$1 Trillion and Now What? Minneapolis Real Estate

Earlier in this decade the budget was $1 trillion a year for the federal government.  That is how much tax money was collected and that was how much was spent.  Now we just spent that same amount in a matter of days.  We bought all the foreclosures on the market from these banks.  Some say where did the money come from?  Well, we just created it, printed the money, literally.  China, Saudia Arabia, will own most of it, because since we don’t have it we have to borrow it.  So now what?  The banks balance sheets are cleaner, and the government now has the problem of getting rid of these assets.  I think there is going to be more opportunity.  People are scared, even after this.  Money is going to be tight, credit is going to be tight.  Inflation will go up, prices will increase, real estate will be cheap, very cheap.  the government is going to take the hit.  Real Estate prices in Minneapolis will go down.  Areas like Lake Nokomis, Lake Calhoun, South Minneapolis, and North Minneapolis, will all see prices drop.  Most of these houses need to be fixed up and sold, but who is going to lend somebody money?  I am trying to get a house right now and I can’t even buy it with 20% down.  There is an old quote, “the best time to invest is when there is blood in the streets.”  Well, get ready, because it is about to get bloody.