Okay...

We get it Gary...

Move on...

Move on? If you don't want to read it then ignore it. I have U.S. real estate too you know, in California. Ignoring this and not facing it straight on and realizing that it's time to for once start acting wisely is exactly why the U.S. got into the shape it's in.

Everybody cares about what Britney's doing, because that's more interesting than watching international news and finance. I've seen your comments I think YOU should move on and read more entertaining stuff.

I'm going to be here broadcasting awareness of the coming U.S. wipeout and suggesting possible emergency measures. First step is to realize it is going to be WAY WAY worse than imaginable. Then with that realistic grasp of the big picture, resetting our finances to be able to cope and survive.

I'm lovin' it brother... Your words echo my sentiments and thoughts
perfectly, I've been pulling out of US markets for nearly a year, and
I always appreciate the confirmations and thoughts...

Keep 'em coming!

I just love how some people come here to hate yet they do this everyday, multiple times a day.
If your so tired of hearing the same sh*t then don't come here at all. But then again, we
need the debates... so please stay!

:O)

I don't care about Brit-Brit other than I have her in my 2008 dead pool.

Gary,

I've been a blog stalker for a year now and really enjoy what you have to say. I first want to say thank you for actually taking the time to share this information with everyone. I do have a question for you regarding my situation. I'm one of the sub prime people because I didnt have 20% down and I was only in business for two years instead of three. Not only that but to compound the issue I bought at the high point of the market. I have 6 months till I can refinance my loan without penalty and 1.5 years till it adjusts. I assume I'm upside down right now in my house and I want to add equity to my home by fixing it up. My basement is unfinished so I assume that would be a good place to start. My questions is, Who can I talk to about which home improvements will give me the most equity? Or do I take 5-10K and buy gold in hopes that it will produce my 20% in 1.5 years?

Cant wait to here what you have to say about being recession proof.

So...let me ask (can't help myself)...is spreading panic going to help you or anyone else out of this mess?  Or does the "sell everything right freakin' NOW" approach just further compound the problem and move us further away from creative solutions?

Aaaaaaaaaaaaaand where were you two, three, four years ago telling people NOT to buy beyond their means???   

While "Okay...We get it Gary... Move on..." may be an inane comment, intelligent dissenting opinions and challenges to the content of the original posts add to the discussion.

I read a lot of financial blogs and no one out there is as bearish on the US economy as Gary is so opposing views are important.

Gary was one of first to call out the dangers of the reckless lending practices that has led to the current economic downturn in the us housing and stock markets. He has also made some rash advisories to the readership in the past.

The audience of this blog is mostly photographers who by their very nature as artists are not focused on financial matters. Some of them may be getting a big portion of their financial awareness from this blog. People look up to him take what he says about money very seriously.


Here is a good quote about how we got in this mess from someone with a whole lot of wisdom and money:

“When you combine ignorance and borrowed money, the consequences can get interesting.” - Warren Buffett

The $800.00 I think is supposed to be spent on goods and services not to pay down debt. You hire a contractor to paint your home, he pays tax on the paint, hires help and that generates payroll tax, the help spends that money etc. Each dolar spent generates more tax dollars... that is the plan and the republican way to help stimulate the economy. Giving business big tax breaks to expand,  hire more people, more payroll tax, more sales tax on increased output etc. Even individuals tax breaks is how lowering taxes can make the Gov more money. If we spend more in the economic system, one dollar can make $3.00  - $5.00 in tax revenue.

SWPCDA - if i were in your exact shoes, here is what I would do:

1) if you can keep your payments going for the next six months, I would wait until the limit to actually do the refinancing because of two reasons:
a) The fed appears to be intent on lowering the rates
b) The administration appears intent on some type of bailout plan

2) So I would stay put. Neither of the two things above are going to help the inflation or collapse of the dollar problem, but it will give you time. Also understand that while your value may drop further in the next six months, your bank will probably be more open-minded for you to short-sell (they'll take whatever loan value is).

3) List your property. There are two reasons: 1) you may find a buyer and then you'll be free from it and 2) it will show the bank that you are making proactive steps to protect both of your mutual interests.

Hey Gary,

Do you own any pre-1933 gold coins? I ask because I'm curious what you think about a possible gold confiscation after the dollar crashes. What do you think the likelihood is of this happening? Thanks. 

I think most people who visit your blog and are considering buying gold coins do not know that in this country, as well as in many others, gold ownership is not a right but a privilege. So, with the exception of pre-1933 coins and others considered collector's items, it can be confiscated by the government.

I think gold confiscation wouldn't be politically popular.

I agree, but it could happen if things get as bad as you believe they will. Desperate times call for desperate measures.

Forgive the long post, but I was surprised to learn that the US government has confiscated gold before:


The Gold Confiscation Of April 5, 1933

From: President of the United States Franklin Delano Roosevelt
To: The United States Congress
Dated: 5 April, 1933
Presidential Executive Order 6102

Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled

An Act to provide relief in the existing national emergency in banking, and for other purposes~',

in which amendatory Act Congress declared that a serious emergency exists,

I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of the order:

Section 1. For the purpose of this regulation, the term 'hoarding" means the withdrawal and withholding of gold coin, gold bullion, and gold certificates from the recognized and customary channels of trade. The term "person" means any individual, partnership, association or corporation.

Section 2. All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:

(a) Such amount of gold as may be required for legitimate and customary use in industry, profession or art within a reasonable time, including gold prior to refining and stocks of gold in reasonable amounts for the usual trade requirements of owners mining and refining such gold.

(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having recognized special value to collectors of rare and unusual coins.

(c) Gold coin and bullion earmarked or held in trust for a recognized foreign government or foreign central bank or the Bank for International Settlements.

(d) Gold coin and bullion licensed for the other proper transactions (not involving hoarding) including gold coin and gold bullion imported for the re-export or held pending action on applications for export license.

Section 3. Until otherwise ordered any person becoming the owner of any gold coin, gold bullion, and gold certificates after April 28, 1933, shall within three days after receipt thereof, deliver the same in the manner prescribed in Section 2; unless such gold coin, gold bullion, and gold certificates are held for any of the purposes specified in paragraphs (a),(b) or (c) of Section 2; or unless such gold coin, gold bullion is held for purposes specified in paragraph (d) of Section 2 and the person holding it is, with respect to such gold coin or bullion, a licensee or applicant for license pending action thereon.

Section 4. Upon receipt of gold coin, gold bullion, or gold certificates delivered to it in accordance with Section 2 or 3, the Federal reserve bank or member bank will pay thereof an equivalent amount of any other form of coin or currency coined or issued under the laws of the Unites States.

Section 5. Member banks shall deliver alt gold coin, gold bullion, and gold certificates owned or received by them (other than as exempted under the provisions of Section 2) to the Federal reserve banks of there respective districts and receive credit or payment thereof.

Section 6. The Secretary of the Treasury, out of the sum made available to the President by Section 501 of the Act of March 9, 1933, will in all proper cases pay the reasonable costs of transportation of gold coin, gold bullion, and gold certificates delivered to a member bank or Federal reserve bank in accordance with Sections 2, 3, or 5 hereof, including the cost of insurance, protection, and such other incidental costs as may be necessary, upon production of satisfactory evidence of such costs. Voucher forms for this purpose may be procured from Federal reserve banks.

Section 7. In cases where the delivery of gold coin, gold bullion, or gold certificates by the owners thereof within the time set forth above will involve extraordinary hardship or difficulty, the Secretary of the Treasury may, in his discretion, extend the time within which such delivery must be made. Applications for such extensions must be made in writing under oath; addressed to the Secretary of the Treasury and filed with a Federal reserve bank. Each applications must state the date to which the extension is desired, the amount and location of the gold coin, gold bullion, and gold certificates in respect of which such application is made and the facts showing extension to be necessary to avoid extraordinary hardship or difficulty.

Section 8. The Secretary of the Treasury is hereby authorized and empowered to issue such further regulations as he may deem necessary to carry the purposes of this order and to issue licenses there under, through such officers or agencies as he may designate, including licenses permitting the Federal reserve banks and member banks of the Federal Reserve System, in return for an equivalent amount of other coin, currency or credit, to deliver, earmark or hold in trust gold coin or bullion to or for persons showing the need for same for any of the purposes specified in paragraphs (a), (c), and (d) of Section 2 of these regulations.

Section 9. Whoever willfully violates any provision of this Executive Order or these regulation or of any rule, regulation or license issued there under may be fined not more than $10,000, or,if a natural person may be imprisoned for not more than ten years or both; and any officer, director, or agent of any corporation who knowingly participates in any such violation may be punished by a like fine, imprisonment, or both.

This order and these regulations may be modified or revoked at any time.
/s/
Franklin D. Roosevelt
President of the United States of America
April 5, 1933