PeakOil is You
And yet people keep spending money...
Re: And yet people keep spending money...
by TheBaker » Fri 02 Jun 2006, 20:22:54
The sad thing is, and what dooms me out the most is this: No matter what a person does now to prepare, does it really matter? Install a personal windmill, purchase a forest, build a home and burn wood, etc., etc., etc., to become energy self sufficient, whatever. When TSHTF, people who end up with their backs against the wall (struggling litterally to survive) what will they do? Not many people will rule out violence, theft, whatever when their survival is at stake. God help us!
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TheBaker - Wood
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Re: And yet people keep spending money...
by jdumars » Sat 03 Jun 2006, 00:56:01
yep...
it's going to be an emu-eat-emu world.
it's going to be an emu-eat-emu world.
Last edited by jdumars on Sat 03 Jun 2006, 14:37:54, edited 1 time in total.
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jdumars - Coal
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Re: And yet people keep spending money...
by DesertBear2 » Sat 03 Jun 2006, 03:26:25
Did you mean a <b>dog-eat-dog</b> world?
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Re: And yet people keep spending money...
by Snowrunner » Sat 03 Jun 2006, 19:38:45
$this->bbcode_second_pass_quote('jdumars', 'R')ents be goin' up... and up... and UP!
Here's the scenarios:
* Overextended "flippers" trapped in mortgages they can't meet try to rent their 2nd, 3rd, etc. properties before they get foreclosed on (because the market HAS to get better soon, RIGHT?!?!).
Here's the scenarios:
* Overextended "flippers" trapped in mortgages they can't meet try to rent their 2nd, 3rd, etc. properties before they get foreclosed on (because the market HAS to get better soon, RIGHT?!?!).
Right, and because there is such a glut in the market a renter can dictate how much rent he wants to pay.
$this->bbcode_second_pass_quote('', '*') Once those places are foreclosed, the bank has to evict the renters. Massive quantities of foreclosures make the rent prices go higher because of shortages.
Nope. The bank knows that if they foreclose the property will be empty.
They'll probably do one of two things:
1. start their own property managment business in order to get the rent.
2. Dump it onto a managment company who will pick it up for cheap.
Rent will stay low for quite some time due to the fact that there is a glut in the market due to the speculative building spree.
$this->bbcode_second_pass_quote('', '*') Urban renters will fare a little better for a while because large properties are usually owned by investors... either companies or individuals. But, as the market tanks, these investments will be seen as net liabilities on the books and will be sold. New owners ALWAYS raise the rent (after they paint the place to justify the raise, of course!).
That assumes that the market would allow for a rent raise. The investor will only raise the rent if he doens't have to be afraid that the renter just walks over one street into another building.
Happened to me in Toronto. The Condo market there is already overheated to the extend that you can more or less dictate how much you want to pay for the condo (rent) and the investor takes it, beceause he KNOWS that there is one just as nice down the road available for rent too.
$this->bbcode_second_pass_quote('', ' ') Those that don't/can't sell will raise the rents to offset value loss, especially on recently-purchased properties, or ones with highly-leveraged buyers. Lots of big businesses have offshoot "real estate investment" arms now -- even insurance companies -- where they parked cash reserves to crank up the net income. This is the situation our apartment complex is in. We just got hit with a 10% rent raise... the owner is a wealthy investments broker who has recently become less-wealthy. The central hot water/electricty/nat. gas expenses have gone through the ROOF -- so much so that the manager toured every apartment looking for water leaks.
And how many new apartments / condos were built in your area? There is a pretty good chance that you can find a cheaper / nicer place not far away.
$this->bbcode_second_pass_quote('', 'W')ages are not going up. This is not classic hyperinflation... it's TEOTWAWKI.
People will bleed for sure, but it is not going to be the renters or the ones who locked their mortgage two years ago. It's going to be flippers and people who hedged their bets too long that the interest rates will be going down.
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Snowrunner - Tar Sands
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