I just posted the below on my Wilkerson thread. It speaks for itself.
The current mess in the American Economy is caused by two things: housing, and price of oil.
I found this quote in a book of his I bought years ago. It was Americas Last Call written in 1996. I believe DW is writing about the current housing fiasco.
Here is what Wilkerson wrote:
“All the multiplied thousands who’ve had not time for God---who’ve laughed at moral standards and made wealth their idol, who’ve leveraged their homes to raise more money to gamble with stocks—are going to lose their savings, their homes, their fine cars and furniture. Many will try to declare bankruptcy. Indeed, this is happening already, even in these so-called good times, before the real panic comes. Last year alone, 1.3 million individual Americans declared bankruptcy. And soon there will be such a glut of people filing for bankruptcy, the federal government will have to pass legislation to stop the financial hemorrhaging.
I believe that in the not-too-distant future, almost every block on America’s streets will be lined with “For Sale” signs in front of homes. There will be sellers only, and very few buyers. The housing market will collapse --- and we could witness in our nation what happened to Japan, Indonesia and other nations of the Pacific Rim. There may be a 70 to 80 percent devaluation in real estate --- and a rush to liquidate everything to raise cash. Just as happened in Indonesia, we’ll see used $100,000 Mercedes Benz cars selling for less than $20,000. Banks and mortgage companies will be stuck with billions of dollars’ worth of property they can’t unload. As Jeremiah prophesies, “Their houses shall be turned unto others….” (6:12).”
No one--in 96--was predicting HPA to devalue. Never since the great depression have home prices declined. The first week of July mortgage applications were at a 7 year low. In the last 6-9 months we barely escaped a full collasp of the banking system, the FDIC predicts 200-250 banks will fail in the next year, JP Morgan CEO said, "prime (mortgages) are terrible...and we are at the beginning of our loss curve...", credit had never been so tight.
Wilkerson was right on.....
time will certainly tell....
__________________ If I do something stupid blame the Lortab!
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