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It will get worse before it gets better.
I've been saying for about a year that we should expect stagflation, all the key elements are present.
Good gloom post!
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bought a shit stock 1000shrs for my two lil one's roths yesterday as it rocketed 100 percent...pretty much dicking around. was 9 within that last year.
only a handful of stocks green today
think it's got some great swing trade possibilities...which is perfect for ROTHS
go get that stock club...pub boards are not good to navigate thru as each thread becomes a FREE FOR ALL
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Don’t catch the falling knives. Let Federal Reserve hike in May and inflation stabilizes for 3 months.
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Speaking of investment opportunities - anyone have any ideas on sinking unreported income into real estate as a means of sanitizing it? Asking for a friend!
I think another 2008 will be upon us soon. Some great opportunities should be available for those who have some extra cash on hand.
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Buying opportunities will be here. Stocks....I hope RE.
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real estate is one of the best opps for that kinda stuff...needs to be well thought out...lots of variables to play and be concerned about.
wait for the time though...maybe get powder dry and ducks lined up
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This catastrophe will NOT be similar to the 2008 financial crisis. It will be far worse - MUCH WORSE - and recuperation will take significantly longer. What we are about to see in the coming years is the birth of a new world order and a complete revamp of the financial system.
Additionally, the real estate market is NOT now a buyer's market. Between buyers and sellers, it's going to be a waiting game, so if you're a buyer, I would urge you to wait. Rents and housing prices are absurd and will collapse. Crime will increase, people will lose their homes, banks will be selective with who they do business with, and crypto will be the new monetary system.
In terms of stock investments, focus on value investing and dividend-paying companies. By the end of this year, the expansion cycle will have come to an end, and the process will accelerate further as the Fed raises interest rates.
Do NOT keep your money in a foolish bank savings account or under your mattress in cash. Inflation WILL DESTROY YOU and erode your purchasing power.
Prepare for the worst, as it is yet to come.
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it'll be interesting how this plays out...having some dry powder could be fun
china is on the verge of its own big crash...some say that alone could be the reason they move sooner than later on taiwan...maybe give them cover for the economic collapse that is about to happen. XI doesn't want to be the reason for it alone...not sure he can get away from the party backlash in any event
the sucker of china cock will be in shortly to protest anything negative about china
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@ Jazz.N.Soul
Real estate is not going to crash.
Home prices are high because there is a shortage of housing across the country and they aren’t constructing new homes fast enough to offset rising prices. Individual home buyers are also competing wirh large funds that are buying single family homes to rent out. Interest rates will slow down the rise in home prices as fewer people qualify for affording homes, but it is highly unlikely that there will be a crash.
2008’s crash was caused by unwise lending practices where practically anyone, no matter how bad the credit, would be approved for loans. Foreclosures were rising sharply, which caused homes to flood the market, which lowered the price of homes, which then spiraled downward.
Today, foreclosures are very low (almost nonexistent because of rapidly rising home values) and inventory is really low, which is driving up prices. The current real estate market is totally different than 2008.
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I dont think real estate in So Cal will 'crash' but at most recede a bit.
What worries me is the peculiar occurrence of destructive fires at food processing plants across the country in the last 6 months.
We went through an engineered virus 'accidentally' leaking from a lab, a Southern border wide open, and 'peaceful' protest with Billions in damage.
Now with the supply chain stretched thin and gas prices too high we have food processing plants 'accidentally' burning down... 🤔
It's not just one or two... over a dozen now.
Last year the radicals would just burn churches.
The next self inflicted crisis
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I respectfully disagree.Â
When you combine the global supply chain issues, the lasting effects of one of the worst pandemics in human history, the conflicts with Russia and Ukraine, the oil crisis, the U.S. losing its grip on the global financial system, and rising tensions between the working class and the wealthy, it all will spill over and have an impact on the real estate market, as well as other areas of the economy.Â
It may not have the same impact as seen in 2008, but it will have a detrimental affect in the coming years for a lot of people. The typical American's current earnings, along with the massive pile of debt that everyone carries with little to no savings, will eventually affect the housing market when more people default. This is already unfolding.
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I respectfully disagree.
When you combine the global supply chain issues, the lasting effects of one of the worst pandemics in human history, the conflicts with Russia and Ukraine, the oil crisis, the U.S. losing its grip on the global financial system, and rising tensions between the working class and the wealthy, it all will spill over and have an impact on the real estate market, as well as other areas of the economy.
It may not have the same impact as seen in 2008, but it will have a detrimental affect in the coming years for a lot of people. The typical American's current earnings, along with the massive pile of debt that everyone carries with little to no savings, will eventually affect the housing market when more people default. This is already unfolding.
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Maybe you should put things in perspective.
See the attached foreclosure rates by year.
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“The government’s foreclosure moratorium, the mortgage forbearance program, and the mortgage servicing guidelines enacted by the CFPB in August have kept foreclosure starts artificially low over the past year,”
^ from your link
Not doing you much good to look at the last couple years of data.
RE is very local, the markets that ran up the most will crash the worst, especially if you look at the underlying job market.......Boise being the poster child of big appreciation w/degrading job market.
The Fed is serious, they want risk-off. If they go Volker on us, all bets are off.
More later.......
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Supply is thin and rates rising
People will do stupid stuff to get in before higher mortgage rates slam the door
Plus there's still money escaping China
Just saw an 1,850 sq ft go for $2M, no big deal right?
Except a model match comp closed the same week for $1.5M
Talk about overpaying!!
But if you need an escape valve when the mierde hits the whirling blades?
You do what you have to do.
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Boise is one of those places that has a huge amount of non-local influence - Californicators wanting out of California's crazy shit. Someone told me that the money they will save in Ca income taxes will pay both their Ca and new Id mortgages.
Fuck Newsome.
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The biggest challenge is inflation and if it jumps to double digits from the current 8.5% you will see Federal Reserve respond with rates rises so rapid and so high that it will kill credit demand, and in process will crash credit markets, housing, stocks, and even commodities. 2008 will look like a warm up.
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Any dip in home prices (especially in LA where inventory is incredibly low) will be met with people on the sidelines jumping in and buying all of the available inventory.
The general rule is that you don’t sell good real estate. If you have a lot of equity in your house, refinance and buy a house in other cheaper states while renting out your house in California (or rent out the house you buy elsewhere and stay in the house you own in California).
The rent you get, in some cases, would cover the mortgages of both your house in California and the house you buy elsewhere. Home prices always rise over time. It must keep up with inflation. But you also have to factor in the substantial tax benefits of home ownership, especially rentals. You can write off all expenses including mortgage interest (especially if the home is owned through an LLC, which allows you to avoid the $10,000 cap on the mortgage interest deduction since you’re owning it as a business).
Of course, rising interest rates will make this more difficult in the future.
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duplexes good for the tax and interest limitation caps
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Everyone also forgets that the government has been keeping everyone afloat, which is why foreclosures haven't been piling up as quickly as they should.
When the well runs dry and Uncle Sam - or should I say the American taxpayer - ceases to bail out the average Joe by assisting him in staying in his house, those figures will skyrocket.
Wait about 2-3 years.
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The biggest challenge is inflation
THIS
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there are people that started in our school district...WON't be able to finish in it over the next 4 or 5 years.
getting to be pretty sad
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We knew this was coming 3-4 years ago.
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really? what part of it all?
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only mildly amusing gets it...
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Inflation: We haven't seen this kind of inflation in most of our lifetimes. As a result, most people have no idea how destructive runaway inflation (and worse, stagflation) can destroy assets, wealth, purchasing power and overall the standard of living we have gotten used to.
Not a lot of easy answers. Scariest part is that inflation can't be reigned in by a few Fed. policy decisions or U.S. Treasury actions. Once it picks up steam, it leaves a lot of destruction in its wake.
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Good points on how this is not the same as 2008. But didn't the credit reporting bureaus recently stop reporting liens and bankruptcies? Doesn't this set up similar conditions to the "sub-prime" lending practices of the early 2000's?
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If you own all cash, then no problem hanging on for the LT.
But leverage up your personal residence to buy overpriced RE out of state in the face of a Fed tightening cycle???
).gif)
Do you have any idea how many people applied just that strategy in 2008/09 and lost it all? Or in the late 1980's prior to the early 90's RE dump or back in the late 60's. Sure, RE always comes back but that won't help you if you lose it before it does. And, it can be a pain in the ass to manage rentals out of state, sold mine cause I didn't want to deal with the headaches......and I had prop. mgrs. too.
It only works if you have a sharp pencil and an income that can take up the slack if something goes awry. No doubt I'll be buying some foreclosured homes of some of you idiots who follow that advice.
Can't wait for the flood to come back.......
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Can't recall credit agency changes in last couple of years but as of 2020, here's what it was.
Civil judgments and tax liens do not meet the new 2017 requirements, so they were removed from credit reports. At this point, the only derogatory public record that should appear on your credit report is bankruptcy. Non-payment of voluntary credit also, I believe, as that's not public. Tax liens and civil judgements are public records and can be accessed elsewhere. My title company gives it all to me on a specific property except property taxes, which are also publicly available elsewhere.
Unless you know what you're doing, buying without Alta Title can leave you fucked, the exceptions can wipe you out.
Hope that helps.
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"Doesn't this set up similar conditions to the "sub-prime" lending practices of the early 2000's? "
Imho, not really.
There's very little sub-prime lending like "stated income" going on since the bubble burst. Lenders will check your FICO, but keep in mind they can see all public records of tax liens, legal judgements, etc.Tax returns are a must unless you own a biz and then they'll want personal and biz bank statements. This is how all traditional lenders work now, for the most part..
Hard money is a totally different story.
When I make a 12% loan, i don't really give a shit if your income covers the payment.
As long as my LTV is low based on my valuation, frankly I'm hoping you miss your payments and I can foreclose on your deadbeat ass.
No offense intended.
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Getting approved for loans these days is very difficult in comparison to 2008. Beyond the extremely low (but rising) foreclosures, the job market is also very tight now. We are not going to see another 2008 real estate market crash.
Inflation right now is partially due to greedy corporations that are raising prices without justification. Most companies are reporting record profits. The Biden administration will likely start suing companies that are reporting greater than 40% (or whatever number they choose) increases in profits, especially oil companies. Previous administrations during high inflationary periods did the same thing. By doing so, prices will drop. As supply chains improve after Covid, prices will drop further.
And to address GoBallsDeep’s comment: if you refinance your house and buy a Ferrari right now, you’re an idiot. But if you refinance your house to buy another house to rent out, you’re actually making money off of the refinanced funds. That is smart.
Not to teach people about real estate investment, but if you borrow at 4.5% for a 30 year fixed mortgage and you’re making 7% return after paying the mortgage and expenses, then for every dollar you borrow, you’re making 2.5% (on top of the 7% return that you’re making on the cash you put into the property). When you factor in the tax savings of home rental ownership, the actual return that you’re making is probably closer to 14%. Add to that the likely price increases of the underlying real estate, and you can reach 30% or more return on your cash invested. As values increase over time, you refinance both of your homes and buy one or two more and do the same thing. You repeat this process over and over again until you have a large portfolio. That’s why 50% of all the wealth created in this country is generated via real estate. You need to use other people’s money (the banks, investors, etc.) to make significant money.
Obviously you have to pick the right real estate to buy. The general rule is that you buy the worst house in the best neighborhood you can afford. Fix it up, raise rents and keep it as a rental or sell it for a profit. The market is so tight now that rents will likely keep going up over time. But again, you need to pick the right real estate in the right areas with very low vacancies and high demand for the real estate.
In 2008, despite home values crashing, the rental market remained very strong. And now large funds are buying single family homes as rental portfolios. This is partially the reason rents and home values are so high right now.
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the shit stock got a little confidence floor built into it today at 3bucks...always looking for little things like this...helps hold onto it a bit.
Thu, April 28, 2022, 6:15 AM
In this article:
CYN
+0.38%
MENLO PARK, Calif., April 28, 2022--(BUSINESS WIRE)--Cyngn (or the "Company") (NASDAQ: CYN), a developer of innovative autonomous driving software solutions for industrial and commercial applications, today announced that it entered into a securities purchase agreement with certain institutional and accredited investors for aggregate gross proceeds of $20 million, before deducting fees to the placement agent and other offering expenses payable by the Company.
In connection with the offering, the Company will issue 6,451,613 units and pre-funded units at a purchase price of $3.10 per unit, priced at-the-market under Nasdaq rules. Each unit and pre-funded unit consist of one share of common stock or common stock equivalent, and one non-tradable warrant exercisable for one share of common stock for $2.98 (for a total of 6,451,613 shares
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bought a new shit stock today...think i was 10percent of the volume moving this thing
Bluejay Diagnostics, Inc. (BJDX)
just dicking around...playing short stack poker(in a rebuy game) with lil one's roth accts...kinda fun to think what the numbers could be when they start pulling money out in 50 years of frictionless growth
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"Inflation right now is partially due to greedy corporations that are raising prices without justification. Most companies are reporting record profits. The Biden administration will likely start suing companies that are reporting greater than 40% (or whatever number they choose) increases in profits, especially oil companies. Previous administrations during high inflationary periods did the same thing. By doing so, prices will drop."
^ total garbage, practicing economics without a license
Greedy corporations 
Same bullshit State of CA trots out when gas prices go up. Half a dozen Dems and even a few idiot Reps go all in with the greedy corporation overcharging the consumer bullshit. After something like 50 investigations, the only one exposed as a greedy over-charger is.......wait for it...........
The State of CA.
And these assholes won't even fix the roads that the money is supposed to go for.
Total Clusterfuck with people like MA acting as enabler.
You cannot make this shit up. MA, read Smil's book if you dare....How the World Really Works.
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^^^
+1
I saw that comment and was going to respond.... but then I thought better as some people live in their little world and can't see that Government is by far greedier & more corrupt than any corporation.
Some people like to believe what they will despite what the facts are.
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Welcome to the Biden stock market everyone!
Robert Gates once said that Joe Biden had been wrong on every foreign policy decision in the previous 20 years.
Robert Gates was wrong!
What he should've said is this.....
Joe Biden has been wrong on EVERY decision in the last 40 years.
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Unfortunately, OP is correct
The CA State Dept. of Fryers just confiscated both my primary and backup units
It's a sad day in Mudville, as Casey has struck out
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Someone contributing to this thread is full of shit..... and they are not even remotely funny.
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Ok, answer this question:
Companies claim they are raising prices to offset rising costs, so why are they also experiencing record profits they haven’t seen in 70 years?
To cut through the uncomfortable silence and blank stares, it’s because corporations are using inflation as an excuse to raise prices far above what is needed to offset the rising costs. That’s called corporate greed. It obviously exasperates the rising inflation we are currently experiencing, on top of supply chain bottlenecks and the war in Ukraine that are causing supply shortages.
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I was fairly positive that 1inchdickanddumb was talking about goebbels because that was the only logical conclusion to his comment.
But you acquitted yourself admirably mildly amusing. Inflation is being exacerbated by corporate overreach. That is kind of a no brainer. Which makes little difference when you are arguing with people who have no brains. Or testicles.
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