This NEXT Bubble Is Going To Hurt!

[Indeependent]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

Plastic does not hold up like steel. Cars ARE over priced and under built.

From R&D to actual product you truly believe current vehicles are so overpriced?

 

[Andylusion]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

We're in a construction bubble right now...commercial and residential.
If the economy doesn't continue to expand or contracts just enough, it might not be so pretty.

Well.... that's true of literally everything.

Values change constantly. Nothing is static in a dynamic economy.

Meaning, that when people say "this is a bubble".... that is usually not true. Prices during economic growth, or usually high and going up.... because there is economic growth, and the demand for assets is high.

When the economy falls, values fall. That doesn't mean it was a bubble. When the demand was high, the values were correctly high. When the demand falls, values correctly fall.

It doesn't mean the high values during high demand, were wrong. They were correct. It wasn't a bubble.

It's the same thing as people claiming there was a bubble in the stock market in the 1920s. The claim there was a bubble, because when the market crash, stocks lost half their value.

No, it wasn't bubble. The economy changed, which changed the demand, which changed the values.

There is no evidence whatsoever, by any economic or statistical measure, that the market in the roaring 20s, was over valued, or that there was a bubble.

Bad government policy intervening in the economy, ruined the economy, which changed demand, which changed values of the market.

So how do you tell the difference between a real bubble, and simply a change in the market? It's hard.

It's usually when you can see a drastic change in prices over a relatively short time frame, the deviate from long term trends.

As you can see, there was a fairly stable increase in housing prices, that lasted from the 1950s to about 1997. Then in 1997, you see a massive spike in prices.

That indicates an actual bubble, rather than just a result of market demand.

 

[Indeependent]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

We're in a construction bubble right now...commercial and residential.
If the economy doesn't continue to expand or contracts just enough, it might not be so pretty.

Well.... that's true of literally everything.

Values change constantly. Nothing is static in a dynamic economy.

Meaning, that when people say "this is a bubble".... that is usually not true. Prices during economic growth, or usually high and going up.... because there is economic growth, and the demand for assets is high.

When the economy falls, values fall. That doesn't mean it was a bubble. When the demand was high, the values were correctly high. When the demand falls, values correctly fall.

It doesn't mean the high values during high demand, were wrong. They were correct. It wasn't a bubble.

It's the same thing as people claiming there was a bubble in the stock market in the 1920s. The claim there was a bubble, because when the market crash, stocks lost half their value.

No, it wasn't bubble. The economy changed, which changed the demand, which changed the values.

There is no evidence whatsoever, by any economic or statistical measure, that the market in the roaring 20s, was over valued, or that there was a bubble.

Bad government policy intervening in the economy, ruined the economy, which changed demand, which changed values of the market.

So how do you tell the difference between a real bubble, and simply a change in the market? It's hard.

It's usually when you can see a drastic change in prices over a relatively short time frame, the deviate from long term trends.

As you can see, there was a fairly stable increase in housing prices, that lasted from the 1950s to about 1997. Then in 1997, you see a massive spike in prices.

That indicates an actual bubble, rather than just a result of market demand.

Market Demand goes hand in hand with irresponsible lending practices.
There are slums in Hempstead, Roosevelt and Uniondale NY where people making under 50K have already received 600K mortgages and have built their mansions and are leasing their BMWs.

My son-in-law lives in Miami and does commercial and industrial real estate assessment; there's not one piece of real estate available and there's been no real estate transaction in over 2 years because even the banks know everything that sold was way overpriced.
Houston is also in way over it's head.
The big growth now, which is pretty much exhausted, is the purchase and development of Big Tech near dozens of universities around the country.

Our lenders are out of control and they'll get away with it just as they did the last time.

 

[iamwhatiseem]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

Plastic does not hold up like steel. Cars ARE over priced and under built.

Sorry, but cars are better built today than perhaps ever before.
They are 1000 times more reliable than decades ago. Particularly the 60's - 80's. Who can forget people driving cars and trucks where they were literally disintegrating into a pile of rust before they even paid them off!
The old late 70's - 80's uni-body frames were notorious for warping even if all you did was drive over some rough pavement, not to mention they also rusted out fast.
Mechanically, the power train today is vastly superior to decades ago.

 

[Andylusion]

New cars are overpriced

If they were over priced, they wouldn't sell. I don't buy stuff that is over priced.

We're in a construction bubble right now...commercial and residential.
If the economy doesn't continue to expand or contracts just enough, it might not be so pretty.

Well.... that's true of literally everything.

Values change constantly. Nothing is static in a dynamic economy.

Meaning, that when people say "this is a bubble".... that is usually not true. Prices during economic growth, or usually high and going up.... because there is economic growth, and the demand for assets is high.

When the economy falls, values fall. That doesn't mean it was a bubble. When the demand was high, the values were correctly high. When the demand falls, values correctly fall.

It doesn't mean the high values during high demand, were wrong. They were correct. It wasn't a bubble.

It's the same thing as people claiming there was a bubble in the stock market in the 1920s. The claim there was a bubble, because when the market crash, stocks lost half their value.

No, it wasn't bubble. The economy changed, which changed the demand, which changed the values.

There is no evidence whatsoever, by any economic or statistical measure, that the market in the roaring 20s, was over valued, or that there was a bubble.

Bad government policy intervening in the economy, ruined the economy, which changed demand, which changed values of the market.

So how do you tell the difference between a real bubble, and simply a change in the market? It's hard.

It's usually when you can see a drastic change in prices over a relatively short time frame, the deviate from long term trends.

As you can see, there was a fairly stable increase in housing prices, that lasted from the 1950s to about 1997. Then in 1997, you see a massive spike in prices.

That indicates an actual bubble, rather than just a result of market demand.

Market Demand goes hand in hand with irresponsible lending practices.
There are slums in Hempstead, Roosevelt and Uniondale NY where people making under 50K have already received 600K mortgages and have built their mansions and are leasing their BMWs.

My son-in-law lives in Miami and does commercial and industrial real estate assessment; there's not one piece of real estate available and there's been no real estate transaction in over 2 years because even the banks know everything that sold was way overpriced.
Houston is also in way over it's head.
The big growth now, which is pretty much exhausted, is the purchase and development of Big Tech near dozens of universities around the country.

Our lenders are out of control and they'll get away with it just as they did the last time.

Well.... sort of....

You can artificially create demand, by increasing lending. That's true. However, in a free-market.... free-market meaning a market free of government influence, the loss suffered by banks at the hands of defaulting lenders would put in place a restriction on unqualified borrowers.

Equally in a free-market, where people had to own up to their contractual agreements, like paying back every penny you borrow, the consequences of borrowing too much would cause borrowers to restrict themselves.

Canada is a great example of this in both regards.

The Canadian banking system is significantly less regulated than the US banking system. Equally the Canadian government does not bailout banks when they make bad loans. Also, there is no bankruptcy laws that allow Canadian citizens to just avoid the consequences of going into debt.

Both of those effects result in a self-regulated system where banks are less likely to make risky loans, and the citizens themselves are less likely to apply for loans that they can't afford.

This is why there were no massive bank crashes in Canada, in the 2008 recession, or the 1930s depression.

So, again I would say the solution is to deregulate the banking industry, and absolutely refuse to bail anyone out.

IF the lenders are out of control.... who cares? Let them default, go bankrupt, and then when they remove themselves from the market, the economy will recover.

 

[Manonthestreet]

Don't need deregulation to let Banks fail....simply need the will to say no when them come asking

 

[Toro]

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

But what about the 4 million people who lost their homes?
I guess they all should have become bank CEOs?

But what about the 4 million people who lost their homes?

What about them?

Sarbanes/Oxley...
The banks received no punishment for their irresponsible behavior.
Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?
I'm sorry, but the borrowers were rejected by the software and the loans were rubber stamped.

Sarbanes/Oxley...

More terrible legislation.

Did they tell stockholders they were approving billions of dollars in loans that were definitely going to tank?

If banks knew they were making loans that would tank, why did they end up holding so many of those loans?

It's like the idiot above who said banks did it on purpose, to buy cheaply at the bottom of the crash.
The banks lost trillions. They weren't as smart or as prescient as some people feel.

Fees and commissions and thinking Japanese and Chinese banks would rather take partial payments in lieu of full payments.
And if your boss says to rubber stamp or enjoy unemployment, well...

Most of the loans were packaged and sold to investors. They were on the merry-go-round, getting paid until the music stopped.

I remember having some f****** bank pitching synthetic CDOs to us as being a safe investment to us in 2007 as part of an equity index swap. When the meeting was over, I looked at my boss and told him there was absolutely no ******* way we’d be doing this. We didn’t. That’s the only time I’ve ever sworn to/at my boss.

 

[Dale Smith]

Dale Smith Global control is not coming via war, global control is going to happen via the markets. That IS what these bubbles are, the silent coup. Shit Stain did not save GM, he merely picked the winner. It was fixed.
You can buy the ORIGINAL GM shares on the net for about a dollar. When the ORIGINAL share is barely worth toilet paper what was SAVED? Nothing and it was NEVER intended to save anything!

That makes the "bubbles" the lynch pin of the coup NOT the result OF. EVERY bubble re-centers the market and the "sides" are getting smaller and smaller.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it...watch the carnage and then jump back in and buy up shares for pennies on the dollar and the cycle starts all over. The poor get screwed and the Illuminati bankers and their thirteen bloodline families suck more wealth out of their "energy sources" which is us.

It's not a pretty picture but it's a ******* fact.

The banking oligarchs create the bubble and pull out when the profit to be made is highest and then they implode it

Exactly!!

That's why no bank CEO lost his job after the crisis and every bank made money during the crisis.

Wait, what?

Holy crap...you are REALLY ignorant about the economy.

You dumb shit...if the banks planned it all and got out when things were good...why did the Fed have to bail them out to the tune of $1.6 TRILLION DOLLARS directly and LOADS more indirectly?
And why did Bear Stearns go under?

'Over the next six months, TARP was dwarfed by other guarantees and lending limits; analysis by Bloomberg found the Federal Reservehad, by March 2009, committed $7.77 trillion to rescuing the financial system, more than half the value of everything produced in the U.S. that year'

Emergency Economic Stabilization Act of 2008 - Wikipedia

The banks got killed by the boom/bust...they just had the Fed to bail them out.

Uneducated hick...stick to what you know (being xenophobic, misogynistic, racist and masturbating to pictures of Trump) and leave macroeconomics to those of us with IQ's over 90.

We are done here as I won't waste a second reading your - or other Trumpbot - undoubtedly moronic reply.


Have a nice day.

Yeah, the Fed loaned their alleged failing banks "money" from an empty vault and put it on the "good faith and credit" of their indentured debts slaves whose signature that was put on a monetized Promissory Note that got fucked out of their homes due to predatory lending. So, to sum it all up? The banks get bailed out and have a hard asset to resell with no equal risk/ consideration on their part. I know EXACTLY how the system works and "yes", this conversation need not go any further because you are utterly clueless.