BANKS AND CREDIT

I didn't think I would put any more posts up after Jim Haddix sent me that little rant of his, which I liked very much, but things are not going that way today. But I don't run the world I just try to make sense out of my life like any decent prepper would do.

I just got off the phone with my friend Charles Bell out in Maryland. He wanted to tell me about 2 phone calls he got today from bankers. The first call was from his local guy who wanted to loan him some money. Charles has not been borrowing of late and his balance sheet makes him desirable to the banks. Charles politely turned him down. Charles does not think this is a good time for taking on debt. I am sure you readers can understand that outlook. Then he got a call from a Baltimore bank that wanted to sell him REO houses. REO means Real Estate Owned. That is a fancy way of saying the bank owns the home. The banker had 138 homes for sale. He had them at good prices. He was offering 100% financing. No payments for 4 months. The price was gonna be right. And Charles turned HIM down.

You see, Charles became a prepper a while back and he looks at things like debt as tying him down and keeping him plugged into a system that he feels is going to hell in a handbasket. But that bank in Baltimore, as any decent prepper can tell you, is going DOWN. They are underwater and they are going further underwater every day. Can you imagine the upkeep on 138 homes? Can you imagine the taxes they have to pay? Can you imagine the insurance costs? Can you imagine the security costs? 138 homes just sitting there and not making the bank a dime. Lord have mercy. Am I ever glad we own our property. People struggled and toiled to get that land paid for and it got done through the mercy of God. Humans were not smart enough to handle it but God was and it got done.

But the housess these bankers are trying to sell are nowhere near the bottom of the market. It will not be too long before 95% of Americans will not HAVE any credit. And the people who do have credit will be able to buy homes and real estate for a pittance of their current value. What did teh Lehmans bonds go for the other day? I think it was 8.625 cents on the dollar. Those bonds, by the way, represented a deed to a home. Think about it. Mickey Creekmore won't feel too bad when this shit starts happening. But he better get his ass in gear and get his soil fertility up to par for growing his food. You can read http://thesurvivalistblog.blogspot.com/ and get a better idea of where he is.

Just some more data that may help you stay alive.

Michael

mboone@rtccom.net