Thursday, May 27, 2010

RV industry will be crushed in next economic storm

Continued high unemployment, cash strapped cities and states, trillions of dollars of Federal debt and global economic chaos all spell trouble for a struggling RV industry. Yes, I know the Recreation Vehicle Industry Association (RVIA) is reporting increased RV sales, but these are wholesale deliveries to RV dealers. Newly manufactured RVs will collect on lots all over the nation until one by one dealerships go broke.

You know the story because you've seen it played out before. Stressed out consumers don't buy RVs, boats and other toys that are considered discretionary spending. Both U.S. and Canadian citizens are over their heads in debt and credit markets are still tight. Lending has loosened up somewhat recently, but as soon as economic forces begin to overwhelm our economies the credit door will slam shut again.

The Canadian housing bubble is near it's zenith and ready to pop. The second massive wave of foreclosures is gaining momentum in the United States. The U.S. stock and bond markets are out of control casinos. We've shipped our good paying jobs overseas and more people are on unemployment and welfare than ever before. Charitable feeding programs and food pantries are stretched to the limit. The Federal government keeps printing money to throw at the problem with little or no positive results. The banksters get richer on the backs of the U.S. taxpayer. We have an ecological disaster of epic proportions in the Gulf of Mexico and the North Korean chihuahua bit the leg of his neighbor. There is rioting in the streets of Europe and Asia (more than usual) and here we are whistling past the graveyard hoping for an economic recovery.

This will not end well. RV manufacturers are hanging by a thread already and any stiff wind is sure to break the backs of most. You will be able to count on one hand the number of RV manufacturers left standing after the next leg down. When will it happen? I can't say for sure, but it will happen -- probably sooner than later.

If you're in the market to purchase a new RV (and actually have the money to do so) hang on to your cash and you'll be able to buy at a fraction of the original cost. I personally prefer a well cared for used RV over a new one because all the bugs are worked out and they are cheaper. So, hang on to your hats my friends, the economic roller-coaster ride has just begun.

Saying what others are afraid to even think about - Jim Twamley, Professor of RVing

59 comments:

Just a Meanderer said...

Might the RV industry actually rise because of foreclosed homes or the inability to purchase a home? Could there not be larger move to living in an RV when all else fails? Just thinking out loud. Love your blog.
Warren
JustMeanderingAlong.com

Jim and Virgie said...

Your right about another dip in recession coming. With taxes set to increase dramatically next year, this will increase unemployment and the recession will continue. We can start to turn things around by voting out the politicians who got us into this mess. Remember in November and let's get our country back.

Anonymous said...

Perception is everything. Feed into the fear and scare the crap out of everyone and guess what? They won't go buy a new RV, so what will happen? More businesses go under. Furthermore, it is not necessarily true that "a used RV has all the bugs worked out". Just as often the RV got sold because of the bugs were too expensive or complex to fix. Waiting for the Going Out Of Biz Sale may offer greater savings but as an economic model it spells disaster.

Anonymous said...

Brilliant article and spot on I'm afraid.

Anonymous said...

This economic crisis was not created by the current administration. It ranges back two to three presidents ago. Just like a person who becomes overweight and then diets to lose it. A nations economy does not deteriorate overnight, nor is it fixed quickly.

Anonymous said...

Wow. Talk about Debbie Downer, or should I say Donald Downer. Jim, I appreciate your comments but this kind of negativism does not help our country in any way, including the morale. We each need to do our part rather than bash, bash, bash and hang on to what's right rather than what's wrong. It was hard to read your comments. jv290@yahoo.com

Sharon and Larry said...

To follow up on Jim and Vergie's comment - not only do we need to vote them ALL out, we must be very diligent in our studies of the ones we vote into office. We certainly do not want to go from bad to worse.

We also must stop treating our elected officials like royalty. We must treat them like the servants that they are.

www.AlamoRiver.com said...

I think both comments are correct, I own a RV park and am seeing more folks selling the house and moving in a RV, not so much to enjoy the RVing life style but to reduce their cost of living.

Right about throwing all of the bums out in november.

Buy and read "The Fair Tax Book"
The only way we will save our republic.

www.AlamoRiver.com

rich said...

Crimmaney shakes man, your as bad as the news media, don't you have anything better to do? I don't have my head in the sand, I see what the hell is going on, but I don't need to be kept reminded of it and especially by another outside the loop source.
Why not keep this venue positive and look to the brighter side, that's what RVing is all about.

It's Memorial Day Weekend, stand up and salute the Flag, say the Pledge of Allegiance, thank our Military Folks for their Service and thank God we're still FREE!

ladyrvr66 said...

Jim and Virgie you are correct about the politicians who got us in this mess and we need to vote them ALL out!! I have thought the RV industry was in trouble the last three years and unless our economy improves the RV industry will not get better, only worse.

Lou Finkle said...

The Twamley article about continued recession is correct. As a SCORE/SBA volunteer counselor and former researcher, I examine small towns is several states. The "empty store front index" keeps increasing. Simultaneously, RV lots are full of available units. Along interconnecting blue roads between small towns, one sees greater numbers of Rvs parked nearer the roads with "4 sale" signs. The only announcements of improving economy come from those making $100,000-or-more in tenured or goverment positions. In my opinion ... "cash is king until printing presses run rampant!"

XR29 said...

The RV manufacturers who are surviving are the ones who build to order. At least that's what I think. Having said that, they still need a line of credit.

Will we see a increase in RV repositions?

Also, how will this effect the RV park economics?

Just askin.
SkipJ

Anonymous said...

The cause of our economic problems is the “old America”. Some of the decontrolling was good but it went too far. Wake up man. America needs true blooded patriots’ thinking about the people not some old notion of who we were that was never completely true. I don’t doubt your care for America. But, please start thinking. We need change.

rvliving said...

Jim: Many houses in our area of Ontario have SOLD signs on their houses this spring (very few last year). Even Park models in our park have started to sell and there is little financing for those at this point.

We stopped at our dealer in London last week and their sales are boombing. The week before they sold 5 high-end motorhomes. This is not a huge dealership like most of them so it is a very positive sign things are recovering.

So in a word I would say our Cdn economy is definitely on the rise. It does not appear to most of us that we are headed to another bust.

Our Prime Minister is an economist and that party is riding high in the poles. They tell us that we Canuks are doing very well - we believe them.

The Susuki, Toyota and Honda plants in SW Ont are hiring and also doing well.

The gloom and doom you project Jim does not seem to be that way here - or according to the news, throughout the rest of Canada either.

Have an enjoyable Memorial Day long weekend.

Peggi and John www.rvliving.net

Daniel said...

Wrong,wrong,wrong, Things will be a little edgy for a while. Everyone is just waiting for the other shoe to drop. It will not drop. The rv industry needs to find better financing for its products. If rvs could be financed the same way cars are, there would be no lack of willing customers. If the rv industry developes a more effective financing network the units will fly off the lots, if not it will fail.

grandy said...

In reply to "Just a Meanderer's" comment: I have had my fulltiming plans on hold for two years because I can't sell my house for even less than half of what I paid for it. Homeownership is a ball and chain that is preventing me from realizing my dreams of fulltime RVing.

Anonymous said...

I'm only 59 introduced to my friend's RV and way of life in the last 6 years. It seemed the majority of owners were "white hairs" albeit youngish retirees that owned them mainly for recreation in addition to their main house, they had the $$. Now I see that the main house is gone, and full-timers are increasing. Not always a choice, but a necessity when trying to hang on to whatever money they have to see them through retirement.

Another point the RV industry should seriously consider...where is the next generation of buyers coming from?? People not only don't have an RV AND a house today, they are losing their houses. They can't rebound from that in time to save the RV industry. It's time for the manufacturers to think outside the box (no pun intended) and build a more affordable, safe, economical and attractive RV. We only need to remember what happened when Detroit didn't pay heed to what foreign imports were offering and the American consumer was requesting. We have the technology and talent. Let's use it to weather the upcoming difficult years and save this wonderful way of life and recreation for generations to come. So much of our economy depends on it.

Johnny Goodrum said...

I don't know how many people read your blog, but the picture at the top of this article is misleading because all of the RV sales lots in Quartzsite, AZ where you took this picture looks like that before and after the winter season. Its a shame you would use such graphics like that to try and get your point across. Show the pictures during the winter season in Quartzsite and other winter areas for snowbirds and you will see lots of full of motorhomes and RV's available for sale. I just wonder if you have ever been to Quartzsite in the winter? You have done a wrong injustice to your article with this picture.

Johnny Goodrum said...

Please stop all the gloom and doom and political bashing. Our government which it seems everyone wants to overthrow since the last election did not cause this economic downturn, but the greed of Wall Street and corporations worldwide contributed their fair share. Gov Jindal of Louisiana made it clear in his party's rebuttal to the President's state of the union message that he wanted the federal government out of his state. Now he begs for the federal government to take charge and clean up his beaches after big oil's neglect of common business procedures in the Gulf oil spill, so please everyone, quit bashing our and your government. Make your voice heard at the voting polls and keep your gloom and doom to yourself.

A poster (Jim and Virgie) says politicians got us into this mess and boy are they dead wrong. Let's put the blame where it really lies and that's America and ourselves, not Washington, DC. We have become a nation of excess and now we are paying the price for those excesses.

Please end the gloom and doom, brighter days are ahead of us, if we only try. I agree that perception is everything and way too many misconceptions are being bantered around this country now because of discontent with Washington. If you want to take back America, straighten up your own house first, then go outside and take a deep breath.

Anonymous said...

Reading this I thought I was sitting in front of my TV circa late 2007 watching GW and the Congress grapple with "everything going to hell in a hand basket" stuff. Dark days for sure and I, along with many other folks, lost a lot of money, saw our houses devalue and our rigs devalue at an alarming rate, What a year 2008 was for this correction and talk about personally depressing for many people. Are you telling me we are about to do this again? Well, all I can say is that I have far less to lose at this point, am returning to work and divesting myself of all the financial mistakes, including the motorhome, that I can, when I can. To be honest, I am far more concerned with the border and the terror coming at us while we do nothing.

Anonymous said...

Jim, Our RV Dealer in Roswell, NM is doing fine. They are selling both new & used RV's and have been putting out at least 5 units a week. Lets be positive and not buy into the notion that we (RV'ers) are going to be left out in the cold. Part of the unemployment problem is that Obama keeps increasing the time period you can stay on it. Why work when you can get your money for free??

Dick said...

Jim, I have been transporting RV's since 2002. The 18 months prior to March 2010 were terrible. RV Dealers plus manufactors going out of business. But since March RV Transport companies can't hire enough drivers. At first I thought it was just dealers replacing stock. But then I started seeing new dealers springing up. And the biggest surprise came on a delievery to southern California (yes the same California that is broke) last week. I asked the person checking me in if anyone was buying Motor Homes anymore. He said they had just finished a 13 day show in the LA area. They sold 57 units the 1st 2 days and 153 units in the 13 days. Most for cash. So, the economy may be bad, but it's not as bad as you seem to think. As far as Canada, look at the American dollar verses the canadian. My fellow drivers have concluded that everyone in Canada now has a two car RV garage. But they're still buying.

The time to save on buying an RV is over!

Jonathan said...

Well Jim, you have done everything that you could to tank the RV industry.
It's good that Air Force people have a more positive attitude than Navy people.

bocacash said...

Way to go, Jim ! Your prediction of the future is a self-fulfilling prophecy !! Based on your suggested course of action..."hang on to your cash"...your prediction will become a reality. The unchecked flow of money...based on need and confidence ...is what capitalistic economies are based on. You are promoting the one 'poison pill' that will definitely do us in. Stop it !

Peggy and Steve said...

Ok, first of all, let's focus on the issue at hand without placing blame, and secondly, let's be realistic rather than alarmist. Okay? Now having said that, we see other problems with RVin'g fulright now, especially for those of us who are full timers....the cost to remain in parks long term is going up, up and up. Full time RVing was the best deal around (the free and inexpensive life, etc.) now parks that used to charge $250 to $450 a month are charging considerably more. RV parks that used to charge $25 a night are now charging $50 in many places. Fuel prices are not likely to go down much, nor is the cost of insurance, propane or utilities -- in fact, all of that is also going up, up and up, too. As a result, my husband and I are putting our rig up for sale, and buying a home (houses are dirt cheap now) and we will be paying less in mortgage each month than we are in park rental, and in 10 years, we'll most likely have an asset (not so with a 10 year old RV). The RV industry might very well be in hot water, but I don't think that's the only problem. The entire picture "ain't so rosy" right now. We are putting in an offer for a house that sold in 2006 for 400k (it's on the market right now, along with more than 800 other like it in our area), for $80k! With down payment -- that we use the money we get for our rig for -- our payment, with insurances and taxes added, will be less than we we pay now for our park, and our monthly utilities will be right at what we spend for fuel right now.

ShaRon said...

I have been wanting to purchase a new MH for two years. On paper, I can easily afford a 300.000 MH with timed payments until I factor in the 7 to 8% interest on the financing. At the same time, if I wanted to purchase a car, van, or truck, the interest rate is closer to 2 to 3%. If I could get financing for even 4 to 5%, I would buy one tomorrow!

Dennis said...

Jim, You really need to keep your negative opinions to yourself running around saying the sky is falling doesn't help anybody. Unself proclaimed PROFESSORS and scientist predict that an asteroid will hit the Earth sometime in the feature and that will be the end of mankind so whats your point?What you should be posting is a reminder to our fellow Americans that we HAVE and WILL overcome any challenges that MAY come our way.Right now we need to help our fellow man and either "Get busy living or Get busy dying"So my fellow RV'ERS go get a new or used RV as we know theirs one for every budget and lifestyle.GOD BLESS OUR TROOPS AND GOD BLESS AMERICA!!

John said...

Thanks Jim, I would rather be informed, than be hit blindsided by seeking out the merry & rosey side of life, and then jump up & down blaming everyone else but myself.
For those of like minds, Frontline is the fact seeking TV presentation of PBS. For a startling account of todays mess, go to PBS's,, Frontline on your computer, look up, "70 trillion and Counting". Their on record published for you to look up facts hour presentation of what has happened.

NM_Bill said...

While not denying any of the economic problems, I can't share your picture of gloom & doom.

The RV industry does live off the fat of the land. Everyone has a different amount of money as well as notions of what priorities to spend it.

I would not want to currently invest in an RV manufacturer, but leave it to the politicians to play on peoples fears.

That said, if one is foolish with their money, they truly are a fool.

Anonymous said...

Someone's been listening to Glenn Beck too much. Stock market is way up, even with the latest dip. Employers are hiring again. Durable goods orders were way up in April. Housing starts are up. Even auto sales are up.

As some else said, it's all in perception. Where were all the "debt is gonna kill us" when we had a trillion dollar unfunded war? It's just political rancor that's making people be so doom and gloom. The facts on the ground are much different.

How about sticking to RVs and leave the negativity to FixNews.

Donald Johnson said...

Good post and thread. Some are willing to realistically look at our sour economic outlook, and others want to stick their heads in the sand. Denial can be fatal.

The world's securities markets are telling us that smart people think politicians are out of control, incompetent when it comes to regulating financial markets and are making things worse around the world. The message is simple: Be careful, save, protect your capital.

The people who are buying and using RVs seem to be those on secure private sector and government employee pensions. And there are some who are lucky enough to have built and sold businesses and professional practices or have done well as investors. How big that universe is and what share of it is in the market for RVs, I don't know.

Car loan interest rates are low because one way or another the manufacturers can afford to subsidize the loans and get their investments back by selling more cars. That model doesn't work in the cash-strapped RV manufacturing industry. And with money still tight, it won't.

I talked to our broker who sells medium- to high-end homes, and she says the only way people get mortgages is if they don't need them. Thus, the people buying RVs are, for the most part, I suspect, paying cash. If they're smart, they're buying four- or five-year-old units, not new ones.

I blame most of our economic problems on the Fannie Mae and Freddie Mac enablers--Barney Frank, Chuck Schumer, Chris Dodd, Barack Obam, Joe Biden, et. al. They are making matters worse with their drive to put America into bankruptcy. With the Feds and state and local governments in deep financial trouble, I don't see how credit markets for home and RV buyers will improve any time soon.

We bought our first RV, a 2006 Roadtrek Adventurous last December for traveling. We just did a mountainous 2,000 mile trip at 22 mpg. It's not as comfortable as the big units, but it's affordable for us.

Anonymous said...

Jim, once again you pour cold water on the RV industry and the future of our country. You might end up being right, but we're not quite there yet and might not get there. I'm banking on a huge change in Congress in November, then being done with the President's socialism agenda a couple of years later. You know, a year or so back you wrote another of your "bummer" reports that didn't exactly go the way you outlined. If I remember correctly, at that time you said the RV industry would collapse and go away for the most part. Didn't entirely happen, eh? It's not great, but still here! Oh, well, you do get the blood pumping in all of us on this Sat. morning!

Anonymous said...

All I can say is...
If you have an RV and can afford it, then, enjoy it and the great friends you make along the way!

Dick A said...

I believe Jim's comments are more than likely to ring true.

As a now-retired four decade business owner, a continuous student of business and economics, and a avid reader of world events, I believe the recent huge deficit spending is just delaying a larger economic downturn.

Not only is the United States virtually in bankruptcy, but rather the majority of the world. As individuals, we cannot continuously live above our means without ultimate disaster, nor can any modern government.

Yes, there currently are areas where RV's are selling well but one should research the demographics of those buying for the true picture of the RV industry health. Last year I also purchased a rather high-end motorhome (for cash) as I had saved for my retirement during my working years and hold no debt.

Motorhome sales are still low historically and most dealers are stocking the much less expensive towables. Financing is still difficult on units of $100K or more.

As is normal, I believe we have two camps of opinions posted; those who pay little attention to the boring issues of world economics and those who spend considerable time in the quest to be as well informed as possible.

Perhaps neither can notably predict the near future but at least one will not be totally blindsided.

Dick A said...

I believe Jim's comments are more than likely to ring true.

As a now-retired four decade business owner, a continuous student of business and economics, and a avid reader of world events, I believe the recent huge deficit spending is just delaying a larger economic downturn.

Not only is the United States virtually in bankruptcy, but rather the majority of the world. As individuals, we cannot continuously live above our means without ultimate disaster, nor can any modern government.

Yes, there currently are areas where RV's are selling well but one should research the demographics of those buying for the true picture of the RV industry health. Last year I also purchased a rather high-end motorhome (for cash) as I had saved for my retirement during my working years and hold no debt.

Motorhome sales are still low historically and most dealers are stocking the much less expensive towables. Financing is still difficult on units of $100K or more.

As is normal, I believe we have two camps of opinions posted; those who pay little attention to the boring issues of world economics and those who spend considerable time in the quest to be as well informed as possible.

Perhaps neither can notably predict the near future but at least one will not be totally blindsided.

Anonymous said...

The article is excellent and the reason many manufacturers will be out of business is because they have been building crap in my opinion...just like GM when they scrapped the electric car and continued with SUV's and went overboard with gas hog Hummer.
The RV industry could easily use insulating UV projection windows with internal "dog-down" closure, new quality insulation, cork flooring throughout, florescent lighting, and be more efficient and lightweight throughout; namely a large single stainless steel sink, etc.
So what do they do...they build units w/more slides, heavy weight counters, tile floors, etc.
The "eye candy" won't sell in the future. I've been wanting to buy for years, but, I won't until a manufacturer builds a Class A or B under 24' with a decent "self adjusting bed", comfortable dinette, single burner propane/alcohol stove and enough counter space to use "Max Burton induction cooking unit" that sells for $125. The public wants to buy quality and not the trash with all the needless "whistles and bows" The industry hasn't advanced with the times...they will reap what they sowed.

Steve W said...

Please- just shoot yourself and be out of our misery. What a downer you are, and have been all along. Things aren't great, but they could be a lot worse, and people like you in the news agencies and everywhere are taking their pitiful moment in the sun to scream that the sky is falling. I'm tired of the negativity, and I choose to smell the roses and be thankful for what I have. I pity anyone not looking for the silver lining; we could be living in Haiti, or some other truly desperate place.

Kathryn, M.D. said...

We have to trust ourselves. I don't believe we can trust the government (although I still am a liberal and I believe that Obama has good intentions.). Most of the government is in the pocket of the big corporations--Halliburton, AIG, and BP for example--and I always find myself going back to President Eisenhower's exit speech, in which he warned us to "beware" of the military/industrial complex".
In 9/11. the terrorist was a fanatic religious group; now, I believe, the "terrorists", are the gigantic corporations who believe they own the world. Honestly, I believe that BP's un-regulated deep-sea drilling and subsequent disaster will be more of an "assault" of our "American Way" of Life than 9/11 was (not to diminish the anguish of that attack!).

Anonymous said...

I would have too say I somewhat agree with Jim. I live in SW Idaho and there have been many large RV dealers with a long history in this area that are no longer in business and the ones that are still going have reduced their size and inventory. With the current politicians that are in office spending us into debt that our great great grandkids will be paying for we will all be lucky to survive this

Borderbandido said...

37 comments, wow! Not one person really agrees with another, that's America, while we still can, we need to do this. Thanks for a thoughtful prognostication, Jim. We all must look at our own situation and choose a road that looks livable. Some wont do as well as others. Some don't want us to, either. It's chilly, I think our sun is going down.

Tireman9 said...

The RV industry currently deserves a good portion of poor sales. They have a mindset much like Detroit in the '70s. Build em quick and don't worry about quality. At least the RV industry doesn't have to worry about some foreign company introducing RVs with 3 year warrantees. Look at the sales of KIA & Hyundai in 2009 they increased! and a good part of the reason is they build and stand behind quality products with 5 year bumper to bumper coverage.
Some examples in my 2008 Made in the USA RV.
Heat vent hose crushed to half it's size due to poor placement.
Holding tank drain handles poorly clocked by 60 degrees resulting in damage to handle.
Can of spray paint left loose in enclosed space under bed requiring removal of nailed in panel to get to the can.
foot long leader with 5 electric wires left loose behind brake lights.
Brake light wire "access" created by using hammer to break through interior wood panel rather than cutting an access hole. How would you feel if you discovered your car manufacturer just hit the firewall till a worker was able to punch a hole in it?
Water drain lines dumping on top of electric commections of propain tank.
Hole between cab and coach big enough to see the ground.
Holding tank heaters left disconnected
$170 water heater gas valve fails 26 months after purchase.
Hole insulators for electric wires in battery box loose, missing or not preventing wire from contacting the steel.

I can go on but you get the message. The RV industry in the USA has absolutely no concept of Quality in Design or Quality in manufacturing.

Les Hetsler said...

Wow thats a little bleak. I am concerned, about government spending because that competes with business borrowing. I hope enough of us have awakened and realize that elections have consequences. We need to be careful voters this fall.

Gary said...

From Gary C of Golden, CO:

Jim, I respect your opinion and right to express it. But I must disagree with you. Navistar is the largest, most successful school bus builder in the world and a huge manufacturer of trucks. Using its vast experience and resources, Navistar carefully researched the future of the RV industry and concluded that future was bright enough to justify its purhase of Monaco and all the brand names owned by Monaco.

Unlike the old Monaco, Navistar has extremely deep pockets to weather inevitable economic downturns. Navistar--one of the smartest and best managed companies of its kind--has made a huge financial commitment because it believes in the future and profitability of the RV industry.

Experts agree that Navistar has the lowest warranty claim rate in the bus and trucking industry because it invests the most up front in quality and quality control. It plans to do likewise with its RV products. With its vast resources including literally thousands of engineers worldwide, forward thinking, and super advanced technology, Navistar will bring a whole new approach and thinking to the RV industry. Another measure of Navistar's greatness is in the fact that it has NEVER had an unprofitable year during this or any previous recession.

Never before, has the RV industry had a Navistar. Or anything remotely close. It would be a mistake to underestimate this great company and and the difference it will make.

Dick A said...

I could be mistaken but was not Navistar's credit rating substantially lowered recently due to the company being highly leveraged?

Oh well, it's evident few believe in fiscal responsibility these days as evidenced by the averaged Americans load of credit card debt.

Borderbandido said...

Dick A. Amen. Unfortunately, NAVISTAR is not as firm a company as it once was, and will be again, I think (hope). So does Ford. Most of the shareholders today are only interested in the next Quarterly report.

Anonymous said...

I have to agree with everyone's opinion, but the only thing we can do is VOTE in NOVEMBER! I moved out of a 3 BR home into a 34ft 5th wheel 5 yrs ago, and even if I can't afford the fuel, I plan on living in my 5th Wheel for a very long time! It's a lot cheaper than a mortgage with school taxes, etc., etc., etc. Thanks for the article.

Dave N. said...

OK - Let me help those who choose to listen to the fake news like MSCBS and the like. The economic downturn has been a long time coming BUT sadly - a big portion of the blame IS the Federal Government. Your housing industry was busted by the likes of those such as Barney Frank - pressure on the banks to give bad home loans to people who could not afford a home. See - NO MONEY DOWN put people in homes who really didn't care about OR couldn't afford home ownership - meanwhile G'vt officials trying to be "fair" were saying "everyone deserves to own a home." Banks being pressured were FORCED TO GIVE THESE LOANS. When you take all these bad loans and put them all together - you have a devaluation of an industry. So - thank your Federal Government. Next Fed issue - illegal immigration - you think the illegals crossing the border to work for lower wages isn't killing your economy? When an "illegal" makes substandard wages - THEY APPLY TO THE FEDERALES for housing assistance, food stamps, medical benefits - AND THEY GET IT because OUR GOVERNMENT HAS SENT THEM TO THE FRONT OF THE LINE FOR THESE BENEFITS. So - a $5/hr. job becomes a $60/hr. when you tack on all the bennies that COME FROM YOUR HARD EARNED TAX DOLLARS. Remember - there are approximately 30 MILLION ILLEGALS IN THE COUNTRY and Your Federal Government supports them. The reason for the support is THE FEDS WANT THEIR VOTES FOR THEIR CANDIDATES IN THE FUTURE. That is why lead politicians are crying to make the illegals - LEGAL. The purpose of this IS TO SECURE THEIR VOTES! Then - you will see what you'll get - A bankrupt economy with a blended population of a ruling class and a poor class. RV lifestyle? Are you kidding? I'd be turning my attention to other forms of dwellings. It is not in the near future - not with Obama now owning approx. 1/6th of the economy - now what he was brought to the banking industry and wall street. Remember - Hitler wasn't big on RV'ing. First - he took over the banks, the car industry and the healthcare. What - you think you are living through something different from that now? What planet are living on? I RV'd for 9 years and recently put mine on consignment. What? travel you say? Vacations? I am on a work stoppage as I am not supporting the crooks - so I live on soup and whatever is on sale at the market. I suggest you find a cheap piece of land like I did, put up a small shack and do some off-the-grid alternative living. Big cities will be a prob...wait - you didn't see the protests this past May Day with illegals DEMANDING THIER RIGHTS AND THEIR DUE? Again - what planet do you live on?

Anonymous said...

Dave N is absolutely correct about what led to the collapse of our housing industry and other economic problems. I've seen video tape of Barney Frank and other radical liberals rejecting warnings that this house of cards was going to fall because banks knew or should have known these buyers would not be able to make their payments. But the hell with logic: they were his supporters. Even with good intentions, we can see what happens when you try to make everything available to everyone against all odds. Same thing with illegal immigrants. We just can't say NO to anyone. Free medical, free education, free housing, free food stamps but NOTHING is really free and the socialism being pushed will ultimatley hurt everyone, but especially the poor. The terrorists want to kill us but it's the debt service that WILL kill us and our way of life. You cannot pull a man up by pulling another man down. Let's lock our borders, just as we lock our homes!

Victorious Conqueror said...

Unfortunately, Jim, you're just another of the many voices spewing negative an dire predictions ... with absolutely no answers or recommendations. To run around and say that the sky is falling is not a noble cause. To tell the world what to do about it would be.

Dave N. said...

To address "Victorious Conqueror" and others that don't know what is happening presently in our Country...economically and otherwise - right now there really is no good news. What are we - - children? DEAL WITH IT! Now there is the November elections on the march - BUT - we need true Conservatism to take the controls to stop the flow of printing fake money and putting THE BRAKES ON SPENDING. YOU CANNOT SPEND SPEND SPEND and expect to be successful. Think of your household - if more money flows out than flows in...what happens? If you take home home $550 / wk and spend $780 / per on a consistent basis...then????? So....things need to tighten up, people have to GO WITHOUT so that our DEVALUED DOLLAR CAN RISE AGAIN. Think of precious stones. If diamonds littered the streets (billions of them just being kicked about). then WHAT WOULD BE THEIR WORTH? Is this a hard concept to grasp? Did people sleep through 2nd grade economics? There is nothing in the bank because of political WHORISM. Our leaders keep sticking their ugly faces into PRIVATE ENTERPRISE. And so this is the return on that investment. IF YOU LISTEN TO POLITICIANS THEN YOU WILL GET EXACTLY WEHAT YOU DESERVE. GET IT?

Dick A said...

I find the responses thus far to be rather typical of this type of discussion. While there is disagreement between those posting comments I do find it refreshing there appears to generally be respect for each others comments.

Historically, history tends to repeat itself albeit under somewhat different circumstances.

From the fall of the Roman Empire, the former czars of Russia, the dictators of Italy and Germany, to the likes of the modern controllers of Iran, Cuba, and many other countries, there is a lesson which should be studied and learned.

As most of us older folks posting in this forum have experienced during the past many decades, both social and economic issues will shape our future in many ways, especially economically.

Unfortunately, much of our population is not pursuing knowledge past the 6:00 O'clock ten-second sound bites.

The author has obviously piqued the thoughts of many who read this venue. Great! Now get more involved and better educated.

Anonymous said...

Three cheers for Dave N. and for Jim , only problem the sheepole are facing is that TRUTH HURTS and they don't want to see it!

Chris said...

I think Jim is ultimately going to be right. There may be a brief economic rebound for RVs as the economy gets better. But in the long run, I don't think that RVing is ever going to be as popular as it once was. As late as 2003, gas was $1.49 in some areas. Now those days are gone But, as another poster pointed out, the price of campgrounds just keeps increasing. RVing used to be a cost-saving way of seeing the country. It no longer is. Most of our friends in their mid-to-late-50s say that they aren't interested in buying an RV. Many of the "boomer" generation, that could potentially enter the market, regard them as being too large and consuming too much fuel. In the future, there are going to be less people entering RVing. Many of those that do, will be getting smaller, class-B-type rigs.

Robert said...

I disagree with your prediction of the demise of the RV industry. For sure the RV Industry will have changes based on changing conditions, but I see no change in the equation of the fun created by RVing vs dollars spent.

Many folks are predicting doom because of current conditions in the World and the USA. Read some history, is 2010 worse than 1941 or 1860 or 1929? I don't think so.

Anonymous said...

Posted by Robert..
Read some history, is 2010 worse than 1941 or 1860 or 1929? I don't think so.

2010 can not be compared to the past dates you listed, as all money was backed by gold/silver for years you mentioned. In
1967 government abandoned the gold standard; inflation escalated, wage/price freeze enacted, consumer debt did not exist then. In 1970 you could not get an American Express card unless your income was above $10,000 a year and your balance had to be paid in full at the end of the month. You also had to prove 30% cash to buy a house. 20% for mortgage commitment; 10% closing and incidentals. Without doing so, no Real Estate Broker would show you a house. When citizen Obama was a lawyer representing ACORN and successfully sued City Bank in the 90's followed with Clinton signing the banking act eliminating Glass-Steagall act of 1932, everything changed.

The economic collapse was planned as everyone in Washington knew this, just like 1929 Stock Market crash was planned as greed caused some people to buy stocks on margin. Some Americans are stupid. They failed to heed their parents warning who understood the 29 collapse of the Stock Market: "If you can't pay cash, don't buy it". Your house was the only exception. Even cars could not be financed for a period greater than 3 months. Then it was bumped to 6 months, then one year.
Check your history - How many months is it today.

If you read any of Elizabeth Warren's books, you will know the rest of the story.

Stop blaming and educate yourself.
The word Politics can be defined.
Poli means many. Tics are blood suckers. Until this country elects people with "honorable principals" instead of self-serving politicians who were chosen in advance by the "elite" for us to select from - nothing will change.

Woodrow Wilson sold this country in 1913 when he signed the Federal Reserve Banking Act. Later came the Income Tax Act to pay the private bankers interest.

Jim Twamley's article is spot on.
Ignore it, or educate yourself.
That is your choice.

Anonymous said...

I have read each comment and am not surprised to see inappropriate personal attacks directed toward the courageous messenger. Unfortunately, this is common with ignorant small thinking people when confronted with reality they choose not to witness.

Because society's attention span has been severely shortened - (microwave minute thinking) - (take a pill for your problems); history repeats itself.

Namely, The Roman Empire fell because they debased their money (shaved gold/silver from the edges). We have done it with inflation and fiat currency. Google it if you must, but, take the time to understand "fiat currency", and understand that inflation is a hidden tax on the people. Today the dollar has less than 4 cents purchasing power in comparison to when the private Federal Bank System was created in 1913 that was sold as a means to end inflation and wars...and by the way is no more Federal than Federal Express.

If you doubt things are planned, look up the word "critical thinking" and apply it as you read the next 2 posts.

Anonymous said...

BP CEO Tony Hayward cashed in about a third of his holding in the company one month before a well on the Deepwater Horizon rig burst, causing an environmental disaster.

Mr Hayward, whose pay package is £4 million a year, then paid off the mortgage on his family’s mansion in Kent, which is estimated to be valued at more than £1.2 million.

There is no suggestion that he acted improperly or had prior knowledge that the company was to face the biggest setback in its history.

His decision, however, means he avoided losing more than £423,000 when BP’s share price plunged after the oil spill began six weeks ago.

Since he disposed of 223,288 shares on March 17, the company’s share price has fallen by 30 per cent. About £40 billion has been wiped off its total value. The fall has caused pain not just for BP shareholders, but also for millions of company pension funds and small investors who have money held in tracker funds.

The spill, which has still not been stemmed, has caused a serious environmental crisis and is estimated to cost BP up to £40 billion to clean up.

There was growing confidence yesterday that a new cap placed over the well was stemming the oil flow. An estimated three million liters a day had been pouring into the sea off the coast of Louisiana since the April 20 explosion, damaging marine life.

The crisis has enraged US politicians, with President Obama yesterday forced to cancel a trip to Indonesia amid a row over the White House’s response.

Mr Hayward, whose position is thought to be under threat, risked further fury by continuing plans to pay out a dividend to investors next month.

source: http://www.telegraph.co.uk/finance/newsbysector/en ergy/oilandgas/7804922/BP-chief-Tony-Hayward-sold- shares-weeks-before-oil-spill.html

Anonymous said...

KEEP READING ONLY IF YOUR INTERESTED IN YOUR FUTURE...


Goldman Sachs sold $250 million of BP stock before spill

The brokerage firm that's faced the most scrutiny from regulators in the past year over the shorting of mortgage related securities seems to have had good timing when it came to something else: the stock of British oil giant BP.

According to regulatory filings, RawStory.com has found that Goldman Sachs sold 4,680,822 shares of BP in the first quarter of 2010. Goldman's sales were the largest of any firm during that time. Goldman would have pocketed slightly more than $266 million if their holdings were sold at the average price of BP's stock during the quarter.

If Goldman had sold these shares today, their investment would have lost 36 percent its value, or $96 million. The share sales represented 44 percent of Goldman's holdings -- meaning that Goldman's remaining holdings have still lost tens of millions in value...


source: http://rawstory.com/rs/2010/0602/month-oil-spill-g oldman-sachs-sold-250-million-bp-stock/

The really sad thing -- taking the time to write this -- very few original readers will read it. I found this article weeks after it was a cover story and due to society's planned conditioning with a short attention span, ignorance will prevail.

Borderbandido said...

For Anonymous and those interested: It does take awhile to validate your many and well documented statements. I extend my thanks for opening several more doors into the almost secret life of the most planned political maneuvering, since "The Manchurian Candidate" was filmed as an unlikely (?) happenstance. Socialism in Washington, nope.."One World Order", no dollars no Euros, Hey Canada, no Loonies either. No need for RV's, Appointees, Czars, etc will tell us when and where we take whatever vacation hours are allotted us. After we complete whatever our assignment has been.

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