Housing Prices to Fall By 90%

Yesterday I reprinted an article about a secret peace conference that could have ended the Civil War early. The point of the article was to show you that the supposedly greatest president in the history of our country almost single-handedly voided the constitution. He put to an end forever, the states right to secession. The war was not about the abolition of slavery; it was about keeping the union together to benefit the northern industrialists.

That is the danger of government. Once you give government power over the people, they start taking and it never stops. It many ways it is similar to a parasite, feeding on the host until the host finally weakens and dies. The U.S. is in the weakened stage and crawling closer to death.

I have said for some time that the housing bubble will be the next to pop. I have warned you to either get completely out of debt or acquire a fixed rate mortgage. Now, you could read my comments and think to yourself, who is he? What does he know? No one else is talking this way so why should I believe him?

Well I am not the only one who believes this way. One of the greatest investors in history feels much the same way. His name, Sir John Templeton. Here is his take on the current housing market:

"Every previous major bear market has been accompanied by a bear market in home prices. . . This time, home prices have gone up 20%, and this represents a very dangerous situation. When home prices do start down, they will fall remarkably far. In Japan, home prices are down to less than half what they were at the stock market peak."

These are comments he made in an issue of Equities Magazine. This is just the beginning. Theres more.

"Think of the dangers involved. Almost everyone has a home mortgage, and some are 89% of the value of the home (and yes, some are more). If home prices start down, there will be bankruptcies, and in bankruptcy, houses are sold at lower prices, pushing home prices down further."

"After home prices go down to one-tenth of the highest price homeowners paid, then buy."

Did you catch that last line? When home prices go down to one tenth of the highest price, then it will be time to buy again.

That is a 90% drop in the value of real estate. Are you prepared to endure such a drop? It is coming. Don't take my word for it. Listen to the man who became a billionaire by investing when prices were at their lowest. It won't be long and Sir John will be investing again. This time in real estate.