Gloomy Questions of the Day
Is this history repeating itself? I recently had the housing explained to me like this. A young person purchases as home for $250,000.00+ pays on it for a few years aggreeing to only be paying on the interest. In 5-7 years they sell and bump up to a nicer house. This sounds ok on the surface however if you have little or no equity in this home just how in the heck will you get your next one? How many will end up defaulting on these homes? I seem to recall years back we had this same mess during Carter's time in office. Inflation sailed to double digits and you couldn't make a living for spit. Oil Carter sank our boat on drilling and oil here in this country back then........
If we are headed for a recession who is going to take care of our illegals and our citizens?
1) What happens when this housing boom that is going great guns starts falling?
2) What happens when this bloated crude market starts to fall?