Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
Those that understand what is happening are stocking up on food, guns, ammo, and a place to keep them because they know that there could be a collapse of law and order, in addition to a collapse of the economy. I don't expect that to happen in rural areas, but it doesn't take much in cities for people to act like animals. Look at what happened after Katrina. RIDICULOUS!
Every generation but ours has been involved in great hardship. Our time is up!
Manhattan, NY · Member since 2008 · 801 posts · 61 votes
17y
In all seriousness, no there is no need to go to extreme measures.
Being prepared is a good thing and considering where I live we tend to get ice storms in the winter, I do tend to stock up a bit as winter approaches.
I don't think we are going into a depression. I don't think there is a need to "stock up" on guns and ammo. I do think every responsible citizen owes it to their neighbors to be armed and ready the way the framers of the Constitution intended. Read into that what you will.
If I thought for a moment we were really headed for a depression I would try to immediately dump all of my property for whatever cash I could get. The ones I couldn't sell I would stop making payments on and just walk away. Then I would pay off all of my debts and mortgages on the houses we spend our time in and convert half of the remaining cash into hard currency. Most likely gold coins and secure them where I had ready access no matter what happens. Then the balance of the cash would be in 5's, 10's and 20's and stored again where I had ready access no matter what.
But, since I don't think a depression will happen and our society is not about to break down, I am still buying properties not disposing of them and keeping my cash securely in banks and brokerages.
Anyone chanting the end of our financial system is near while still holding an asset like real estate or stocks is just blowing smoke.
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
17y
Originally posted by Dave Kennedy:
Is this for real?
Maybe I am young (25) and naive but this seems like drastic overeaction.
YES! It is for real.
I am not a whole lot older than you, but I have studied the Great Depression in long detail - not only in the textbooks but through the family history.
For example, my father rarely had milk or cream in his bottle as a baby - he had black coffee. Coffee was much cheaper than milk, especially watered down, even years after the crash of '29. He is 70.
The 'experts' are saying this is the worst or second worst situation we have ever faced as a country. That means we will be somewhere from 'almost as bad' to 'worse' than the Great Depression.
I am a "glass is half full kind" of guy and always look for the silver lining. Having said that, I am also a "plan for the worst, hope for the best" kind of guy. I am buying lots and lots of extra food. I have not yet bought a safe, a new gun, or any ammo (at least not since last hunting season).
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
17y
Originally posted by Jason F:
Honestly, is this just a personal observation or is this from a report/market indicator?
This is for real. It is breaking news, so there is not a lot about it out there yet (you heard it here first on BP) - stay tuned and it will hit the mainstream.
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
17y
Here is another article from BBC World News (yeah, I know, we have to look to England for breaking news in America):
Washington diary: Trust lost
I will post more if I run across them. I read a lot of news sites - mostly on the internet. I try to stay clear of the blogs and the radicals, although some would say that is what the mainstream press has become. :D
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
I'll bet they thought it was laughable just before every other catastrophe in history. Unfortunately, it is not laughable. We are in a period of great uncertainty and if the economy really does collapse now, all bets are off.
When it becomes apparent that we can't afford to give handouts to all the deadbeats in this country, what do you think will happen? The FED can only print so many dollars before the dollar will collapse. Ever see pictures with a wheelbarrow load of money going to the grocery?
This is certainly not a time to panic. However, it is a time to be prepared! Having some extra food is a great idea. Having some gold is a great idea. Having a gun and some ammo is a great idea. What's that boy scout motto?
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
17y
I am going to have to agree with Michael on this one.
I view the bailout passing as a little extra padding - a little more time - to prepare for the worst, while continuing to follow the advice of people who have exactly what I want, to hope for the best.
I'd like to think we learn from our past mistakes. But that doesn't seem to be the case, or we wouldn't be having a bailout thread going.
Just this week, through well written articles with good analogies, I am finally starting to get a grasp on how serious it is.
I remember last week having the gun conversation at beach volleyball, and one of them mentioned hearing about military troops being organized for possible deployment in US locations.
That's not laughable, well, maybe a little.
Originally posted by Michael Rossi:
I seriously doubt with every bone in my body we need to be stocking up on guns, ammo, food, safes...etc.
It's almost laughable
I'll bet they thought it was laughable just before every other catastrophe in history. Unfortunately, it is not laughable. We are in a period of great uncertainty and if the economy really does collapse now, all bets are off.
When it becomes apparent that we can't afford to give handouts to all the deadbeats in this country, what do you think will happen? The FED can only print so many dollars before the dollar will collapse. Ever see pictures with a wheelbarrow load of money going to the grocery?
This is certainly not a time to panic. However, it is a time to be prepared! Having some extra food is a great idea. Having some gold is a great idea. Having a gun and some ammo is a great idea. What's that boy scout motto?
Real Estate Investor · San Antonio, TX · Member since 2008 · 553 posts · 20 votes
17y
Doesn't this make the US a socialist country?
Anyway you look at it this bill fundamentally changes the foundation of America.
It remains to be seen what the future implications of this will be. Personally I think we will be spending the euro in 5-10 years. There will be a formally regulated global economy possibly Government in 10-20 easy.
from anouther post;
"Socialist - yes, parts of the economy are now being socialized. It's a disaster and only a complete collapse will allow us to get this country back on track.
Mike"
On one hand I consider Sweden and Norway they are socialist and not fairing so bad. I'm just not sure, once the genreal public fully understands the implications of this bill how they will handle it?
Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
17y
We won't be spending euros in 5-10 years, I'm not sure the euro is going to survive that long. The first 10 years of the euro was great because everything was going good in good economic times. The PIGS (Portugal, Italy, Greece, Spain) were receiving benefits of linking their economy to that of Germany & France. Now the PIGS are weighing down on the rest, how long do you think Germany is going to put up with the PIGS when they could easily go back to the DM and dump the baggage?
I'll second the Monday being interesting, the Fannie & Freddie derivatives are being settled that day in an auction-esque manner-could be some people needing to come up with some large cash quick.
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
17y
You can and you can't compare times. Those that do not understand history are doomed to repeat it.
Can you imagine very few jobs and very high unemployment? Can you imagine folks not having enough money to buy the food they are used to eating (meat at every meal with dessert)? Can you imagine no designer clothes - just being happy to have shoes on your feet even if they are 3 sizes too big?
This was the Great Depression. The next one - whenever and if ever it may come - will likely share these common traits and many others. Sure - we may get information faster and the causes may be different. The root causes of fast cash and greed will likely be the point of origin.
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
17y
Originally posted by Jordan Sabo:
as far as there being no clothing designers, i went to macys earlier and i tried to find a goddamn jacket for under $100. it took me an hr and it was a perry ellis. what amazes me is that retail stores bi*ch about poor consumer spending but they had maybe 2 clearance racks in the entire store which is asinine.
Maybe I am not being clear. During the Great Depression there WERE 'clothing designers' and 'designer clothes' and there probably always will be. There will always be rich who can afford such things.
Of late - the little people have ALSO been able to afford such things with the great prosperity American has seen and the way Americans have chosen to run there lives. That went away during the Depression.
Real Estate Investor · Gainesville, FL · Member since 2008 · 296 posts · 7 votes
17y
Jordan,
I think you might see some very common aspects of the Great Depression in the next few years. While I think you are right, it might be a stretch to think that we will all be waiting in food lines, I don't think things are going to be very peachy for much longer.
Most everyone in the 30s probably thought the nation was in the 'information age' also.
It's hard to see the effects of this economy right now, over the next year, as the credit crisis takes its full form, you will start of actually see people losing jobs. That has not occurred full force yet. Unfortunately it will. That's when the cycle gets to a nasty point and where crime will certainly increase as well.
People are buying safes because they are most likely taking huge amounts of money out of certain banks/investment outfits. A neighbor at an investment house I own told me yesterday she was on the phone with an AIG rep for hours trying to get her money out. When you are holding $30k in your home, you definitely want to make sure it doesn't burn up in a fire. Most new safes are fire proof.
Real Estate Investor · Gainesville, FL · Member since 2008 · 296 posts · 7 votes
17y
Originally posted by Jordan Sabo:
and what exactly will you be putting in your fireproof safe in your closet? cans of campbells chicken noodle along with cash? if what youre saying comes to fruition do you think our cash will be worth anything?? so it would be pointless to do what youre saying. buy gold if you want protection. my buddy bought 8 pounds of gold bricks back when it was trading for around 400/oz and he stuck them in a bank safe not in his closet. now thats a sure investment
Yeah Jordan, try telling a 70-year old widow that her $45k 'is cash that isn't worth anything and she shouldn't worry about protecting it'.
I'm not speaking to the long term value of the dollar, we are talking about why Americans are buying safes and guns. Why? Because the first thing that people do in hard times (which goes back to comparing NOW with the 30's) is take there money out of banks and hold it until they feel safe. As protected as everyone tells you your money is in institutions, a lot of people don't believe it.
Tucson, AZ · Member since 2008 · 945 posts · 45 votes
17y
I watched a few minutes of the House hearings this morning. One of the respondants said that money in money markets was going to be hard to get--the banks won't let it go.
It was not clear to me if he was talking about the FDIC insured money market accounts or something else.
Does anyone know? Should I go and withdraw from my FDIC MM account?
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