[RCCCB]

Originally Posted by fishordie

Actually for this reader I believe there are much more substantial reasons for keeping the interest rates low and none of them are good.

Number 1 reason, in my opinion, is to promote business transactions of any kind. The illusion of cheap money will almost always stimulate the economy. Almost always meaning now the only folks getting stimulated are located well north of Mr. Obama's 250,000 threshold. Those in lower and moderate income levels are stimulated to rent, go on less vacations, shop in cheaper markets and in short try and make a few dollars go further. These are folks who have had their credit reduced or eliminated for a variety of reasons.

Number 2 reason is to buoy the Banking system which in turn buoys the economy (No I do not believe this works in the long term myself). The percentage return on borrowing investment by the lending institutions is many times higher than I have ever seen. Basically free money is issued by the government and or by passbook or CD savers and the banks are lending at hundreds and perhaps thousands of percent markups depending on the lending vehicle. That is unprecedented and is required to get the banks back up to snuff without the illusion of a Tarp or ??? Bailout. Either way the American Public is supporting this industry.

Number 3 reason:The illusion of cheap money promotes risky investments both by individuals and corporations. The short term effect is the economy looks more robust than it is. However, when 2006 thru present occurs the number of corporations and individuals who choose to take risk is reduced. HOWEVER, I have said this for years, this point in history will see more transfer of wealth to the hands of fewer and fewer individuals than possibly any time in history. All one has to do is look at these great ROI properties in Nevada or ??? going into the hands of investors NOT homeowners. The upside of these investments is a monster while the present returns are fabulous. Though I was called a heretic I did note years ago the transfer of huge quantities of real estate was being done without showing up in the multiples. Giant blocks of real estate was being transferred at huge reductions to entities in the know and coming up with the huge bucks to handle the deals. Only rarely did the public become informed of such goings on and then it was by intimation only. Silly us.

Of course the problem with the above scenarios is what we are seeing today. This is a Ponzi Scheme on a scale which makes Bernie Madoff look like a school boy.

With that said, the governments have created all sorts of stop gap measures to perpetuate these myths. Printing of monies, issuing of more and more debt, deals with foreign investors who are scared to death of the U.S. defaulting on its debt the results of which would devastate world markets. Now with other governments investing in countries we are actually seeing governments, outside of the country in question, making fiscal policy with a threat of foreclosure should the country tell the investor to pound sand. Austerity measures for Countries??? How about spending less than you make and stop funding "Feel Good" loss leaders until the country, state or individual is fiscally sound. For those of you who say the resolve is not so simple I say to you. YES IT IS THAT SIMPLE!!!!! Stop spending more than you make and create a budget based on reality not on fantasy and hopes for returns on huge risk.

So what does this have to do with Nevada.... Everything. Nevada is ground zero for foreclosures so one has to look at Nevada and make the analysis accordingly.

Best of luck

FOD

Very nice, thanks.

[Rambo11]

No one wants to invade good old USA and no one is interested in our population since 90% of our population is brainwashed and train to consume and spend spend more and more. We are like little puppies trained from a childhood corporations way how to live. It's funny how you call US Military our people Military. US Military does a dirty job for Corporations and out sons give their young lives for that dirty work. For example big corporations like Coca Cola won't invest in political unsecured areas
of the world do that is where our military steps in and creates friendly investment possibilities for our corporations to invest and operate across the globe.

We have a problem of the system in our country........system that works only for a few and exploits the rest of the citizens.

[BBMW]

Sort of off topic, but you went there.

At some point in the not to distant future, we're going to have a BIG slugfest with the Chinese, and unlike WWII, it won't be something we're going to have two years to get ready for. It will be a come as you are affair, and we're already cutting way to deeply, and wasting money on stupid little wars. But again, this should be it's own thread somewhere.

Originally Posted by ScoopLV

Hear hear! And to balance our budget, let's get rid of our defense department ENTIRELY. (Except for the Coast Guard.) It will be easy to live within our means without a military.

The problem with most "lower the budget" people is that defense spending is always completely off the table. As far as they're concerned, we need to lower spending levels on everything EXCEPT defense. The military gets everything they want -- about 20% of our total budget. And everyone else can pound sand.

[ScoopLV]

Originally Posted by BBMW

At some point in the not to distant future, we're going to have a BIG slugfest with the Chinese, and unlike WWII, it won't be something we're going to have two years to get ready for. It will be a come as you are affair, and we're already cutting way to deeply, and wasting money on stupid little wars. But again, this should be it's own thread somewhere.

If we have a big slugfest with the Chinese, it will likely be because we default on our debt; or because they decide they can "take Taiwan back" because we're so deeply in hock to them.

Regardless, any war with China will be something WE start, I fear. We're already the "slap a jingoist magnetic sticker on the SUV" country when it comes to foreign policy.

[eventusstultorummagister]

Beazer Homes, Inc. is going into the rental business, at this rate the "main" industry in Las Vegas will soon be the "rental" industry.

High cost of gas, exorbitant resort fees, other options... the malaise continues.

"The Jingo... ate my baby"

[bayview6]

Originally Posted by ScoopLV

If we have a big slugfest with the Chinese, it will likely be because we default on our debt; or because they decide they can "take Taiwan back" because we're so deeply in hock to them.

Regardless, any war with China will be something WE start, I fear. We're already the "slap a jingoist magnetic sticker on the SUV" country when it comes to foreign policy.

Formosa has always been a part of China. There is nothing to take back.

[ScoopLV]

Originally Posted by bayview6

Formosa has always been a part of China. There is nothing to take back.

Tell that to the Taiwanese, who enjoy a more lively democracy than we do. They have no desire to reunite with China. That would be like West Germany deciding to submit to East Germany, circa 1980.

Someday they might reunite. But the PRC still has a long way to go before Taiwan will have anything to do with them. If you don't believe me, ask all of my in-laws, on both sides of the Pacific.

And seeing as the US has pledged multiple times to defend Taiwan (the main pledge by Carter in 1979, but most recently by Bush II), if there's a war with China, Taiwan may in fact be the spark.

I'm probably biased because of all the in-laws I have there. But I've been to many, many countries. And I think Taiwan is special. It's easily one of the best places I've visited. Despite the fact that they could be invaded pretty much whenever, they've turned their nation from a backwater outpost, then a military dictatorship, to a real democracy. In less than 15 years, they cleaned up decades of heavy industrial pollution. It is now one of the jewels of the Pacific Rim.

Their current goal is to become the "Switzerland of the East." Considering how mind-bogglingly beautiful the island is, and their political situation, that's not a bad goal.

If you would like to read a trip report from my first trip to Taiwan, you can find it here.

[Sunny88]

Originally Posted by ScoopLV

...In less than 15 years, they cleaned up decades of heavy industrial pollution...

How did they clean up? It was done by moving most of the polluting industry to main land China. Pollution can be done in a much grander scale. That was not a miracle.

[eventusstultorummagister]

The states are now hijacking the foreclosure settlement cash to pay debt. The money was too big a temptation apparently...

Too funny!

[eventusstultorummagister]

Nevada retakes top spot as state with highest foreclosure rate - VEGAS INC

A jump in repossession activity in April caused Nevada to reclaim its dubious No. 1 position as the state with the highest rate of foreclosures, data released Wednesday show.