Quote:
Originally Posted by MAXUM
Everyone reads the tea leaves however they choose BUT I don't base this on either the election results or what happens with this virus.
Low interest rates and the very accommodating Fed can't be sustained forever.
Fed is out of options so anything they do will put pressure on interest rates and thus the entire credit market. Housing prices will have to fall as the glut of cheap credit will dry up and many will be financially wrecked as a result. For the monthly payment culture debt becomes far more expensive, all that debt being carried becomes worth more than face value, their borrowing (aka buying) power shrinks and the entire house of cards starts to come down. Those leveraged the most are the first casualties. Roll the dice if you wish, no freaking way I would at this point in time. I don't think it will matter who wins the election the day of reckoning is coming and there is no avoiding that.
The only difference will be how bad it will be. I think it will be very difficult to grow out of this and anyone that thinks we can tax our way out of it just needs to go back and take basic economics for dummies. The virus is a non issue - at this point it is pure politics.
Shall be interesting!
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We certainly are reading the tea leaves differently. The fed already stated rates will hold where they are for the forceable future. If there is another shutdown from the virus the market will be crushed especially in urban markets.
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