Wake up. Housing is not coming back. In the past several years while the USA economy was being wiped out by the hard work of the rest of the world, we built new houses. On Easter Island, they built those big heads. Did building all those big homes make us more wealthy? No! It put us in debit. Notice that it was one of the few items that we could not import. If we could have imported homes from China, it would have been clear what was happening, but just like those poor souls on Easter Island, we kept building houses. I blogged this before, but ask yourself if you are really richer if your home goes up in value by 10% in one year? You may be or think you are richer, but what about your kids? Can they go out and buy your home for what you paid for it? No, so they are not richer, they are poorer. If this is not coming thru, I am sorry.
Housing is not coming back. We were like drunks on a binge. Now we have the head ache. Is what we need to go out and start drinking again? You know the answer. Housing is not coming back. Get used to it, housing is not coming back. You gamed the system like many Americans and now we all have to pay.
This all did not happen yesterday. It started a long time ago. Did you see it coming? Did you notice that people around the world were not buying our stuff like we were buying theirs? What ever happened to all the textile jobs in the South or the shoe companies in the Northeast? Where did they go and when? You like me liked to be able to buy shoes made somewhere else for less. It made us fill rich taking our money out of the bank and buying those shoes and cloths. We we rich or were we just eating our own children? You can answer that one.
Housing is not coming back, so get used to it. Our problem is that we have to figure out what we can produce that someone else in the world wants to buy. Also get used to the fact that you can produce as many of those items per hour as you may think and you can't sell them for very much either. Look in the mirror. The bottom line is that you are really not worth as much as you think. Get used to it.
How about a little joke? This is one you hear all over South America. "If you want to make a lot of money, buy an Argentine for what he is worth and sell him for what he thinks he is worth". Now where is Argentina? In the toilet, and where are we going with the same attitude? In the toilet. Get used to it because housing is not coming back.
