Current issues with the market - Any ideas on avoiding the end?

[Adolphin]

In regards to inflation, at least the Fed can raise rates to tackle inflation. In Europe, that is utterly impossible. Because if the ECB raises rates, the entire European South will go bankrupt since those states will be unable to service their sovereign debts causing massive instability in the Eurozone. So it is a deadlock.

Also, I have never understood this obsession with SUVs. No urban or suburban dweller really needs one.

 

[Stormy Daniel's Lawyer]

The wife and I have been stocking up on stuff we use on a daily basis. Toilet paper, toothpaste, etc... I have also purchased a couple more firearms, ammunitions, and extra magazines. We are also shopping for a freezer to stock up on food for the coming months. Money isn't worth saving at the moment, so might as well stock up and settle in for this long drawn out shit-storm. We have curtailed our spending on eating out and buying useless shit for the time being.

I never bought into the Bitcoin hoopla, figured it's just another get-rich Ponzi- scheme.

 

[Darkholme's Dungeon]

If the Fed seriously reverses course on rate-hikes less than six months into the tightening cycle, I'm just giving up on housing forever. Fuck it, let's have the government underwrite 60 and 90 year mortgages so we can keep driving up the price of a shitty mid-tier city suburban house from 250K back in 2015 to 1-2 million by 2025. Let's get the average rent up to 6000$ a month.

It seems like the only consistent policy the government has is permanently and irrevocably fucking up the housing market.

They just said they would bring another raise. But I worry about the 60+ year mortgage and generational mortgages, it is no better than serfdom.
I have a sinking feeling they will do the latter. Allow me to explain.
You know how China's real estate market is one big bubble? I suspect in the west, most of the suburban/urban areas are the same. The local county/city heavily depend on these (and to a degree the national government) in order to perpetuate the fiat currency. Without this continual rise in property values, they would literally be unable to fund the cities emergency, utilities, and welfare services.
The western governments needs those dead weight people for votes.
The Chinese need them as cheap labor and as fools.

 

[mindlessobserver]

Generational Mortgages are probably unconstitutional in the USA because of the 14th amendment. The idea that a contract you are not party too can be enforced against you is pretty clearly a violation of substantive due process.

 

[DumbDude42]

Generational Mortgages are probably unconstitutional in the USA because of the 14th amendment. The idea that a contract you are not party too can be enforced against you is pretty clearly a violation of substantive due process.

you can choose whether to accept or decline an inheritance, no? if that inheritance comes with an ongoing mortgage attached, then accepting tit means accepting becoming part of the mortgage contract in your parents stead.

the real ugly part about long term loans like this is that it's just very irresponsible overall. nobody can realistically predict where property values and interest rates will be 40+ years in the future, taking on such debt exposes you to these unpredictable and uncontrollable market forces in a way that can wipe you out if you get unlucky.

 

[Darkholme's Dungeon]

Generational Mortgages are probably unconstitutional in the USA because of the 14th amendment. The idea that a contract you are not party too can be enforced against you is pretty clearly a violation of substantive due process.

So does civil asset forfeiture, FISA court, combating BDS Act among many other things, but the state will have its way especially if a mortgage collapse threatens the state itself.

 

[vern]

I can tell you large SUV market has become incredibly saturated. However small sedan or sedan market in general has replaced that completely.

The current inventory at the auction is still insanely low. Yes we see some repos and we are seeing them more frequently but they are being snatched by buyers like candy and above retail market value.

The banks want these people to repo. Because they are going to make a killing right now.

I hope the large truck market cools down because me and my dad are both kinda getting sick that most of the trucks on the market are 90% cab and 10% trunk.
We just want something to haul shit in and not feel like we're driving a school bus. And I know he swears up and down that he got more out of a regular cab short bed truck then most extended or crew cab ones.

 

[HOMO FOR LIFE]

I hope the large truck market cools down because me and my dad are both kinda getting sick that most of the trucks on the market are 90% cab and 10% trunk.
We just want something to haul shit in and not feel like we're driving a school bus. And I know he swears up and down that he got more out of a regular cab short bed truck then most extended or crew cab ones.

Truck market has already tanked. If you are gonna buy one get one now.

 

[tehpope]

10 year yield above 3% again.

 

[The Ugly One]

If the Fed seriously reverses course on rate-hikes less than six months into the tightening cycle, I'm just giving up on housing forever. Fuck it, let's have the government underwrite 60 and 90 year mortgages so we can keep driving up the price of a shitty mid-tier city suburban house from 250K back in 2015 to 1-2 million by 2025. Let's get the average rent up to 6000$ a month.

It seems like the only consistent policy the government has is permanently and irrevocably fucking up the housing market.

Economists believe that rising home prices are what drive the economy. Ben Bernanke explained this back in 2008; they came up with this theory years ago where everything, all prosperity and wealth, is a cascading effect of rising house prices. So yes, the government will do whatever it can to keep housing prices going up. They literally believe that if houses were affordable, the economy would grind to a halt, and we'd all starve. That this means that some day, the average mortgage will have a 500-year term doesn't make them reconsider the theory.

In regards to inflation, at least the Fed can raise rates to tackle inflation. In Europe, that is utterly impossible. Because if the ECB raises rates, the entire European South will go bankrupt since those states will be unable to service their sovereign debts causing massive instability in the Eurozone. So it is a deadlock.

Also, I have never understood this obsession with SUVs. No urban or suburban dweller really needs one.

Since the 1970s, the USA has a regulation called Corporate Average Fuel Economy that requires the weighted average of the fuel economy of all the cars a company sells to be above a certain level. Trucks are weighted differently than cars, and since SUVs are categorized as light trucks, manufacturers are allowed to sell more of them than sedans. We also made large, bulky car seats mandatory some years back, so if you have kids, it is much easier on your back and knees to own something that sits higher off the ground to get them buckled and strapped in so that their chance of dying on the way home is reduced by 0.000001%.

 

[NoReturn]

They just said they would bring another raise. But I worry about the 60+ year mortgage and generational mortgages, it is no better than serfdom.

It basically is.

you can choose whether to accept or decline an inheritance, no? if that inheritance comes with an ongoing mortgage attached, then accepting tit means accepting becoming part of the mortgage contract in your parents stead.

Yes, but also no.
When someone dies, all their assets form the "estate" and then whoever is in charge of the estate has to divvy it out. Debtors get first dibs, followed by whatever is in the will.
So with the house/mortgage thing, if your relative has so much debt that you can't pay it off with their bank account and physical belongings, then you might have to sell the house to cover the difference if you want absolutely any of what would be left over.
(Correct me if I'm wrong, btw, this is just how it played out for a friend of mine.)

 

[mindlessobserver]

It basically is.


Yes, but also no.
When someone dies, all their assets form the "estate" and then whoever is in charge of the estate has to divvy it out. Debtors get first dibs, followed by whatever is in the will.
So with the house/mortgage thing, if your relative has so much debt that you can't pay it off with their bank account and physical belongings, then you might have to sell the house to cover the difference if you want absolutely any of what would be left over.
(Correct me if I'm wrong, btw, this is just how it played out for a friend of mine.)

A mortgage is considered an asset, and while it is issued to the person who takes it out, it is ultimately tied to the property that is collateral against the loan. A decedent can will a mortgaged property to a designated heir, but that heir would then have to fulfill the terms of the mortgage. If they don't or can't the lender can then foreclose.

 

[Zbk3VmLfujjzjxBd43tL]

Economists believe that rising home prices are what drive the economy. Ben Bernanke explained this back in 2008; they came up with this theory years ago where everything, all prosperity and wealth, is a cascading effect of rising house prices. So yes, the government will do whatever it can to keep housing prices going up. They literally believe that if houses were affordable, the economy would grind to a halt, and we'd all starve. That this means that some day, the average mortgage will have a 500-year term doesn't make them reconsider the theory.

That might be behind the transhumanism the elite are into. Some people claim they'll never let us have the secrets of immortality they want to unlock (basically it's curing aging), but they'd have a huge incentive. In addition to the immortality drugs/implants/whatever they would mandate everyone take, they'd be able to enslave us on shit like 1,000 year mortgages which (You) won't be able to afford since to get an actual job (the few that remain after automation) you'll need to complete decades and decades of college (which your UBI may or may not cover) and then have centuries and centuries of internships/apprenticeships before you can even think of getting approved for that 1,000 year mortgage.

Since the 1970s, the USA has a regulation called Corporate Average Fuel Economy that requires the weighted average of the fuel economy of all the cars a company sells to be above a certain level. Trucks are weighted differently than cars, and since SUVs are categorized as light trucks, manufacturers are allowed to sell more of them than sedans. We also made large, bulky car seats mandatory some years back, so if you have kids, it is much easier on your back and knees to own something that sits higher off the ground to get them buckled and strapped in so that their chance of dying on the way home is reduced by 0.000001%.

PedoJoe recently set that metric to something insane so that by the mid-2030s there will be very, very few non-hybrids or electric cars on the road. Thanks Joe!

 

[Maurice Caine]

That might be behind the transhumanism the elite are into. Some people claim they'll never let us have the secrets of immortality they want to unlock (basically it's curing aging), but they'd have a huge incentive. In addition to the immortality drugs/implants/whatever they would mandate everyone take, they'd be able to enslave us on shit like 1,000 year mortgages which (You) won't be able to afford since to get an actual job (the few that remain after automation) you'll need to complete decades and decades of college (which your UBI may or may not cover) and then have centuries and centuries of internships/apprenticeships before you can even think of getting approved for that 1,000 year mortgage.

Frankly if I were going to live forever I'd just wait it out for Full Dive VR and live there. Of course if it's a subscription plan... hope I can work inside of there too.

 

[Zbk3VmLfujjzjxBd43tL]

Frankly if I were going to live forever I'd just wait it out for Full Dive VR and live there. Of course if it's a subscription plan... hope I can work inside of there too.

They will never allow you to do that, because if they did then they couldn't use that processing power for Science (their god) or their own virtual worlds where they can rape and murder children all day (more efficiently than they do IRL that is). The global elite will put in-game ads in your VR experience and require you to "sleep"/slow down your processing speed so they can devote more processing power to Science worship and child rape.

 

[Maurice Caine]

They will never allow you to do that, because if they did then they couldn't use that processing power for Science (their god) or their own virtual worlds where they can rape and murder children all day (more efficiently than they do IRL that is). The global elite will put in-game ads in your VR experience and require you to "sleep"/slow down your processing speed so they can devote more processing power to Science worship and child rape.

That's kinda sad. I would think some FIVR unit would be something like a gaming PC (and thus really your only concern should be latency?) with the cool software being ran by the corpos and the second-tier stuff by the open source schizos (because you bet this will be some nerd's life's work).

 

[Zbk3VmLfujjzjxBd43tL]

That's kinda sad. I would think some FIVR unit would be something like a gaming PC (and thus really your only concern should be latency?) with the cool software being ran by the corpos and the second-tier stuff by the open source schizos (because you bet this will be some nerd's life's work).

I mean maybe, but look what they do now. The only reason this thread exists is because they tanked the world economy for two years over an absolute nothingburger virus and then they tanked our world economy again to punish the EVEEEEEL Ro00skiez in a way that hurt the rest of the world just as much as Russia. The WEF parking lot is a bunch of private jets but they want you to drive a shitty electric car (or best of all, not drive at all) and eat only soy and bugs. You don't need to be a communist to know that the global elite are not people who want an even remotely fair distribution of resources.

 

[Maurice Caine]

I mean maybe, but look what they do now. The only reason this thread exists is because they tanked the world economy for two years over an absolute nothingburger virus and then they tanked our world economy again to punish the EVEEEEEL Ro00skiez in a way that hurt the rest of the world just as much as Russia. The WEF parking lot is a bunch of private jets but they want you to drive a shitty electric car (or best of all, not drive at all) and eat only soy and bugs. You don't need to be a communist to know that the global elite are not people who want an even remotely fair distribution of resources.

I mean yeah but doing tasks on the computer has gotten easier and it only gets easier. Indie games are plentiful and cheap, piracy is commonplace, when a live service dies autists immediately reverse engineer them, etc. I feel like the online world is moving further away from control as long as you don't stick to the same 3 websites and know where to look.

 

[Retink]

10 year yield above 3% again.
View attachment 3466629

Maybe, just maybe bond ladders can be back on the menu soon.

Economists believe that rising home prices are what drive the economy. Ben Bernanke explained this back in 2008; they came up with this theory years ago where everything, all prosperity and wealth, is a cascading effect of rising house prices. So yes, the government will do whatever it can to keep housing prices going up. They literally believe that if houses were affordable, the economy would grind to a halt, and we'd all starve. That this means that some day, the average mortgage will have a 500-year term doesn't make them reconsider the theory.

This is semi true but not really because of homes. If you want more insight into this look into the Nikkei 225 collapse in Japan where a lot of companies were using their real estate value as part of their worth and it resulted into a catastrophic collapse that served as a warning against index funds to this day. Real estate has a meaning in company value, but it does also get skewed easily because how accessible it is.

 

[tehpope]

Euro almost on parity with USD.