You never really own the property. They tell you that you own it but if you don't pay the property tax you will find out who actually owns the property. Guess what? All this inflation just made everyone's property tax bill WAY HIGHER. Property tax lags behind the current market conditions so this will be yet another kick in the teeth as energy and food prices are out of control.
#recession #realestatecrash #depression #investors
In my opinion this crash will be as bad if not worse than the 2008 great recession for a multitude of reasons. When compared with incomes real estate is still in a bigger bubble currently than in 2006 even with some of the drawdown that has already occurred in several markets.
The Great Recession of 2008 was a global economic downturn that lasted from December 2007 to June 2009. It was the worst economic crisis since the Great Depression of the 1930s, and it had far-reaching effects on many countries and industries.
One of the main causes of the Great Recession was the housing market crash. In the early 2000s, housing prices in the United States began to rise rapidly, fueled by low interest rates and relaxed lending standards. This led to a housing bubble, where housing prices became artificially inflated. In 2006 and 2007, housing prices began to fall, and many homeowners found themselves owing more on their mortgages than their homes were worth. As housing prices continued to fall, many homeowners defaulted on their mortgages, and the value of mortgage-backed securities, which were held by banks and other financial institutions, plummeted. This led to a severe liquidity crisis for many banks and other financial institutions, and many of them were forced to write off large losses on their mortgage-related assets.
Another cause of the Great Recession was the proliferation of risky financial products, such as subprime mortgages and collateralized debt obligations (CDOs). These products were sold to investors, who were not fully aware of the risks involved. When housing prices began to fall and homeowners defaulted on their mortgages, these products became virtually worthless, and many investors lost large sums of money.
The Federal Reserve also played a role in the Great Recession. In the years leading up to the crisis, the Fed kept interest rates at historically low levels in order to stimulate economic growth. This led to a housing boom and a surge in consumer spending. However, when the housing market began to crash, the Fed was slow to respond, and did not raise interest rates until too late, which further exacerbated the crisis.
Another cause of the Great Recession was the failure of many large financial institutions. The crisis began with the failure of Bear Stearns, a large investment bank, in March 2008. This was followed by the failure of Lehman Brothers, another investment bank, in September 2008. The failure of these institutions had a domino effect on the rest of the financial system, as many other institutions were also holding large amounts of mortgage-related assets. This led to a severe credit crunch, as banks and other financial institutions became unwilling to lend to each other or to consumers and businesses.
The recession also had a ripple effect on the real economy, as many businesses and consumers cut back on spending. This led to a decline in economic activity, rising unemployment and a decline in stock prices.
In summary, the Great Recession of 2008 was caused by a combination of factors, including a housing market crash, the proliferation of risky financial products, the failure of large financial institutions, and the Federal Reserve's monetary policy. The crisis had far-reaching effects on many countries and industries, and it took several years for the global economy to recover.
