And they want to raise taxes?

[carnut]

The state wants to increase sales taxes to cover expenses, whose expenses are they talking about?

http://abclocal.go.com/kabc/news/040...re_golden.html

[T4 Primera]

This retirement bubble has been talked about and warned of for decades now by many financial writers, including the likes of Robert Kiosaki (Rich Dad, Poor Dad series). He warns of extremely difficult times ahead. Add to that the rise of the Euro, threats to US$ hegemoney via oil trading currency, record debt levels, big defence spending, the cost of medical services and insurance, blah,blah,blah............

Looks like it's finally starting to bite.

[MiS0]

Originally Posted by T4 Primera

This retirement bubble has been talked about and warned of for decades now by many financial writers, including the likes of Robert Kiosaki (Rich Dad, Poor Dad series). He warns of extremely difficult times ahead.

Here's some free finanicial advice for all you Kiosaki readers. STAY AWAY from those books!!! You will have a few more extra dollars in your pockets, and this will be the title of your autobiography if you continuing reading: "Rich Kiosaki, Poor You" Why?

Example: He said a house is a liability. Buy only assets like him and yet he owns a huge house. A self contradiction. He offers no alternative to not owning a house. Truth is, a house is one of the the best investment you can make. Real estate prices are skyrocketing everywhere.

there are many more examples i can list, but i will not. and this is just from one of his books which i have read. Yeah his books are a bestseller; there a also many people watching American Idol.

[T4 Primera]

Oh yeah, that reminds me - the real estate bubble.

[MiS0]

Originally Posted by T4 Primera

Oh yeah, that reminds me - the real estate bubble.

very true. From what i have read, the real estate bubble burst only because of the stock market crash around 2000. However, unlike stocks, real estate was able to recover quickly due to low interest rates. For the past couple of years, homebuyers were at an all time high. I think in many places, real estate are way over valued due to demand. maybe another bubble?

[YogsVR4]

The real estate 'bubble' won't ever drop like the market can. Supply and demand will always be the brunt of price pressures and the supply of real estate is fixed and the number of people continues to grow. While its true that any given real estate venture may turn belly up, the overall lookout is going to remain strong as long as there are more people buying homes then there are selling them.

[Cbass]

Originally Posted by YogsVR4

The real estate 'bubble' won't ever drop like the market can. Supply and demand will always be the brunt of price pressures and the supply of real estate is fixed and the number of people continues to grow. While its true that any given real estate venture may turn belly up, the overall lookout is going to remain strong as long as there are more people buying homes then there are selling them.

Very true. If you can come up with enough disposable income, the best investment you can make is a downpayment on a small house, which you then rent out. The renters pay most of your mortgage, if not all of it, and when it's payed down, you own the house. If you have enough disposable income, you can afford a downpayments on several houses.

This is my plan for when I'm pipelining in nothern BC. The pay is $1100 a day before taxes, but it's not the sort of work you want to do for more than a few years. Very hard work, in a very cold climate, in not especially nice towns. But hey, it's like the Nazis said... Arbeit Macht Frei.

[T4 Primera]

The thing about the real estate bubble is that it is tied to a credit bubble. A lot of real estate is mortgaged to the hilt due to low interest rates. It has also been fueled by a depressed stock market so money moved from there into property.

When/if the sharemarket picks up, money will move out of property and back into shares. If interest rates rise as well, people may find themselves in the poo financially and be forced to sell.

[YogsVR4]

Sure, some folks who over extended themselves will need to sell, but unless the number of sellers outpaces the number of buyers, the prices themselves will not become depressed.