livinoutdoors
Goatherding Non-socialist Bohemian Luddite
You aint wrong. There are more of these mortgage loan packages on the book at the major banks now than there were in the last crash. A bunch of em are in commercial real estate as well. There is plenty of worry about office and retail space that people my never go back to, and that could trigger a crash. People got distracted by the pandemic, but there was lots of crazy stuff already goin on before this thing happened. But who knows? Maybe nothing will crash and houses will just cost 1.6 million for a two bed one bath five years from now.I'll add to the coming terror.
My wife is in banking. Remember all the SBA and PPP loans " the government" was handing out all of last year? That's exactly what she handles at her bank. She spent a lot of days working from home until nearly midnight last year in the beginning of the pandemic.
Well those loans was actually the bank's money. The government has just now started paying the banks back...plus the incentives for their trouble. Her bank got their 1st reimbursement a couple weeks ago. She said the reimbursements were trickling in from the US Treasury. So we (The People) haven't seen or heard anything about that part yet. This money was not free. You can bet..."stuff" is coming...the .gov will get their money back.
Not only that...but remember the financial crisis we had in 2008? A LOT of banks got shut down by the FDIC because they were making bad mortgage loans and just general loans to people who had no business buying a home or stuff they couldn't afford in the first place. There's a bunch of these loan originators who found loop holes to basically do the exact same thing all over again.
This is history repeating itself. There was a building boom going on right before the crash happened 15 years ago...just like what's going on right now. Contractors are killing it right now building houses, just like they were then. People with subpar credit are getting approved for mortgages they can't afford...just like they were then.