USA Housing Bubble 2.0
Updated 1 Dec 2018
The housing market is on the verge of its second bubble burst of the 21st century. Here are 7 reasons the second coming is nearly upon us.
1
Baby boomers are retiring at 10k/day. Healthcare costs are skyrocketing because conservatards care more about corporate welfare than individual welfare. The baby boomers would be wise to keep their overpriced big houses and vacation properties as collateral for their rising healthcare costs.
An aside:
If the government used its pricing power in drug prices and reigning in insurance costs in socialist programs like the Veteran Affairs healthcare, Medicare, and Medicaid then the majority’s healthcare costs would come significantly down.
2
When the FED raises interest rates after years of easy money then 84% of the time, the FED caused a market crash. However, while the low to zero interest rate party was playing out all the greedy pigs kept risk-on betting because the greedy pigs weren’t punished during the 2007 housing bust. The Fed funds rate is currently at 2.25% after being at zero for 7 years. There are loads of easy money loan rates going higher globally and emerging markets have been the worst hit because rising rates make the loan bearing interest more expensive. Expect China’s 4 Bear Sterns like investment banking defaults to have a cascading effect in Asia and the world.
3
Bank lending started lax standards again in 2011 e.g. subprime lending. NINJA (No Income, No Job or Assets) loans also started again in 2015. Credit defaults are also rising. Conservatards deregulating the financial systems will only speed up the 21st century’s 2nd housing bubble’s burst.
4
Wages have depreciated while housing prices have grown.
Excerpt
Real wages fell 1.4 percent from the prior year, according to PayScale. The drop was broad, with 80 percent of industries and two-thirds of metro areas affected.
5
Read up on the Case-Shiller housing index history. We’re at 2040 housing price levels in 2018. Saying the housing market is overpriced is an understatement!
Housing overpriced example
Zillow now values my moneypit at $125k. I paid $35k for it in 2013. It’s laughable to suggest my residential property has grown 257% in value without any improvements.
6
As an employer my first duty is shareholder growth. Thanks to the conservatard corporate tax welfare passage last year, shareholder wealth increased by over $700 billion in the 1st half of 2018 towards stock buybacks and shareholder dividends, the most ever.
The job growth propaganda the conservatards snake oil sales sold the corporate welfare package as, was perhaps the second greatest ruse of the 21st century. Bailing out the risky and greedy banks during the first 21st century credit crisis after having the regulators promise to reform the banking industry was the greatest propaganda story thus far in the 21st century.
The very last action a corporation will do is raise labor costs. In the 21st century, corporations are more productive with less people holding similar wages as in 2000. Wage disparities will only increase as the government continues fluffing big domestic businesses while snuffing the majority.
7
The blockchain is set to wipe out the middle class. Using the blockchain, the financial giants have already decreased commodities transactions from 10 days to 24 hours. Robotics and the automated revolution have also increased shareholder “value” at the expense of the majority. Our goal as shareholders is to hoard money at the expense of the majority and technological innovation via the blockchain will allow us to speed up the middle class’ demise.
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Disclaimer: I could be wrong.
