Monday, April 8, 2013

The Biggest, Baddest Loan of All

8:53 AM
The tax base of the United States government is currently somewhere between $2-2.5 trillion, according to author David Wiedemer in the book "Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown."

Yet total government debt has ballooned to $15 trillion and is rising rapidly. This is a debt-to-income ratio of over 7 to 1, which any sane person would consider to be irresponsible. As Wiedemer points out, "a technical default on our huge government debt will have history-making consequences."

While Wiedemer sees gold as an attractive investment in the short term, he admits that "stocks, bonds and real estate have much more intrinsic value than gold, and over time, that reality will dawn on investors...."

Wiedemer goes on to say that "once the Aftershock hits, the servicing of distressed assets and businesses will be an instant and long-term winner....people and companies who will buy, restructure, manage and resell distressed businesses and other assets [will make] huge incomes and profits along the way...."

Keep in mind that people will still need a place to live, whether they rent or own a house. So we are bullish on the opportunities to buy and hold for rent, or buy and rehab houses for short-term income. My business partner and I created a private equity fund, REI Capital, to do just that, and to take advantage of opportunities in today's housing market.

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