(Epic Economist)—There was a time when the American dream included home ownership, but that dream has now become a nightmare for many. That’s because millions of Americans are going to see their home equity being wiped out by the imminent housing collapse.
A report from credit analytics firm TransUnion found that the average U.S. household is struggling to keep up with near 8% mortgage rates, and many are already losing their properties as they get underwater on their mortgage loans.
On top of that, with buyers priced out and more sellers slashing their prices to sell properties before the end of 2023, many major cities are already seeing double-digit quarterly declines, such as San Francisco, where home prices came down by as much as 15% in the third quarter, as well as Seattle, and Austin, which reported a respective drop of 12% and 11% drop during the same period.
The red flags of a housing crash are becoming more apparent. If you’re new to our channel, thank you for joining us. Today, we will break down the latest data on the real estate market meltdown. And if you’re a regular here, thank you for your support. We have a lot to cover today, so we hope you’re prepared to hear this.
Over the past couple of weeks, major signs of distress emerged in the U.S. housing market, leading experts to worry about where we’re headed. Fortune said that the market is starting to “crack,” while Wells Fargo economists predicted a real estate recession due to rising mortgage rates.
To put it simply, between the high cost of the home and the elevated interest payments, many Americans simply can’t afford to purchase a new home anymore. As a result, sellers are slashing their listing prices right now. Redfin’s most recent housing market update indicates that approximately 1 in 15 U.S. homes on the market decreased in price in the past quarter. Compared to the same period in prior years, this is an alarmingly high rate.
To make things even worse, more than one in 10 homes bought in the past year are worth less than what owners owe on their mortgage. That’s what the new report released by real estate data firm Black Knight shows. About 11% of people who borrowed to buy homes in 2022 now owe more than the properties are worth, a figure that has steadily climbed since the start of 2023.
Moreover, more than one out of every four buyers who purchased a home in the 11 months of 2023 have properties worth less than the loans on them, meaning that they are already underwater on their mortgages and at risk of being foreclosed. That’s a very worrying development. Rising delinquency rates are an indication that conditions will get even more chaotic because once a mortgage payment is more than 90 days overdue, the threat of foreclosure becomes imminent. It is feared hundreds of thousands of Americans could be impacted by foreclosure in December.
The credit crisis can also play a major role as more expensive borrowing costs could further reduce the affordability of homes. When access to credit becomes more restricted, it can impact the number of potential buyers, and slow down property sales. In addition, global economic events, such as ongoing geopolitical conflicts, China’s economic downturn, and global food shortages can spill over into local property markets, affecting investor sentiment and confidence.
Ultimately, the coming housing crash will destroy the wealth many hard-working families took decades to build. And that’s the saddest part of this crisis because we can already see the slow-motion train wreck happening before our eyes. But the Federal Reserve and the federal government are still going to let it happen. It’s only by taking the equity of the bottom 90% of Americans that they will be able to stop the bleeding caused by the trillions of printed dollars that they pumped into the economy since 2020.
Don’t be mistaken. This is a man-made disaster. They want you to lose everything you worked for so that they can bring inflation down again.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
“To make things even worse, more than one in 10 homes bought in the past year are worth less than what owners owe on their mortgage.”
OF COURSE, that is what Catherine Austin Fitts (solari DOT com) has been saying for two to three years or more now — what the fellow at the link below outlines — — and it isn’t to bring inflation down, oh gullible one — — it is to destroy us!
https : //www DOT brighteon DOT com/786bdc7c-d27e-4fe4-b203-beebd276da5e