Avoid These Cities

 

It’s no secret that seven trillion dollars of wealth was lost in the USA within the last few years. It can be traced back to “easy credit” made possible by Andrew Cuomo when he was secretary of Housing and Urban Development. The easy credit created the real estate bubble and was exacerbated by Wall Street packaging and selling securitized debt. Values increased dramatically as investors and home buyers alike took advantage of the “liar loans.” Liar loans are loans that had minimal documentation to get approved.

It’s unfortunate to watch our country with a bad case of financial hiccups try and crawl out of this anemic economy.

Government policies impact the quality of life we have as a nation. Even Ray Charles can see that our nation is much poorer than it was five years ago, and he’s been dead for over two years. The middle class is eroding and people will continue to work past retirement age to make ends meet.

I recently was reviewing information about the US Census Bureau and what I uncovered was eye-opening. The top ten cities with a population over 250,000 have one thing in common. First, you will notice they are in areas that I’ve suggested investors stay away from, primarily the Northeast and the Midwest. Just take a look at these and notice what the common denominator is.

 

10 Poorest Cities in America

(Ranked in order of poverty rate, starting with the highest)

 

1. Detroit, Michigan hasn’t elected a Republican mayor since 1961.

2. Buffalo, NY hasn’t elected one since 1954.

3. Cincinatti, Ohio hasn’t since 1984.

4. Cleveland, Ohio – since 1989.

 

5. Miami, Florida has never had a republican mayor.

6. St Louis, MO hasn’t had one since 1949.

7. El Paso, Texas has never had one either.

8. Milwaukee, Wisconsin – since 1908.

9. Philadelphia, PA – Since 1952.

10. Newark, NJ – since 1907.

 

It is the poor who habitually elect Democrats… yet they are still POOR.

 

“1.  You cannot bring about prosperity by discouraging thrift.
2.  You cannot strengthen the weak by weakening the strong
3.  You cannot help the poor man by destroying the rich.
4.  You cannot further the brotherhood of man by inciting class hatred.
5.  You cannot build character and courage by taking away man’s initiative and independence.
6.  You cannot help small men by tearing down big men.
7.  You cannot lift the wage earner by pulling down the wage payer.
8.  You cannot keep out of trouble by spending more than your income.
9.  You cannot establish security on borrowed money.
10  You cannot help men permanently by doing for them what they will not do for themselves.”

-William J. H. Boetcker (though often miscredited to Abraham Lincoln since it was written, including by us. Thanks to the reader below for pointing this out)

 

It is not a coincidence why these cities are in the state of affairs that they are in.You can’t expect 20% of the people to do 80% of the work and have a good business model.

I am not saying this article is right but there is no denying the facts.

Forget about the reality of who has political power. The question for you is: “As a real estate investor, would you want to invest your money in one of these cities? If not, where?”

For me, I want to invest where the laws are being interpreted in a court room where the people in power appreciate the basic premise of capitalism and right and wrong are not based on anything but the truth.