You might think the headline above, “US Housing Market Crash to result in the Second Great Depression”, is very timely.
But it’s actually from an article published over a year and a half ago. An article that, like so many other information sources at the time, accurately predicted the mess we find ourselves in now.
Here is a piece of that prediction from February 2007:
Congress is now looking into the shabby lending practices that shoehorned millions of people into homes that they clearly cannot afford. But their efforts will have no affect on the loans that are already in place. $1 trillion in ARMs (Adjustable Rate Mortgages) are due to reset in 2007 which guarantees that millions of over-leveraged homeowners will default on their mortgages putting pressure on the banks and sending the economy into a tailspin. We are at the beginning of a major shake-up and there’s going to be a lot more blood on the tracks before things settle down.
Well shit. That sucks. We’ve certainly passed that point and right now it doesn’t sound like anyone knows what the hell is going on.
And I certainly don’t feel any better watching the Democrats and Republicans in congress acting like “two people who just threw each other off a 30th floor balcony”** – blaming each other as they fall screaming and squish mid-sentence.
So I’m left sitting here wondering if I should invest in the market now while stock prices have dropped or if I should be stocking up on canned food, ammunition and fuel for my generator.
** balcony quote completely ripped off from a conversation I had earlier this evening.