Mike Morgan pulls no punches:

Let’s talk about what is happening now . . .

Depression - Totally unavoidable. Bank on it. Well . . . you won’t be able to bank on it, but you can bet on it. We are not only headed for a Depression, but a violent Depression that will be far worse than 1929. Some experts believe the United States will fall into the chaos, bedlam and anarchy that tore apart Yugoslovia. I am not going that far, but I know our morals and ethics are not the same as they were in 1929. Moreover, we are a far more violent society and totally dependent upon a well oiled system for delivery of food and basic services.

Admitting Defeat - The lenders I speak with know they are dead. They have no problem admitting it now. They realize their jobs are over, and they are on borrowed time. They are nothing more than liquidators now, and they are doing a lousy job at it.

Housing Prices - Let me touch on this briefly. Prices are going to drop another 20-50% without a Depression. As we move into Depression, it will be an event we have never experienced at the scale we are entering.

Pawning for Potatoes - I have a few clients and readers are in the pawn shop and/or jewelry business. There emails are great - Behind Enemy Lines - information. Let me share a few with you, because people are now selling what’s left just to put a meal on the table:

1 - 3/4 kt round diamond ring, vs1, color G, 14kt gold setting with 8 diamonds…..lady needed $200 because her water got shut off

2 - I had a guy come in with his wife. She was crying because they were selling her engagement ring. It was all they had left. He walked out crying and I wanted to shut the shop down for the day. Its getting gut wrenching.

3 - The BMW 7 Series people are showing up with goods.

http://realestateandhousing2.blogspot.com/

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