things that have been seen cannot be un seen,thanks a whole lot savell

I know you are simplifying this, BUT, along with the house comes ; 1.interest 2.Taxes 3.upkeep 4.realator fees. You will need atleast 10% gain to break even.

Many talk about not borrowing money, but if a lot of these people buying homes for 10-20% over asking prices are using cash to secure a lot of the purchase of those homes they have potentially a lot more to lose then those borrowing more of their funds. Bankruptcies under current laws are much cheaper and not as limiting as in the past and you did not lose hard earned cash either if the whole thing goes south.

Bryce

"What Is a No Down Payment Mortgage?
Zero-down or no-money-down mortgages were readily available prior to the subprime mortgage meltdown of 2008, when home values were rapidly rising and credit guidelines were more lax."

Don't forget the "interest only" loans.

Peee'U

Do you think that double naught spy secret has been declassified?

You actually have to have showings to do. For the last 6 months or so, our weekly real estate magazine has been super skinny, very few showings even though housing units are being built all over on the edges of the various pieces of the metro. Somebody is securing the loans or the buildings companies are just nuts and building on speculation. We'll see what happens. I'm not planning on selling anytime soon...

Most house here never get a sign in the yard, brokers have lists of buyers. Sellers list their house; agent makes a few calls, and the battle begins. 75% of sold homes in my area will bring 10-15% over asking. 85% are cash deals, close in 3 weeks.

Yes they are! I can't believe you posted a picture of one.Disgusting.

I don't disagree that housing and most broad markets will drop 30 percent sometime in the near future I would classify that as a plummet, more like a strong correction.

I'm expecting it to plummet. I understand that federal money as you put it isn't what is backstopping all this. It's money created out of thin air, a key stroke on a computer if you will. The federal reserve is funding this. Either through QE or artificial interest rates. Both juice the money supply.

if you believe the 2008 bailout only saved the banks you are gravely mistaken. It bailed out the markets of the entire world. All of them. The world was days or even hours away from a liquidity crisis like never experienced before. We are talking worse than the great depression. Me I think we should have let the free market fix the problem. We didn't. Now we have what we have. I seriously believe you have no idea what will happen if home prices and the stock market is allowed to fall. Deflation is a four letter word to the federal reserve. Worse than inflation. They will juice the pumps and when they do it will be hyper inflation like the Weimar Republic experienced. None of us will escape it unscathed. None of us. The dollar will almost assuredly lose reserve status.

What does that mean? Well we don't need to go down that road, as I posted earlier, hopefully the republic stays intact.

Mr. Steven49er, White17, and Dirt,…,,,

Can y’all please explain this situation in egg and chicken/coon hide and fur buyer form? I apologize, I’m completely ignorant on the market of money. All I know is what I was taught….pay offf debt, and don’t buy anything you can’t afford.

I’m 42, and I’ve never even hear of a no down payment loan, or interest only? I remember 2008, but never understood the all the talk as it never affected me. Now, I’m trying to dabble a bit in stocks.

Why would the government loan money to people they know can’t pay it? That is crazy, they can’t be that stupid!?

Lets unpack your last statement, yes they can be that stupid.

The government doesn't and the FED doesn't care if a borrower can repay the loan, all they care about is the money is then created inflating the money supply. Do you know how fractional reserve lending works? Without new money creation the whole system implodes, new money is mostly created through borrowing. Or at least in the past, now we have quackery like QE and operation twist.

This all started before 2008, more like 1913 got the ball started and 1971 put the nail in the coffin. Fiat currency starts and slow and eventually snowballs until it becomes uncontrollable. IMHO this is all very predictable, not the timeframe it happens but the fact it will happen. Ok now you ask why does the government need new money created? Well under our current system it needs new money to survive. How can we run a welfare state without the ability to borrow! Now don't misconstrue my meaning of welfare, I'm not talking about the contemporary understanding. The welfare state starts at the military-industrial complex, corporate hand outs, government entitlement programs and ends somewhere south of never.

The craziness of 2008 is tame compared to what is happening today. Did you know it's reported that almost 20 percent of all large corporations are zombie corporations? That means they don't generate enough profit to service their yearly debt obligations and can only do so by more borrowing. There is a reason the FED started buying corporate junk bonds in 2020, it was unprecedented before that. Where does the FED get its money, yup, keystroke. A truly free market would let those companies die, that part of the way a market finds price discovery.

How about student loans, it doesn't take much common sense to realize that there is a large portion that will not be paid back. Why does the bank borrow the money? Because the government passed a law saying that debt can't be erased through bankruptcy. Basically debtor's prison. Why would the government pass that law? Well between lobbyists and needing to have currency created through debt it was a sure thing.

Money supply inflation will never stop until the system has an aortic confarction( I know it's not a real term, fun to say lol)

Deflation is the enemy of governments and fiat currency. It's a natural part of a free market.

That is a good little article and explains it well.

I can summerize it further in one sentence.

Greed,from top to bottom.
What a culture!

how about the price of plumbing parts , good lord the price of pvc is 15 dollars a stick for 1 1/2 schedule 40

wire is insane was at fleet and lowes today just nuts and that was if they even had what you needed Fleet and no pipe and Lowes had very few fittings

^ this is all being orchestrated....food shortages coming and other nice things are ahead...

"How about student loans, it doesn't take much common sense to realize that there is a large portion that will not be paid back. Why does the bank borrow the money? Because the government passed a law saying that debt can't be erased through bankruptcy. Basically debtor's prison. Why would the government pass that law? Well between lobbyists and needing to have currency created through debt it was a sure thing."

Our State once had a student loan program. It became a financial disaster. They quit doing it. Since they couldn't print money, what was their motivation? Student loans would never be made, without crazy high interest rates to compensate for the crazy high default rate and no collateral. If it was legal, to declare bankruptcy to get out of these loans, nobody would give them either.

There are ways to do these programs to limit risk, and incentivize attending classes. The U.S. government should talk to the VA about how to run a college tuition program. Unless the VA has screwed this up, back in the day they didn't just hand you a bunch of money to go to school. You got monthly checks, based on getting I believe a yellow card signed by all your professors that you were attending classes, every month. No yellow cards, no money.

Depends on how much more our economy goes down the toilet.