Comments by "" (@jmitterii2) on "🔵 Should You Buy A House Right Now? | Historically Low Interest Rates!" video.

  1. Ultimately it will be deflationary for at least the midterm (5 to 10 years). I think they're going to lose control as they already have on attempting inflation. Race to the bottom economics despite the money printing go burrr and low interest rates from 2009 to 2016 and still low relative rates to just 2.x% then back to 0% didn't cause the massive inflation on all things. It did obviously cause another real-estate bubble, a huge corporate debt bubble, a vehicle loan bubble, contribution to the stock market bubble (90% of volume in the past decade was stock buy backs in the US lowering shares outstanding in a range of 10% to 30% on average, so not at a stock split reversal that would cause stock price to double.... these buy backs and other froth buyers have caused stocks to quadruple on average some even higher). What I expect is money to flow into commodities when stocks crash. As they did last time. When commodities are over supplied (as they already are) these prices will fall again mostly because these options will either expire or you'll have to exercise them an take the commodity... most of these commodity dealers will have whatever warehouse/storage full... prices will tumble as they did before, couple with particular commodities that may soar having producers jump in on it flooding supply, when that starts happening, a stampede of dumping their contracts and prices crash in commodities. I really see a possible second flash bubble in the stock market. Then a flight to safety that essentially everyone will be afraid to buy anything other than staying in cash, national treasury bonds. I would say gold would go up... but that would have crashed recently too in the commodities run up... gold is a little more stable in that people are more easily able to exercise gold contracts... it doesn't take that much space... but the security required on it is a money loser. Really, ultimately the system we're in is deflationary. The reserve banks have been throwing money into the system like crazy over the past decades, and yet prices on all goods haven't budged much, and wages are particularly flat. Where cost of living has skyrocketed due to a bubble not inflationary forces, rents and housing will crash as people just won't be able to maintain mortgage and rental payments. Interest rates will be very low for a long time.
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