My “Tent City” Prediction Comes True

Over a year ago, on Feb 10, 2008 I predicted we’d see a number of headlines by the time the meltdown completed in 2011. [My Predictions from Feb 2008]

Here’s another one that’s coming true. I forecasted:
Tent cities” cropped up around the country.
They are filled with formerly middle-class displaced citizens.
Parents tell their kids it’s just a long camping vacation.

Check out what NBC News is featuring today on their front page.

2009-03-06-tent-cities-450x235

California is suffering thorough a drought so severe the “guvnah” has declared a drought emergency. The Golden State’s unemployment fund is nearly broke. The state itself is on the verge of insolvency and cannot afford to pay residents their 2009 state income tax refunds.

The January median sales price for Southern California homes fell to $250,000, a 40% drop from the same month a year prior, the San Diego real estate research firm MDA DataQuick reported Thursday. The price decline was accelerated by foreclosures, which accounted for 60% of sales last month.

tent-city-sacto-2009-03-05“This tent city in Sacramento, Calif., continues to grow as the worsening economy forces more people out of their homes.”

tent-city-sacto-2009-03-05a“Karen Hersch, an unemployed truck driver, cleans up at a homeless encampment in Sacramento, Calif.”

tent-city-sacto-2009-03-05b“Tammy Day, who recently lost her home, cuts potatoes as she prepares a meal at a tent city in Sacramento.”

tent-city-sacto-2009-03-05c“Tammy Day, seen with her husband Keith, cook over a campfire at a tent city in Sacramento.”

tent-city-sacto-2009-03-05d“Val Jon Farris, center, of charity iCare-America, hands out free supplies to residents at the tent city.”

Please save yourself by possessing physical gold, physical silver.

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12 Responses

  1. Check out this thread (crazy talk, but these guys seem sincere…scary):

    http://yelnick.typepad.com/yelnick/2009/03/how-low-might-it-go.html#comments

    • “We could be less than six-weeks away from a “NO BID” environment in equities…”

      “FWIW; I live in an affluent St. Louis ‘burb (ave. house is around $500K in my ‘hood). Talked with two of my neighbors at church yesterday (wealthy, both mid-50’s) and both of them are making contingency plans to flee the city if things get out of hand. They both said they’re worried about SSI and welfare checks getting cut-off by mid-year and they’re afraid the “urbanites” who get these checks might start coming into the suburbs to loot, steal, etc. THese guys weren’t kidding either.”

      Better than a good slasher flick if you need a good scare…and who doesn’t?

      • Scott,

        Would you please explain what a “NO BID” environment in equities is. I’m going overseas for a couple weeks at the end of March. I’ve been visiting your website everyday since October. I’ve learned incredibly so much from everyone. I really do love my country very much & wish our people in charge feel the same. As our machine is in low idle with our finger resting on the shutdown button, i would like to be ready for any short circuit to pop-up. Thanks for all your work in helping to educate us, its really appreciated.
        John

        • John-

          Cornholio explains it nicely below.
          Thanks for your kind remarks, do you have any silver yet?

          Scott

          • Scott,

            Yes, thanks for asking. I have purchased some silver coins already from Tulving. If anyone has questions about doing business with Tulving, just ask?

            John

      • John,

        If a “NO BID” scenario were to come into play, that would mean that you’re pushing the “Sell” button, but nobody wants it (all the while the price on your stock is plummeting to an eventual zero). IF this happened, the price would likely increase down the road, but IF there were all-out panic in the markets, with everybody (including Hedge Funds & Mutual Funds) selling at the same time, there wouldn’t be a floor (or bid) under stock prices. In my opinion, I don’t see this ever happening; but, you never know…

  2. Hal,

    What worries me is when some of those homeless people finding their way to the suburbs to take what they don’t have. It’s just a matter of time.

    • Cornholio,

      I’ve often wondered what the safe minimum distance is from an urban area… Some have said “3 days on foot” but that could be 75+ miles.

  3. Hey Scott,

    Yeah. They are indeed popping up all over the place. The Catholic Charities which runs the biggest tent city in my area here in Pinellas County, FL, just applied to the county for the ability to expand the number of tents allowed because the population is growing. Our rate of unemployment is now 9.5%. People are living in these tent cities, cars, and on the streets. It’s a growing problem. I’ve been dealing with the JWB in the area and the number of homeless children is on the rise as well, there was an item in yesterday’s paper that mentioned a girl who is often late to school because the family doesn’t have an alarm clock in their car.

    Difficult times indeed.

  4. That looks like fun; I love camping!

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