You know, if I was a cynic I would say that these “once in a lifetime” crashes might even be designed to wring even more money out of the working classes.
If you look, historically there was a big crash every ten years or so prior to the great depression. Then a whole bunch of financial reforms and regulations were put into place and we had about forty years of relative stability. And then in the 80’s and 90’s most of them were thrown out. And fuck me if we aren’t back to a regular cadence of crashes.
Housing is kind of finate, and land is one of the few things that literally is finite.
08 happened and no one was really ready for it. But now the banks and “investors” just won’t slow down buying, because they’re competing against each other now and not individuals.
Prices will keep going up for property, but overall sales will continue to decline. Because once a bank/corporation/investment group buys a property, they’re fucking keeping it.
Banks don’t buy properties, they foreclose on them. They will unload as fast as possible and take a write down.
Big hedge fund and other similar large investors don’t hold onto money losers, and they care about maximizing their return. If the spread between rent and sales price is this high, I’d expect some of the ones that bought a while ago to be considering selling and taking their appreciation gains vs holding onto a cash flow that is multiples lower. Plus corporate lending is a completely different animal than homeowner loans and many of these properties will soon be needing to refinance into a much higher rate. Their owners will sell rather than take a huge hit to cash flow. And many of these bought properties 5-10 years ago and did capital upgrades that are now aging. They’ll be looking to exit before the next upgrade cycle.
Smaller investors can get pretty badly burned in these markets and may not be able to hold on.
Not saying a crash is inevitable or even likely, but real estate is cyclical and we are almost certainly near the top of our current cycle.
So when this bubble bursts, we’ll plunge into a depression?
Pippin: What about the Great Recession?
Aragorn: You’ve already had it.
Pippin: We’ve had one, yes. What about second Great Recession?
Merry: I don’t think he knows about second Great Recession, Pip.
By my count this will be the fifth “once in a lifetime” economic crash in my lifetime.
Yay capitalism!
Yet, somehow the rich get richer, even in “once in a lifetime” economics crashes.
Especially* in “once in a lifetime” economic crashes
You know, if I was a cynic I would say that these “once in a lifetime” crashes might even be designed to wring even more money out of the working classes.
They are an economic crisis to you. To them they are clearance sales.
If you look, historically there was a big crash every ten years or so prior to the great depression. Then a whole bunch of financial reforms and regulations were put into place and we had about forty years of relative stability. And then in the 80’s and 90’s most of them were thrown out. And fuck me if we aren’t back to a regular cadence of crashes.
Something something history doomed something…
Hmmmm… Now what was it that happened in the 80’s that sparked all the de-regulation that caused the recessions? If I could just put my finger on it…
When it comes to America, almost everything wrong can be pointed to the actions of one guy between 1980 and 1988.
Roger Stone?
It’s very unlikely to see the bubble burst again.
Housing is kind of finate, and land is one of the few things that literally is finite.
08 happened and no one was really ready for it. But now the banks and “investors” just won’t slow down buying, because they’re competing against each other now and not individuals.
Prices will keep going up for property, but overall sales will continue to decline. Because once a bank/corporation/investment group buys a property, they’re fucking keeping it.
Banks don’t buy properties, they foreclose on them. They will unload as fast as possible and take a write down.
Big hedge fund and other similar large investors don’t hold onto money losers, and they care about maximizing their return. If the spread between rent and sales price is this high, I’d expect some of the ones that bought a while ago to be considering selling and taking their appreciation gains vs holding onto a cash flow that is multiples lower. Plus corporate lending is a completely different animal than homeowner loans and many of these properties will soon be needing to refinance into a much higher rate. Their owners will sell rather than take a huge hit to cash flow. And many of these bought properties 5-10 years ago and did capital upgrades that are now aging. They’ll be looking to exit before the next upgrade cycle.
Smaller investors can get pretty badly burned in these markets and may not be able to hold on.
Not saying a crash is inevitable or even likely, but real estate is cyclical and we are almost certainly near the top of our current cycle.
Lol
https://www.cnn.com/2021/08/02/business/family-homes-wall-street/index.html
Yep!
It’s not just good, it’s great depression. -Just a thought - Gnarls Barkley
Bubble? Home prices are down 5.5% YoY in the US, rates are just at 20yr highs.
Way ahead of you