Tuesday, February 28, 2023

Literally worse than 2008.

A lot of people are going to get to find out how negative equity suffocates an economy. All of those people by the red arrow are now in negative equity. And possibly the blue arrow. I haven't gone back to look at the numbers yet, .....but...

Remember these fun headlines: The East Bay real estate market is so hot, houses are selling for more than $1M over asking price. And that is not even in Silicon Valley proper. It's a burb. Do you know how long it takes to make up a million in equity? I never remember seeing this even in the 2008 bubble.

Now we get all these headlines: Home prices set for double-digit plunge in major Western US cities: Goldman Sachs.

"The largest decrease in home prices will occur in Austin, where values are projected to slump 19% by late 2024 compared to late 2022, according to the note. Prices are expected to sink in Phoenix by 16%, San Francisco by 15% and Seattle by 12%."

"Outside the Bay Area, particularly in areas that have had an influx of residents, home values are reportedly inflated. In the Santa Cruz-Watsonville area, homes are overvalued by nearly 36%. And in Reno, prices are 39% higher than expected. That’s not to mention Boise, Idaho, and Austin, Texas, which have seen overvaluations of 72% and 61%, respectively. (In Boise, Fortune notes, housing prices have already been cut.)" Emphasis mine. When Silicon Valley goes... so goes the country. Like it or not.

People have no idea the pain they are in for. Trump policies made it so everyone felt "house rich". So they spent money. When you feel "house poor" what do you think happens? The first housing bubble took SIX years, he managed to do it in 2 years. What kind of damage do you think that has on the downside?

I guess I'm bent out of shape with the Republicans because they are just as bad as the Democrats. . I don't think they believe in anything they say. I voted for George Bush, and I think he completely destroyed capitalism.  No wonder no one can figure out the difference between socialism and capitalism!

“I've abandoned free-market principles to save the free-market system…to make sure the economy doesn't collapse.” He continued, “I am sorry we're having to do it." George Bush 2008.

Now... it looks like Trump did the very same thing, and literally no one cares! We have outrageous inflation because of his policies! And money printing. He distorted the housing market in ways we've never seen! A million over asking! Effing outrageous.

I'm mad. I'm so mad. Having said that... I would bite my cheek and vote for him over Desantis any day. That guy is a tool.. Did he really just make it so taxpayers have to pay for the roads and upkeep in Disneyland? On their private land? And what is this Democratic talking point of "making Disney Pay their fair share in taxes"? Is Disney evading taxes?

All I know is that Republicans are starting to look a lot like Democrats.


  1. "Republicans are starting to look a lot like Democrats." - Uniparty

  2. My husband hit the nail on the head the other day. Republicans are no longer 'fiscally' conservative, but are now 'morally' conservative at their base. Makes a big difference in decision making.

  3. I think that is pretty accurate. Sadly.