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Gary Anderson
2017 Feb 2, 10:16pm
RealEstateIsBetterThanStocks says
several big cities are already in a bubble
I would agree, but this would be a widespread, easy money bubble, not a cash bubble that you see in the most wealthy cities.
Tracking the likely Trump housing bubble will be helpful to economists, investors, renters, potential home buyers and home sellers. It is not an absolute given that there will be a housing bubble under President Trump,
Housing has turned around starting in 2010 due to the ZIRP, another distorted low interest rate trick to lower mortgage payment. This ZIRP bubble is the fix for CRA/Subprime public private cooper pair like binding because housing prices cratered after the housing bubble. CRA and ZIRP were required because of outsourcing of NAFTA created a need for a temporary perception of wealth that was lost when the US outsourced more than $3T worth of jobs and capitol since NAFTA.
We are in a ponzi economy, that is not sustainable brought to you by Clinton/Gore, warned of the outcome by the NYT and Perot, and fueled by plenty of Republicans and "jobs just not coming back to US" HippoPotheadobamas.
Gary Anderson
2017 Feb 3, 9:47pm
I agree with you, Entitlement, except for two things. First, an entitlement is deserved, not a bad word. Second, CRA was a small portion of the housing bubble, a very small portion. See this chart and you will understand. The private pool of money, bogus AAA rated securities based on private loans, dwarfed public money:
http://www.examplesofglobalization.com/p/housing-bubbles-most-important-chart.html
http://www.talkmarkets.com/content/real-estate--reits/how-to-track-the-trump-housing-bubble?post=118723&uid=4798
Tracking the likely Trump housing bubble will be helpful to economists, investors, renters, potential home buyers and home sellers. It is not an absolute given that there will be a housing bubble under President Trump, but there could very well be one. There could be a downturn before a bubble. And a bubble will have to be limited, most likely, by a Fed unwilling to let the leash expand, which now holds the speculating canines back. There may be more barking than biting.
Some things will have to change in order for a housing bubble to occur under Donald Trump. This may not be an exhaustive guide to tracking a potential housing bubble but certainly could help many do so:
#investing #economics
