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Oh boy.......I think the party may be over and a Housing Bubble 2.0 maybe in a trouble. Let's hope our new Fed Chief Powell will keep raising interest rates and make our currency stronger and stronger. Strong Dollar will deflate fake and overinflated home prices, will burst this bubble and destroy all speculators who will be stuck holding the bag.
It's very important that most housing market speculators feel the pain and massive losses so that our housing market can be a normal market again and these shady characters don't think ever again to speculate with American homes and become American Vampires -sucking blood from hardworking americans.
This was a crazy time in our history where our housing market became a casino game for all those domestic and foreign speculators lookin for yield, buy to rent scheme, flip the house and etc. It's time to flush them down the drain into the sewer system. God bless our new Fed Chief and our strong US dollar. The FED UNWIND destroys dollars. Fewer dollars in circulation, the stronger the dollar.
Remember, there has never been any real economic recovery. Our economy has been dead since 2001. We have been spending our kids and grandkids money, future money, destroying their future so that we could fake or simulate economic recovery and growth with debt.
But now the ERA of FREE MONEY is ending. There is a lesson in this. Borrowed money is not free money. When the FED lowers rates and dangles "free money" in front of you, hoping you will take on more debt, you should think twice.
Housing was soaring when I bought my first property in 1987 and I was thrilled to get an 8-1/4% mortgage . The last housing boom saw 7% mortgages . Local markets dictate where prices go not mortgage rates until they get pretty high . The best appreciation historically is when mortgages are in the 6-7% range .
Oh boy.......I think the party may be over and a Housing Bubble 2.0 maybe in a trouble. Let's hope our new Fed Chief Powell will keep raising interest rates and make our currency stronger and stronger. Strong Dollar will deflate fake and overinflated home prices, will burst this bubble and destroy all speculators who will be stuck holding the bag.
It's very important that most housing market speculators feel the pain and massive losses so that our housing market can be a normal market again and these shady characters don't think ever again to speculate with American homes and become American Vampires -sucking blood from hardworking americans.
This was a crazy time in our history where our housing market became a casino game for all those domestic and foreign speculators lookin for yield, buy to rent scheme, flip the house and etc. It's time to flush them down the drain into the sewer system. God bless our new Fed Chief and our strong US dollar. The FED UNWIND destroys dollars. Fewer dollars in circulation, the stronger the dollar.
Remember, there has never been any real economic recovery. Our economy has been dead since 2001. We have been spending our kids and grandkids money, future money, destroying their future so that we could fake or simulate economic recovery and growth with debt.
But now the ERA of FREE MONEY is ending. There is a lesson in this. Borrowed money is not free money. When the FED lowers rates and dangles "free money" in front of you, hoping you will take on more debt, you should think twice.
Good Luck!!!
Do yourself a favor and don't post anything about economics.
1). Very little QE money made into broad circulation.
2). Too little money in circulation was a key contributor to the 2008 bust (The Great Depression as well).
3). Our economy has most certainly not been dead since 2001.
4). Powell does not seem like an overt inflation hawk.
Never let facts get in the way of his good anti fed stories
How about this fact that most of you can't handle;
Our economy has been dead since 2001 and zero interest rates helped us to fake / simulate economic recovery or growth. We 'averted' (DELAYED) Depression by stealing (borrowing) massive amounts of FUTURE MONEY through QE (and all of its strange relatives). The idea was to steal money from the future and give it away so it would be spent today and would save us from deflation.
Did it save us from deflation? Or was it just a stalling tactic Mathjack? Depression actually saves us from inflation (DEBT INFLATION is one form of inflation); and inflation save us from depression. Day and Night syndrome again. But resistance to Depression is understandable since we fear death and see in it LOSS instead of GAIN. Depression will cure us of DEBT. Then we will be able to start over, with a new life - not you and I personally, but our descendants. So we accept Depression and the suffering it brings to us personally so our children and our survivors can live without our karmic obligations.
The FED has chosen the opposite path, the one of damning the future to avoid pain in their own life. They can extend ZIRP into the future, until their own passing, and not have to deal with the dark aftermath. We're going along with them - otherwise, pitchforks and ropes and lanterns by night.
The weak dollar expands the global debt bubble; the strong dollar punctures it. What do we want vs what do we need? We need a strong dollar. But this means a holocaust of sorts. Do we offer up ourselves to this grim monster; or do we offer up our children?
We need a hawk at the FED and let's hope Powell will be the one. We have had too many "doves" who have given in to the notion that easy money is always a good thing. Why do we have so many homeless in the world Mathjack? EASY MONEY for too long, that's why.
A stronger dollar will cure us of our self-indulgent ways.
just more doomsayer rhetoric ........ one day you may be right but until then i won't waste my time even worrying about it . why should i ? there is nothing anyone of us can do . go find something better to do then bashing the fed is my opinion . total waste of time .
Do yourself a favor and don't post anything about economics.
1). Very little QE money made into broad circulation.
2). Too little money in circulation was a key contributor to the 2008 bust (The Great Depression as well).
3). Our economy has most certainly not been dead since 2001.
4). Powell does not seem like an overt inflation hawk.
Lol, your economic understanding is poor at best.
Quote:
2). Too little money in circulation was a key contributor to the 2008 bust (The Great Depression as well).
More debt does not solve the problem of a society carrying too much debt. We did not do anything since 2001 EXCEPT lie and delay and protect a growing insolvency, to encourage MORE debt instead of less debt. We did almost everything wrong. Stimulus packages and lower interest rates will not achieve a renewed American economic might – just more debt for the taxpayer and more debt for the consumer.
The Global Economy died in 2001; died? No. Bad word. The Global Economy stopped expanding in 2001; culminated; reached its apex. Began to deflate.
The FED and the central banks tried to 'extend the expansion' and 'pretend' everything was fine for the next 17 years. QE was a disaster; and now the FED gets to atrophy, clearly part of the problem more than part of the solution. Instead of leading us through this Forest of Deflation, the FED has taken its role to be the protection of financial markets, or 'the wealth effect'. But protecting bad debt is the opposite of regeneration. It becomes the inhibitor of regeneration.
We need regeneration. This comes from facing reality; and from gearing down, tightening our collective belt, and becoming psychologically tough again. We are heading toward a fight. This is the way the world works; it's not always what we would like. Sometimes life is difficult. Sometimes we don't get what we want.
We need higher interest rates. We should have begun raising rates in 2001, slowly and steadily. Since there can be no economic growth during the Night-Cycle there is no point in forcing down interest rates. Well, there is a point. The point is to avoid revolutionary change. To protect the status quo. To keep things from changing.
Lower rates do not spur growth during Night-Cycles; lower rates are essentially welfare for the rich, allowing them to extend and pretend before having to face the truth that their company has failed, that their borrowing has become a threat to their survival. We still have a huge Default Season coming. Default Season can't be avoided, only postponed with trickery and manipulation.
There are $770 trillion dollars in derivatives floating around in the ethernet or cyberspace, whatever you want to call it. Financial institutions call these"assets". Like mortgages for derelict real estate properties carried on the books as assets; they are NOT assets. Gov. Corzine of NJ stuck America' farmers with worthless financial instruments and he is still walking around.
When Germany did this after WWI, the populace hung the bankers from lamp posts outside the banks. It was easy for the populace to identify the malefactors back then. Today it takes nerves of steel to take over as Chairman of the Fed. I bet he has a Gulfstream jet fueled and ready at a private airport somewhere and a helicopter to get him to the Gulfstream.
Nobody died when Icelanders found out that their banking system was all smoke and mirrors, but Iceland's people are a stoic bunch.
You’re like the person on a street corner in a big city raving mad about the end of times.
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