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HomeblogWade's wordDebt, Death and Taxes = Opportunity
Debt, Death and Taxes = Opportunity
WRITTEN BY WADE GRAHAM /span>| 09 AUGUST 2011
It is an understatement to say that the US has some major problems right now. The lack of political leadership is, to me, very disheartening and I am NOT just point the finger at President Obama .... the problem is systemic throughout the political environment from the federal level to the municipal. Elected officials are more concerned with keeping their jobs and padding their wallets than doing the right thing and truly facing the problems at hand. At some point in time they will be forced to.
Standard and Poor recently down graded the US credit rating from AAA to AA+. To me this is the biggest farce! The US is BANKRUPT! If you or I were bankrupt we wouldn't have access to credit. We would have a very very low credit rating and we would be forced to pay CASH for everything! So what do you think the US credit rating should really be?
But alas complaining about the political and economic environment is a waste of time! It gets you nowhere other than into a negative mindset which is detrimental on many levels. The real question to ask is: What is the opportunity and can I capitalize on it?
The reality is this. It will take YEARS for the US to get their finical house in order. This means prolonged access to very cheap capital and thus record low mortgage rates for years to come. Have a look at this CRAZY visual representation ofthe US financial situation. We just renegotiated Almost $2 Million in mortgages with BMO at a rate of Prime-0.9....Thank you very much BMO!
ng-bottom: 0px; padding-left: 0px;">Mean while, with low interest rates the Federal Reserve is printing ridiculous amounts of money and flooding the financial system with it. This means that there IS (not will be...but IS) inflation taking place! I paid $1.40 for gas yesterday when last year it was under $1. Our grocery bill isn't getting any cheaper and neither are the cloths we need to buy for our son Kaden. Kid yourself not, INFLATION is the only way to get rid of $14 Trillion of debt and the government knows it but that isn't what they will tell you!
Oh and while this is all going on, the Stock market is taking an absolute kick to the teeth. Did you realize that in 2001 the Dow Jones was trading around 10,000? Well 10 years later the Dow Jones is still in the 10,000 area. The only people making any money what so ever are the traders who skim a little off the top every time you say..buy or sell! With this weeks route of the market over 18 BILLION shares traded hands. $9.99 a trade...you do the math! Someone made a boat load of money and I will bet it wasn't YOU! The system is designed for fear and greed and high volatility. If this doesn't make you angry it should! Read this article by Dallas Maverick owner and Billionaire Mark Cuban to see what I mean.
So you have ridiculously affordable mortgages, rampant inflation and a stock market designed to screw the investor. Where do you want to position yourself to capitalize from this?!?!
GICs that pay less then the rate of inflation? Mutual funds that compensate a fund manager to keep your money not make you money? Stocks that have unpredictable volatility? Cash that is being devalued daily? Or gold at a record high $1740/ounce?
Well, I can tell you this: We issued rental increases to all of our tenants last month because Calgary vacancy rates are dropping at an alarming rate. Not one of them said boo about it because they know we provide excellent value for our rentals. We treat them like gold and when they have issues we take care of it. The values of our homes are up from last year and the year before and the year before that even though that is not what you are reading in the news paper. And our cost of borrowing has gone down significantly. I'll let you do the math!
Everyone needs a place to live no matter what the economy is doing.
tyle="margin-top: 10px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px;">More people are moving to Calgary with the promises of solid employment at great paying jobs.
Interest rates will stay ridiculously low for way too long.
I know where I will be placing my money.
I know not all of you will agree with my point of view but I encourage you to comment and let me know just how you are capitalizing on this current economic environment!
Debt, Death and Taxes = Opportunity
WRITTEN BY WADE GRAHAM /span>| 09 AUGUST 2011
Standard and Poor recently down graded the US credit rating from AAA to AA+. To me this is the biggest farce! The US is BANKRUPT! If you or I were bankrupt we wouldn't have access to credit. We would have a very very low credit rating and we would be forced to pay CASH for everything! So what do you think the US credit rating should really be?
But alas complaining about the political and economic environment is a waste of time! It gets you nowhere other than into a negative mindset which is detrimental on many levels. The real question to ask is: What is the opportunity and can I capitalize on it?
The reality is this. It will take YEARS for the US to get their finical house in order. This means prolonged access to very cheap capital and thus record low mortgage rates for years to come. Have a look at this CRAZY visual representation ofthe US financial situation. We just renegotiated Almost $2 Million in mortgages with BMO at a rate of Prime-0.9....Thank you very much BMO!
ng-bottom: 0px; padding-left: 0px;">Mean while, with low interest rates the Federal Reserve is printing ridiculous amounts of money and flooding the financial system with it. This means that there IS (not will be...but IS) inflation taking place! I paid $1.40 for gas yesterday when last year it was under $1. Our grocery bill isn't getting any cheaper and neither are the cloths we need to buy for our son Kaden. Kid yourself not, INFLATION is the only way to get rid of $14 Trillion of debt and the government knows it but that isn't what they will tell you!
Oh and while this is all going on, the Stock market is taking an absolute kick to the teeth. Did you realize that in 2001 the Dow Jones was trading around 10,000? Well 10 years later the Dow Jones is still in the 10,000 area. The only people making any money what so ever are the traders who skim a little off the top every time you say..buy or sell! With this weeks route of the market over 18 BILLION shares traded hands. $9.99 a trade...you do the math! Someone made a boat load of money and I will bet it wasn't YOU! The system is designed for fear and greed and high volatility. If this doesn't make you angry it should! Read this article by Dallas Maverick owner and Billionaire Mark Cuban to see what I mean.
So you have ridiculously affordable mortgages, rampant inflation and a stock market designed to screw the investor. Where do you want to position yourself to capitalize from this?!?!
GICs that pay less then the rate of inflation? Mutual funds that compensate a fund manager to keep your money not make you money? Stocks that have unpredictable volatility? Cash that is being devalued daily? Or gold at a record high $1740/ounce?
Well, I can tell you this: We issued rental increases to all of our tenants last month because Calgary vacancy rates are dropping at an alarming rate. Not one of them said boo about it because they know we provide excellent value for our rentals. We treat them like gold and when they have issues we take care of it. The values of our homes are up from last year and the year before and the year before that even though that is not what you are reading in the news paper. And our cost of borrowing has gone down significantly. I'll let you do the math!
Everyone needs a place to live no matter what the economy is doing.
tyle="margin-top: 10px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px;">More people are moving to Calgary with the promises of solid employment at great paying jobs.
Interest rates will stay ridiculously low for way too long.
I know where I will be placing my money.
I know not all of you will agree with my point of view but I encourage you to comment and let me know just how you are capitalizing on this current economic environment!