Tuesday, September 7, 2021

Housing Market Crash 2.0 - A Massive Second Wave Of Mortgages Reset Starting In 2022 https://youtu.be/w18wWyh99UA

Housing Market Crash 2.0 - A Massive Second Wave Of Mortgages Reset Starting In 2022 https://youtu.be/w18wWyh99UA

Housing bubble; Stocks bubble, Corporate debt bubble, Margin debt bubble, Crypto bubble, What could go wrong? 1929, 1987, 2000, 2008 never had it this good.The housing bubble crash of 2008/2009 was one of the biggest financial disasters in American history. Around 6 million homes have been foreclosed on by lenders as millions of American families watched their hopes for achieving the American Dream going up in smoke. Since early 2008, more 60 million U.S. homes have lost a total of 5 trillion dollars in value. 340,000 home mortgages resetting on top of 5+ million homes that are more than 25% underwater. The potential for default on those 5+ million homes is enormous. If I owe $300,000 on a home that is now worth $225,000, even if I could sell my home I have to come up with an additional $80,000+ (closing costs, lawyers, transfer taxes and principle) to get out from under the train wreck. One can rebuild one's credit in 3 years. It is cheaper in most cases to walk away from the existing loans, or ask the bank to forgive the difference. What nobody mentions is the looming crisis in commercial real estate. 80% of commercial loans are resetting in 2011. Given that rental rates in many areas are depressed, the income produced from such properties and coupled by high vacancy rates are making it impossible for owners to refinance. In many cases, they, too, have negative equity. Add to the mix the fact that the Fed is now monetizing debt since no one wants to buy US treasuries, and the bankruptcy of nation states and individual US states, I don't see any way to avoid a collapse of the current system. Anecdotally, I am a commercial real estate broker. All of my clients who want to sell are either in serious financial trouble or underwater. The future looks grim. Even before the pandemic pushed the housing market into overdrive, the price of the average American home was on a rocket ride, rising more than 50% between 2012 and 2019. This was the third biggest housing market boom in American history. Then came the pandemic, which was marked by a buying frenzy and a selling freeze, which created a supply-demand mismatch that caused the price boom to go into warp speed. The average price of American homes is now the highest it's ever been .It is even higher than the peak of the housing market bubble of 2006 before it collapsed 60% and bottomed out in 2012. 340,000 home mortgages resetting on top of 5+ million homes that are more than 25% underwater. The potential for default on those 5+ million homes is enormous. If I owe $300,000 on a home that is now worth $225,000, even if I could sell my home I have to come up with an additional $80,000+ (closing costs, lawyers, transfer taxes and principle) to get out from under the train wreck. One can rebuild one's credit in 3 years. It is cheaper in most cases to walk away from the existing loans, or ask the bank to forgive the difference. What the media do not mention is the looming crisis in commercial real estate. 80% of commercial loans are resetting in 2021. Given that rental rates in many areas are depressed, the income produced from such properties and coupled by high vacancy rates are making it impossible for owners to refinance. In many cases, they too, have negative equity. Add to the mix the fact that the Fed is now monetizing debt since no one wants to buy US treasuries, and the bankruptcy of nation states and individual US states, I don't see any way to avoid a collapse of the current system. The future looks grim. The Fed and other central banks will 'eventually' be forced to raise interest rates but that happens only once The US Dollar Index DXY falls below 70. And guess what they'll do...hike rates minimally while printing 10's of trillions to buy up more Mortgage-Backed Security, US Government plus Corporate debt and directly monetize stock indexes. If anyone thinks that will cause the Dollar to sell off; think again because all that printed currency will be parked on a Forever balance sheet where not a single Dollar will be sold to create inflation. When the Fed starts hiking Wall St will cheer them for 'saving' the Dollar while receiving Trillions of dollars in Corporate and stock index loot. Every single Banana Republic has gone this route; America will be no different. Meanwhile look which direction US Dollar Index DXY is going as a result of their faux tightening jawboning. More room to print. The FED is basically hiding all the inflation in the housing market. Things don't "crash" back to pre-inflated prices. Can you imagine waking up in Zimbabwe and having your neighbor tell you people are suddenly selling loafs of bread that cost $10,000 yesterday for pennies again? There’s no doubt that currency debasement is causing the housing bubble and the “everything” bubble.They’ve shown no signs of tightening up. However, with inflation this rampant, they may be forced to raise rates and tighten unless they want full on hyperinflation. It’s also possible they could lose control of the yield curve and interest rates, including mortgage rates, could rise due to loss of confidence in the dollar. If mortgage rates rise significantly, the housing bubble will burst in dramatic fashion. Housing will be worth cents on the dollar in the upcoming hyperinflation. Folks from New York, Southern California or any urban metro are spending gobbs of money to get out of those places, crowding the local buyers out. Can't get out fast enough.. It's a feeding frenzy, but different from 2006. I survived that bubble too. Locals are sitting on their hands, or selling and renting until the madness ends. Inbound people are spending 20% over contract price, banks lending on contract price. The buyer who paid 250k on a 200k house is getting soaked in this bubble, not the banks so much. They are only in it on a 160k loan value. That house will have to fall 90k or 36% before the bank gets in trouble. These buyers got funny money when they sold their Rambling ranch in Greenwich for 2 million and bought a relative castle in the south for 250k, what's a 50k loss ? Funny money when they made it, funny money when they lost it. Markets never go away, they just move around. There is just as much opportunity in a bursting bubble as there is in the run up. And given the cash stockpiles that most banks are sitting on (not including all the Private Equity Funds Hedgies and Special Purpose Acquisition Company SPACs), all distressed properties will be readily absorbed and puked back up at enormous profits to fear of missing out (FOMO) buyers after a few months or years. OR, the bubble does finally pop because the dollar collapses under its own hubris, the fallout cannot be contained (this time) and we're fkng Mad Max Bartertown in no time. It is going to blow. It's only a matter of time. Many of those who try to stay in until the last minute will get murdered. Same as it ever was. 2008 wasn't the real thing either. It was just a tiny quickening that they bailed out, so they could re-ramp up the biggest bubble ever. Houses will be next to nothing eventually and real assets like gold will pick up a house easily. We will hyperinflate also, but that would only make your house worth a trillion for a minute. Then a half an ounce of gold will probably buy it. There won't even be loans. Some people were picking up houses in the 80s for the price of crap used cars. That won't even compare. Loans for houses aren't really an asset anyway, they are a liability. The only way you should want to keep a house now is if you got a good deal on it long ago and it's where you want to be. I hope I am completely isolated forever by then because then I won't have to hear morons talk about how they could never believe that any of it ever happened. Anybody buying now is crazy. You can tell by how people think it's never going to end that it's going to end.

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“Control oil and you control nations; control food and you control the people.” Henry Kissinger


once a standing army is established, in any country, the people lose their liberty.”
George Mason

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Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

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Governments keep a lot of secrets from their people . . .
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PHILIP ZIMMERMAN, DER SPIEGEL

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Rabbi Stephen Weiss

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Jewish Voice, July - August 1941

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UNKNOWN

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The Tax you pay is The Bill for Staying Stupid

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The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924


Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money
UNKNOWN

Taxation is legalized Theft
UNKNOWN

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

Bob Dylan


"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich


There is NO political answer to a spiritual problem!
Steve Quayle


Po
litical Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship
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The modern definition of racist is someone who is winning an argument with a liberal
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When People lose everything and have nothing left to lose , They Lose It !

GERALD CELENTE

Your Greatest Teacher is Your Last Mistake
DAVID ICKE

The one who Controls the Education System , Controls Perception
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"The world will not be destroyed by those who do evil, but by those who watch them without doing anything."

Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left
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No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please
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Freedom is not Free
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Don't Steal The Government Hates The Competition

Ron Paul

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Jesse Ventura


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The world is a tragedy to those that feel, and a comedy to those that think...Beppe Grillo

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Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

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Thomas Jefferson

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Albert Einstein

Schools manufacture people who think that they're smart but they're not.
Robert Kiyosaki

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Robert Kiyosaki


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Dissent is the highest form of patriotism
Thomas Jefferson

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The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know.
Robert T. Kiyosaki ‏

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What You Own Owns You
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Failure inspires winners but defeats losers
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“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people” A Chinese Proverb

"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN