Tuesday, July 12, 2022
Commentary: The Biden Bust Could be Coming to a Neighborhood Near You Soon
For many readers, the above title will conjure up memories of the 2008 housing crash caused by the proliferation of subprime mortgages and the subsequent tsunami of defaults. But a better corollary for the coming Biden bust is the Carter crash that occurred three decades earlier. During the final two years of Carter’s term, sales of existing and new homes collapsed because the Fed was forced to raise interest rates sharply to get double-digit inflation under control. This, in turn, produced double-digit mortgage rates that priced millions of potential buyers out of the market.
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Some people don't remember 12% mortgage rates.
ReplyDeleteI do.
Of course, you could still afford to buy a car without financing it for the next 6 years back then, too.
CC
Along with 24% interest on used car loans…..only drove it for 3 months before having to voluntary turning it back in. Knowing math and understanding it can be 2 different things. I understood it after that (1982)
DeleteIn New Zealand in the 80's mortgage interest rates got to 23%.
DeleteI remember getting a 10% VA loan and thought I had it made. Remember interest rates getting as high as 18%.
DeleteBitcoin will save us all....
ReplyDeleteFuck Joe Biden!
ReplyDeleteJoe is no more than a puppet on a string. I think part of the reason he was selected was to bring discredit to the office of the president. Can’t have a global oligarchy run by a committee of “experts” with those pesky heads of state around. Everything is going exactly to plan. People pulling their heads out of their collective asses at this point may prove to be a day late and a dollar short. Eod1sg Ret
ReplyDeleteAlso why Harris was selected by Soros, Jr. for VP.
DeleteIt's deliberate. Communists have been infiltrating for quite a while now. Look at the Leftist Biden hired who wanted a central bank and to bankrupt the oil and gas companies.
ReplyDeleteBought my first home back in 1986 for $59,000.00 brand new.
ReplyDeleteIt was a "starter cape"
Was a single Dad with a 6 year old son.
I busted my b@lls to make ends meet.
20% down.
I was all over a 10 - 5/8ths % mortgage like a fat chick in a doughnut shop.
Where there's a will, there's a way.
45bpcr
Here in eastern Oregon, land and home prices have doubled, working on tripled, since the covid shenanigans started. Locals can't compete with the out of town money pouring in, and we can't really afford to go anywhere else, either.
ReplyDeleteIts going to get interesting for the next couple of years. 2 generations of young people have no idea what real inflation is beyond the price of video games doubling in the last decade. I sorta pity them, so naive, expecting life to be fair and subsidized like the media told them. When they come back home wanting their old room back, set their rent by how they voted.... just saying..
ReplyDeleteOur son is reliably cynical about anything government related, and I suspect his voting patterns reflect that.
DeleteOur daughter, on the other hand, has been profoundly leftist in most of her stated opinions.
HOWEVER, she has just become a first-time home owner, and discovering that she is NOT eligible for ANY of the .gov assistance programs, just because she is white, is gainfully employed, and has been responsible with the money she has earned, has opened her eyes somewhat.
I have hopes for her yet.
2008 was a worst crash. This time banks will close.
ReplyDeleteI got a 14% ARM and the Prime Lending Rate was at 22% during Carter. Being young, dumb and stupid, it was my first presidential election, and I voted for Carter. I never voted for another Democrat ever again.
ReplyDelete