The Oracle with Max Keiser, Feb. 13, 2009

–
Benron Bukake’s epitaph will be:

“He was willing to create a bigger problem
in the future
to solve a smaller problem
today.”

The Oracle with Max Keiser – 20 February 2009 (3 parts)

Economic fiction the world has been living

Goodbye Dubai

Short of opening a Radio Shack in an Amish town, Dubai is the world’s worst business idea, and there isn’t even any oil. Imagine proposing to build Vegas in a place where sex and drugs and rock and roll are an anathema. This is effectively the proposition that created Dubai – it was a stupid idea before the crash, and now it is dangerous.

[smashing telly]

[Hat tip]

8 minutes on Utah real estate

Which wire do we snip – red or blue?

If I were a conspiracy nut, I’d look at all the news stories from around the world where governments, including our own (formerly “of the people” now “of the oligarchs”) are using the cover of a “bail-out” to “rescue” (i.e. buy up mortagages) at unprecedented lowball prices in a once in a millenia opportunity to take control of all real assets of all the nations of the world in the name of global socialism and then plant the knife squarely in the back of their serfs (formerly taxpayers, now landed poor) with the bill.

Pretty slick, but fortunately I’m no nut.

Applying Ocham’s razor reveals all for what it truly is: a screw up of unheard of scope and magnitude by the last three or four generations (go back as far as you need to lose the collective memory of the Panics of ‘67, ‘28, ‘07, 1872, etc.) “solved” (heh) as always by the very same people responsible (this time “Hank Paulson” and his merry band of “Krony Kapitalists” a.k.a. the Pigmen) who might take the opportunity to juice this in their favor.

That is IF the bomb doesn’t go off in their face.

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“What if the Fed., Inc. lowered the interest rate to zero, and nobody cared?” -Paco Bell

Vote the bums out

If ANY candidate is an incumbent, it is your duty as a patriotic American to vote against them. Regardless.

Tax liens a-go-go?

Tax liens are levied against houses for non-payment, and:

“property tax collectors stand in the first position of the pecking order of who gets their money when a homeowner falls behind in their payments.” [Fred Cederholm]

This investment has been touted by every RE guru-du-jour in the specuvestard seminars as the investment to get if you want a high return, since they paid such high rates of return (in the range of 8-18%).

Plus, if the homedebtor never makes good on it, you might wind up with the property instead- which you can then sell, perhaps for even more than you are owed on the debt (lien).

You might even consider moving in, but considering the state of most foreclosed properties, better to pass it on to a fliptard who thinks he’s found the way to real estate riches.

In an informerical, John Beck purports tax liens are a way to acquire fabulous homes at unbelievable low prices. Here’s a sample (I’m paraphrasing) of the script, repeated throught the mersh ad nauseum:

“You mean this house was purchased for only $65?!?”

“Yes that’s right, that house your holding (hostess is holding a pacard with a photo on it) was purchased for $65.”

“That’s sounds to good to be true!?!!”

“Yes, it does sound too good to be true!”

What brings this old warhorse up is the record number of foreclosures we are seeing. Have cash?

Many people who would ordinarily invest in tax liens found that the mad rush a few years back left no scraps at the auction table for the few that were available, during what was a unusual market occurence. Investors walked away, and parked their cash in T-bills or money market, or mutual funds, since not only were tax liens over-picked, but real estate prices had risen so high, that making income from rent was a no-go- apart from the appreciation, which, as we all know, is history.

Now in a down market, maybe it is time to revisit tax lien auctions again.

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“Inflation is by design a tax on the working class. The investment class gets to ride it like a pony.” -Paco Bell

Cash for Keys in San Diego County

[Hat tip]