• Als Spam markieren
• Beitrag melden

• 
  Diese Gruppe Alles

• Archiv
• RSS-Feeds

• Kontakt
• Hilfe
• Impressum
• Datenschutz

Credit crunch causes global deflation cycle - An economic problem

What you need to know to prepare for a long term deflationary cycle and why.



The average price home in California costs about $569,000 but who has the
cash laying around right now for a 5% down payment much less a 20% down of
$114,000.  Even the largest home finance company Countrywide has indicated
that they are only providing conforming loans which have to be less than
$417,000.  This is a 28% discount to current selling prices.  So how do you
sell the average home when a new buyer can't get the financing?  You don't.
There are a glut of homes on the market and more on the way.  The sheer
volume of homes will push the price down to below the Freddie Mac and Fannie
Mae numbers.



The larger and more detrimental impact is to city and state government's tax
collections.  This will accelerate the deflationary cycle.



Read more:
http://www.billharder.com/investments/46-general-investment/106-Credit-crunch-causes-globa
l-deflation-cycle