Assets: The Old Assets are Dying Faster Than I Expected, Slow As Molasses
More people are noticing that real estate has collapsed.
Back when the Fed raised rates, i knew that housing prices would have to drop in half before people could afford them. But, people reluctantly lower the price of their house they have for sale. However, unless you radically lower the price, you get no buyers, not even prospects. And so, the average house price stayed high (mathematically it stayed because the almost rich continued to buy large houses.)
But now, we are seeing house sales drop off a cliff. We are seeing starving real estate agents. We are seeing open houses with no prospects coming through the doors.
And this is just real estate.
We are watching the bond market collapse as China and others are selling The US Bonds. The only buyer is the Fed. How long can they keep this up before interest rates on bonds have to go way up to attract buyers?
Cars aren't selling, even at auction. Repos rates are rising. More repos than repo-men to repo those cars. Banks are paying extra to get their repos done first.
While all this is happening, the govern-cement mouth-puppets are still saying that we are not in a recession. Things are good here. We're all good here. How are you? (boring conversation)
The Greater Depression?
All the signs point to that we are already in a depression. And since we are going to make America great again, this will be the "Greater Depression".
But this is not really the case, this is new, this is different.
This may be a depression, but what is really happening is a huge shift. A global change.
The old world is dying. The debt and death paradigm is coming to an end.
For example, a person who has all their money in a safe, secure, savings account in an honest, secure bank, is going to watch that money vanish. Pop, pop, pop, the bubbles pop, the money disappears.
Another person has put money into bitcoin. Not a lot, but what they could afford. A whole bitcoin holder will become a millionaire. But that is not a good analogy. This person will have money, buying power, when most of the people have nothing.
This is going to be a weird time (mostly because we have nothing in the past to compare it to) where even the things we consider assets will change, dramatically.
Homesteads (an analogy, sorta)
People who have moved out to the country and who have built a homestead know the nice feeling of being mostly self sufficient. Knowing where your food comes from, and knowing it is in your hands, is a great feeling. Control over your own life.
In contrast, a suburban McMansion has nothing going for it. It sucks up money. High property taxes, high maintenance, high energy bills. And, it doesn't give you anything. (unless you are holding weekly Amway meetings in it)
In one case you are moving into the new world, where everyone is a part time farmer. Where food is VERY important and knowing where it came from is of highest concern. (this gets even more important as we learn there are groups actually trying to poison us)
In the other case, you are holding onto a boat anchor while drowning. What was once a status symbol, the "lap of luxury", is now just an oversized house that is not big enough to be divided into multiple apartments, and too big for comfortable minimalist living. You get something that will just haemorrhage money, when you REALLY need to conserve whatever money you have.
So, if you let go of the old world asset, and grab onto the new world asset, you will do well. You may not even know that there is a "depression" out there.
But, if you try to hold on to the old, then you will get crushed, as the world that supported that existences crumbles. The stores are leaving, the jobs are leaving, the restaurants are leaving. There will soon be nothing in the cities that you lived near a city for.
Almost everything we consider "life" today, everything we have to live that life, is all going away.
How many cars do you need if you do not commute to work? How many cars do you need if stay with all your friends on a big homestead and rarely leave? The answer is none. But, those of us who find our "family" and move to be together, they will keep a few cars running, the best cars. And then, over time, they will be used less and less, if at all. The roads, the highways, the bridges that we think of as normal today will be deteriorating. The average car will be useless in the future. The car that you are paying a huge amount per month to keep.
In the future we will have flying cars, and a monorail (probably) automated, train like, delivery system. Also, many roads / bridges will be destroyed in wars and natural disasters. And, there will be no one to fix them. (meaning the structure that built roads is no longer there, and by the time small groups get together to build them, the roads are considered unnecessary.)
A lot of lives will be lost. Covaids, VAXXX, the Bio-engineered human transmissible bird flu, natural disasters, civil wars, and old age will take a toll on the planet's population. But, most of all, it will be people hanging onto their city lives, and lifestyles, when they should have been getting out.
Everything we think of as assets today, things we spend all our money on, are just going to become as nothing.
No Fed. No Banks. No money in the bank. No stock market (as it is today). No giant corporations (they die because no one will deal with a polluters / evil). No bonds. No cars. No cities. No suburban sprawl. No malls.
But also, we are going to see continuous - green energy devices, flying cars, real money, food growing systems that will knock our socks off, real human connection, the 20 hour work week we were all promised.
And all this is coming, slower than molasses in January. (would it just hurry up and arrive? 😝 )