Thursday, January 23, 2014

The Mother of all Financial Bubbles. Where will you be when the big one comes?

Voting with your feet is more difficult when the value of your house drops by 45% and you're equity is turned upside down. Economic migration is stifled by the structural constraint of real estate ownership and other modern issues including a massive level of ignorance and outright foolishness. As a result there has been an acceptance of the false solutions offered by the federal government and the Federal Reserve such as the unprecedented infusion of more than $5 trillion dollars into the economy (both federal spending and Federal Reserves QE series),   a move that has led us to the Mother of all Financial Bubbles.

When the big one comes, are you going to be where you want to be?

The economy cycles, period. From that simplistic perspective we know there will be another downturn.

However when you consider the consequences of years of bailouts and artificial stimuluses into our broken economic system will the next downturn be the big one? Will it be the mother of all crashes?

Lessons of our recent past;  people have been much more reluctant to relocate over the last five years than they were in past economic calamities. Today, as home owners, our personal ties and debts are far deeper. This in part has lead people to accept the wrong answers spelled out above over the idea of fixing the problems.

The government offers false security and tightens the vice of control over us.

When it comes, 5 months from now or 5 years, will you be where you want to be?

As I see it the next crash will be much more devastating and the effects prolonged, perhaps decades,  your families physical location may be  a much bigger issue.

Considering the trends in NYC and the recent statements of Governor Cuomo informing conservatives that they are not welcome in New York, would you want your family to be in the ultra liberal region of New Jersey / New York?  Will you be protected?  

I do not believe the issues of the past have been solved, in fact I believe that the state of our nations banking  and business system is in dire straights. Corrupted in fact. The principle causes of our problems have been obfuscated with more debt and deception by the progressives in both political parties and the boardrooms and management ranks of the mega corporations and mega banks.

We more closely resemble fascist Germany in the late twenties than the America I was born into. Then it was the industrial machine working in lock step with the Nazi war machine. Today it's Information tech giants like Google and Facebook (others) working with our government to  spy on us while the federal government deploys military armaments to police forces across our land.

We can't seem to protect our boarders but our police forces can engage in small wars. Against whom?  

With the housing price recovery at hand in many parts of the country it is important to keep a firm grasp on the recent past. Don't be caught with 'no way out' next time?

The migration rate increase from the liberal centers such as NY and Chicago and California continues. Weigh your situation with care and in addition to traditional retirement planing I suggest you also plan your families "way out" for when the big one hits.

People do vote with their feet, people do walk away from what is being forced on them. People do choose  to not participate in the destruction of society.

Looking into the future I think most people will agree that they'd benefit by a plan that enabled them mobility in the next crash.  The opportunity to pickup stakes and start over in a better place.

If you are in NJ or Illinois or NY do you want to be stuck there?


Retirement and Financial planning today require new strategies to protect against rogue government activities and devastating tax increases. When you commit to a location as a property owner understand the full ramifications of your choice.

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