Empire Of Debt

Written on January 13, 2009 – 2:55 am | by Justin Paone |

It’s a good read if you have not read it yet. It was published in 2006. Its authors hit the nail on the head predicting our current situation. Here are two quotes from this book that stood out to me while reading it:

“...Currently, Americans believe that houses always go up in price. No cobwebs grow over a real estate office door. No mortgage lender sits by the phone waiting for it to ring. And yet, it is impossible for real estate prices to exceed the rate of GDP growth for very long. This belief will also have to be crushed out, by a long bear market in property.

“…What will shatter America’s confidence is probably a combination of financial crises. The dollar is vulnerable. So are Treasury bonds. So are stocks and house prices. Which one will cause the crack-up is anyone’s guess. Our guess is that house prices will stop rising, causing a cutback in consumer spending. This will send the U.S. economy into recession.”

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Welcome to my blog. My name is Justin Paone and this is where I express my thoughts, discoveries,views and the day-to-day happenings in my life.

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