don’t forget about biden, too. he should also be in prison, for the mistakes of his predecessors.
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Just like the last housing crash (that should have been much worse)… there will be some Fed/Bank shenanigans if interest rates get to double digits and start tanking real estate/etc.
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Likely the introduction of the 40 and 50 year mortgage will come first. Delaying a crash temporarily. But as rates rise, corporations will start laying off. Forcing unemployed people to sell their homes for what little equity is left. That will add to supply and should bring prices down as well.
Problem is we have no cheap rental market right now. So people will do all they can to keep their low mortgage rates, they won’t be walking away like 2008-2010
Also many people have cash on the sidelines waiting for the crash. When buying in cash, rates affect you less. So we will continue to have assets transferred from poor to rich increasing income inequality. Basically it’s all FU&#ed. Hence why you don’t print 10 trillion out of thin air…
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Good old days. 80s
Good Public universities Tution cost was $1800 for full year.
Mortgage was around 12 to 15% on a 30 yr fixed.
Nice 4 bedroom Houses were like 40k to 60k.
Black Monday 1987. When mkt crash 22% in one day.
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There was a thread here about real estate crashing that got closed quickly.
I don’t think it’s as tenuous as some think.
Just remember… many people bought prior to the big upswing in prices and fixed mortgages were record lows (or they refi’d into them). The majority of homeowners have very low carrying costs especially compared to today’s rents as you mentioned.
There will not be a large amount of people who can’t afford their payments like back in the ninja loan days and so we won’t see a huge sell off. And if the last crash taught us anything… you can basically stop paying your mortgage and be in foreclosure for a long time. Like I said, Fed/Bank winky winky stuff will happen first.
I’m also a doubter of double digit rates… but there was a time when no one thought Fed would go to 0 and mortgages would be in the 3s.
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That sure is one expensive red pill America is going through right now.
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A post was merged into an existing topic: Off Topic Landfill 5
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I’ll openly admit, I still don’t really understand the banking system. It’s all funny money, made up numbers by governments and every single country has a debt. To me none of it makes sense, and none of the currencies have any real value. I mean they just print/create more whenever they feel like it.
Agree that precious metals is probably a safe bet.
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Anything is better then holding dollars. I’ll admit I hold a good amount hoping for a crash, but so is almost everyone. Which makes me think there will be no crash valued in dollars.
Pro tip. Open a Walmart credit card, they sell gold/silver bullion pretty cheap, allow credit and give you a 5% discount to use the card. Basically you can buy gold ounces at spot price this way…
Paper gold will crash if the market crashes but physical gold/silver has been holding up well during any drops. Silver eagles actually sell for almost double spot pricing. That should tell you how worthless the dollar is…
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Whut??? Walmart sells gold ounces via credit cards???
I did not know that…
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That’s why you come the LH! You gets the downlow.
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Just a local observation since as they say all real estate is local - house went up for sale in the neighborhood for $900. Typical 4bd, 3k sq ft, 1ac, $12 in tax, with septic, well, etc.
Was on the market for 19 days and now in “accepting backup offers”
Doesn’t look to me that 7% mortgage rates are slowing people down.
But then again - there isn’t much inventory in the neighborhood. Supply part of the equation is still out of whack where I’m at and there is no new construction to add any.
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It’s not just housing. The inflation we’re seeing is because the supply chain is still healing so demand is still outstripping supply. Just look here on LH at the deals we had 2 years ago vs now. Once inventory catches up to pre-pandemic levels we should see a slow return to normalcy. Putting the interest rate up might slow things down a little bit, but in a lot of segments, supply is still the problem.
WTF. Weren’t they going to just apply it? Shit’s gonna get bad real quick if they mail out checks…
https://thehill.com/homenews/administration/3708631-biden-predicts-student-loan-forgiveness-checks-will-go-out-within-two-weeks/
I think thats in reference to those who are entitled to refunds on already closed loans in their qualified loans forgiveness period. The folks who still have a student loan balance after the forgiveness will just see an amount applied to the principal.
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AKA renting.
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Japan tried the 99 yr mortgage
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