I have written a lot about the collapse of the housing market. Especially about blue state suburban property going to zero. However, i rarely go in depth about the other side of the housing market just evaporating.
Mortgages are going away.
And after that, mortgages are really going away (because everyone realizes how evil mortgages are)
There are a lot of people (well, not really a lot, most think that the housing market is still going up, and everything is fine) who see the housing crash coming, and believe they will get mortgages at the bottom and buy up a lot of property. Believing that this is a repeat of 2008. And, by golly, it really does look like this is repeat. Just another boom/bust cycle.
These people believe that the Fed will lower rates after they crush most of the people, allowing their friends to buy up everything for cheap. So, you aught to be saving your money and getting ready to buy along with them.
But, this time IT IS different.
Mortgages are evil
Mortgage is a Rrench word. Mort = death Gage = paper/note (like IOU). So, it literally means you are indebting yourself for life. And being in debt is really close to being a slave for someone else.
Over the life of a mortgage, the debtor will pay at least 3x the house price. That is paying 200% of the price of the house to someone who provides no material or labor for the building of a house. Why does a bank deserve so much for so little?
The banks have set it up this way, through fractional reserve lending. Meaning no one can even come close to lending money as a bank can. They literally loan money into existence (steal a penny from everyone with a dollar near the bank).
So, the bank gets 2x the price of the house for doing nothing. For providing nothing.
You might say, but if the banks make too many bad loans they fail, and will lose all that money…
Two things:
- The bank is a corporation. It internalizes the profits and externalizes the costs. The money gained has already been spent, and if the bank goes bust, it is the "customers" who lose their money.
- The banks are designed to fail in this system. It is inevitable as the money gets sucked up to the bigger and bigger banks.
So, mortgages are designed to steal your money, and take your money, and finally, to wipe you out.
The smaller banks fail
All the small and medium sized banks are going away. There will only be about 5 banks left in The US. And this is by plan.
This is inevitable, it was baked into the cake. It is what happens when you have fractional reserve lending. The money gets sucked to the top.
So, now we are seeing the collapse of the dollar, and along with it, all the little banks.
Then, the few banks left, the owners of the Fed, will issue a new currency and start all this over again, except people will refuse that "new currency".
However, along this path, mortgages become harder and harder to get. For several reasons.
- The plans are for 15 minute cities, so if you are in that demographic, the middle and lower classes, you will just be told that your mortgage application is denied.
- The plans are for 15 minute cities, so the bankster's corporations will be buying up all the properties in the area, and you had better not get in their way.
- There will not be hundreds of banks and finance institutions in which you can shop for a mortgage. There will be six. And they will be in lock step.
- You will need to be an the upper class to be able to "afford" a mortgage. If you are not making above 6 figures, then don't bother asking.
The little banks are going away. This was planned and predestined.
Along with them, the mortgage is going to go away.
House prices drop to zero
Without mortgages, the average, blue state, suburban house drops to a price that people can pay for in cash. And since the bank closures stole everyone's money, there will be very little to pay for these houses.
On top of this, people will be leaving these cities and those houses. Either by retiring to a care facility, retirement home, mortuary plot, running away from rampant crime, moving to a place with jobs… There will be a lot of vacant houses.
So, those people who are thinking this is a repeat of 2008, will be buying in just before the whole thing goes to shit. There will be no recovery. But there will be several "false recoveries", where it looks like things might go back to normal, and if they jump in and start buying, they will find themselves owning nothing.
The only property that will be of value in the future is places that are good for homesteading. And, still we are talking about what people can pay in cash. If a person has $10, you cannot get $20 for your loaf of bread, even if they are starving.
And along with this, you will see the adoption of crypto.
The price of a house will go from 5 bitcoin to 0.5 to 0.05 to 0.00001 bitcoin.
Those with bitcoin will just buy a house as they need it. Not really thinking of it as an investment, but more of a cost that they can petty-cash.
We will probably see bitcoin lending to buy houses, but this will end pretty quickly, because… it becomes stupid and silly. (why would you lend on an asset that is falling in price? Cash will be hard to get as banks play their games. And why do you need to deal with the dollar, when you can just spend bitcoin, a tiny amount of bitcoin).
Before cryptos get into full adoption, and the banks completely fall apart, we will be well along the way of understanding that we do not own land, the land owns us. Or, we are the keepers of this land for our children. Houses are not built by the young generation at the expense of future money, houses are built by the older generation with their skill and management, to ensure the young generation has a good start.
I hope that "mortgage" will become a verboten word. But, either way, it will go away.
There will be no need for it, and there will be no want for it.