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Who is Stubby?

Is Stubby a capitalist?
Stubby writes for LaptopAmerica!

Meet the average
small investor

Panic Along With Stubby!
Federal Reserve
Fiat Fate
Hyperinflation
National Debt
Peak Oil
Pension Crisis
Realty Bubble
Social (in)Security

The Mogambo is right.
The dollar really is freakin' doomed!!!
Buy Gold!






 

So what did you expect to find on a Home page?


 

Q: Is There a Real Estate Bubble?

A: Yes, Virginia, there probably is.

Q: Is it collapsing, bursting, exploding?
A: No, probably not. Just leaking badly.

Q: Would this be a good time to speculate on Miami condo developments?
A: We have some lovely oceanfront property in Kansas you may be interested in.

'Fannie And Freddie Were Lenders'
The article bearing this title which appeared in the June 21, 2002 issue of Executive Intelligence Review is as good a treatise on the real estate 'bubble' issue as we've seen anywhere. Here are some additional informative articles for your edification:

:: Pop Goes The Real Estate Bubble
:: A First Hand Glimpse Into The Bubble Mentality
:: Real Estate: The State Of The Bubble
:: Entire US Real Estate Market Falling
:: Warren Buffet Warns of Real Estate Bubble
 

The short of it all is that the U.S. Savings rate has now gone below zero as you can see by clicking here and viewing this graph which means that America has stopped saving.

This phenomenon is unprecedented in U.S. history and leads to some potentially disturbingly implications. Let's ask some more questions and see where they lead us.

Q: Is it safe to assume that a family that has stopped saving has already consumed any prior savings they may have had?
A: Yes.

Q: And what would cause them to consume their savings?
A: Because they lack sufficient income.

Q: What will they do yet?
A: Probably turn to credit.

Q: What is the largest and most obvious supply of credit available to most families?
A: Until lately, what we call the 'Real Estate Credit Card,' meaning the equity built up in their mortgage.

Q: But that has already been tapped too, as evidenced by the nationwide declining housing market, so now what does the consumer do who has no savings, no home equity and no other available credit remaining, and yet who still lacks sufficient income?
A: File bankruptcy.

Q: But weren't the bankruptcy laws recently amended to make discharging credit card debt nearly impossible?
A: Yes.

Q: So now what does the hapless, debt-ridden consumer do?
A: Take immediate, corrective action, possibly moving in with other family members if necessary, then eliminating debt; educating themselves on the dangers of debt so they never again find themselves 'behind the eight ball'; tightening their belts to reduce or eliminate all unnecessary spending, and; educating themselves on the power of compound interest  so they can use the dollars they formerly wasted on debt payments each month to grow a retirement nest egg.

Q. Sounds like they need 'Two Steps To Wealth'!
A. Was that a question?