Audio, Mandeville, LA – Begin Mike Church Show Transcript –
Mike: The Federal Reserve, in cahoots with our federal government, in cahoots with all the state governments, and in cahoots with this crooked, most corrupt institutions in the history of Earth in addition to the Federal Reserve, Fannie Mae and Freddie Mac, the damage that these people did and what has been done to the real estate and housing market over the last decade is not just going to disappear because you think that you lived through a prior recession, and Markets always come back, Mike. Well, weve been told that theres been economic growth in the last two years, and the economic growth has not even outpaced the rate of inflation. Furthermore, there has been stagnation and indeed deflation in wages. Youre earning Im earning less than I was last year.
I mean, you go to the grocery store, ladies and gentlemen, and its tougher and tougher. You find less and less money at the end of every month; and you go, like, man, what happened to all the money? We didnt do anything this month. Well, the things that you continue to do continue to cost more. And Ill just give you one example. My electric bills have risen to a level that I never thought possible and, regardless of our efforts at conservation, have stayed there. They are not going down anytime soon. And thats because of the inflation that is now built into the price of natural gas, diesel, kerosene, or whatever it is that fuels the generation plants that service my particular area here.
But if you look at this graph, I mean, my Lord. The 24-month graph, the +24 months in foreclosures, in 2009 starts at 7 percent, and it grows to 39 percent in the last month that we have data for. Now, anyone that thinks that the worst is past for the real estate market is smoking serious peyote crack. Here. Do your neighbors and your radio host of choice that would be me a favor and pass the hoogow pipe. The fact of the matter is, is that, not only is there a surplus of new homes that are finding it more and more difficult to be sold, but there is going to be an increase of older homes because ultimately, as long as that foreclosure number keeps growing, well, then the amount of homes that are going to be for sale that were foreclosed upon is going to grow. What is that going to do to the price of the average home?
Hey, all of you geniuses out there that think that the market is going to fix itself and that this, too, shall pass and it will, in a decade or so, if ever. Maybe the real estate market was never what it was dreamed of and concocted to be to start with in the last decade, hmm? But when those homes hit the market, whats going to happen? The price will go down. When there is increased competition, the price will go down. Now, you may say, Yeah, but Mike, with your inflation built in, the price actually goes up. Does the price go up? Or does the value of the dollar go down, and therefore youre not really gaining anything, youre losing because of inflation. I mean, this is just this is horrible news. And I hate to be the one to break it to you, but its not going to get better anytime soon.
You know, the only thing that you can do about this, ladies and gentlemen, if youre in a home thats upside down and I live in one is just forget about it. Hope youre able to continue making your payments, and dont treat it like its an asset or treat it like its an investment. It is a place where you live. It is a place where you raise your chirruns, where you worship your god, where you entertain friends. It is the place where you sleep in the comfort of heat when its cold and in the comfort of cold when its hot. And when its raining, youre dry. Thats what it is. It does provide you an asset. It provides you from getting sick from the elements and having to fend off mosquitoes, flies, ants, roaches, and snakes, wild animals and what have you here.
Just forget about this, this convoluted, what amounts to financial and economic mythology. Your home is the biggest investment you can ever make. Yes, but it is a depreciating asset. It requires maintenance that most people dont figure in. And it doesnt appreciate. Just sitting there, it does not appreciate in value. It is nothing more than a place where you live.
End Mike Church Show Transcript