Chad S. spotted this: Lower home appraisals appear to be up; Deals get killed as foreclosures, short sales make valuing property difficult. JWR’s Comment: The continuing waves of house foreclosures are bound to ratchet down both sales prices and in turn assessed valuations. This will lead to more state budget crises. The bottom line: If they can’t raise your home’ assessed value, then they’ll raise property tax tax rates. A corollary exists with income taxes. As more people lose their jobs or have their payroll hours cut back, then states will be forced to raise income tax rates. The 50 states will balance their budgets, because unlike the Federal government, they can’t create money out of thin air! To delay taxation, shelter your assets in tangibles. On a related note, MM sent this:
Montana’s big sky views become bigger tax burdens. The lesson here: Avoid living in a “resort” county with over-priced property!
Reader Keith B. sent a link to a news article that should serve as a warning flag: U.S. Treasuries Post Worst Performance Among Sovereign Markets
GG flagged this: “Mystery buyers” take $500 billion of Treasuries. Who do they think they’re fooling?
Items from The Economatrix:
Iceland bank deal increases national debt by 40% of GDP to 130%
2009 Bankruptcies Total 1.4 Million, Up 32%
Manufacturing Reports Bolsters Hopes for Recovery
Global Bear Rally of 2009 Will End as Japan’s Hyperinflation Rips Economy to Pieces
Bernanke Insists the Financial Crisis Was Not The Fed’s Fault