💰 Difference Between Today and 2008 Market Crash: The 2008 crash was driven by no income, no assets loans (NINA loans). Banks were giving loans without proper income verification.
🏠 Foreclosure Rates: In 2007, cities like Riverside County saw 65% of houses in foreclosure. Many bought multiple homes with negative amortization loans, leading to financial collapse.
📉 Current Economic Climate: Today, the government lowered interest rates to 1%, leading to a 128-month expansion (potentially 150 months without COVID). However, inflation is rising, and interest rates have increased by 4.88% in a short time.
🏦 Mortgage Applications: Currently, mortgage applications are at their lowest in 27 years, and home sales are down due to homeowners not wanting to give up low-rate loans.
📊 Rent vs. Buy: It is 55% cheaper to rent than buy, marking the highest difference ever. This indicates a shift towards renting rather than buying.
📈 Debt Levels: The U.S. has $33 trillion in debt, with rising interest payments expected to reach $1.5 trillion in the next five years. Credit card debt is also at an all-time high with average rates around 23%.
⚠️ Recession Predictions: Historically, a recession follows 11 months after the last rate hike. If rates were last raised in September, a recession could occur by August next year.
🌍 Global Concerns: Factors like potential wars and rising unemployment could further destabilize the economy. The transportation industry is already seeing significant declines in revenue.
💸 Impact of Money Printing: Continuous money printing benefits the wealthy while low and middle-income families struggle. The disparity is growing as the rich accumulate more wealth.
🔮 Future Outlook: Despite current challenges, the first trillionaire may emerge in the next 24 months. The economic landscape is unstable, and the middle class is shrinking.