I have been warning you guys for several years now that the next great recession - perhaps to be known as the Bitcoin Blowoff or the Tariff Slugfest - is very past due.
We normally have a great recession about once every ten to fourteen years. It's been seventeen years since the Great Recession of 2008 (which really started in 2007).
Quick funny every day
It's quite possible that the next great recession just now arrived. If true, you should expect real estate to now fall almost exactly 45%, just like it did during the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. That 45% is a magic number.
Is he taking on that 'roo? Haha!
There is no need to panic. Real estate will not fall to zero. It will just fall 45% over the next three years or so. Then suddenly, once the market has hit that magical decline (what economists call the nadir of a cycle), real estate values will skyrocket to new highs.
The mortgage companies that will survive will be those that enjoy steady loan servicing income. I have been telling you for years that the real money in the mortgage business is in loan servicing fees.
Who remembers the movie, Soylent Green?
CNN just got caught putting an orange filter over the face of Donald Trump during his speech on tariffs. (You can google it) But the act did lead to this hilarious meme:
Ya' gotta chuckle.
I think our President made a mistake when presenting these new tariffs to the world. He made them sound like some sort of counterpunch.
Instead, President Trump should have just confessed that the U.S. is broke. We can no longer supplement the income of every other country in the world. "We're dead broke, People of the World. Our credit cards are maxed out. The Giving Tree is out of branches."
If you are like most people, you probably have most of your savings in the stock market. Unless you break away from the herd right now, you will follow your fellow lemmings over a cliff.
When you choose a good trust deed loan - a deal where the borrower keeps making his payments through the great recession - you don't really give a hoot what the markets do. You don't have to loose 45% of your retirement savings!
C'mon, guys, scan my book on trust deeds! The book is free, and the reading is breezy. My writing style is the opposite of stuffy. Haha!
Blackburne & Sons is the only hard money shop to survive the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. We've been in business every day since 1980. My sons and I are also all Eagle Scouts. There was a time when that mattered. [Heavy sigh]
Wax on, wax off.
