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/biz/ - Business & Finance


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25519558 No.25519558 [Reply] [Original]

started because
>lending rates were insanely low
>requirements for buying were little to none
>companies were incentivized to loan out to more people (more mortgages = bigger bonus for exec)
>belief that housing markets will never go down
when it does start to crack
>satrts in miami, nyc, and las vegas
>mortgages start becoming a year overdue
>number of people behind on mortgage up over 1000%
bros..... im not a doomer but from the historical facts we are basically on a 1:1 path

>> No.25519721

It was caused by banking regulation that forced investment banks to have a fixed % of their value in mortgages. Which is the same thing as saying they made it illegal to sell this created demand not countered by risk.
Fuck the bis

>> No.25519728

>>25519558
well let's hope it drops so we can buy buy buy

>> No.25519741

really? actual finance thread and zero replies?
fucking low iq dopamine addicted zoomers

>> No.25519755

Truth is no one learned a damn thing from the 08 recession. Some regs were enacted in the beginning to prevent it happening again, but they have been largely eroded. The buuble has to burst at some point.

>> No.25519832

Once the usd crashes is BTC a good investment?

>> No.25519933

>>25519741
None of this is new. I just think they kept the plates spinning so long now that all the bears are gone

>> No.25519994

>>25519741
nobody on /biz/ has made it enough to buy a house so the crash is unironically good for us

>> No.25519995

>>25519558
How do I profit from the next housing crash anon?

>> No.25520023

>>25519558
It’s unironically worse this time
You’re trying to count cards and JPow keeps adding new decks to the shoe

>> No.25520035

>>25519995
watch the movie The Big Short, this was done in 08

>> No.25520087

If the housing market crashes, wont interest rates skyrocket? Do buyers really win in that scenario?

>> No.25520127

Isn't the number of people behind on mortgages up over 1000% because of coronachan? And wasn't the reason 2008 was so fucked is because they took those mortgages and repackaged them as safe debt that banks sperged into?

>> No.25520153

Two types of people on /biz/

https://www.youtube.com/watch?v=SYc6QmaGnYc

>> No.25520169

>>25520087
Also I'm not really sure how refinancing works now is it based on the value of the home or outstanding principal on the existing mortgage?

>> No.25520202

Base tokens is $0.90 and fucking rebase will rise it even stronger, who is in? All 4ch is in this shilling

>> No.25520209

>>25520087
You forgot we live in the time when interest rates above 0 are illegal
You should take a look at how Japan is doing with that plan, considering they started earlier

>> No.25520260

>>25519558
There are literally areas all over the country that essentially first time home buyers are completely priced out of the market.. I'm not talking big cities either.

When you're making above average income and housing prices are rising so quick that it's impossible to save at a rate that gets you into a mortgage without PMI you know shit is fucked.

In 4 years the neighborhood my grandma lived in is on average $100,000 more for the same house was. Explain to me how income/wage increases match this growth?

>> No.25520277

>>25520153
kek. can we get some more great /biz/ flics?
https://www.youtube.com/watch?v=nJeddv1QbeQ&ab_channel=RunningBull

>> No.25520298

>>25519994
its good for me too, i want to buy low because ive been living in the shittiest cheapest apartment to save all i can so i can put it into a good house,
I'm just astounded by how similar the situation is... even down to the exact cities that are starting to get into trouble first

>> No.25520321

>>25519558
The main issue with 2008 was Obama/Biden. We got Trump now though so we safe. BUY BUY BUY!!!

>> No.25520339
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25520339

>>25520277
You have to go back.

>> No.25520343

>>25519721
so basically if the mortgages go down the banks go down with them is what you are saying? im too low iq to understand

>> No.25520347

>>25520087
Crash may be good, but wont last long. Foreign billionaires looking to part fiat into any assets. American real estate is big.

>> No.25520381

>>25520260
>Explain to me how income/wage increases match this growth?
It doesn’t we're heading towards some hardcore feudalism

>> No.25520531

>>25519558
I think two things could happen, the global debt burden becomes too much and pops sending interest rates sky high like in the 70’s. People in debt get completely raped by interest and lose everything they have anyone with just a few liquid assets can buy houses cars whatever for cheap.
Option 2 which I think is far far more likely is the central banks continue to print like no tomorrow suppress rates forever and inflate away the debt burden making property many multiples it’s current value

>> No.25520960

>>25519558
It was because of adjustable rates retard. Watch Big Short again.

>> No.25521201

>>25520343
Yes.
movies like the big short and popular opinion is that capitalism bad caused the 08 crisis and they mention derivatives, cdos etc. The centrally planned regulation caused it.
No banks wouldve bought mortgages to the levels they did if they werent legally forced to and then of course they shorted themselves because that's the only way they were going to get money.

The blackpill is crashing the housing market is financial repression which is a goal of keynesian monetary policy (make you poor so you cant stop working). The central banks deliberately caused the bubble

>> No.25521429

>>25519741
Dude the thread was up for like 5 minutes before you posted relax.

>> No.25522025

I own my house in cash full and clear. Not moving or “refinancing” ever.
> comfy.jpeg

>> No.25522067

>>25520260
i dont think wagies being priced out of the market matters much.
It's been a long time coming that we live in a feudal serf type nation. It has been a slow divide but year after year the divide grows and the middle class is cancelled out.
The thing is the houses are bought as investment. Wealth is just more accumulkated by the rich so instead of 4 families owning one house it's one guy owns 4 houses.
>>25521201
I get that the end goal is to make you into a paycheck to paycheck living AKA powerless person.
so you're saying the banks had no choice to buy the shit tier mortgages? And central banks wanted to create the bubble to crash it? Or they want to create the bubble and continuously blow it up so assets are too expensive to buy permanently

>> No.25522179

>>25519832
BTC is always a good investment. No other input required.

>> No.25522408

>>25519558
Hi bobo.... what about real estate in Monaco? Or Germany? Or Singapur? Will they all collapse with your US housing bubble again? I somehow doubt it. You are a retard.

>> No.25522855

>>25519994
>nobody on /biz/ has made it enough to buy a house so the crash is unironically good for us
kek
you really think so? Who do you think owns the 2 biggest houses in Zürich, Switzerland along the lake on the gold coast? 2 early BTC billionaires. Ya, you guessed right, from /biz/

>> No.25522976

One of them, next to nigger Turner's house

>> No.25523000

>>25520153
>>25520277
kys

>> No.25523076

>>25522067
Yes basel II regulation had fixed capital requirements for mortgages. This fixed rate is obviously not reflective of what the banks would actually want to hold in mortgages. So when t hey new they were overexposed to housing they could either stop making money or play the bubble game of cdos, fake ratings agencies and shorting themselves

>> No.25523120

>>25521201
Lol you’re framing it like economists haven’t written for a decade about how financial capital’s death drive wasn’t wholly apart of 08. You’re talking like a Chicago school goldbug if you unironically think the rube opinion isn’t to defend oligarchy

>> No.25523150

>>25519832
usd is already crashing. look at bitcoin, gold, and dxy in 2020.

>> No.25523238

>>25521201
based austrian economist

>> No.25523524

>>25520209
You won't own anything and you will feel great

>> No.25523659

>>25523120
The "rube" opinion is ill say whatever you want me to say for a paycheck. They look at it as if the words dont have meaning, wrote learn ideology and repeat it

>> No.25524030

>>25520153
You have to go back.

>> No.25524945

>>25519558
The 07/08 crisis wasnt *actually* a housing crisis, it wasnt a mortgage crisis. There always is a housing bubble, the fact that it popped in '07 was due to the fact that there was a REPO run shortly before. (Read up on what Repos are, not gonna spoonfeed) Events then spiralled out of control and the REPO run induced panic then led to the housing crisis because Banks were suddenly rug-pulling each other internationally and nationally, and in the US this was especially dangerous because the banks are cartellized under the FED system. This cartellization turned every collateral that banks held, into heaping piles of shit, because even the best collateral can not withstand a 10 to 1 lever when Shit hits the fan and liquidity becomes an actual issue.

I hope I am not the only one that knows this, because this should be more commonly known.

>> No.25525431

The 1929 great depression wasn't actually a bubble. The high speculative prices of stock were actually justified by the significant advances in tech and factory optimization, such as the electric unit drive which boosted worker efficiency and output greatly.

The great depression was actually caused by the smoot-hawley tariff and republicans promising too much hope on protectionist policies. When the party fell apart when 13 Republicans switched to the other side, all hope fell apart on the US and sentiment in the US market fell greatly.