DONT DRINK THE COOLAID

YEAH YEAH YEAH   WE HAVE HEARD THIS BEFORE  

DONT DRINK THE COOLAID FRIENDS

Yes,  We have all heard about the ballooning government debt in D.C.  We all know that the debt ceiling will have to be raised again.  But so what.  The Stock Market has never been higher.  Housing is recovering  etc etc.   OK  Lets LOOK A THE WHOLE PICTURE  because NOTHING has REALLY changed.

1)  THE US GOVERNMENT IS UNABLE TO SELL ITS DEBT TO OVERSEAS BUYERS.  DID YOU KNOW THAT THE CHINESE STOPPED BUYING OUR PAPER 20 MONTHS AGO  AND IN FACT ARE QUIETLY UNLOADING ALL THE DOLLARS THEY CAN AND ARE BUYING REAL FIXED ASSETS.....EVEN OVERPAYING AND OUTBIDDING US COMPANIES FOR OIL, COPPER FIELDS, PORTS, REAL ESTATE ETC WITH TH E 7 TRILLION IN US DOLLARS THAT THEY HOLD.  

2) DID YOU KNOW?!  THE CHINESE NOW OWN BOTH PORTS ON EITHER END OF THE PANAMA CANAL AND ARE FINANCING THE PANAMANIANS ON THE EXPANSION OF THE CANAL TO HANDEL OIL SUPER TANKERS

3)  DID YOU KNOW THAT YOU PAID FOR THE DISCOVERY OF THE LARGEST NEW OIL FIELDS EVER DISCOVERED WITH KNOWN RESERVES TWICE THAT OF ARABIA OFF THE COAST OF BRAZIL?    ( 4.7 BILLION US TAX DOLLARS AS A GRANT TOP THE BRAZILIAN GOVERNMENT)    DID YOU KNOW THAT THE CHINESE CAME BEHIND US 5 MONTHS AGO AND OUT BID US AND SIGNED 50 YEAR LEASES ON ALL THESE OIL FIELDS WITH THE BRAZILIANS.  NOW IT BECOMES CLEAR WHY THEY WANT THE PANAMA CANAL.  EH?   IN CASE YOU ARE FROM MARS OR DONT KNOW YOUR GEOGRAPHY, WHICH IS LIKELY IF YOU RECEIVED A US PUBLIC SCHOOL EDUCATION,  THE SUPER TANKERS IN THE ATLANTIC FROM THE NEW CHINESE OIL FIELDS WILL GO THROUGH THE NEW CHINESE PANAMA CANAL INTO THE PACIFIC AND OFF TO FUEL CHINESE FACTORIES HOMES AND CARS

4) DID YOU KNOW OR YOU LIKELY HEARD THAT RUSSIA, INDIA, CHINA AND AUSTRALIA NO LONGER TRADE BETWEEN THEMSELVES IN US DOLLARS ( THE CURRENCY OF INTERNATIONAL EXCHANGE.  THAT STOPPED 15 MONTHS AGO AND AUSTRALIA 3 MONTHS AGO.

5)  DID YOU KNOW THAT SAUDI ARABIA , IRAQ, YEMEN AS WELL AS A MAJORITY OF THE BOARD OF THE WORLD BANK INCLUDING  GEOGRE SOROS  HAS CALLED FOR THE US DOLLAR TO BE DROPPED AS THE CURRENCY OF INTERNATIONAL EXCHANGE.  YOU SAY A BIG........SO?!?!??!!

THE DAY THAT THIS HAPPENS,  THE US WILL HAVE TO BUY ALL OF ITS COMMODITIES ON THE INTERNATIONAL EXCHANGE IN THE NEW CURRENCY, LIKELY A BASKET OF CURRENCIES THAT INCLUDE THE REMBODO, THE YEN,  THE EURO AND THE RUBLE.  THAT MEANS WE HAVE TO TRADE OUR FUNNY MONEY WE HAVE BEEN PRINTING LIKE A FIEND FOR THE THE NEW CURRENCY TO BUY THINGS.  WITHIN 4 WEEKS YOU WILL SEE GAS QUADRUPLE IN PRICE.  YOU WILL SEE ALL IMPORTED GOODS SKYROCKET IN PRICE AND INFLATION ON THE SCALE OF ARGENTINA, VENEZUELA, AND OTHER COUNTRIES THAT HAVE FOLLOWED THE SAME PATH IN THE PAST THAT WE ARE FOLLOWING NOW.  MASSIVE AND PERVASIVE INFLATION THE LIKES OF WHICH WE NAVE NEVER SEEN.  IT IS COMING.  

AT THE CURRENT RATE OF GOVERNMENT SPENDING, THE TOTAL INCOME IN TAXES TO THE FEDERAL GOVERNMENT WILL NOT EVEN PAY THE INTEREST ON THE NATIONAL DEBT WITHOUT A DOLLAR LEFT OVER FOR DEFENSE, GOVERNMENT OPERATIONS, MEDICARE, SOCIAL SECURITY OR ANY OTHER PROGRAM!   THAT IS ONLY 16  YEARS AWAY AT THE CURRENT RATE OF SPENDING.

WAKE UP.  DONT  BE A DRIVE BY VOTER OR BELIEVE ALL YOU HEAR FROM THE POLITICIANS. THEY HAVE ONE GOAL.  GET ELECTED.   THEY WILL NOT TELL YOU THE TRUTH, THATS TO UGLY  AND DONT EXPECT A BROKE GOVERNMENT TO TAKE CARE OF YOU IN THE FUTURE, RETIREMENTS FUNDS? SOCIAL SECURITY?  A DREAM.   MEDICARE? OBAMACARE.  A WORSE PIPE DREAM THAT WILL END UP  KILLING  PEOPLE AND AT A HIGHER HEALTHCARE COST THAN NOW.

PREPARE FOR THE FUTURE.    HOW?  

THE STOCK MARKET IS PAPER.  I LIKE PROPERTY

1) GET OUT OF ALL SHORT TERM DEBT.  SACRIFICE YOUR STANDARD OF LIVING IF NECESSARY TO DO SO.

2) REFI YOUR HOME NOW IF YOU ARE PAYING MORE THAN 4.5 % IN INTEREST ON YOUR MORTGAGE

3) IF YOU ARE RENTING DO ALL YOU CAN TO BUY NOW AND LOCK IN ON LOW RATES.  LOOK FOR LEASE DEALS WHERE THE OWNER WILL OFFER OWNER  FINANCING FOR THREE TO FIVE YEARS WITH 40 % OR 30% DOWN.  MANY ARE DOING THAT TO MOVE REAL ESTATE SINCE BANKS ARE ST6ILL BEING STINGY WITH LOANS,.

4)  ALWAYS USE A PROFESSIONAL LIKE THE HARDCASTLE GROUP IN ALL YOUR REFI, OR SELLING OR PURCHASING NEEDS.  I HAVE BEEN IN THIS BUSINESS FOR30 YEARS AND KNOW THE PITFALLS SO YOU WONT FALL INTO THEM. AND LET ME TELL YOU.   SOUTH FLORIDA IS PARTICULARLY FILLED WITH CON ARTISTS, CROOKS MORE THAN HAPPY TO STEAL YOUR MONEY

Its OFFICIAL.... THE WORLD IS ENDING IN 2012

Just when you didn't think things could get any worse... famine,  war, terrorism, violence, abortion, political turmoil, recession, ( near depression)  unemployment,   HOUSING COLLAPSE, gang violence and drug addiction... IT JUST GOT WORSE...

It was announced this last month that one of Queen Elizabeths Corgies  " passed away". When I read this, I put down the jobs report in the Wall Street Journal and wept.  After a passing Nun, passed me a tissue,  I reflected through my tear stains  $9.88 readers from CVS Pharmacy  and read further of the anguish, pain and, Im sure growing ANGER and disbelief that this could have happened.  It died of OLD AGE!  My God!  Is there no mercy?!

All of you people who selfishly think about nothing more than your JOB or your shrinking opportunities under the current government better thank your lucky stars that you have it SO good and are NOT a Corgi and a DEAD ONE at that!

Sound Stupid?  I hope so,, But Im afraid that MOST Americans have become so stupid of the reality of our current economic and political situation, that some of them actually shed a tear in the last three paragraphs.   

For the rest of you,, PLEASE excuse me while I beg the 47% of the country that has DRUNK THE COOL AID  while likely watching HONEY BOO BOO on TIVO, that they are in danger of permanent stupidity and serfdom and the TIVO repossessed and flat screen as well.

This country is in SERIOUS trouble because we have a dumbed down doled out electorate that care more about milking the cow than letting it live.  The ME generation has come of age and they want a CHECK!

DONT BE STUPID... watch the world around you, study the trends, invest accordingly. .   Its really not rocket science.. Its responsibility and using your head and NOT just your heart and your stomach.

As my VERY smart Grandfather taught me... You have TWO EARS and ONE mouth... USE ACCORDINGLY.  LIsten twice as much as you talk.

God Save the Queen

These are the Times that Try Men's Souls (and create lunatics)

There are many that read this blog and take its advice that are truly perplexed at the current state of economic affairs in our nation.   

1) Should I invest in Real Estate?

2) Will the economy continue down its current spiral?

3) Should I be more liquid in my investments or lock in and tie my money up?

Lets take each one of those issues one at a time and I will give you my best, educated, highly intelligent opinion.   The fact that I have been a student of economics for 30 years and still do have my wits about me and two brain cells rubbing together,..... I should be able to give you a sensible answer.

Answer One:  Should you invest in Real Estate?   

Depends WHERE you want to invest, and for WHAT reason. I CAN tell you this and then you can make your own decision.  The Chinese, South Americans and smart North Americans I know are buying real estate investments with US dollars as quickly as possible.  Prices have never been this low as well as interest rates.   The NUMBER ONE MARKET IN THE US right now is MIAMI FLORIDA.  ( number two is TAMPA, FL)   We are seeing double digit gains in values in Miami just this year alone.  It has become a HOT SELLERS MARKET from a dismal BUYERS market in the last 12 months.  People who waited, have lost the BEST deals but there are STILL deals be had.  I myself have purchased two more condos in my own building in the last 9 months and both have already appreciated over 15%

Rents are also on the rise because inventory is now not keeping up with demand  Construction has begun again in Miami. But THOSE prices are SIGNIFICANTLY HIGHER and are being bought out by foreign investors with all cash.  The GOOD NEWS IS THAT IM LOCAL AND I KNOW WHERE THE GOOD DEALS STILL ARE!

Answer Two: Will the economy continue on its current spiral downward?

The quick answer is YES.  Until things change in Washington and especially the WHITE HOUSE, the current course will remain the CURRENT COURSE...  Higher inflation, lower growth, fewer jobs, more government and the taxes that go with it and fewer opportunities

My advice?    November is coming.  VOTE EARLY , VOTE OFTEN

Answer Three Should I stay liquid or tie money up?

Let me grab that answer by the short hairs and cut to it.  STAY LIQUID or in investments that are commodities based,  NOT in US companies trading in US dollars!   You will get hammered I believe in the near term if you do.  The dollar is sinking as quick as our national debt is rising.   But REAL STUFF.. like REAL estate, REAL oil, gas, gold, silver etc. have REAL value that float with the value of MONEY and the value of money.  If your dollar is eroded by inflation, THOSE commodities will cost more IN THOSE DOLLARS thereby protecting the value of your investment.

Want the best to help YOU in making the wisest real estate investments?  Then done fool around with amateurs.  The Hardcastle Group is NUMBER ONE on the beach in South Florida and California and stands ready to give you sound, dependable guidance.

Contact me.  24/7  Greg Hardcastle   800-614-6151  toll free.

BRAIN DROPPINGS FOR THE NEW YEAR FROM MIAMI

1. Do not argue with an idiot. He will drag you down to his level and beat you with experience.

2. The last thing I want to do is hurt you. But it's still on my list.

3. Light travels faster than sound. This is why some people appear bright until you hear them speak.

4. If I agreed with you, we'd both be wrong.

5. We never really grow up, we only learn how to act in public.

6. War does not determine who is right - only who is left..

7. Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.

8. Evening news is where they begin with 'Good Evening,' and then proceed to tell you why it isn't.

9. To steal ideas from one person is plagiarism. To steal from many is congress

10. A bus station is where a bus stops. A train station is where a train stops. On my desk, I have a work station.

11. I thought I wanted a career. Turns out I just wanted paychecks.

12. Whenever I fill out an application, in the part that says, 'In case of emergency, notify:' I put 'DOCTOR.'

13. I didn't say it was your fault, I said I was blaming you.

14. Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.

15. Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.

16. A clear conscience is the sign of a fuzzy memory.

17. You do not need a parachute to skydive. You only need a parachute to skydive twice.

18. Money can't buy happiness, but it sure makes misery easier to live with.

19. There's a fine line between cuddling and holding someone down so they can't get away.

20. I used to be indecisive. Now I'm not so sure.

21. You're never too old to learn something stupid.

22. To be sure of hitting the target, shoot first and call whatever you hit the target.

23. Nostalgia isn't what it used to be.

24. Change is inevitable, except from a vending machine.

25. Going to church doesn't make you a MORAL PERSON any more than standing in a garage makes you a car.

26. Where there's a will, there's relatives.

NOTE When you take from ONE source, its plagiarism... When you take from 26.... ( See above) Its RESEARCH!!!!!!!

If you want a team that knows all 26 of these truisms, but also is THE leader in luxury beach sales and leasing in all of South Florida.... Call the HARDCASTLE GROUP AT 800-614-6151

BRAIN DROPPINGS FROM SOUTH FLORIDA

1. Do not argue with an idiot. He will drag you down to his level and beat you with experience.

2. The last thing I want to do is hurt you. But it's still on my list.

3. Light travels faster than sound. This is why some people appear bright until you hear them speak.

4. If I agreed with you, we'd both be wrong.

5. We never really grow up, we only learn how to act in public.

6. War does not determine who is right - only who is left..

7. Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.

8. Evening news is where they begin with 'Good Evening,' and then proceed to tell you why it isn't.

9. To steal ideas from one person is plagiarism. To steal from many is congress

10. A bus station is where a bus stops. A train station is where a train stops. On my desk, I have a work station.

11. I thought I wanted a career. Turns out I just wanted paychecks.

12. Whenever I fill out an application, in the part that says, 'In case of emergency, notify:' I put 'DOCTOR.'

13. I didn't say it was your fault, I said I was blaming you.

14. Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.

15. Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.

16. A clear conscience is the sign of a fuzzy memory.

17. You do not need a parachute to skydive. You only need a parachute to skydive twice.

18. Money can't buy happiness, but it sure makes misery easier to live with.

19. There's a fine line between cuddling and holding someone down so they can't get away.

20. I used to be indecisive. Now I'm not so sure.

21. You're never too old to learn something stupid.

22. To be sure of hitting the target, shoot first and call whatever you hit the target.

23. Nostalgia isn't what it used to be.

24. Change is inevitable, except from a vending machine.

25. Going to church doesn't make you a MORAL PERSON any more than standing in a garage makes you a car.

26. Where there's a will, there's relatives.

NOTE When you take from ONE source, its plagiarism... When you take from 26.... ( See above) Its RESEARCH!!!!!!!

If you want a team that knows all 26 of these truisms, but also is THE leader in luxury beach sales and leasing in all of South Florida.... Call the HARDCASTLE GROUP AT 800-614-6151

WHO DO WE BLAME FOR ALL THE SPENDING?

(After all,.... non of US are responsible!!!!?!!,,, I want names!)

U.S. debt surpasses GDP NOW WE ARE OFFICIALLY GREECE!!!!! GET OUT THE BAKLAVA!! Lets Celebrate and throw all of Nancy Reagan's White House China in the Fire Place.... OOPPAA! WHO IS THE BIG SPENDER HERE? Ok so the President says that the 1% of you out there are KILLING and EATING the CHILDREN of the rest of the 99% of us...out THERE..... That cant be such a huge list! Lets get all the names and put them in CAMPS so that they cant hurt us like the Japanese Americans would have in WW11. We put THEM in camps and stole all thier money and their businesses for the 99%.. Why not those 1% people that are so EVIL ( Well... they ARE paying 52% of all tax revenues to Uncle Sam) BUT THATS JUST CONFUSING THINGS!!!! INCONVENIENT FACTS Compensation on Wall Street is set to be the lowest since 2008, when the financial crisis hit. According to people familiar with the situation, compensation for most of Goldman Sachs' approximately 400 partners will fall at least in half from 2010 (though that still amounts to more than $3 million per person). And pay for Goldman's fixed-income trading division could see compensation fall by 60%, with some people receiving no bonus at all. Morgan Stanley is expected to cut bonuses for some investment bankers and traders by 30%-40%. These compensation cuts are after banks made plans to slash more than 200,000 jobs over the next few years. WHAT ABOUT THE PRESIDENTS "COMMUNITY ORGANIZER" BUDDIES? Steve Rattner, an Obama CZAR spoke last month at the Detroit Economic Club, a nonpartisan organization that hosts public-policy discussions. To promote that appearance, Rattner agreed to an interview with local radio personality Frank Beckmann… The host opened the interview by asking if Rattner stepped down from his White House post in anticipation of the Security and Exchange Commission's (SEC) suit that would later allege a kickback scheme involving Rattner's private-equity firm. Things did not go well… I won't ruin the surprise, but the fireworks are well-worth listening to the interview posted to the WJR talk radio station website… Obama is not just a SOCIALIST.. HE IS A CRONY CAPITALIST/SOCIALIST... that actually in scientific economic circles is known as STATE FACISISM ( You know... TO BIG TO FAIL BUSINESSES in bed with the REGIME in power. (* See: NAZI GERMANY 1933-1945) This man was personally implicated in bribing New York state pension officials (but hasn't been indicted yet). He made close to $500 million via his private-equity fund (Quadrangle), while his investors underperformed municipal bonds. This guy lives in a $15 million home on Martha's Vineyard and in the same Fifth Avenue apartment building as George Soros. This is a guy who flies his own plane… whose wife is the leading fundraiser for the Democratic Party. This is Arthur Sulzberger Jr. and Michael Bloomberg's best friend. And Barry Diller's. This guy spent his entire life in the rarified world of Ivy League colleges, investment banks, and New York City's most elite social circles. And yet… even with all of these advantages, he ended up accused of bribing New York State pension officials to get them to invest with his private-equity firm. (By the way… I have to hand it to OBAMA! on appointing Rattner as the "car czar." OBAMA! knew about the corruption charges, and he appointed Rattner to restructure General Motors anyway. After all, who better to steal from bondholders than a crook?) And now, Rattner was going to lecture us, the great unwashed, about "income inequality." It was simply unbearable… After spending about 20 minutes congratulating himself on the bailout of GM (which cost taxpayers roughly $80 billion and bondholders roughly $27 billion), Rattner put up a chart he seemed to believe indicated rich people in America were making far too much money. ( NOTE) Rattner ended up settling his SEC case for $6.2 million, a pittance for the billionaire. He was also banned from "associating with any investment advisor or broker dealer" for two years. And as his appearance with Frank Beckmann makes clear… he doesn't want to talk about it. ELECTIONS MATTER... TODAYS LESSON No more needs to be said on this subject.. If you dont get it... Call 911.. you have no brain waves. SURE DEAL FOR TODAY Letting Hardcastle Group steer you with our extensive knowledge of Real Estate Investment, sales, purchases and management so you dont end up as a sorry news story on someone else's BLOG. Give us a call. 800-614-6151

An Idiot’s Guide to Next Financial Bubble Burst

Why is the Financial Crisis in Europe so important to us here in the US? Who needs those pesky Europeans, right? Well... besides the fact that over 22% of everything we export overseas is BOUGHT in Europe, and the fact that..... .. ok.. lets just stop there. 22% is reason enough to sit up and listen.

The European Union is an economic and political institution forged over decades, sealed with a treaty in 1993 but only, truly made real in 2002, when most of the current member states dropped their currency in favor of the common euro. For centuries a breeding ground for war and imperialism, Western Europe had bound itself together in peace and apparent prosperity, with a supranational government all its own to be quartered in Brussels.

Things have changed. While most major banks remain multinational (with interests around the world) their errors — some would say crimes — have brought renewed focus on the sovereign state. Today, Greece, Italy, Ireland, Portugal and Spain are on the edge of default, the euro zone nations have a new catchphrase: “Exposure.” As in, how much “exposure” do our banks have to the bad debt held by yours. This is the least you should know.

Why are these nations in debt? Like any state (or person, for that matter) it spent more money than it took in. Sound familiar? Sounds like the good ole' US of A to me!!

Traditionally, but especially, after switching over to the euro, these nations' governments paid out huge amounts of cash they simply did not have. To compound this, the retirement age there is low by modern Western standards, and benefits are generous. Public sector employees are well paid. Sounds good, right? So when the money ran out, these nations have turned to European banks for loans. Soon, these governments were... AND ARE.... borrowing hundreds of billions and those debts, like subprime mortgages in the United States, are toxic and insolvent.

Just like here, European banks will take 50 cents for every dollar owed to them by these nations' governments. In exchange, these countries must impose what many have described as a crushing austerity. That means no more early retirement, reduced pay for public workers (the ones who manage to keep their jobs), large-scale cuts to social programs, and a staggered repayment of the reduced debt.

There have been riots in cities across Europe by thousands who want their cake, pie, STEAK, seconds, valet parking... and Eat it too! EVERYBODY WANTS SOMETHING FOR NOTHING... or I should say. They dont want to PAY for what they HAVE received and continue to wish for.

What will happen if Greece or any of these other EU nations default on its foreign debt?

The first thing you would notice is a massive drop in stock markets from the U.S. to Japan, and all across Europe.

German banks, and maybe French too, would need massive bailouts. The prospect of those defaults in other debt-ridden countries could cause a run on the banks. Even more money would leave the market. And when money leaves the market, demand drops. When demand drops, economies go in the crapper.

It is for this reason, you are seeing the US work through the IMF to prop up these European banks with...YES... PRINTED MONEY... from our ever printing, never stopping, dollar presses in the basement of the Treasury Department. (15 trillion and counting........)

My prediction? All of these measures are fingers in the dike stop gap moves. They have not even begun to address the REAL problem.. and that is the enormous FLOOD behind the dike wall that is not likely to go away any time soon.

And what is that flood? To much debt. To much government, to much spending, the politicization of economic fundamentals and the violation of those economic fundamentals. Lets simply say that 1 - 1 = ZERO and always WILL equal ZERO no matter what your local politician says. And when you blow hot air into a balloon... at some point, if you dont stop.. IT WILL BURST.

A Sea of Trouble

With all the negative in the news lately, I decided to add a little "lightness" to your day in this blog. Not ALL of life is about economics and real estate......well... IT SHOULD BE.. but its not ENJOY

Great truths about life that adults have learned

Raising teen-agers is like nailing Jell-O to a tree.

There is always a lot to be thankful for, if you take the time to look. For

example, I'm sitting here thinking how nice it is that wrinkles don't hurt.

One reason to smile is that every seven minutes of every day, someone in an

aerobics class pulls a hamstring.

Car sickness is the feeling you get when the monthly payment is due.

The best way to keep kids at home is to make a pleasant atmosphere - and let

the air out of their tires.

Families are like fudge...mostly sweet, with a few nuts.

Today's mighty oak is just yesterday's nut that held its ground.

Middle age is when you choose your cereal for the fiber, not the toy.

My mind not only wanders; sometimes it leaves completely.

If you can remain calm, you just don't have all the facts.

New Year, New Opportunities

The new year 2011 will bring many new opportunities in Real Estate Investment. The pitfalls will be equal to the opportunities.

2010 will always be considered the bottom of the real estate market since the Great Depression. Not since the 1930's have we seen the same levels of depreciation of prices or the number of defaults and foreclosures. During the last quarter of 2010, a modest turn in the level of decline of values and the number of home sales has turned.

In the South Florida market, we have experienced the highest level of closed sales in the last 4 years starting in July of this last year. While prices have dipped on average by 45-60%, depending upon location, the number of sales has jumped over 120% over last years levels. That has virtually stopped the slide in values and in some cases has led to some bidding wars among investors on the best deals. Short Sales and Foreclosure sales still outnumber the resales in the market but this number is quickly declining.

Pressure on interest rates and the weakening dollar are putting people back into the market as well to grab the best mortgage deals before they are gone. AND they WILL be gone within 18 months at the outside. It is inevitable. The fox is already in the coop. The fox is the massive dollar printing that took place in the last 20 months by the Federal reserve and there is no pulling that back in. Those dollars are in the market place and at some point, will come home to wage an inflation war on the US. Be prepared.

Real Estate and commodities, especially those pegged in US currency will be a good hedge against the devaluing of your cash position. But debt will not be your friend by any stretch if you are holding short term adjustable interest debt. You are sitting on a time bomb that you MUST get rid of or be seriously hurt. Dont ignore this warning. It will be to your peril.

WHICH WAY AMERICA?

Its not often that I talk about politics in this blog. Real Estate investment strategies are the core of the discussion here. However, 27 days from now, Americans will go to the polls. And in this election, I cannot think of another moment in my lifetime where the people of this country have a clearer choice. It is a choice that will determine what kind of country and what lifestyle my children and grandchildren will live in.

I am firmly convinced that there are forces at work to destroy the "American Experiment" that was based on limited government, self reliance, self initiative and the belief that as Jefferson said, "THE GOVERNMENT THAT GOVERNS LEAST GOVERNS BEST" In the last 18 months, a larger percentage of our national GNP has been nationalized by the federal government than has been nationalized by Marxist Hugo Chavez in Venevuela in the last 8 years! That is truly frightening.

The government has printed almost three times the amount of money that was in total circulaton just 2 years ago to buy our own debt with our own FUNNY MONEY. The ONLY reason that inflation has not taken over like a wild fire is that so many Americans are under water in their mortgages. That means they have no credit to go out and spend. Corporations are holding over 1.6 trillion in cash reserves and are not investing in new plant and hires because of the uncertainty of what new regulations or taxes this out of control government will do next. BANKS are hold reserves of over 1.8 trillion but are not lending.

But when the moment comes in the psychology of the nation that makes people feel they better spend it or lose it.....WATCH OUT! It will hit us like a train in the night and there will be no stopping it. There is NO EXIT PLAN by the FED in printing all this cash and all they have done is to delay the pain so that it is MUCH WORSE later on.

Invest? Gold, Coal, Euro Bonds, and seriously devalued real estate that is income producing are your best bets for the future. I believe that real estate values will sink another 20% unless the foreclosure and credit markets resolve. LENDING is the key to real estate sales and LENDING is locked up. If you are an all cash buyer, you are in luck. There are tremendous deals out there that I believe will see great gains as inflation takes over. Stocks? NO WAY... inflation will kill recovery and joblessness will rise affecting any consumer related corporation. But, everyone needs a place to live. Many who own now... will be RENTING in the future.

Real Estate and Ethics DO Mix

LETS TALK ABOUT RIGHT AND WRONG.......
Most people dont want to talk about the subject of what is right and wrong in this day and age of "situational ethics" translate.. "I dont HAVE and ethics....",

So what does that have to do with Real Estate, Specifically it has to do with the melt down in the Real Estate Markets and the correpsonding meltdown in the Financial markets. The core cause of which is the meltdown in the ethics of INDIVIDUALS making UNethical business decisions. AND, YOU may be one of them. Dont think so? Read on.

Not all, but SOME, Wall Street, Main Street and the Mortgage Lending offices along with the Real Estate office and the Brokers that run them. There is a Commandment in THE Ten commandments that is oftren overlooked. We like to focus in on...murder.....adultery......idol worship....and all the "really bad stuff". But there is one fatal sin that is equal to them all.. COVETING. It manifests itself in people wanting more than they can afford, more than they are due and the jealousy that today we like to call... " SOCIAL JUSTICE" . Because Bill and Mary Sue have a big house., then I AM OWED a big house too. Never mind that Im a complete idiot and cant even remember to make the Newspaper payment on time.

Our all knowing and ALL wise government ORDERED Frannie Mae and Freddie Mac to make honme owernership the RIGHT of ALL Americans. Never mind that SOME Americans cant hold down a job, pay thier bills on time and would rather light up than clock in. But that doesnt matter. What Americans covet.. they MUST have and the Banks and brokers hungry for commissions were more than willing to step up to the plate with exotic derivatives and financing schemes that not even a super computer at the NSA could figure out.

Its all about PRIDE and wanting to be and have something that you are NOT. Its also the good book that says.. PRIDE goes before a FALL. And BOY aint it so!

CHAPTER TWO OF THE FALL.....
In comes that all knowing ALL helping hand of government ( looking for votes) to let people step away from their commitments and contracts and DEFAULT on thier mortgages simply because the game changed and the investment that they had BIG EYES for isnt so big anymore. Never mind that someone else bought thier commitment and depends on them making that payment. You have enough people that skip out on their contractural commitments and the entire financial system goes into free fall. IN COMES THE government again.. This time we call it a BAIL OUT.. Compliments of the Chinese government and funny money printed somewhere in a dark basement of the Federal Reserve in Washington D.C. This year 1.8 trillion of those dollars to be exact. If I were Chinese I would be worried that the 2.7 trillion in US Treasury notes that I have purchased will only be good for papering the bathrooms of about a billion screaming red hot mad Chinamen when they find out that the US notes they are holding are about as valuable as a roll of USED Charmin.toilet paper. And sadly.. its true.

I recently counseled a young man that was upside down in his mortgage to stick it out and not to fall into the trap that so many have. He was advised by an attorney to default on his mortgage in the hopes that the bank would work with him on a Loan Modification. After ruining his good credit, the bank has yet to offer him a toaster or a nifty bank calendar much less a loan modification.

POINT? Im going to type this in BIG letters for those of you that have half your brain tied behind your back..... IF YOU CAN PAY THE MORTGAGE ON YOUR HOME...PAY IT.. DO THE RIGHT THING AND EXPECT RIGHT THINGS TO COME BACK TO YOU. Just because the commitment you made earlier is not working out as your planned does not release you from your ethical obligation to be a man....or woman of your word. Honoring your word is more important than keeping home equity. Are you an honest person ONLY when it doesnt cost you money?

Case in point..... Man walks up to cute girl and asks her. If I give you a Million dollars will you sleep with me? She says, Are you serious? A million dollars? Wow,, I guess so. Sure. He then says.. Ok how about ten bucks. She says.. HEY! What do you take me for? He says.. We already established that. Im just trying to get to a price.

Not to toot my horn, but I have a condo on the beach in South Florida that I paid $360,000 for. Its now worth about $250,000 The Loan is $270,000 I have faithfully made the payments. In fact, I havent even applied for a Loan Modifcation. Bottom line, Chase bank in the last three months, modified my loan by reducing my principle by $110,000 and dropped my interest rate to 4.8 percent on a 15 year amortization. It dropped my payments by $900 a month. It DOES pay to do the right thing. And WHY did they give me the modificaiton? THIER answer. CLEAN credit, High FICO score, Never late on a payment, LOW risk for the bank. END OF BLOG...ENOUGH SAID

CONGRESS GO HOME!

Business needs STABILITY and a constant and level playing field plus rules to flourish. If anything, the current REGIME in power in Washington has all the business experience and expertise of my 5 year old Shiz Tsu. At least my dog understands the concept of performance equals REWARD... A CAPITALIST idea by the way.

The only way that this economy and the Real Estate industry that is ESSENTIAL to the recovery, will recover is if Congress will adjourn for..... oh lets say.... TWO YEARS. NO laws would be preferable to the lunacy of laws that have been enacted into law in the last 18 months.

Is this about a political party? No. Is this about a candidate? No! Its about common sense and the correct decisions that must be made to make America the business capitol of the world. How is it that the Chinese of all people.. Yeah,, the COMMUNIST Chinese, are eating our lunch right now. Because they tried what we are now trying for 50 years and the people ended up living on dirt floors and choking to death on dirty factory smoke making shovels for the masses that no body needed. ( Central Planning) Now you go to China and it looks like Times Square plus 100 on a great shopping day.. Amazing wealth generation and capital accumulation..

Here is how it works.

1) Make more than you spend
2) Dont spend more than you make
3) People must WORK to have want they want,, no free rides
4) Plan for the future,, not for tomorrow
5) Strong Families , moral codes of conduct in society that are strictly enforced.

Now,, do I want to live in as Fascist State like China? No. And make no mistake. China is no more "communist" than my Shiz Tsu is a Kensian Economist.... It is a fascist state.

But there are things we must learn and learn fast, if it is not already to late. STOP THE SPENDING.... Reign in government and regulation. FREE the market.

And oh yeah,, do that,, and watch your home values start to rise, foreclosures fall off and construction begin again.

America has always been a land that is about FREEDOM. Free Enterprise is just that. And if you over regulate and over tax and actually VILIFY private enterprise.. It WILL go elsewhere. AND,, it is. This administration has pulled the welcome mat out for business both foreign and domestic to continue to do business here. And seriously, would YOU want to invest your money in this country right now with a government in power, that is intent on raising taxes at every level, requiring your company to provide every increasingly expensive benefits to employees,,even PART TIME employees. Taxing everying from internet sales to proposing taxing THE AIR in the Cap and Trade bill the President is set on passing.

Someone needs to steal the car keys of all the elected officials in D.C. and change the locks on the offices. SOMEONE put something in the Kool Aid and THEY DRANK IT!

TO DEFAULT OR NOT TO DEFAULT....THAT IS THE QUESTION

Underwater Homeowners are considering the NUCLEAR OPTION in dealing with the housing bubble crises that continues across the nation and here in South Florida.

Some owners are asking the question, " Why keep putting money into a house or condeo thats going down in value? This is a question that is being debated in many households.

Let me shed some LIGHT on the subject. Why should you keep paying that mortgage?

(1) A Moral Obligation to do so.

Even though walking away from a mortgage could be a temporary good "business" decsion, one must weigh the moral considerations. You signed a contract with another person or party that gave you money that DID NOT BELONG TO YOU, with the promise of you paying it back. Just because that decision is no longer making you more equity is still not a right or morally correct decision to walk away from that contract. When you do walk away, you are leaving those people holding YOUR bag. Fair? No. Hard to justify? YES Remember that you are teaching by doing to your children and those that watch YOUR business ethics and actions. What may seem like an easy out today, WILL at some point catch up with you.

(2) The Lender is likely to collect

Borrowers have to weigh the practical considerations of so called strategic default, They risk being sued by the lender for theunpaid mortgage balance for up to 20 years!

(3) Destruction of your Credit

Those that default on mortgages suffer huge hits to thier credit rating. It will make it difficult, if not impossible to get car loans, credit cards, store credit or good car insurance rates. It can also affect FUTURE employment years down the road when a potential employer pulls your credit history and sees your default. Those that take this option see credit scores drop by 200-300 points. These defaults will stay on your record for at least 10 years. and you will be unable to get another mortgage for at least three years.

(4) IRS Liability

Remember that GREEDY and BROKE Uncle Sam will come looking for you. If lenders forgive the mortgage debt, borrowers who walk away will be required to pay income tax on the forgiven amount!!!

The bottom line to all of this is that a mortgage is a contract that your signed agreeing to pay the money back. If you break that contract a house of cards will fall on you big time. There is NO EASY OUT. Some say that the banks deserve it and that they are the ones that caused this entire mess. Thats only partially true. Lets remember who caused this.

1) The politicians that YOU elected and continue to hold unaccountable for wild speculative borrowing practices FORCED on the banks and lenders so that people who had NO CREDIT and no history of sound financial management could own a home.

2) The loan YOU signed for and possibly fudged on your application to get that loan.

3) The fact that YOU had eyes bigger than your stomach in wanting more than you could afford

4) The fact that YOU ran with the crowd believing that the housing prices would continue to skyrocket and make YOU lots of money...And now that REALITY has set in,.... you blame someone else or a bank for your poor money decision. Own up, straighten up, Shut up.. AND PAY UP!

THE CLOCK IS TICKING AND I TOLD YOU SO!

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U.S. mortgage rates rose in the latest week for a fourth straight week and hit the highest level since August, a closely watched mortgage survey showed on Thursday.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 5.14 percent for the week ended Dec. 31, the highest since the week ending Aug. 27 and up from the previous week's 5.05 percent, according to a survey released by Freddie Mac, the second-largest U.S. mortgage finance company.

"Although long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Based on today's median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000, Nothaft said .

"This translates into almost 50 percent less in interest payments over the full 30-year term," he said.

The rate of the latest week tops that of the year-ago period when the 30-year mortgage rates averaged 5.10 percent.

The 30-year rate had fallen to 4.71 percent four weeks ago, the lowest since Freddie Mac started the survey in 1971.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

Freddie Mac said the 15-year fixed-rate mortgage averaged 4.54 percent in the latest week, up from 4.45 percent the prior week.

The Mortgage Bankers Association last week said U.S. mortgage applications fell in its most recent survey.

One-year adjustable-rate mortgages (ARMs) were 4.33 percent in the latest week, down from 4.38 percent the prior week. The rate on the "5/1" ARM, set at a fixed rate for five years and adjustable each following year, was 4.44 percent, compared with 4.40 percent a week earlier.

HOUSING RECOVERY CONTINUES

South Florida home sales continue to register strong gains!  roughly 3/4 of the properties being sold are priced at less than $300,000.

Sales of existing homes were up  26 percent in Miami Dade County and 32 percent in Broward from a  year ago.  Condo sales exceeded single family home sales in October.    In Miami Dade, sales were up 47 percent from a year ago and in Broward, they were up 68 percent.  Dade rose 5 percent in month to month sales from last month.  The national increase in home sales rose 10 percent  from September to October.

Here is a break down of the current inventory of homes and condos in Miami Dade

• Under $100,000   Four Month Supply
• Under $300,000   Eight Month Supply
• $300,00 to $1 M   21 Month Supply
• $1M and over      Four year Supply

One of the reasons for these gains is the extension of the one time home buyer credit of $8000. In addtion,  interest rates are at the their lowest level on record.  This last month the Treasury sold  $30 Billion in T bills at a rate of .040 percent.  That is the lowest level ever.  That translates into a 30 year fixed home loan rate of about 4.74 percent!!!!!!

This is bad news for savings accounts, but good news for home borrowers.  But this will NOT last.  This is the lull before a major storm.  The Fed is spending TRILLIONS that it does not have.  The are borrowing and PRINTING money.  That WILL come home to roost in the form of high inflation and of course HIGH interest rates to try to control it.   Real Estate is traditionally a good investment hedge against inflation. If you dont have a fixed rate low interest rate loan yet.  DO IT NOW. DONT WAIT!!  or you will be sorry!

For Americans,  This is a two edge sword.   Foreign buyers are snapping up the best deals right now with stronger currencies.  Americans are still facing decreased equity,  lost jobs, high unemployment and a government out of control with spending.  That is the current model.. In an inflationary model,  our home prices WILL rise for sure,, but so will our borrowing costs.  Foreigners will be still be able to walk in with more valuable currency exchange rates and purchase.  If you can purchase now,  I would.  There are GREAT deals out there right now.. AND  the rental market is starting to improve.  Hold and Lease if necessary.

RECOVERY ON THE HORIZON

A housing recovery is fulling in the works. The average price of a home in Miami Dade County has risen by an average of 1.5% each month for the last three months. This includes Condominiums, which have suffered the largest declines in value due to overbuilding.

The nexus of shrinking inventory, the extension of the home buyers credit by Congress, the continued low interest rates and spector of inflation not far on the horizon, have all combined to put a larger number of buyers in the market.

In the Beach front condo market, the largest group of investors continues to be all cash buyers from off shore. Miami is now the cheapest of the largest Latin American cities. That couldnt be said just a few short months ago. Now Miami is a bargain for buyers compared to Buenos Aires, Rio De Janerio and other destination cites.

Real Estate also continues to be a hedge against inflation. The price of gold and other precious metal commodites have truly outstripped the cost benefit ratio that still exists in Real Property. In times past, as will be in the future. Land and Property are a hedge against a falling dollar and a tax haven for write offs, especially if it a rental property.

I keep saying it, but NOW is the time to jump in. The very best of the very best deals are already gone.. But there are still great bargains to be had... DONT miss out.. The best time to make money is when the market is DOWN,, not UP... People get that wrong all the time. Band wagons in investments like stocks and yes, real estate, are usually headed over a cliff if there are to many people jumping on... The market is swinging.. All in the indicators are that the bottm has been reached and the time is now to buy in.