Spooooooky!!! Anyone else feel like we're in eerily similar times today as we were in 2007-2008. Only top 20% have more savings than pre Covid

[EndDomination]

California and Texas housing markets are the same inflated mess they were in 06.
Considering this thread is two years old, it’s not prescient, but if businesses and banks fail, only “bail out” the American people.

 

[GnauzBookOfRhymes]

Yahoo is now a part of Verizon Media


this. Is . What. I’m. Talking. About.


It’s the DEBT!

 

[FAH1223]

Yahoo is now a part of Verizon Media


this. Is . What. I’m. Talking. About.


It’s the DEBT!

happening fast

 

[GnauzBookOfRhymes]

happening fast

Would never have guessed it was going to be a pandemic that precipitated it...I thought it was going to be similar to past recession where one day someone or some company/investment group/fund etc goes under due to exposure to a bunch of debt that was all of a sudden declared toxic (think about all those car loans that are months in arrears).

Also saw it playing out with several business acquaintances, clients, friends etc. People whose businesses had great years, so they invested/spent/consumed assuming business would continue to boom. People doing crackhead shyt. Had a colleague who within the span of a calendar year, went from buying a 700K house, new truck/trailers etc to begging me to borrow 3K. Took 4 months to get it back.

 

[GnauzBookOfRhymes]

Bill Ackman turned $26,000,000 bet against corporate bonds into $2,600,000,000

IN ONE MONTH

 

[FAH1223]

 

[GnauzBookOfRhymes]

it's kinda true lol....there will always be someone willing to buy a US treasury

 

[GnauzBookOfRhymes]

You're too deep into the weeds, your argument too esoteric. The only reason interest income/profits fall when fed cuts is presumably bc many loans have flexible rates based on the prime, right? But more importantly this isn't about whether a 50 basis point reduction in interest rates means a resulting rise/drop in bank profits. This is about the entire ecosystem. These are structural questions. Who will be allowed to fail/suffer vs who will the gov't ride to the rescue and protect?

It is well documented that central bank policy BLAH BLAH BLAH BLAH BLAH....banks have done very well over the last 10 yrs, no matter what the fed has done. Look at the nasdaq bank index. Look at individual bank stocks like JP Morgan. In fact the industry itself disagrees with you bc they love to tell us how much more well capitalized they are and will be able to withstand shocks to the system. The first year after the tax cuts implemented, the industry made an extra $28,000,000,000 in PROFITS AND then started cutting jobs breh.

Everything that's happened over the last couple of months is why I posted the above.

Fed buying up corporate bonds trillions at a time.

FIRST it was only "investment grade"
Fed surprises market with program to support corporate bonds amid coronavirus pandemic

NOW we're buying junk bonds.
Consumer debt hits new record of $14.3 trillion

PPP funds diverted to businesses that don't need them by banks that get a cut for shuffling paper. PPP lawsuit hits four of America's biggest banks - CNN

Will end with this - consumer debt at record $14,300,000,000,000
Consumer debt hits new record of $14.3 trillion

 

[GnauzBookOfRhymes]

 

[Mr swag]

It war worse

Fed is propping up the market and housing

Just wait........ they cant do it for long

 

[Outlaw]

It war worse

Fed is propping up the market and housing

Just wait........ they cant do it for long

I agree the fed is propping up the market but how are they propping up housing?

 

[GnauzBookOfRhymes]

I agree the fed is propping up the market but how are they propping up housing?

giving money to mortgage servicing companies that have given many homeowners plans to defer payments during corona

 

[Mr swag]

I agree the fed is propping up the market but how are they propping up housing?

Fed Policy Has Kept Mortgage Rates Low. It’s Also Driving Up Home Prices

By adjusting its monetary policy, the Fed’s response to the coronavirus pandemic has helped keep the home mortgage market revving. The Fed has responded in two key areas: It pushed the federal funds rate lower and increased its purchase of mortgage-backed securities, moves that tend to drive interest rates lower and free up more money for lending. The Fed will assess the impact of these two actions at this week’s meeting.

“There are a lot of pros to what the Fed has done and continues to do,” says Chris de la Motte, co-founder and president of Simplist, a digital mortgage marketplace. “They’re avoiding widespread contagion of a problem affecting retail, travel, entertainment and a few other sectors from spreading into the housing market, as well. This is definitely helping consumers in the short term. Consumers can refinance and save potentially hundreds of dollars a month on their mortgage.”

 

[KOohbt]

Covid really covered the fukked up economy


They can blame everything that was falling apart before on covid


Cacs are so fukkin incompetent. Making all these ridiculous complex economic systems to lock out AA's. But somehow these fukk boys still fukk off all that free money

 

[Rawtid]

Some days it feels like the civil rights era...just based on things I’ve read in books.