There is no doubt that this will be much worse than 2008.
In 2008, the economy was fairly stable, the supply chain intact, employment solid and the world mostly at peace.
Today, nearly every aspect of the globe is on shaky ground with civil unrest, risk of a world war, China’s covid shutdown, the highest energy prices ever, the supply chain collapse, massive global inflation, food shortages, and currency instability.
I do not see a way out without incredible pain. Given the ulterior motives of the globalists, they want to use this (if they did not stage it) to enact their great reset, wiping away liberty, capitalism and sovereignty in favor of an elitist-led central system that will dictate misery for all.
Do you never learn? The powers that be in DC did not suffer, financial bail outs is how they make money. The bail out dollars go to them and their favored companies.
This is all according to plan. One planned financial crisis after another for their benefit and to bring the country to her knees.
It’s over. The political monster has ruined America. They’re going to give Ukraine $40 billion this week, then in another 4 months, give Ukraine probably $100 billion for another 4 months. Meanwhile, our border is open and we’re caring for millions of poverty-stricken people’s healthcare, education etc. It’s all by design and the Republicans are leading the gang of thieves. It’s sickening.
I’ve held off buying for this reason - prices are ridiculous right now. I know some others who have made the same decision.
So these homeowners now see the equity in their homes rising by the day and want that cash to either pay off debt, make improvements or just spend it and feel good about themselves through retail therapy (most common result). So what do they do? They refinance at a much higher rate to get to that cash and in the process increase their monthly payment. When the bubble bursts and they then lose their jobs or take a pay cut they can’t make the mortgage payment and they default. That’s what is coming.
So how do inflation and bubbles mix? In this case I imagine by over-mortgaged homeowners defaulting, more big banks scooping up the houses, and prices continuing to rise?
Maybe 1-2 years after the 2007/8 mortgage crisis hit, you had politicians whining that underrepresented minorities:
a. Were losing their homes at a higher rate than the rest of the population.
b. Could not get mortgages to buy homes
So, basically, not more than 2 years after the big mortgage crisis, politicians were conspiring to make it happen again.
“These are the laws of unintended consequences that Congress never learns.”
Unintended?
Sorry, Steve Moore is what I called a “Cocktail Party” economist. He spins great stories, but there are no models or data. Just Steve being Steve.
I have seen him speak several times and he can’t answer questions.
Sorry, Steve Moore is what I called a “Cocktail Party” economist. He spins great stories, but there are no models or data. Just Steve being Steve.
I have seen him speak several times and he can’t answer questions.
LOL @ “If & When”....., in 2008 we had a massive amount of borrowers with no real investments in their homes as the are given 0-5% down payments..., they simply walked away from the banks with little pain or loss. Today, majority have alot of equity in their properties and they were putting 20 - 30% down in some cases to even qualify, its much less likely the market crashes like 2008. A healthy pull back should be expected and if it does dont miss the boat.
During an inflationary cycle, wholly owned tangible goods rise in price, thus holding their value overall.
Cash is eaten away at the rate of inflation.
Borrowed money still costs money, depending upon interest rate, of course.
Be debt free, and own tangible goods of lasting value. It takes discipline, but pays very well.
The US was drowning in an oversupply of housing on 2008 - now we are 5 million units short. Expect prices to level off and even decline some - especially at the lower end - but there is no 2008-like bubble this time in housing or any real asset. The bubbles are in paper, and paper-holders are standing on the beach trying to get a better look at the Cat 5 hurricane coming ashore.
“trillions of dollars of lifetime savings and wealth evaporated”
bubbles are how grossly excessive liquidity is drained from an economy ... generally, the peasants get drained the most ...
Every recession looks like a housing bubble. But housing is a symptom.
People obtain loans they can afford when times are good. And then a recession hits and they lose their jobs. Or inflation hits and they can’t afford the mortgage. Or both. Either way. Mortgages default. Foreclosures increase, Properties come on the market at fire sale prices, and voila, must have been a housing bubble.
It’s a recession.
You know what causes a recession? Increased oil prices. Too much offshoring of jobs. Lack of protectionary tariffs. Tax increases. Interest rate hikes, And supply shocks.
Biden is directly responsible for that first one. And the second and third one as he exempted a ton of products.
Read later.