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The Housing Demand Titanic


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2016 Jul 6, 12:23am   1,443 views  0 comments

by deepcgi   ➕follow (0)   💰tip   ignore  

Demand for housing is not currently connected to income, but rather to indebtedness.

The central governments cannot create growth - only an increase of indebtedness - which brings the illusion of liquidity and demand.

Overall indebtedness has massively increased, primarily by means of sliced-and-diced, high-and-low mixed blends of securities mixed with derivatives voodoo.

Real estate investors cannot survive a stagnated market, let alone a falling one. There are hundreds of potential dangers at the state and local level which could drive massive property tax increases.

The under 35's are renters and 50 years away from inheriting a damn thing.

The demand is illusion. The traditional fundamentals are irrelevant - including demographics, populations, and financials. They are all distorted by the gravity waves of massive debt.

The young are going to leave the coasts regardless of the current direction of the real estate market.

Until we realize that income independent of indebtedness must be tied in a direct relationship to demand, we will continue sinking. Ironically, the young people in steerage, who've been rowing all this time, will be the first to grab the lifeboats this time, because the First Class passengers have all their money tied up on board the ship. Maybe it wasn't such a brilliant idea to spend so much on a panic room in a state room on the Titanic.

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