Small banks are failing, as planned. Soon the medium sized banks will be gobbled up too.
The number of mortgage applications per month are down.
Since the smaller banks are the ones who initiate most of the home loans, it looks like the mortgage is about to disappear.
What will the housing market look like when mortgages just aren't available?
Mortgages are evil! I am glad they will be going away, but not like this.
I would prefer people to recognize that banks are truly evil, and mortgages are on par with making a deal with the devil for your soul.
Well, fiat currency (the whole reason mortgages can exist) is going away, so these evil things will cease to exist anyway.
How we allow banks to loan out money that they do not have to acquire assets that they should not possess is just abhorrent to me.
Anyway, it is all going away. We are here to talk about the transition and how things are going to fall. (so you can get out of the way)
With the trifecta of:
- Higher interest rates
- Inflation
- Poor Economy
we already have a slowdown in mortgage applications. There are fewer and fewer people who can qualify for a loan against the current housing prices.
The only thing keeping house prices from dropping like a stone is that current inventory levels are low, and the seller's reluctance to be the first to lower their house price. When this deadlock breaks, house prices will fall. Faster than they did in 2008, imho.
Without mortgages the prices of house have to fall to where people can purchase them for cash. But will many people sell for such low prices?
Many people would rather have the house turned to rubble than to sell their, what once used to be a million dollar house for ten grand. However, in the big wall street crash, a guy sold his Rolls-Royce for a small stack of gold coins. There will be tons of deals. But there will also be people who will ride the thing into the scene of the crash.
Enter Black Rock (Saturn's Black Cube), they will be there among the destruction to buy up houses. Planning to turn entire city areas into rental only places.
However, along with this crash in housing prices, we will see cryptos go up and up and up. And so we will also have a tiny group of people who can buy whatever they want. Buying, what last year was a million dollar house with what last year was $20,000 of crypto. But this year it is a $100,000 house (and falling) and its $100,000 crypto (and rising)
So, we see a plan to swallow up all the little banks…
Which causes new mortgages to disappear…
Which pushes the housing market over the edge…
Which allows Black Rock to buy up all the realestate cheap. (with printed dollars)
And causes lots of turmoil and strife (the evil mother WEFers love this part)
However, it also creates lots of opportunity for those who can see the crash coming.
And i will be happy to see mortgages leave our existence.