Economic crash worse than in 2008?

We are kind of in the relative calm before the storm I have a feeling. No big reasons quite yet to be out looting or rioting. Tons are out of work yes, but they're getting some generous unemployment and stimulus checks and stiffing the landlords and car loans, but nobody's going hungry yet. Thus summer and fall could get a little hilarious though if they try to extend this lockdown nonsense too far.

 

Long run I agree, assets are king and cash is trash, however you do need some cash in reserve for short term payments and emergencies. If the card payment system goes down for any reason then cash (actual bills not ones and zeros on a computer screen) will be the only thing that purchases anything. Kind of an SHTF situation but not impossible. The other SHTF situation would be a bank run or bank holiday...they have "your" money and whaddaya gonna do about it? Also if you are not relying on the credit system at all you need a cash reserve larger than most people are able to get away with. For instance if you cancelled a credit card with a $2500 spending limit you should keep an extra 2500 in cash laying around somewhere to make up for the line of credit you no longer have. Everybody's situation is different obviously but that is just a silly example. 6 months of cash would be ideal.

 

Realitor friend told us the same thing. And selling fast. Asked us what are plans were. Then gave me a number. Not gonna lie the BB has been rolling around. I would like to build one new one for the rest of my life. Or I can settle with what I have and pay it off by 45 years old even though it's not my ideal location. 69% increase from purchase price. Give or take a few.

 

Anything i think i will need in the future that is priced half off or less. Guns ammo tools equipment materials etc etc. If its real, storable, doesnt deplete or have a shelf life and is presently very cheap, i will consider it. Ive got so much stuff people come to me for trades. And ive also acquired much of it in labor trades. I do a job in exchange for something i want. Done a bit with land and timber also.

Buy low sell high works for pawnshops just as well as housing or stocks or land or whatever. If i cant have it in my possession i dont fool with it anymore.

 

I agree. I think this was just a test drive for china.

 

Many years ago when I first moved to Naples Florida my dad was the head of the treasury and building fund for our church.

Needed to desperately expand the church 3 fold just to accommodate the current congregation.

When my dad hit up the old members that had beautiful old houses on the water worth millions that they didn't want to sell. He learned the taxes and insurance were bleeding them dry.

They had no extra money to give to the church even though they were property wealthy. .

The Swiss people I used to take care of their beach houses for a decade .

They had purchased it 35 years prior for 600 thousand with 350 of beachfront on the Gulf And had to self insure because the insurance became soo stupid after hurricane Charlie, even though they did not receive damage.

Their property taxes are 90 thousand a year because they are non residents.

My buddies house he bought on the water here in St Pete for 300 thousand 8 years ago is 1500 a month for taxes and insurance .

Carrying costs on investment houses kills profits these days .

Used to be property taxes robbed your right to be a Full Homeowner in the United States. Now insurance companies right up there also..

I owned my house for years with no insurance because I owned it outright and it was uninsurable for wind because of its age.

Bailed out of last after the near miss hurricane we took down here.

Taxes taxes taxes.

 

Well,so much for that Cruise I’ve been planning. Regardless of what happens, one doesn’t have to let it destroy them. Material things are nice, but not worth crying over. They come and go. Our Consumerism Society puts way too much emphasis on material items.Basing ones self esteem on material items, always ends in disaster, one way or another. To that extent, I refuse to partake in the misery.

 

Just a thought and it may hurt some feelings.

We've been part of the destruction of our economy to save lives and it will cost use more lives in the long run, so as Dennis Prager has said and I agree with him 100%, it is immoral to destroy the country over one life that may have been saved.

 

If the economy is failing just ride till it sinks. Then jump off and each it go under. It was fun while it lasted. Ha ha

 

I'm not saying to have no money on hand, but consider this. what happens when the day comes when the paper money you do have is no longer worth the paper it's printed on?

Ask yourself, what do you need to survive? The basics are food, water, shelter & heat. What if you couldn't buy any of those, no matter how much paper money you had, then what?

How much is that bag of seeds now worth? How much are those hand tools worth? How much is that paid off house, land, & well worth? See where I'm going with this. Secure necessities now, while you can still get them. I'm not saying be a prepper nut, just think outta the box. It's real easy to be in denial, we Americans are real good at that, but a smart man thinks ahead and prepares as best he can.

I agree with @FoolsErrand , I think this country's economy is a house of cards, one blip away from total collapse. At that point, our paper money just might be good for lighting your wood cook stove or maybe toilet paper....