/biz/ - Business & Finance

>>57877722
I was 17 in 07. I had a highschool friend whose parents were absolutely terrible with money. He owned this 1991 Chevy cavalier that his parents got from an elderly neighbor so my friend could drive himself to school. They paid like $400 for it and it was in perfect shape for its age. I know this because i used to take care of it with another friend of mine because he never had any money.

His parents sold it for $700 to a stranger so they could take out a lease on a new toyota yaris for the “Family”. About a month later his dad’s ranger got repossessed so he had to use the yaris to drive to work. My friend now had to bum rides off of us to get to school and on occasion his mom was calling taxi cabs so he could get to school.

One day we were going over to his house and he called us and said to show up to a new address. His parents had sold their old house and bought a new one. The new house was a 550k mcmansion in one of the dozens of gated communities that were being built in my area of Cali. The house was so big in comparison to the stuff from their old house that they couldn’t furnish most of the rooms and their little 3 seater couch and tiny TV looked like a joke in the massive, vaulted ceiling living room.

A few months later the 2008 crash happened and they lost the house and have been renters ever since. I recently got back into contact with that friend after a long hiatus and he's still living with his family that appears to have been in a state of arrested development from then until now.

This has always been the strongest indicator for me. When are the most financially retarded people “Getting in” and what are they able to get their hands on. There are a dozen or more fast flip homes in my zip code that were bought in 2022 for 800k and were 200k-400k over the assessor value. These people are already underwater and are paying somewhere to the tune of 6k-7k a month on JUST A MORTGAGE. It sure feels like 2008 again to me.