This topic is being brought up for discussion/debate, but by no means is this a call to action or anything like that. I am curious to see what thoughts Getbiggers have on the current state of economic/financial affairs here in the USA.
As of the last few days, we have started to hear about a possible defaulting of over 200 regional banks throughout the USA. There are new reports showing that the FDIC has even started to seize banks in many major cities as of this past week.
Mortgages that most people get from bigger banks are typically sold off over time to smaller banks that assume the risks and benefits of buying off these debts. If you own a home that is serviced by a smaller bank and the FDIC soon takes over your regional bank, will your home soon be owned by the FDIC (i.e. the government)? If so, this nationalization of US banks is setting the stage for socialism. Part of the American dream is "owning a home", but how much of a home do you own if you're simply renting it from the government and proving them monthly payments towards your principal, interests and property taxes?
If something like this is at play, are we becoming a more socially liberal form of China? I am curious as to what your thoughts are, as I am also trying to wrap my head around what all of this could mean in the coming days to weeks.
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The mortgage crisis of 2008 comes to mind. Many folks’ mortgages were underwater, meaning the mortgage was greater than the appraised value of the property. The housing market bubble burst when subprime mortgages, a huge consumer debt load, and crashing home values converged. Homeowners began defaulting on the home loans. This situation was created by an overwhelming load of mortgage-backed securities that bundled high-risk loans. With an unprecedented number of loans in default, many financial institutions failed requiring government bailouts.
No one I know defaulted on their mortgage and whose property was repossessed. Being financially conservative, I always maintained a small mortgage with considerable equity. At no time were we ever in danger of being foreclosed. I did jump on the opportunity to refinance the small balance of the mortgage on my current property at 2.250% APR. My excellent credit score influenced that low interest rate.
Current housing costs mean that home ownership is out of reach for many people. Unless there is some dramatic change that slows real estate demand, fewer and fewer people will enjoy homeownership in the future.
With regards to housing, do you suppose King Shizzo found somewhere to live and sleep comfortably? It is concerning that he suddenly stopped posting on Getbig on February 26th.
