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This housing bubble 2.0 will end exactly the same way as the original one....housing bubble 1.0. This is where all our taxpayer money went.......to create Wealth Effect and pump the stock market + real estate market. We stole money from our children and grandchildren to create this illusion of economic growth financed with debt. Our country is indebted as never before in our history and you folks are thinking you will all have happy retirement. You people are so out of touch with reality it's not even funny. Chaos , Civil War and possibly WW3 is what will happen next once this debt orgy ends and the emperor is showed without clothes.
We financed the entire so called economic recovery since 2008 with debt spending. We robbed our kids and grandkids, we destroyed their future so that we can pretend that we are recovering, that everything is cool. But nothing is cool, we as a country, we are BROKE. We added these fake valuations to our real estate based on low and manipulated interest rates, rampart speculations and inviting Wall Street Hedge Funds to speculate in housing rent scheme.
It's very easy to deflate fake real estate valuations all you have to do is keep raising interest rates and make our currency stronger, make our US Dollar stronger.
This is all Fed's fault and these criminals should be arrested and prosecuted. Americans need desperately someone like Paul Volcker to run the FeD And raise interest rates over 10%. We need to reward responsible Americans, savers, not speculators. Interest rates just over 5% would do the damage to this fake and overvalued real estate market imagine what over 7% or over 10% interest rates would do to real estate prices of today? It would deflate it 80% like it should.
We are experiencing bubbles everywhere thanks to the zero interest rates policy and devaluation of US dollar. We have bubbles in housing, rents, healthcare, education, food...etc. We need to deflate all those bubbles. How we do this? With higher and higher interest rates an with the help of strong US Dollar. It's very simple actually. You can cut these fake housing prices relatively quick and punish all speculators as well. We should flush all speculators down the drain!!!
Remmeber, our entire so called economic recovery is fake, one big scam and illusion created by the Fed. We only stole and spent our future money, our kids and grandkids money to create this illuison and insanity!!!
One more thing. When this bubble implodes we need to dismantle NAR - National Association of Realtors and their Lobby. These criminals are more dangerous to our country then any outside factor or nation. This organization is criminal!!!!
I can't tell you how many ridiculous, gibberish filled scare columns I've read like this (and I laugh every time). I've heard this from the recession dreamers since 2014. And while they were screaming that we were heading for the 2nd coming of the Great Depression, the market has climbed some 40+%. None of the Henny Pennys take into account the tighter lending standards and the strength of buyers with plenty of equity in their homes. Not to mention cash buyers with 100% equity. The likelihood of a repeat of 2008 is slim at best and no one ever gives a legitimate justification as to why that would be. And if home sales take a 25% haircut, you're still not any better than if you had just bought a few years ago in the first place (at prices most of these people living paycheck to paycheck couldn't afford anyway).
Yet you miss the fact that Credit Card debt in the US is at a all-time high in the US, why is it necessary to take out a 72 or 84 month car loan to afford a car you really should not be buying in the first place? Not even mentioninig the student loan debt implosion, millenials are not able to pay it off and/or afford to live on their own and living with Mom, Dad, Grandpa or Grandma to make a go of it, and that's not just here but all over.
Free flowing credit for home buyers might be tough, but elsewhere it's not so regulated and easy to go in debt.
It can only go on for so long, corrections and/or recessions have been historically evident, when employers cut jobs and unemployment wont' swing the mortage, car payment and etc, BK filings will line up.
Massive exodus out of California due to high housing prices, rich leaving too?
We are losing lower income people and middle class earners, but what about the very low income earners or people who have no income? Surely they are snug as a bug in a rug.
Michelle Lynn Ostroff, who left the Los Angeles area in 2013, now lives outside Cleveland, Ohio, with her daughter and wants to return to California to be closer to her friends and family. But she's been discouraged from returning so far due to monthly rental prices.
"I'm finding it very hard to make that happen, as finding a place that's affordable is tough," said Ostroff. The L.A. area "is definitely more than two times the amount of rent that I pay."
Indeed, California has five of the top 10 most expensive rental markets nationwide, according to industry tracker Zumper.
San Francisco ranks as the nation's most expensive rental market, followed by New York, according to Zumper's top 10 list. San Jose comes in third place, and Los Angeles in sixth place. Oakland and San Diego also made the top 10.
"For a lot of people, renting is the only option they have because it's tough to afford a house here," said Steve Feldman, a Keller Williams real estate agent in the L.A./San Fernando Valley region.
This housing bubble 2.0 will end exactly the same way as the original one....housing bubble 1.0. This is where all our taxpayer money went.......to create Wealth Effect and pump the stock market + real estate market. We stole money from our children and grandchildren to create this illusion of economic growth financed with debt. Our country is indebted as never before in our history and you folks are thinking you will all have happy retirement. You people are so out of touch with reality it's not even funny. Chaos , Civil War and possibly WW3 is what will happen next once this debt orgy ends and the emperor is showed without clothes.
We financed the entire so called economic recovery since 2008 with debt spending. We robbed our kids and grandkids, we destroyed their future so that we can pretend that we are recovering, that everything is cool. But nothing is cool, we as a country, we are BROKE. We added these fake valuations to our real estate based on low and manipulated interest rates, rampart speculations and inviting Wall Street Hedge Funds to speculate in housing rent scheme.
It's very easy to deflate fake real estate valuations all you have to do is keep raising interest rates and make our currency stronger, make our US Dollar stronger.
This is all Fed's fault and these criminals should be arrested and prosecuted. Americans need desperately someone like Paul Volcker to run the FeD And raise interest rates over 10%. We need to reward responsible Americans, savers, not speculators. Interest rates just over 5% would do the damage to this fake and overvalued real estate market imagine what over 7% or over 10% interest rates would do to real estate prices of today? It would deflate it 80% like it should.
We are experiencing bubbles everywhere thanks to the zero interest rates policy and devaluation of US dollar. We have bubbles in housing, rents, healthcare, education, food...etc. We need to deflate all those bubbles. How we do this? With higher and higher interest rates an with the help of strong US Dollar. It's very simple actually. You can cut these fake housing prices relatively quick and punish all speculators as well. We should flush all speculators down the drain!!!
Remmeber, our entire so called economic recovery is fake, one big scam and illusion created by the Fed. We only stole and spent our future money, our kids and grandkids money to create this illuison and insanity!!!
One more thing. When this bubble implodes we need to dismantle NAR - National Association of Realtors and their Lobby. These criminals are more dangerous to our country then any outside factor or nation. This organization is criminal!!!!
Yep, but I think it all really started going crazy after 9/11, and I don't think we have really recovered from it yet. After 9/11 is when we went into cheap money mode, I think because GW wanted to show the world that America was resilient and had a fighter spirit and wasn't going to let the tragedy kill our morale. so we started priming the economy with cheap money to make it look like America was not weakened by 9/11 but made stronger. Etc etc.
I agree with you. It was just a shell game. The the great recession comes. And the answer was to inflate asset prices with more cheap money so the banks don't have to show paper losses. But even so, home prices adjusted for inflation are not recovered.
I don't know what the future holds, but I agree something will have to give. A civil war or a major conflict are certainly not out of the question for the next 25 years.
Bought in the North Bay in 2012, couldn’t be happier. The next bubble bursting would have to cut my home value in half to put me underwater.
Brand new construction, easy commute, affordable for me as a single professional.
Nobody I know thinking of leaving either.
A lot of people ignore the fact that many of us bought our homes some time ago and have a large amount of equity. It is cheaper for me to live in Los Angeles than it would be pretty much any place else in the country. And our real estate taxes are low too.
Add the two up, and a lot of us are doing quite well out here AND get to enjoy the state's beautiful scenery and weather at the same time.
It may take time to reach a point of being comfortable here, but if one sticks it out and keeps his head on straight, there are definite long-term rewards.
Yet you miss the fact that Credit Card debt in the US is at a all-time high in the US, why is it necessary to take out a 72 or 84 month car loan to afford a car you really should not be buying in the first place? Not even mentioninig the student loan debt implosion, millenials are not able to pay it off and/or afford to live on their own and living with Mom, Dad, Grandpa or Grandma to make a go of it, and that's not just here but all over.
Free flowing credit for home buyers might be tough, but elsewhere it's not so regulated and easy to go in debt.
It can only go on for so long, corrections and/or recessions have been historically evident, when employers cut jobs and unemployment wont' swing the mortage, car payment and etc, BK filings will line up.
Nah, didn't miss it at all. I explained to you my reasoning as to why your comment is gibberish and why you shouldn't put a lot of stock into editorials written by perma-bear investors like Mauldin (I'm surprised you didn't follow it up with some links to Nouriel Roubini). Do you understand that their sole goal in life is to try and make the market crash so they can get rich? And then you continue to post click bait like nonsense from CNBC (you do realize that they probably get less than 1% of their predictions right?). I can find 1000's of links to Henny Penny articles like this, but posting subjective gibberish like this doesn't amount to a hill of beans. When you can actually explain why people would walk away from their homes with the amount of equity they have in them (and some 100%), perhaps you'll have a case. The other poster with the WWIII and Civil War comments was even more amusing. But you did strengthen the argument on why people that live paycheck to paycheck shouldn't waste their time in high COL areas (as most do exactly what you're saying...get themselves more into debt). I thank you for that.
Last edited by JJonesIII; 05-07-2018 at 01:54 AM..
Those highly educated, high income people that move in are going to be in a fix when there are fewer people to educate their kids, police their communities, protect them from fire, etc... Not to mention those who work in the restaurants and stores they frequent. I'm glad there are professionals still moving here, but without a healthy middle class the state is going to be hurting eventually.
Those highly educated, high income people that move in are going to be in a fix when there are fewer people to educate their kids, police their communities, protect them from fire, etc... Not to mention those who work in the restaurants and stores they frequent. I'm glad there are professionals still moving here, but without a healthy middle class the state is going to be hurting eventually.
Like anything else when there is a shortage in manpower the price will go up to attract that manpower. The “middle class” group is simply moving upwards. What are teachers gonna do? Theire already striking in a few states for higher wages. Even so they are going to make less money and worse benefits.
Firefighters here are making good money. Cops too.
Ifvall of the sudden there was a shortage of say wait, retail or warehouse staff the wages would be raised to attract those type of people. Sure your costs as a consumer go up but that’s the way it is.
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Massive exodus out of California due to high housing prices, rich leaving too?
