Tuesday, August 26, 2008

The Foundations Continue to Erode

The stucco-and-vinyl-siding investment vehicles continue to crash in price:

S&P: Home prices tumble by record amount
NEW YORK - A widely watched housing index released Tuesday showed home prices dropping by the sharpest rate ever in the second quarter.

The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a record 15.4 percent during the quarter from the same period a year ago.

The monthly indices also clocked in record declines. The 20-city index fell by 15.9 percent in June compared with a year ago, the largest drop since its inception in 2000. The 10-city index plunged 17 percent, its biggest decline in its 21-year history...
Come the Revolution

The pain being inflicted in house-buyers is, in my opinion, going to be the driver for the political, social and economic upheaval that will burn the current system to the ground (figuratively speaking, of course) and build something new in its place. I believe we'll all live to see a Second American Revolution - a reworking of the systems we use to bind ourselves together as a country, the methods we use to enforce property rights, to settle disputes, to distribute and protect the fruits of our labors. And a return to labor - specifically agriculture and local light industry, will be a big component in my opinion.

It's still far too early to know for sure what things will look like on the other side of the coming debt tsunami, but start preparing now for a wild ride.

And speaking of that wild ride, this week Charles Hugh Smith is currently doing a very thought-provoking series one the Second American Revolution. They are worth a read:

The First American Revolution, and the Later Ones, Too

The Moral Center of Revolution

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