Comments by "worn down" (@worndown8280) on "Bank of America Home Affordability Has COLLAPSED" video.

  1. People got stimi checks. Some people got 12k. 12k is a 5% down payment on a 250k house and 2% loan rates equals lets buy some assets. And so people did. There isnt a housing shortage. And because of the coming recession, people will have to liquidate their assets, which means selling things. The smart ones are selling their 2nd houses now.
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  2. Technically they are losing money on each mortgage they give, the interest on the debt doesnt even equal inflation.
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  3. Yeah it bough homes in the highest bubble cities, Atlanta, Dallas, and Charlotte. And I have no idea where you got that 350k homes bought in 2021. Thats just factually wrong. As of June 30 2021 American Homes 4 Rent only owned 54,785 homes compared to 53,984 from the previous quarter. Are you saying since then they bough 350k homes? Where are you getting your data from?
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  4. The idea that real estate will increase is because its assumed demand will increase. The problem with that is since 1972 the US has not been at replacement levels. Now that the boomers are beginning to die, demand will crash. And either those houses will transfer to their child or children, or they will sell that asset. One way the demand is neutral, if they keep the asset. But if they sell it, demand is dropping. Currently Boomers own 44% of all single family homes. Thats a lot of homes. Add to that the Fed can only raise rates to curb inflation and nothing else. Everything will drop in value. The more I look at this, I think historians will look at what happened in 2008 to 2022 as one event. We failed to take even basic steps to prevent something like this again, all so fake wealth could be generated in the stock market. I have recently, here in east Tennessee, seen three houses purchased in the first part of the year re hit the market. They say the same thing. Seller decided not to relocate from their home state, meaning they couldnt work from home. So they want to sell what they paid for it. The problem is that all overbid each property that was already over priced. Then you have the house flippers. And then the people who are going to get laid off in this recession. If you arent liquid now its going to be a blood bath and its going to be your blood. Powell will go down in infamy for destroying the American lifestyle for at least a generation to come.
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  5.  @wageslave387  You can doubt what you like, in 2020 when the stimis started the average American home cost 258k. I guess you have a hard time with math like most Americans.
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  6.  @ilikebudlite  But each mortgage they give adds liquidity to the market. That money is given to someone or some entity. So they need to keep doing it. But there is no longer any demand for the mortgages. So liquidity drys up, which is what the fed wants. But the Fed is being to cautious.
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  7. The banks have a vested interest in it not crashing. The Fed isnt buying MBS's anymore. And no one else buys them. So banks actually have to service their own mortgages now.
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