we have is a totally propped-up market based upon debt. Energy isn’t
producing positive growth, really. So instead of having real economic
growth, we have inflated economic growth and inflated asset values.
growth starts to decline, I think we’re going to see the valuations
of assets decline considerably. It’s anyone’s guess how quickly
they can fall, but according to what I have been looking at, I
think we are going to see a 50% decrease in real estate values right
off the bat. I am not saying this will happen in a day, but the first
wave will be a 30-50% decrease in real estate values when the markets
really start to crack. They
are already at the edge of the cliff — and I see prices falling
down the cliff, struggling to recover, and then falling even further.
Actually, I predict within the next 5-10 years, we can easily see a
75% or more reduction in real estate values.
was part of myinterview
with Chris Martenson at Peak Prosperity.
During the interview Chris and I discussed how the disintegrating
energy industry would negatively impact the value of most assets….
Stocks, Bonds and Real Estate, while the precious metals would
ultimately be the higher quality safe haven and store of value.
of all the analysts in the alternative media, I find that Chris
Martenson’s work at Peak Prosperity gets closer to the root of the
problem as it pertains to the future of our financial system and
This is due to the fact that Chris focuses on energy and the Falling
EROI – Energy Returned On Investment.
most precious metals and resource analysts overlook energy.
Thus, their analysis is likely flawed because they view the future as
a continuation of “business as usual”, once the debts and
leverage are taken out of the system.
is an incorrect assumption, because the debt and leverage actually
have allowed our financial system and markets to continue to function
well beyond its expiration date.
Getting rid of the debt and leverage would cause a collapse of the
system… one that we will be unable to grow back out of.
I believe it is important to continue focusing on the information and
data as it changes. This will provide the investor-public with
a guideline as to the timing of the upcoming disintegration of our
highly leveraged debt based financial market.