/biz/ - Business & Finance

>imagine not peking the place where you live
I men's there's no excuse

>>53417757
>glance outside...
>vast, barren, frozen wasteland...
>wind gusts, plywood box groans...
>o-only 278 more monthly payments...
>zestimate went back up a bit, only $40k underwater now...
>better make a rentcuck thread...

>>53417868
based

If i am priced out then so is the average man my age (25). That means fertility will keep dropping
I sleep well knowing there isnt much I could have done about it

>>53417757
They'll cut.
Apart from that, higher interest rates are good for income-scarce buyers of scarce goods, since they decrease the amount of borrowed capital to which everyone has access.
Let me paint you a picture here:
You have a million people and their average income is, say, $50K, and the average savings are $30K. If you take out a loan, you have to make monthly payments, and those come out of your income (the $50K), but over time. Now, let's say that the average loan that someone can afford is $100K. Now everyone goes out and wants to buy a house - houses are scarce, so people have to bid. You have to win the bid, so what do you do? You take the biggest loan that you can get and pay (or sometimes just get, as we saw in 2007). Thus, people take their savings of $30K, take out the biggest loan, and bid with that money, so the average home prices goes to $130K.
Now let's say they increase rates such that the largest loan that the average person can afford is now only $60K. The same thing happens: people take their $30K savings, $60K loan, and the average house prices becomes $90K.
But notice that the ratio of savings to house prices decreases: you can finance more with savings alone if you can only get a smaller loan. It's obviously good if YOU ALONE can get a huge, low-interest loan, but if EVERYONE can get a huge, low-interest loan, you're right back where you started in terms of the bidding itself, but you're also paying this loan back over 5, 10, 30 years, which makes both you poor and depresses the economy, because everyone's paying back loans.
You might think that the higher interest rates cancel out the smaller principal (so only 60K, but you pay 5% instead of 2%, say), but you can calculate out that this is not the case. Nobody is going to take out a $1K loan at 500% interest. The higher savings-to-house-price ratio means that you will try to finance the purchase with savings, because you already have those and don't need to pay interest on them.

>>53418142
Actually, you do pay interest on your savings, though the convexity is inverted (inflation makes the value of your savings go to zero, compound interest makes your liabilities go to infinity), but that's not really important here.

You can either get money via saving it or via taking out a loan. If interest rates are high, you'll prefer accumulating savings, so, at some point, this preference depresses the demand for loans even more, because, as said, nobody is going to take out some 500%-loan. If the amount is so small, you'll just save it. The underlying reason for this is that your income also has an "interest rate": you leverage your skills, investments, time to make a certain yield. If that yield is lower than what you have to pay for loans to take out, you become less likely to take out loans. People obviously don't think about it in these explicit terms, but that's the rough calculus they intuitively follow.

>>53418142
>>53418205
based poster
to other anons: don't forget about taxes. savings are post-tax whereas debt (assuming burger and primary residence) is tax-preferred

>>53418142
>>53418205
Bluepilled. They won't cut.
Physical gold and physical silver are money, that means they're currency and a store of value. The USD is just some paper, it's only a currency, but not a store of value (because they can inflate it and make it lose purchasing power).
Since people started hoarding physical silver (to end the fed) it means they're losing their faith in the paper currency and given enough time they'll buy up all the physical silver that exists out there. The fed has to put a stop to this otherwise everyone will see silver as a better alternative than the USD, so even more people will abandon saving and using USD and will start saving and using physical silver. They do not want that because they can inflate the USD to pay for all the diversity and anti-white agenda and they cannot do that with silver. The inflation is a tax which is silently stealing away purchasing power away from you so they use it to make you poor at the same time as they become richer.
To put a stop to the physical silver squeeze they have to raise the rates, they have literally no alternative to this or their currency becomes less valuable than toilet paper. Why would they need to do this?
If the interest rates are high, people who have physical silver will see their pet rocks just sit there and do nothing. They'll see they'll have higher returns if they sell their silver and put the cash in the bank to gain interest on it with 0 effort. This way, people stop hoarding silver and they're back under their control through the currency they can later begin issuing in large numbers to fund what they want again.
The interest rate will keep going up until people stop stacking physical silver.
Unfortunately for them, the silver stackers know this trick so most likely they won't fall for it. The best decision right now is to keep hoarding physical silver and to short everything that's in a bubble by low interest rates and to use these profits to hoard even more silver.

>>53419102
>PEOPLE ARE STACKING SILVER
>HOW DO I KNOW?
>THEY JUST -- THEY JUST ARE, OKAY

>>53419102
Nigga at what point has silver been a good investment asset

>>53419136
Yes, they're stacking the physical silver, the comex inventory is going down fast.

>>53419102
based, and most importantly, redpilled.

>>53419102
While I like silver and you silver-guys, I am much less confident in it than you. I just don't think it's popular enough.

>>53419140
since their favorite bitchute vlogger scam artist mouthpiece started shilling it

>>53419256
same energy

>>53417757
You realize if rates are never cut again, that the house you paid $1,000,000 for in 2022 will end up being $200,000, because banks wont be able to lend enough money out for anyone to pay the prices people want for their homes they paid crazy amounts for during low interest rate times.


We will go to 10-20% interest rate, but homes go down 80%

>>53419273
schiffgold bros...

>>53419273
You need some new meme images m8, that one is outdated already, less than 3 years later

pic rel

>>53417757
>2015: I'm going to wait for the crash.
>2016: I'm going to wait for the crash.
>2017: I'm going to wait for the crash.
>2018: I'm going to wait for the crash.
>2019: I'm going to wait for the crash.
>2020: I'm going to wait for the crash.
>2021: I'm going to wait for the crash.
Interest rates rise
>2022: I'm going to wait for the crash.
Interest rates rise more
>2023: I'm going to wait for the crash.
You are here.
>Nobody is going to sell at a 3% APR.
>Nobody is going to build due to material/labor costs (new tract goy housing and condos are exception).
The market is stagnant and will remain so. 8% APR is the new 3%.
Also, Insurance and prop tax continue to increase, so will your rent.

>>53419473
I think you might be underestimating how bad this crash is gonna be. The implosion is going to be insane.

>>53419237
By the time physical silver becomes popular it's going to be too late.

>>53419497
2 weeks bro
>Jews have plenty more shekels to steal
>Boomers have plenty more gibs to get before dirt nap
Nothing will happen in 10 years. When the boomers die out, the US dollar will fail.
Meanwhile, you will still have nothing.

>>53419534
I have plenty, and I can wait. The collapse is clearly not gonna take 10 years regardless. By all means by a house in this market though m8.

>>53419607
>clearly not gonna take 10 years regardless
You sound like 2016.
2 weeks bro. It can't go any higher.

People will still be moving from 'starter home' to a better neighbourhood. Not much available for sub 400k plebs (in desireable neighbourhoods).

>>53419719
Why do you keep saying 2 weeks?

Honestly idgaf if it takes 10 years like you say. I know this is a huge bubble and it's gonna pop at some point. Altho I don't think it will take 10+ years. The Fed will keep kicking the can down the road for sure but the dominoes have already started falling.

>>53419757
>Fake and gay corporate/government economic policy
>Print money and give to mega corps, banks, etc
>Pump and dump cycles to shake shekels loose from plebs
>Trade paper/electronic value for real assets
>Continue for decades
>Plenty more juice in orange
>4th rail of economy (boomers) aren't going anywhere. Gibs me dats economics.
>5th rail of economy Blackrock etc own majority of all stock and mortgage backed securities at 0.01% interest. Largest institutional lender(s)
Shit isn't going anywhere but a slow decline down until the paper money in your pocket isn't accepted anymore and the electronic numbers on screen don't mean anything.

>>53420083
I think they'll try and Jew it with a new pandemic or "cyber attack" to implode the economy and get everyone on CBDCs. They need a crisis for the sweeping changes the WEF wants. It's all out there. A slow burn wouldn't cut it.

>>53417757
I'll just get a loan from my dad the same way he got a loan his father in law :)

>>53420192
>Electric cars only by 2030
>Everything in decay
Gonna be pretty shitty in 7 years just at the current pace.