Third Wave of Foreclosures

[TexasBred]

What kills me is that there is all kinds of empty retail space around here and yet we continue to build more! Two new strip malls here in Alvarado, half of that space, or more, vacant, and more coming in. Why can't those retailers take old space and reuse it? It must be cheaper and you are still employing people to do the work. Not all space would be usable like that but it has to be better than another vacant strip mall. Go to all that retail area where Fort Worth and Burleson meet and there's a LOT of empty space there. More coming.

Same thing with houses. People don't want to buy existing housing, they want to move off and build a new McMansion.

What we consider as a decent standard of living is just out of control. When I think of new houses that were built when I was a kid, well, no one would live in most of them now because they don't have a media room.

I do. It's called a living room. There's a television in there. Knock yourself out.

Just guessing....usually, statistics and demographics are good reasons why some spaces are not reused. On top of that, Texas is one of the most financially healthy states (oil and gas) and has allot of open area being the second largest state in the country.

HS....Texas is better off than some others at least in the short run, but natural gas prices have tanked. highest price I got last month was $3.86 per thousand cubic feet. There is still a lot of contruction going on but occupancy rates in commercial properties are sliding yet as Lammie said, building continues. With current market conditions it might be a better investment to buy and build a new office than to lease an existing property. Regardless in the long run the effects of oversupply will be felt.

 

[grannysoo]

Good point. What if we audit the federal reserve?

HA!

That's never going to happen. If we really want to get this thread locked, we would point out that the fed is a private company that has made trillions of dollars for some people. We would advise people to read "The Creature from Jekyll Island", and study up on it, but we don't want this thread locked so I won't mention it.

 

[HerefordSire]

In my opinion a flat tax would be good. What concerns me about today's economy is the unemployment rate. If I understand this correctly, unemployment benefits have an expiration date on them. When they expire, then I think we will see how bad things really are unless someone pulls off a hail mary and turns things around.

The State the citizen lives in guarantees 6 months of unemployment checks. Congress passed an extension to 1.5 years guaranteed by the Federal Government under Bush.

 

[HerefordSire]

Good point. What if we audit the federal reserve?

You know....I have read tons of literature regarding finance and the economy over the years, etc. I do not think I recall ever reading something like you just wrote as a solution to an issue. I think that is a brilliant idea. The shareholders of the Federal Reserve are domestic member banks which are audited by the FDIC and Shelia Barr. I was thinking the other night, how most of the banks are being saved but many other businesses are allowed to go, or have went belly up. I concluded it is very unusual, especially when you look at the number of employees involved during historically high unemployment rates. I have heard all the justifications why this has been done.

 

[MO_cows]

I could be wrong but this is what I see. There are "haves" and "have nots". Of the "haves", there is new money and old money. The new money could be lottery winnings, oil and gas proceeds, or signing a new professional contract, etc. The old money is in the form of paper, or intangible assets, and inherited from generation to generation. This division involves control of politics and the media...so your statement above, although it may be correct, could be what the "haves" want you to think or do.[/i]

Whether you are a have or a have not, you can still live beyond your means via credit. It's just a matter of scale. Old money/new money is a separate issue, isn't it?

 

[HerefordSire]

HS....Texas is better off than some others at least in the short run, but natural gas prices have tanked. highest price I got last month was $3.86 per thousand cubic feet. There is still a lot of contruction going on but occupancy rates in commercial properties are sliding yet as Lammie said, building continues. With current market conditions it might be a better investment to buy and build a new office than to lease an existing property. Regardless in the long run the effects of oversupply will be felt.

My employer's HQ is located in Irvine right next to the Cowboy's stadium but has locations and plants all over the world. We supply important new commercial construction products. Orders fell off a cliff. I forgot to mentiond the main reason of my previous comment about Texas. Take NJ and compare to Texas. The Governer of NJ used to run Goldman Sachs. People are leaving NJ. People are moving to Texas. Why? Because Texas has no state sales tax and NJ does. Did you know that in NJ there are no self-serve gasoline stations? Now lets look at California which could be in worse shape than NJ. How much wind energy does California generate and how much does Texas generate? Ask T. Boone Pickens if you don't know. Cooincidence that the majority of Green people live in California?

 

[1982vett]

People are moving to Texas. Why? Because Texas has no state sales tax and NJ does.

We do have state sales taxes. What we don't have is state income tax. Just property tax and plenty of others to make up the difference. Not to mention lower wages.

 

[HerefordSire]

Whether you are a have or a have not, you can still live beyond your means via credit. It's just a matter of scale. Old money/new money is a separate issue, isn't it?

True...but if you are a "have" you are likely a net payee of interest and if you are a "have not" you are likely a net payer of interest. Old money and new money is related because they makeup the net payees. Will power, or self-control, could be the issue you are bringing up.

 

[HerefordSire]

People are moving to Texas. Why? Because Texas has no state sales tax and NJ does.

We do have state sales taxes. What we don't have is state income tax. Just property tax and plenty of others to make up the difference. Not to mention lower wages.

That is what I meant to write. TY for correcting me.

 

[RD-Sam]

Good point. What if we audit the federal reserve?

You know....I have read tons of literature regarding finance and the economy over the years, etc. I do not think I recall ever reading something like you just wrote as a solution to an issue. I think that is a brilliant idea. The shareholders of the Federal Reserve are domestic member banks which are audited by the FDIC and Shelia Barr. I was thinking the other night, how most of the banks are being saved but many other businesses are allowed to go, or have went belly up. I concluded it is very unusual, especially when you look at the number of employees involved during historically high unemployment rates. I have heard all the justifications why this has been done.

Guess again, it's been tried by many people, seems the Federal Reserve is immune to an audit. :x

 

[HerefordSire]

The gray colored bars are sub primes resets. Hardly any more of those left. Look what is going to happen mid 2010.

http://www.financialsense.com/editorial ... /0528.html

 

[grannysoo]

The gray colored bars are sub primes resets. Hardly any more of those left. Look what is going to happen mid 2010.

http://www.financialsense.com/editorial ... /0528.html

Mid 2010 is going to be like another tidal wave crashing in. Between the subprime resets and the phantom bank properties, this whole thing is still just warming up.

 

[HerefordSire]

It could throw us in a depression.

 

[grannysoo]

It could throw us in a depression.

The camel has many straws on its back. You remember the game from when you were a kid. All it takes is one more to break it.

Just how many more straws can our economy hold?

 

[TheBullLady]

With all of the things that have been mentioned here, and similar things being talked about on nearly all the radio talk shows, how can anyone believe "it will be okay" soon? I don't understand being blind about something this important! Are people so immature or what? "If I don't think about it, it will go away"? It's scary really...

I remember some show awhile back talking about financial issues, and how people were much like cattle, in that where one goes, the rest follow blindly. It's looking more and more like that is the case!

 

[Jogeephus]

I remember some show awhile back talking about financial issues, and how people were much like cattle, in that where one goes, the rest follow blindly. It's looking more and more like that is the case!

And I think if was Hillary that coined the phrase, "sheeple".

I think HS also made the point that some people were going to make some serious money. This was true during the depression era. The key is going to be positioning yourself in this position - or as close as possible. I'm still trying to determine where the opportunities are. Its going to be a very different scenario for sure. I don't think stocks and bonds are going to be the answer due to the corruption in the system. Its almost like the market is forcing you to invest in you rather than a faceless entity that is fat with overhead and bureacracy. JMO

 

[grannysoo]

I've seen a couple of interesting articles that state that we are in "the eye of the hurricane". You know, the relative calm period before the next wave of the storm comes thru. From everything I see, that does appear to be where we're at. Things are looking better at the moment (according to DC), but when the back side of the storm appears, it's going to get rough.

The back side of the storm is always worse than the front...

 

[HerefordSire]

I've seen a couple of interesting articles that state that we are in "the eye of the hurricane". You know, the relative calm period before the next wave of the storm comes thru. From everything I see, that does appear to be where we're at. Things are looking better at the moment (according to DC), but when the back side of the storm appears, it's going to get rough.

The back side of the storm is always worse than the front...

According to my research of the Elliot Wave principle, a major upward or downard move in a financial statistic has five waves with three up and two down in an alternating sequence. The third one can knock your socks off. The fifth one sets the peak and then another wave pattern emerges, such as a retracement pattern. The alternating waves, such as the second and fourth waves, usually retrace by a fibinacci number. I will say this again in another way....the third wave will rip loudly. Look at the title of the post and then look at the ARM chart.

 

[grannysoo]

I'm not a chart-meister or anything :lol: but I see what's happening in the real world.

It ain't pretty...

 

[BeefmasterB]

Since this is all speculative, what other important event occurs in 2012 and what would be the results if this chart became reality?

I've seen a couple of interesting articles that state that we are in "the eye of the hurricane". You know, the relative calm period before the next wave of the storm comes thru. From everything I see, that does appear to be where we're at. Things are looking better at the moment (according to DC), but when the back side of the storm appears, it's going to get rough.

The back side of the storm is always worse than the front...

According to my research of the Elliot Wave principle, a major upward or downard move in a financial statistic has five waves with three up and two down in an alternating sequence. The third one can knock your socks off. The fifth one sets the peak and then another wave pattern emerges, such as a retracement pattern. The alternating waves, such as the second and fourth waves, usually retrace by a fibinacci number. I will say this again in another way....the third wave will rip loudly. Look at the title of the post and then look at the ARM chart.