31–40 of 72 posts
Earlier quoted context omitted.
The market will not be allowed to correct. That was the lesson of 2008. The only endgame here comes after the end of dollar dominance.
What did they do to prop up the market in 08? What would that policy intervention look like today?
Can also be titled "Prices Soar as Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M"
Or "Prices Were Already Soaring Despite Fannie Mae, Freddie Mac Not Backing Home Loans of Nearly $1M" I don't know how wannabe first time home owners are going to catch a break.
Earlier quoted context omitted.
The market will not be allowed to correct. That was the lesson of 2008. The only endgame here comes after the end of dollar dominance.
What did they do to prop up the market in 08? What would that policy intervention look like today?
https://en.wikipedia.org/wiki/Public%E2%80%93Private_Investm...
Broadly we call this entire period quantitative easing.....
Earlier quoted context omitted.
I could not downvote this faster. Ridiculous and wrong. Shameful advice. I be curious know your age, income, and net worth to see how out of touch you are. Do not take this advice and debt at this ratio. - take home is gross income not net like taxes or health insurance. It also doesn’t factor in retirement even - mortgage estimate is wrong - does not factor property taxes - Just open an affordability calculator or m…
I've been planning to buy a house in the near future with my partner, and this comment has a great breakdown of information useful to anybody starting the process. I agree with you that the other poster's numbers are wildly unrealistic. Since you seem pretty informed, do you have any resources on how to get well-informed enough to take the plunge and buy a house?
Earlier quoted context omitted.
The market will not be allowed to correct. That was the lesson of 2008. The only endgame here comes after the end of dollar dominance.
What did they do to prop up the market in 08? What would that policy intervention look like today?
If prices look like they are about to stall keep an eye out for the introduction of the low rate 50 year fixed rate mortgage. Whatever it takes to keep incumbent homeowners receiving endless windfalls.
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Agree. But also, those borrowers are soon-to-be owners.
Right, new owners who just bet N times their yearly salary that the music won't stop in the next 15-30 years. The demographic pyramid is inverting, interest rates have been falling but are now hitting 0, and the asset-owning bloc is falling below 50% of the electorate. Any one of these could stop the music, but all three are happening.
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And they'll be screwed when the market corrects and the value of the home they just bought drops significantly
It's going to be hard for the market to correct while (1) rates stay low, (2) housing demand > housing supply, (3) wages stay high enough to support buying. It's hard to see any of those collapsing in the near term. Especially (2).
Earlier quoted context omitted.
And they'll be screwed when the market corrects and the value of the home they just bought drops significantly
The market will not be allowed to correct. That was the lesson of 2008. The only endgame here comes after the end of dollar dominance.
But I would gladly have my mind changed.
Earlier quoted context omitted.
Agree. But also, those borrowers are soon-to-be owners.
Right, new owners who just bet N times their yearly salary that the music won't stop in the next 15-30 years. The demographic pyramid is inverting, interest rates have been falling but are now hitting 0, and the asset-owning bloc is falling below 50% of the electorate. Any one of these could stop the music, but all three are happening.
"You're lucky to get a home with a loan at a near-zero interest rate! We're such nice people. Uh oh, looks like your bank account just became worthless and your employer won't adjust wages to match inflation. And homes are even more expensive now! That's fuuuun."
The banks will get their wealth from somewhere, and the elites have proven that taxing by-proxy is much easier than traditional taxation and charging interest. If interest rates are low and the official tax rates don't go up too much, more wealth can be extracted and no one will be the wiser.
Besides, having everything on loan isn't really a sign of a successful system, depending on one's political-economic perspective. If everything is on loan, nobody really owns anything. You might be able to keep physical things on loan even if you fail to pay, but you will end up paying somehow. If his is one of the final steps in getting enough people to "buy" homes, that means we are close to a real estate collapse. It's serfdom all over again but with the illusion of ownership. (of course with property taxes for individuals we already have serfdom in that sense)
Earlier quoted context omitted.
Or "Prices Were Already Soaring Despite Fannie Mae, Freddie Mac Not Backing Home Loans of Nearly $1M" I don't know how wannabe first time home owners are going to catch a break.
The only thing I can think of is a reintroduction of something like Shotgun Shacks, somewhere in between trailer parks and suburbs. Something like Boxabls, Tiny homes and container homes.
Our county has a massive homeless population while new housing developments start at 350k. There's been one new apartment complex in the last 25 years.