Word is that they have between 9 and 12 months before their housing bubble bursts. Financial tycoons warning about this crash include investor Marc Faber, hedge fund manager Jim Chanos, and Harvard University’s Kenneth Rogoff, according to a www.bloomberg.com article on Monday. The communist government of China has attempted to soften the anticipated blowout by banning loans for third homes and raising mortgage rates and down-payment requirements for second-home purchases. Investors have started reducing their holdings on Chinese stocks and are beginning to eye gold as the investment option of choice. It’s also being predicted that housing prices could tumble by 20 percent come the second half of the year.
Just as a brief recap, countries in Europe who have been in the news recently that are in a financial freefall include Greece, Portugal, Spain, the UK, Iceland and Italy. And as the EU and the IMF prepare to extend loans to Greece, its citizens are protesting and striking because of where some of the budget cuts are being made. The most resented seem to include people’s pensions, the pay of those in government jobs, and an increase in consumer taxes, according to an AP article posted on www.myway.com on Tuesday. By the way, government workers in socialist Greece include school teachers and some hospital workers employed in state run hospitals. Isn’t it great to know that the US will soon have expanded government run healthcare? And Washington is considering nationalizing 401(k)s and IRAs, too. Click here for details on that one.
For those who are into Bible Prophecy, check out the picture to the right of the electronically animated giant image that was inside the Spain Pavilion at the Shanghai World Expo on Monday. Now consider Revelation 13:14-15: “And he deceives those who dwell on the earth by those signs which he was granted to do in the sight of the beast, telling those who dwell on the earth to make an image to the beast who was wounded by the sword and lived. He was granted power to give breath to the image of the beast, that the image of the beast should both speak and cause as many as would not worship the image of the beast to be killed.” The image probably won’t be a baby, but you get the idea. Many have believed that the image described above would be holographic in nature. The technology to create the image described in the above passage has only been available to the present generation.
But getting back to the housing sector, America could see its own swell of problems after the second half of 2010. It’s not being widely reported, but there are Adjustable Rate Mortgages (ARMs) that will be resetting this year and in 2011. According to a www.wsj.com article published in the market watch section back in 2007, $700 billion in ARMs are resetting in 2010 and beyond. This is the largest amount since the subprime debacle began. In addition, in a www.housingwire.com article from October of 2007, writer Paul Jackson also mentions that mortgage resets will go beyond 2010. He points to “option ARMs” that were offered during the housing boom, and suggests that there may be another crash in the housing market right around the last quarter of 2011. It would seem that a “double-dip recession” was headed this way regardless of that oil slick, which is being touted as a disaster of historic proportions. But what a convenient crisis. And so close to election time, too. Never waste a good one, right?
One recommendation that free market economist Robert Murphy made when he spoke at the Cincinnati Tea Party Tax Day rally last month was to save more money and make an effort to spend more wisely than in the past. He stated that he believes that the economy is going to get worse before it gets better, and that when the politicians in Washington spend taxpayer money, it does not make the nation richer…contrary to Washington’s apparent beliefs on the matter.
Another option that “We the People” have is to make sure we get out and vote. Ohio and Indiana are having their primary elections today. Many states are having their primary elections in the near future. If we don’t like what’s being crammed down our throats by those in DC and wonder if our vote can really even make any difference, consider these startling statistics mentioned by Congressman Geoff Davis at a Kentucky Tea Party rally back in October: “In 2006, 61 percent of self-identified Christian conservatives, Catholic and Protestant, stayed home. In 2008 during the presidential election, 55 percent stayed home.” Every vote really does count.
Redistribution of wealth leading up to one world monetary system may begin with Greece
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Economist Robert Murphy: The Politically Incorrect Guide to the Great Depression and the New Deal
Jason Rink of Ohio Freedom Alliance: Disciple of Liberty
Cincinnati Tea Partiers and 912ers hold ‘Read the Bill Marathon’