Newsflash! Things are not good economically.
Most people make significantly less in inflation adjusted terms than they did prior to the 2008 Crash. And it should be noted that the economy prior to the Crash felt pretty hollow too. People forget this now. But nearly everyone was living off of the housing bubble in the Bush years. That’s why it hurt so bad when housing ate it.
Remember the sea of realtors? At one point – around 2006 – it was basically impossible to go to a barbecue without meeting a realtor or a mortgage person. Idiot sons across the country were making money hand over fist, buying Suburbans, and getting in on rental properties. Where did all those people go? Actually don’t tell me. That the depression has wiped out this crowd is one the few positive outcomes of the last few years in my estimation.
A minuscule move up in mortgage rates caused a significant downdraft in mortgage applications.
And with cash buyers increasingly out of the picture, mortgage dependent buyers are where it’s at for real estate. The problem is the latter group is still on very shaky economic ground.
All the meddling in the housing market by the government. All the below market rates of interest from the Fed. All the “stimulus.” And this is where we are, spinning our wheels.
Ms. Pelosi knows how to work a deal. As such opportunities just seem to fall into her lap from nowhere. Before Pelosi was in Congress she was comfortable, but she wasn’t rich. Yet now she’s worth tens of millions of dollars.
The Chinese have poured stimulus on top of stimulus already. An archipelago of idiot central planning projects stretches from the Ordos desert in the north to the lush mountains in the south. High rises reach to the sky but are empty, in the middle of cities which are empty, in a country which is anything but empty.
11. The multifamily McMansion
It is a key part of the home buying process. Money that is. And most young people don’t have much of it.
China is the ultimate crony capitalist state. It is a country which is built on lies on top of more lies on top of more lies on top of more lies.