Survive and thrive during the coming economic collapse

Online Since 1995      

 

Home

Order

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Updated: June 9, 2012

Economic Depression II
January 2013 - July 2015
 

The U.S. is in for a Long and Protracted
Economic Depression

The entire global economic system is now in a tailspin. No one knows where the bottom is because no one knows exactly how extensive the financial losses are. 

The sub-prime mortgage crisis which triggered the stock market collapse is triggering economic problems not seen since the last depression - the Great Depression of the 1930s.

Take a careful look at the chart below. As you'll see the sub-prime mortgage mess will finally reach a bottom some time very soon. But don't celebrate just yet, there's a bigger, nastier mortgage crisis in the works.

Alt-A mortgages were granted to people who had credit ratings somewhat better than the horrible ratings of the sub-prime crowd. But now they're also beginning to default on their mortgages.

Most would like to refinance their mortgages to the new lower rates but banks are not refinancing on any home whose market value doesn't exceed 90% of the outstanding loan balance. Since home values have fallen so much, few owners will qualify for refinance. That leaves millions of homeowners out in the cold - quite literally.

Then you have those adjustable rate mortgages - the dreaded ARMs. The payments on these mortgages will in many cases double during the next five years. (and in some cases even triple!) That will inevitably trigger yet another new wave of foreclosures.

When will all this madness end? When will we finally start to rebuild our damaged economy? The chart makes it clear. The end begins during the summer of 2014.

And none of this takes into account the millions of large family homes the baby-boomers are eager to dump to raise money to supplement their sparse retirement savings. For decades they've been planning to sell their larger homes and exchange them for smaller low-maintenance retirement homes and bank the difference to help pay for their retirement. That overhang will insure that the real estate market doesn't recover for many, many years.

We are tumbling into a major world-wide depression. Despite claims to the contrary this is not a routine economic recession. A recession is like a cold. It's a temporary inconvenience, nothing more. When you come down with a cold you can be confident that in a few days you'll feel better and life will go on. No one dies of a mere cold.

A recession is very similar. Corporate profits take a temporary dip. In response firms lay off employees confident that in several months they will be rehired and everyone can go back to business as usual.

Our current situation goes well beyond recession. Several major economists have compared our situation to a heart attack - an apt analogy.

When was the last time you saw a recession that caused the U.S. auto industry to collapse? When was the last time a recession forced our entire investment banking industry to go belly-up? When did a recession last push government bond rates down near zero?

This is no normal recession folks.  

When the economic recovery finally appears (Around 2015), it won't be like any economic recovery in the past. This one will be no barn-burner. Instead it will be a much more gradual affair. It will probably run for several years before you will see or feel it's effects.

One thing is crystal clear. The standard of living of the average American is about to take a tumble. Survive and thrive during the coming bad times. Get the facts - there's no other book like it. Order today!

Order Back

Disclaimer: We are not in the business of providing financial advice or services of any kind. Always consult with your personal financial and legal advisors before attempting to use any of the tactics discussed on this site or on our publications. Do not break the law. Nothing on this site is intended to in any way encourage illegal acts either now or at any time in the future. This information is for informational and entertainment purposes only.

Entire Site is Copyright 2012, Ariza Research, All rights reserved - ABP - www.hardtimesgazette.com