Never was working-class Baltimore happier with its lot in life. Yesterday, neighbors greeted each other with a smile. Co-workers exchanged stories…laughed…and slapped each other on the backs.
No one seemed to care about crime or trash…or corruption…or school teachers who can’t read…or acres of boarded-up houses. Baltimore may be a dump. But no one complained yesterday.
It was pandemonium on Sunday night. Fireworks, horns, street parties, accidents…the drunks poured out of bars and basements…eager to give each other high fives and find their cars. Old timers said they couldn’t recall so much merriment — ever. Even when WWII was over.
But this is a sports town. Football is more important to Baltimoreans than warfare. The typical resident of the Hampden or Dundalk neighborhoods would sooner lose a major war than lose the Super Bowl.
But the Ravens came through. They got so far ahead in the first half we worried that the refs would have to stop the game…out of pity for the opposing side. Instead, a cunning 49er fan must have thrown the switch and stopped the game. When the power came back on, the birds couldn’t find their mojo. But they didn’t need it. They had enough of a cushion accumulated to protect their lead. And this morning a parade will take the team from City Hall to the stadium. Woe to uninformed travelers in the downtown area: you shall not pass!
Meanwhile, over in the stock market, the Dow fell 129 points yesterday. And here is some advice, worth every penny you pay for it:
Yes, dear reader, get out of the US stock market. Stocks are near an all-time high. Barron’s tells readers to prepare to break the record this week.
Maybe. But when you are near the top you have more to lose than to gain.
Besides, we have a better idea.
“I took my money out of the stock market,” said a friend over the weekend. “I figure stocks went up…they can go down. And I’m too old for that. So, I used the money to buy two new houses down by the military base at Solomon’s Island. I paid only $160,000 for each. And they’re new. And I’m renting them for $1,900 a month to soldiers with families. You can do the math yourself, but I figure I’m netting about 10%. And I don’t think they’re going to go down from here. I think they’re going up.”
We gave our friend some advice too:
“Want to do even better? Get the biggest mortgage you can. You can get 30 year financing for…what…about 3.5%? And the real inflation rate is probably about 10%. So, you’re making about 6.5% on borrowed money…plus the rental income. Let’s see, that’s about 16.5%… With very low risk. That’s a lot better than the stock market.”
Try it. Let us know how it works out for you. Just send your ‘thank you’ notes to our email address.
for The Daily Reckoning
Since founding Agora Inc. in 1979, Bill Bonner has found success in numerous industries. His unique writing style, philanthropic undertakings and preservationist activities have been recognized by some of America's most respected authorities. With his friend and colleague Addison Wiggin, he co-founded The Daily Reckoning in 1999, and together they co-wrote the New York Times best-selling books Financial Reckoning Day and Empire of Debt. His other works include Mobs, Messiahs and Markets (with Lila Rajiva), Dice Have No Memory, and most recently, Hormegeddon: How Too Much of a Good Thing Leads to Disaster. His most recent project is The Bill Bonner Letter.
Well maybe they won the Superbowl but little ben saved the world. Standby now
for The Summer of Recovery– take five. Good hearing from you Bill, as always.
docctor of adolf hitler wrot:
Goebels gave a pill to Adol for blood pressur.
It was wrong.
Goebles has low b.p. and A.H. has high b.p.
It is when the heart must work more to have ciculatin of b.
pres.is on the walls of the…
then it goes in….
A.H. told me that he thinks only about the country….
A.H. told me that, in any c. I must told him anyt. about his h.
F.Dust has a problem.
only re…suf….knows what s…can
my cards for todzy are
I live in Baltimore. I watched some of the parade on TV. Hero-worship at it’s finest. And how about those military transports, with uniformed soldiers marching? What a spectacle. Don’t get me wrong. I’m a fan. I just don’t go nuts. Plus the Ravens played like crap after the blackout and that could have easily been called pass interference at the end. It was an ugly win. I just get a little put off by people acting like they won the game themselves.
cards: 12 12 12 12
lets plai hooky.
ol’ evils are from yu2.
Is the giant mortgage thing supposed to be a joke? A crack on the last mortgage meltdown? You might be beating inflation but what happens when (as is so profusely described here at Daily Reckoning) something goes wrong (for any assortment of reasons)? Then you’re back at square one upside down in a mortgage that you have no means to pay because you can’t sell that house to the people who are renting it because they don’t have enough money to buy it either. And inflation might be 10%, but are housing prices really growing at 10%, or even 5%, to make that mortgage worthwhile/safe?
20 ton of oxyg. out in the utryme varje ar.
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