everything out of the USA and invested in emerging market stocks and real estate.…and accounting for the depreciation on the Dollar my portfolio has increasing in value at about 40% per year when held in Asian currencies.
I’m yelling at everyone again. 2008 was just a sneeze. When the next wave of banking collapses come along in 2011 it will be the ebola virus by comparison.
20,000–30,000 wealthy Americans are leaving every month (and that number is actually families so it’s up to 4–5 times greater of a number).
I predict that the price of housing will fall at least another 50% from its current levels sometime in the next 12–18 months. The Fed will continue to print money and you’ll see OPEC dump the Dollar. There are already 150 million Americans on welfare of some form and another big chunk of people who hold pensions that are backed by nothing to secure them. Then there’s the Baby Boomers with their minimal savings who are all going to start dumping their McMansions and moving to condos.
Boomergeddon is going to downright terrifying.