The Fed could purposefully crash the housing market soon
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I'm really not sure I mind. I suppose interest is a way to take money out of the economy since I guess that's what happens to the interest paid by the banks when they loan from the fed.
Probably doesn't hurt that I'm not super concerned about the paper value of my house either. I'd actually like a buying opportunity
Same thing I was thinking
I agree, but another big downside is the corps and elites seem to be intent on buying up all the property. Some individuals will get some of the land at cheap prices, which will certainly be a dream come true for many...but overall this is going to skew power away from the everyday people, and toward more consolidation of power in the hands of the people that hate us.
This is more globalist, eat the bugs, live in the pod, green energy nonsense, even if some of us end up getting property for much cheaper than it currently is. Sad but true.
That is a notable difference from last time there was a good drop. There's a LOT of corporate money in residential real estate now.
Part of me is glad because it's a good way to get cheap land but the reasonable side of me is afraid it's just setting up Blackrock and their ilk to grab more land.
100%. It's give and take; some individuals will benefit, but on the whole this will skew more power to the corps that want to push globalism and totalitarianism. I'd fucking love housing prices to be reasonable, but sadly this is just another step toward the 'own nothing and be happy' NWO nightmare. Even if you or I buy a house for cheap, this is not moving things in a good direction.
Housing demand has already crashed
I told you the housing market is already dying and the mortgage industry is already dead.
New, average quality, homes can't even be built for less than $100,000 on average. The number of new loans has fallen off a cliff because the price of houses (although declining) is extremely high. People are paying 20%, even 50%, more in cash to buy houses than is being asked. Everyone is trying to put money into real-estate because of inflation, and houses are now being wildly over-valued.
The Fed is right to want to increase interest rates and crash the housing market because it's in a fucking bubble. It's a bubble that's getting actively worse, and when it bursts, it's taking the entire global economy with it. All your pension funds and government bonds rely on that housing market. The Investment Banks over-leveraged themselves on Real Estate, but it doesn't matter if the governments are over-leveraged on Real Estate, and every other industry is also over leveraged.
You are in the Everything Bubble. This is the inevitable end point of Keynesian monetary policy, promoting Fabian Socialism. The people who's lives and futures depend on being right are telling me that we're looking at the next 12 months of contraction in the Mortgage Industry, and that's typical. I expect it to be far longer, something closer to 24 months. The truth is, they're planning for a full blown, hard nosed, "will work for food" style recession in the coming year, and I think they are being optimistic. So far, I've been right. The worst thing that happened to me in 2020 was that I was right, but I was late. I don't intend to be caught off-guard.
You can't stop this, nothing can stop this. The 2020 lockdowns and stimmy-checks led to the the supply chain shortage. You haven't even been hit by the spike in food prices that are coming from this year's lacking harvest, from the Russian-Ukraine War. The government already printed more money.
The Biden Regime wants to blame the Fed so it can give itself a "Brenton-Woods moment" so that it, and it's Fabian coordinators, can introduce Central Bank Digital Currencies (CBDCs). And here's the really bad news: the CBDC's are just a desperate attempt to paper over a sucking chest wound to the global economy by seizing control of all economic transactions on Earth. It's the very definition of Diminishing Returns.
Even CBDC's can't stop what's coming. Even if it got close, the demographic collapse as the Baby-Boomers die out and put their houses on the market would cause the Real Estate bubble to pop, and with it still goes government bonds.
THE PERENNIAL GALE OF CREATIVE DESTRUCTION WILL NOT BE DENIED
All that the Fed can do is managed a controlled decline of the global economy, not just the American one, the whole god damned thing. Frankly, Biden being so inept gives them more room to maneuver since damaging his political capital doesn't mean shit. But all of this assumes they can manage it. All of this assumes that our enemies are the smartest people in the room, with the best laid plans, and the greatest wills. But the terrible truth is that no one is in charge. Our enemies are malicious idiots who hate us, want us dead, and are so stupid they are violently struggling against the consequence of every decision they've ever made, blaming US (literally you and I) for all of their problems. It's because we didn't wear the mask that the whole global economy has to be seized. Hence, why they hate us. The people who could have stopped this are long since gone to help them.
This isn't going to be The Great Depression v.2. This is The Great Collapse. It is The End of <Fabian> History. The economy must correct, all of it. It can't be put off for another 3 decades. There's no way to do it. Our lies have incurred a debt to the truth, and we are no well beyond bankrupt.
Save your money, save your assets, stock your food, and more importantly than anything else: build and protect your social relationships with your friends, family, and community.
"No one is in charge" can't be repeated enough.
For one, they can't be good stewards, because they are children of Satan the Devil. But even good stewards couldn't right this ship. That work would have needed to start in the 1960s, the moment it was clear the generation after the boomers wasn't as numerous. And it would have involved fractal self-sufficiency, to prepare for an eventual shrinking of...everything. That didn't happen.
By that, you mean that it will do stuff to decrease the price of houses? Great. I hope they crash the oil, natural gas and grain market as well.
No, by increasing the share of the cost of buying a house that doesn't go to the seller:
Both the buyer and the seller would be worse off, because more of the money would be going to the bank instead.