Posted on 09/15/2018 7:36:39 AM PDT by yesthatjallen
Booms always go bust.
It’s only a matter of time.
I remember well people driving down my Florida street, looking at a house for sale and then driving off.
They were both priced out of the market and didn’t feel the house offered good value.
The boom & bust cycles are monitored well by rich people.
Right now, every parcel of land nearby is up for sale or being built on.
The rich are cashing out.
The prices of assets are very high now.
In 2009, prices were low to reasonable.
However, credit was tight. Only people with very good credit ratings could get credit to buy houses.
Slowly, people bought, prices rose modestly.
That encouraged more people to buy, prices rose a little more, banks got a little less risk adverse, more people could get housing loans and buy.
Banks, with loan portfolios full of mortgages property valued at more than loan value, are still lending.
However in 2018, as around 2007, we are now at the point where most creditworthy people have bought into housing.
The Congress has arranged for a corporate tax cut to extend over many years, which will supply a modest amount of demand for housing and remodels.
The federal government is getting better at managing the economy, but stock P/E and housing cost/income ratios will ultimately determine economic activity.
“tsumani of ARM mortgages in California”
The mortgage problem in California was in large part due to a state law that was meant to protect purchasers, but didn’t. This law only applied to purchase mortgages.
The way for lenders to get around the law was to issue purchase mortgages with rising interest rates that the purchasers would have to finance.
But at refinancing time, values had dropped and credit was tight. The ARMs were financial toxic timebombs that exploded.
It’s so sad that I’m not yet 60, but 100% JADED as to the running of this country.
And I’ve been that way for about 40 years, LOL!
Another factor was Hurricane Katrina.
It whacked the Florida housing market.
The ability to buy a house cheap for cash in Florida impacted other areas too.
That’s exactly what it is.
It’s amazing how evil keeps returning in another guise.
“A Republic, if you can keep it”
We were warned, now were struggling to get it back to where it should be.
Yes, we were.
Yeah that's the ticket.
If they had not been so entranced by the beauty of their wife Morgan Fairchild it wouldn't have happened.
Would they care to pull the other one? It has bells on it.
Unfortunately the dummies who got themselves in this bind are not very useful.
Bammy wasn't president in 2008. Although the whole crisis was instigated to get him elected.
Then there was Golden West financial [the Sandler’s bank] giving out super easy loans to hordes of illegals and house flippers...then selling their bank to Countrywide before the SHTF...
The Sandlers being the big communist donors of the Dem Party and the reason all the Dems made their pilgrimages out to California with their hands out.
My daughter saved it with Firefox download helper add on.
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Thanks!
None of it was an accident... the thieves kept the money , claimed losses and got 10 years of free money from the fed... free money meaning that the fed has been stealing from our savings with inflation for 10 years ,, devaluing everything around us... end the fed.
Oops! Sorry mermaid, I may have been a bit too general. Should have qualified with, “most” students in humanities probably won’t be able to repay their student loans.
There are of course exceptions as in everything else. I’d like to see some numbers on the delinquency rates and what if any degrees they got.
Federal student loans smell a lot like what Fannie Mae used to hand out. You don’t need anything to qualify.
“You don’t need a credit check or a cosigner to get most federal student loans. You don’t have to begin repaying your federal student loans until after you leave college or drop below half-time. If you demonstrate financial need, you can qualify to have the government pay your interest while you are in school.”
It’s a time bomb waiting to go off.
Accident my ass. They knew what they were doing. It wasn’t necessary. McLame wasn’t going to win. Deep state trashed. Market to make the party in charge Republicans look bad. All the more reason to reign I the Feds!
No worries!
I do agree with you on many things. I also work part time as a lifeguard (I love that free gym membership!) and several of my workmates are young college age kids with tens of thousands of student loans — usually in total j*** off degrees (sports management, sports medicine, and the total waste of college degree: ANTHROPOLOGY!) These kids are working dead end jobs and tied to ridiculous debt for degrees that get them no where. Worse still, the real young ones are so mentally rigid and afraid to take chances that they can’t think outside the box career wise.
Eventually, you are right, the bomb will go off and it won’t be pretty.
Personally, I worry for my daughter. She’s a very sweet girl, and very smart, but didn’t inherit my tech gene (which came late to me, I will admit.) She’s looking at education (early childhood, no less) and psychology as possible careers. Neither of which pay well, but she’s really intimidated, ironically, by the push to get girls into STEM.
As a fifteen year old, she says, “But MOM, it’s not that I’m afraid of those areas, I just don’t WANT to go into them. But they all seem to have such a big hard-on (her words) to reach some quota for girls in science.”
Out of the mouths of babes. I do tell her that there will always be unhappy people, so she can make a career counseling them.
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