- cross-posted to:
- usa@lemmy.ml
- cross-posted to:
- usa@lemmy.ml
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Sometimes I wish the housing market would finally crash, then I remember it won’t make my rent go down, it’ll just destroy everyone’s retirement funds
It’ll also all just get bought up by private equity.
“Become a landlord” is going to become the next “learn to code” isn’t it?
It always was, and i mean even way before the capitalism and coding. Even in ancient Rome the richest man was actually a slumlord.
Not my Capitalism. No Bust, only Boom.
: “Oh no no no. It’s boom for me, but bust for you! I’m sure you poors don’t MIND being poorer, after all!”The original meaning of the word “proletariat” was “those who only have their offspring”, oh but porky gonna take that too and squeeze their last drop of blood into the profitgrinder.
Okay…you asked for it
The economy has been at risk the entire time that’s why they’ve been averting crisis after crisis for the past 15 years
I mean there was a crash when the pandemic started, it just wasn’t as severe as 2008.
Fair point
It needs to hurry up and pop already. Looking forward to more Mario brother action.
Hell yeah, the last burst caused China to accelerate it’s development
Maybe I should invest in China sooner rather than later…
I really like Ben Norton. He’s one of the few people I support on Patreon because he’s just so damned informative.
yeah, he does excellent analysis
I feel like people have been saying this since 2016
The Fed keeps pumping money in to prevent a crash. In doing so, they have been priming the economy for a depression era type crash, but they don’t know what else to do. You can thank Obama. He could have bailed every day Americans out, and reset the economy in the process. But no, he saved his banking friends.
If the fed keeps pumping money in to prevent a crash, what’s to say they aren’t going to continue to do that?
As I understand it, quantitative easing is supposed to be viewed as an emergency measure that states use for temporary relief when the markets go into the negative to avoid everything spiraling into a recession. The US is just using QE all the time as a base stimulus, which means they can’t use it in an emergency.
Yup. QE and also loaning tons of money to banks to prevent runs and failures. Stuff that doesn’t get talked about much in MSM.
Imagine a burger:
“Hey Bank-chan, I have this idea for a restaurant that sells balloon animals. I think I’m going to charge $12 for a burger+balloon combo. Can I have 30,000,000 of the new money to do it?”
“Sure, Slimeball-kun. Here you go!”
Nobody has enough money to buy stupid borger
“Hey Bank-chan, I’m declaring bankrupcy. you’re only getting $2,000,000 back on the investment”
“But you and 99999 other people were supposed to make me profit!”
Local news: “Your local bank is freaking out”
“Oh holy shit, get my money out of that bank!” x9,999,999
“Omg I don’t have enough money if 9999999 people withdraw their savings”
bank run
bank collapses
nobody can make any businesses
feds try to step in… again
Only this time nobody wants to buy the dogshit bonds because BRICS is trying to divest. B&RI is using USD as toilet paper
“Idk, maybe raise taxes 88% on the lowest 25% of Americans?” - Elon Mu$$k
lowest 25%-sama can’t afford food
also that real estate bubble that was giga overdue happens because of the week-decade thing
cool zone begins
Meanwhile China enjoys a functioning, self-sufficient economy because they are capable of doing anything
I imagine it’s something like that.
The only way out (other than compete collapse) is going back to 1940s taxes where the rich were paying 90% after a certain threshold and, uhh, gestures broadly at the state of US politics
Barely. Even if the US met its spending through gigataxes, the taxes would go towards genociding teenagers, chauvinistic enforcement of the petrodollar, corporate buybacks, R&D on planned obsolescence, political ads, and recruiting troops.
I can think of a third, much more sinister way our of a capitalist pinch
Yep, we’ve essentially been in emergency mode for years now
As I understand it, quantitative easing is supposed to be viewed as an emergency measure that states use for temporary relief when the markets go into the negative to avoid everything spiraling into a recession. The US is just using QE all the time as a base stimulus, which means they can’t use it in an emergency.
Well, they raised interest rates throughout 2022 until basically the end of 2023, where it topped out at 5.33. It’s dipped about a percentage point now, to 4.48 [1]. So there is some room to keep playing the QE game, in theory. Granted, QE and the FFER aren’t a causal relation here; just a correlation. Lots of folks thought that near-zero or zero interest rate policy would kill the dollar back in the 2007-2008 global financial crisis, but so far, the dollar is still around. Maybe additional QE would kill the dollar. Maybe it won’t make a difference. I honestly don’t know enough to have an educated guess.
So I want to clear something up, the Fed is not and has not done quantitative easing for years (since 2022). Right now they’re actually doing quantitative tightening.
Events outside of their control.
It’s kind of a game of hot potato. Nobody wants to be stuck with the big crash, so they use whatever tools they have to kick it down the road so it becomes a problem for the next admin. Thing is that you can’t keep doing that indefinitely because the fundamentals continue to deteriorate. All that accomplishes is to ensure that the crash will be bigger and more profound when it hits.
Honestly it would be pretty funny if it does crash under Trump because he’s supposed to be the epic “knows how the economy works because businessman” president for chuds, but they’ll probably blame it on Biden’s policies or whatever
To be fair, they’re not going to be wrong exactly. :)
We never recovered from 2008, I’d say.
2008 never ended economically and 2016 never ended culturally.
That’s an interesting way of saying it that I’ve never considered, or heard before.
yep same story in Europe the “recovery” never happened just pure stagnation since then of shit that actually matters to normal people like real wages
Yet people point at how well the stock market is doing and say “the economy is very healthy”. It’s infuriating.
I think that minimum wage is going to become the national average…given the rate it is increasing in the U.K., but other roles wages isn’t.
this can keep going until people liquidate their assets, its exactly like how cryptocurrencies still go strong even after thousands of scams, people keep pumping money into it and with stocks it happens that retirement plans go directly into pumping stocks.
and the bubble’s been getting bigger the whole 9 years
People have been saying this for your entire lifetime.
I make less than I did 20 years ago. The economy is already fucked.
And the banks are suing the feds for their stress tests. I WONDER WHY?
lmao totally a thing you do when there’s nothing to worry about
The Fed prints money. The wealthy get tax cuts and skate on taxes through low interest stock collateral loans and scams like fully forgiven PPP loans.
Wages remain perpetually stagnant for decades while inflation runs rampant, leaving the plebeians to pick up the tab for the Plutocracy/Kleptocracy.
I don’t pretend to be an expert but am I wrong in my understanding that when the crash happens, it’ll ripple all across the world because of how tied to the dollar the entire world is? That’s basically what happened in 08, no?
The real question I’m asking is: is there anywhere in the world to put money where it’ll be safe or at least less affected, to mitigate the inevitable crash?
That will definitely be happening, and countries that rely heavily on trade with US will end up being dragged down with them. In general, I expect that BRICS countries will be better off while G7 ones will be worse off.
Amusingly, Russia might be the one country that’s best prepared for this because of the forced decoupling with the west. China has also been working on creating a dual circulation economy. The strategy focuses on domestic market, or internal circulation, to adapt to an unstable international trade environment. https://chinapower.csis.org/china-covid-dual-circulation-economic-strategy/
Housing I’d guess.
Pop pop pop pop
