Started By
Message
Who is ready for the next big financial crisis?
Posted on 12/17/15 at 10:26 am
Posted on 12/17/15 at 10:26 am
The Fed finally raised interest rates to keep up their facade. They keep saying we're in a full recovery, even though mortgage applications and retail are still way down. They were forced to raise interest rates to keep up their own line of bullshite about economic recovery.
Also, we have the recent study that showed more than 50% of Millenials have less than $1,000 in savings. And now Millenials outnumber baby boomers for the first time in history.
Eventually the impact of Millenials not having any money is going to negatively affect the economy in a catastrophic way. We're in store for another major crash, and it will be interesting to see if we have another round of bailouts. Or will the government finally allow the market to crash and burn like it was supposed to in 2008?
Also, we have the recent study that showed more than 50% of Millenials have less than $1,000 in savings. And now Millenials outnumber baby boomers for the first time in history.
Eventually the impact of Millenials not having any money is going to negatively affect the economy in a catastrophic way. We're in store for another major crash, and it will be interesting to see if we have another round of bailouts. Or will the government finally allow the market to crash and burn like it was supposed to in 2008?
16
Posted on 12/17/15 at 10:29 am to Stonehog
quote:
We're in store for another major crash
What kind of timing you think. I mean, you could say this at any point and technically be right just because that is how it works.
- also are you thinking it has to do with CRE?
This post was edited on 12/17/15 at 10:34 am
Posted on 12/17/15 at 10:41 am to Sneaky__Sally
quote:
What kind of timing you think.
Definitely in 2016. It's setting up just like 2008.
quote:
also are you thinking it has to do with CRE?
You'll have to be more specific.
Posted on 12/17/15 at 10:46 am to Stonehog
quote:
We're in store for another major crash,
Agreed, but I don't think it will be the millenials that trigger it. I think it will be in the oil & gas industry if oil prices stay as low as they are, which all indications say they will. As low as interest rates have been, many O&G firms have borrowed a lot of money upgrading their capital assets. I was looking at some cash flow statements for a few O&G firms, and they are ugly right now.
Posted on 12/17/15 at 10:48 am to Stonehog
Always ready for a crash. I usually keep around $50-60K in a money market account in case of a stock market panic.
I like capitalizing on fear
I like capitalizing on fear
Posted on 12/17/15 at 10:51 am to Stonehog
As in the loans on commercial real estate are based on market values and pricing which have been steadily rising. Thus a crash in CRE pricing / values would result in many of those loans defaulting.
Posted on 12/17/15 at 10:51 am to The Spleen
quote:
Agreed, but I don't think it will be the millenials that trigger it.
I don't think they'll trigger the crash either, but the effect of Millenials not having any money will doom our economy for decades. And it will prevent any kind of recovery after the crash.
Posted on 12/17/15 at 10:52 am to The Spleen
Ya but that is one sector, do you really think that alone would be enough. South Louisiana is hurting right now and while the smaller players have started to shut down operations, the big names are still chugging along, albeit with far less profit.
Posted on 12/17/15 at 10:57 am to Sneaky__Sally
quote:
As in the loans on commercial real estate are based on market values and pricing which have been steadily rising. Thus a crash in CRE pricing / values would result in many of those loans defaulting.
Gotcha.
I think it will have more to do with the domestic housing market, and the fact that we don't have new homeowners because people simply can't afford it. We have half a generation of people who have less than $1,000. 18 percent of Millenials have less than $5,000. Mortgage applications are down, but the Fed is raising interest rates. It doesn't add up, and just shows that the Fed is full of shite and are just trying to keep up the sham that we're in a full recovery.
It's a house of cards that they've been building since 2008.
Posted on 12/17/15 at 12:02 pm to Stonehog
quote:
I think it will have more to do with the domestic housing market, and the fact that we don't have new homeowners because people simply can't afford it. We have half a generation of people who have less than $1,000. 18 percent of Millenials have less than $5,000. Mortgage applications are down, but the Fed is raising interest rates. It doesn't add up, and just shows that the Fed is full of shite and are just trying to keep up the sham that we're in a full recovery.
It's a house of cards that they've been building since 2008.
But but but the housing market is hot....
All those investors have been sitting on homes for a while hoping there would be a recovery and they would make bank.
This initially looks like a good sign for someone wanting to unload those, but I don't think we're in full recovery.
I wonder how much longer they will sit on those properties until they realize they aren't gonna make much money if any.
This post was edited on 12/17/15 at 12:03 pm
Posted on 12/17/15 at 12:43 pm to Stonehog
Student loan debt
Posted on 12/17/15 at 12:46 pm to Stonehog
quote:
the recent study that showed more than 50% of Millenials have less than $1,000 in savings.
It's hard to save any money when they are waiting tables or working at McDonald's for poverty wages, all while trying to pay off six-figure student loan debts.
quote:
now Millenials outnumber baby boomers for the first time in history.
Eventually the impact of Millenials not having any money is going to negatively affect the economy in a catastrophic way.
Of course it will. When a majority of your society doesn't have any money (no matter who they are), the economy has no possibility of remaining viable. The lack of decent paying jobs in our economy has long ago doomed it. Concentrating more and more of the wealth in a smaller and smaller percentage of the population will destroy any economy. No economy can function when 50+% of the people can't afford to buy anything but basic necessities. Ours is no different, and we are getting there sooner rather than later.
This post was edited on 12/17/15 at 12:49 pm
Posted on 12/17/15 at 1:34 pm to Stonehog
quote:
don't think they'll trigger the crash either, but the effect of Millenials not having any money will doom our economy for decades. And it will prevent any kind of recovery after the crash.
I don't think it's as big of a deal as it seems. When millenials parents and grandparents start kicking the bucket and those inheritances start rolling in things will be fine.
What will screw millenials is how greedy non-profits have gotten and are suckering people into leaving part of their assets to a bullshite cause or school almuni association. Those chunks of assets going to an Athletic Department or a puppy rescue or the funds will further wasteful endeavors is a threat to millenials.
Posted on 12/17/15 at 2:03 pm to Stonehog
I think someone has hacked Stonehog's account because we are in complete agreement and that has never happened before.
As far as the US Economy, its a house of cards and a paper sham. Unfortunately, there is such a dramatic amount of personal, local, state, and federal debt in 2015. It is unprecedented. For this reason, the net crash will be like the stock market crash that triggered the great depression. But worse.
Student Loan debt.
Housing debt.
Credit Card debt.
Upside down Auto loans.
Medical debt.
It is going to be ugly folks. It is only a matter of time. But this time, there will be no measure of a "stimulus package" or an ability to drop interest rates or taxes.
As far as the US Economy, its a house of cards and a paper sham. Unfortunately, there is such a dramatic amount of personal, local, state, and federal debt in 2015. It is unprecedented. For this reason, the net crash will be like the stock market crash that triggered the great depression. But worse.
Student Loan debt.
Housing debt.
Credit Card debt.
Upside down Auto loans.
Medical debt.
It is going to be ugly folks. It is only a matter of time. But this time, there will be no measure of a "stimulus package" or an ability to drop interest rates or taxes.
Posted on 12/17/15 at 2:19 pm to Stonehog
I'm a millennial and I can testify that my generation has a spending problem. Not me but most of the people my age that I know
Posted on 12/17/15 at 3:10 pm to Stonehog
(no message)
This post was edited on 12/17/15 at 4:09 pm
Posted on 12/17/15 at 5:32 pm to Stonehog
quote:
but the effect of Millenials not having any money will doom our economy for decades. And it will prevent any kind of recovery after the crash.
People under 30 years old generally don't have much money unless they came from a wealthy family.
The reason many can't make much money is due to the last financial crash and the lack of a real economic recovery, causing baby boomers to work longer until retirement and higher level positions not becoming available to younger folks. We are basically stuck at entry level positions..which is why I'm going the entrepreneur route and putting my hand in many business ventures.
Posted on 12/17/15 at 5:36 pm to Stonehog
quote:
I think it will have more to do with the domestic housing market
It absolutely will considering the Obama admin just launched the "HomeReady" program which will give out subprime mortgage loans to families of low income backed by Fannie Mae, requiring only a 3% down payment and they can use any family member's income to get the loan...but that family member doesn't have to put their name on the loan or be responsible for its repayment. They just have to sign a paper saying they "intend" to live in the home for at least 12 months. It's the same BS that caused the 08 housing bubble. Student loan debt is a huge bubble waiting to pop also.
We are limping along on fairy dust money really...it's a disaster waiting to happen
Posted on 12/17/15 at 5:37 pm to Pbhog
quote:
I'm a millennial and I can testify that my generation has a spending problem.
That's been the problem of every American generation since the 1920s when the idea of credit came into existence.
Posted on 12/17/15 at 5:41 pm to Stonehog
Keep up with the board man, over on the OTL there's been a debate about the generations. The Millenials claim they're better, and that it's the Boomers fault the economy is hurting. Don't blame this on the Millenials being poors.
Page 1 of 3
Popular
Back to top
Follow SECRant for SEC Football News