Yesterday, I watched a video of glum pessimists Mish Shedlock and Marc Faber talk about how we were all doomed here in the US. Pensions are going to be slashed, deflation in wages is going to occur followed by wild inflation from the Fed printing money and so forth. In thinking about that, I wondered what I would do if I was on the verge of retirement and the future seemed dark.
I might move to Gary, Indiana*. In the heart of the rust belt, Gary's real estate prices are depressed. Assuming you owned a $250,000 home somewhere else and still owed $100,000 on it, you could sell the house, take your proceeds and buy this cute cottage in Gary for about $50K and have $100K left over to bank.
While this scenario isn't real for me, it is for many others. You'd think that the Rust Belt would offer some excellent options for retirees. Yes, the weather is brutal in the winter, but the cost of living is low and you'd be able to own your own home free and clear in most cases. After that, you'd be able to live on your reduced pensions and battered 401Ks.
I wonder if anyone in the Midwest has considered marketing the place as a retirement option.
* - In all seriousness, I'd be much more likely to move to somewhere in the Deep South, but the idea is the same.