4 Bed, 3 Bath, $75,000

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I ran across this on AOL today and wanted to pass it on. Even though I have been told by a friend in Las Vegas that it was getting bad, I didn't realize it was THIS bad. People leaving in droves and getting whatever they can get for their homes.

Here's a little snippet from Roger Wiegand of Trader Tracks Newsletter that gives a little more insight into the link between unemployment and the housing market. full story

Some states like those in the Midwest, and other formerly, faster growing Sunbelt states are being hit the worst. Michigan is now approaching 26% unemployed and the full brunt of the auto layoffs is yet to come. Since I am familiar with the state and the auto industry, I forecast 30-40% Michigan jobless within 18-24 months. The state budget is over $1 Billion in the hole with hope of balancing.

Watch for severe social problems and outbreaks of rioting this summer in larger American, European and Asian cities. China is suffering major violence each day. Chicago, Detroit and Los Angeles are next. We all know of the problems in France and Amsterdam. We got the worst of both worlds in Europe; religious fanaticism coupled with unemployment; a very bad combination.

Observers must not lose sight of California as a leading edge indicator of employment, state budgeting (that’s a joke) and the effects of foreclosures on NON-FORECLOSED NEIGHBORS dragging down entire neighborhood values. Even those working and paying house payments are hit with wide-spread home devaluations seeing equities drop beneath the cost of debt owed the bank. jobless neighbors are economically wrecking entire neighborhoods dragging down all area values.

When a homeowner loses employment, and his or her house value skids so far beneath the loan, many send in the keys (jingle mail) to the lenders and walk away offering a voluntary deed in lieu of foreclosure. In some locations this transactional failure does not appear on future credit reports.

In some parts of the country, the banks have so many houses in foreclosure that they are selling them at 25 cents on the dollar just to unload them now. They know even lower prices are on the way.

But you'd never know it from the talking heads on CNBC as most are saying the worst is behind us. Hahahaha. The "worst" isn't even on the radar screen yet, and you'd better store your wealth in something that will weather this coming storm.

Got gold?