Housing Bubble is bursting

Celticguy said:
rising interest rates are hurting sales as people finding that they cannot buy as much house as they could at 2-3%.
as foreclosures explode (leftover from covid ban on forclosures) inventory will explode but people wont buy less and will worry about keeping jobs in the recession.
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But haven't people been building up equity in their homes over the past two years? That's different than during the aught's where people had these teaser rates that came due after a year or two and people were just f'd (thus the large number of foreclosed homes). It's different fundamentals today and in many markets there is pent up demand. Hard to envision a repeat in terms of the number of foreclosures.
 
Equal protection of our at-will employment laws could ensure there is a market for housing in a more automatically stable manner.
 
cawacko said:
But haven't people been building up equity in their homes over the past two years? That's different than during the aught's where people had these teaser rates that came due after a year or two and people were just f'd (thus the large number of foreclosed homes). It's different fundamentals today and in many markets there is pent up demand. Hard to envision a repeat in terms of the number of foreclosures.
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actually when prices crash they will LOSE equity and potentially owe more than the home is now worth (go upside down).
the coming foreclosures are from the past two years when lenders were not permitted to take foreclosure actions. Its an artificial backlog.
 
How in the fuck will it burst now when housing costs are still going up?



You on the right know NOTHING about real economics



It’s because you use the Austrian school of economics


The short bus school that tries to do economics without math

Why does the Austrian school try to do economics without math?


Because math always proves them wrong
 
Two years of not much housing being built due to a pandemic


The housing supply was LOW when the pandemic started


We have a derth of available housing


People are now looking for homes they can stay at home and work from in the new normal of working from home


A whole generation of people hitting that home buying stage


And RENTS non stop rising

And the right wants to see an economic disaster so their recent economic fuck ups can be covered up by a new one under Dems



What fucking scum bait you losers are


Really fucking stupid and evil scumbait losers
 
Celticguy said:
actually when prices crash they will LOSE equity and potentially owe more than the home is now worth (go upside down).
the coming foreclosures are from the past two years when lenders were not permitted to take foreclosure actions. Its an artificial backlog.
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Stating the obvious every homeowner's situation is unique so we are speaking in somewhat generalities here. Say you've owned your home for eight years, you've likely built up enough equity and had enough appreciation in that time that you can survive a current price drop in your home. And in current market conditions if someone is facing foreclosure there is enough demand and lack of supply that it will get purchased and not have a negative effect on the market.

Sure, if everything goes to hell and values plummet then yes there will be problems.
 
The Bush housing bubble involved sub prime lending folks



We don’t LET THE BANKS DO THAT ANYMORE



BEJEBUSS people


LEARN FROM THE PAST
 
Your Republican Party removed the rules on banks by NEVER IMPLEMENTING THOSE RULES


YOUR PARTY PULLED A FAST ONE ON AMERICA



THAT IS WHY THE 2008 bomb destroyed the world economy



FACT
 
evince said:
The Bush housing bubble involved sub prime lending folks



We don’t LET THE BANKS DO THAT ANYMORE



BEJEBUSS people


LEARN FROM THE PAST
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lol.


Book Summary: The Creature from Jekyll Island by G. Edward Griffin
A book summary of the key ideas from The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin, along with informal book notes and select quotations.
Get the book: Paper | eBook

The Book in a Nutshell
In 1910, a small group of individuals that made up over a quarter of the world’s wealth met and gathered on a small island off the coast of Brunswick to agree the blueprint for the Federal Reserve. In The Creature from Jekyll Island, Edward Griffin forensically set outs the dangers of the Federal Reserve, fiat money and the fractional-reserve banking system. Through its capacity to create money from nothing, Griffin argues that the Federal Reserve is not only incapable of achieving its stated objectives, but instead creates economic instability, encourages war, and ultimately acts as an instrument of totalitarianism.

Book Summary: The Key Ideas
#1: Seven Reasons to Abolish the Federal Reserve. The Federal Reserve should be abolished because it is incapable of accomplishing its stated objectives, operates for private interests and functions as a fiat money system. Through its mechanism of creating money from nothing, it generates our most unfair tax (inflation), encourages war and ultimately acts as an instrument for totalitarianism.

#2: The Natural Laws of Money and the Mandrake Mechanism. Fractional and fiat money systems always degenerate into economic chaos. They depend on the Mandrake mechanism, which describes the process by which government debt gets converted into money from nothing.

#3: The Rothschild Formula. The Federal Reserve has given the most powerful in society a formidable tool in their manipulation of geopolitics. Throughout the last 400 years, powerful families have played both sides of war for their own financial gain.

#4: The Federal Reserve and Global Tyranny. The Federal Reserve plays an important role in a broader agenda of global socialism. Through the IMF and World Bank development loans and the growing footprint of the UN, there is a conscious long-term effort to move towards a world fiat currency (under IMF/World Bank framework) and a world government (under UN framework).

Book Notes: The Key Ideas in Detail
The below are more detailed book notes on the key ideas from The Creature from Jekyll Island by G. Edward Griffin. These notes are not an endorsement nor a critique. They also do not by any means cover the full breadth of the book and are instead intended as an introduction to the key themes, from which to decide whether to read the full book.

Key Idea #1: Seven Reasons to Abolish the Federal Reserve
Throughout the book, Griffin makes the case for seven reasons to abolish the Federal Reserve.

Reason 1: It is incapable of accomplishing its stated objectives. Griffin suggests this is exemplified by the failure to achieve economic stability (e.g. the Great Crash 1929, recession of 1950s, etc.).

Reason 2: It is not a protector of the public, but a cartel operating against the public interest. As is the nature of a cartel, its design ensures that the public always bears the cost. Griffin argues that the unstated primary objective of the cartel on Jekyll Island was to use the government to transfer responsibility for losses from banks to taxpayers. The “for-the-public-good” argument could make banks “too big to fail”.

“We must not forget the phrase “lender of last resort” means that the money is created out of nothing resulting in the confiscation of wealth through inflation.”

Reason 3: It is the supreme system of usury. Griffin defines usury as “the charging of interest on a loan of fiat money”. This distorts a true process of lending as it depends on the creation of debt and money from nothing.

Reason 4: It generates our most unfair tax (inflation). Through the creation of government debt and issuance of money from nothing, the Federal Reserve debases the US dollar and creates inflation in the economy. This has disproportionate impacts on those who own the least tangible assets, and distorts the field of economic play.

Reason 5: It encourages war. The fiat monetary system of the Federal Reserve funded World War I, World War II, the Korean War and Vietnam War. Similarly, the Bank of England’s creation funded wars since 1694. Griffin argues that most of these wars would have either not occurred at all, or greatly reduced in severity, without the system of fiat money.

“It is the ability of governments to acquire money without direct taxation that makes modern warfare possible, and a central bank has become the preferred method of accomplishing that.”

Reason 6: It destabilises the economy. The fractional reserve banking system has led to a record of boom and bust, inflation, bank failure, and currency collapse. Fed policies led to the Great Depression, with a spiral of monetary expansion and contraction leading to a final bubble.

“As long as men are given the power to tinker with the money supply, they will strive to circumvent the natural laws of supply and demand.”

Reason 7: It is an instrument of totalitarianism. The chain of events that leads to global government and socialism starts with the Federal Reserve and fiat monetary system. To paraphrase Griffin, fiat money leads to government debt, which leads to inflation, which destroys economies, and provides the excuse for escalating government power and ultimately, totalitarianism.

https://www.hustleescape.com/book-summary-creature-from-jekyll-island-by-edward-griffin/
 
Geeko Sportivo said:
Speaking of bubbles!

I think the Trumptard Bubble is about to Pop!

Demonstrators-fly-a-blimp-portraying-US-President-Donald-Trump-in-Parliament-Square-during-the-v.jpg
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Yes you are correct


Housing is fine



The inflated orange idiot is not so fine
 
evince said:
The Bush housing bubble involved sub prime lending folks



We don’t LET THE BANKS DO THAT ANYMORE



BEJEBUSS people


LEARN FROM THE PAST
Click to expand...




Oh my the Russo bot hole from dead fly land wants to hide this simple statement of history
 
Equal protection of our own at-will employment laws for unemployment compensation can help this market sector as well. What minimum unemployment compensation wage do landlords recommend? We should have no homeless problem and we need to ensure our economy keeps growing.
 
cawacko said:
Stating the obvious every homeowner's situation is unique so we are speaking in somewhat generalities here. Say you've owned your home for eight years, you've likely built up enough equity and had enough appreciation in that time that you can survive a current price drop in your home. And in current market conditions if someone is facing foreclosure there is enough demand and lack of supply that it will get purchased and not have a negative effect on the market.

Sure, if everything goes to hell and values plummet then yes there will be problems.
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Yes, obviously every situation is unique.

Eight years is an interesting choice because there should be enough pay down to offset the devaluation.

These foreclosures are done and not changing. They simply could not evict per the temporary rules.

Too many different headwinds to have this not be a shit hit the fan deal.
 
evince said:
Link
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For every neighborhood in the country? Even if I did that would you know what you were looking at? Every market has it's own quirks. Rent is up in mid-town Detroit. Why? Does it have anything to do with housing prices? The answer is "No" btw.
 
evince said:
The Bush housing bubble involved sub prime lending folks
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One thing about the Bush housing bubble was the number of people it left underwater. Tens of millions of Americans found themselves in homes they could not afford.

Very few American have refinanced their mortgages recently. Those that have refinanced have great income, and do not need to worry.

If prices drop, that will be a great opportunity for people to buy houses, not a disaster.
 
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