Prepare Now: NEW Massive Housing Market STIMULUS will result in ultimate Rugpull of U.S. Homeowners

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Main Idea: The ultimate rugpull for the housing markets is now in motion. The Fed's progress on inflation is about to be reversed.
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[@LarryCheungCFA]

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[@HectorWhitney]

In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

[@sharonwinson-m8g]

Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.

[@RaymondKeen.]

I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.

[@Hectorkante]

I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.

[@RaymondKeen.]

I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Melissa Terri Swayne turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.

[@BellamyGriffin19]

I just looked up Sophia online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.

[@TheJackCain-84]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@JacquelinePerrira]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@Jamessmith-12]

consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.

[@kevinmarten]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@Jamessmith-12]

When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

[@kevinmarten]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@Beatricegove733]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[@brucemichelle5689.]

True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.

[@Justinmeyer1000]

Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.

[@KaurKhangura]

This is exactly how i wish to get my finances coordinated ahead of retirement. Can I get access to your advisor?

[@Justinmeyer1000]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@KaurKhangura]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@Blue_Kryptonite]

Blackrock is the biggest real estate properties owner. This is all done by design, so that they can swoop in and buy all those properties up and rent it out to people at a higher price.

[@jennyhong6746]

“You will own nothing and be happy.” WEF

[@Siegeclan34]

And yet rents are like 30-40% cheaper than mortgage payments today for similar homes.

[@shanerogers9386]

Are all the homes they hoard away from families fireproof? People across the country should check

[@jenninemorel7693]

That's exactly what I was thinking 🤔

[@loudouncountyhomeslifestyl251]

It’s not Black Rock they only own less than 2 or 3%. It’s Blackstone they aren’t affiliated.

[@ksgraham3477]

Housing as an asset is WRONG THINK. Shelter is a necessity, so it shouldn't be so over valued. Thank those house flippers and Corporate America for making flipping housed more lucrative than working a wage. Something very broken.

[@zarroth]

the industry that owns the vast majority of empty houses are the banks...and they're not putting them on the market either. It isn't the flippers and such, although they annoy me as well. They simply aren't pervasive enough to make what is happening occur. I like housing crashes personally. My taxes/insurance go down when they occur. I don't care about equity, because this is where i'll live out my life.

[@AnnAndNala]

🎯 Absolutely 100% THAT is the problem. Greed with housing, the two should never go together. Everyone needs a safe place to call home.

[@seansurfn2]

i flip houses but i renovate horrible houses in neighborhoods and resell without any problems people will inherit. its the banks and corporations who sit on property and steal the homes from homeowners who are bad not the home flippers.

[@JoshuaHults]

I have no idea what the fix is other than people not being stupid enough to buy houses when they are over priced. The reason everyone is selling high is because they see others doing it and it working. We saw the same thing in the automotive industry, used car sales skyrocketed because people were dumb enough to buy high. New car prices have skyrocketed because people are dumb enough to buy. In short it is our neighbors causing the issue.

[@seanhepner]

Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.

[@Peterl4290]

The housing market in 2024 poses difficulties due to uncertainties about the Federal Reserve's ability to curb inflation and reduce borrowing costs without adversely affecting demand for assets like homes and automobiles.

[@sabastinenoah]

Consider shifting from real estate to stocks during severe recessions. While market volatility presents short-term trading opportunities, it's crucial to approach with caution. This isn't financial advice, but investing during such times may be a strategic move, consider adopting the services of a financial expert.

[@Mrshuster]

In fact, I had no prior experience or understanding when I began investing in 2020, but by the end of 2023, I had made a profit of almost $850k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.

[@JoshuaMccaffrey-q4]

My partner’s been considering going the same route, could you share more info please on the advisor that guides you?

[@Mrshuster]

Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@deidrajames4258]

The home I live in needed work, we rented a travel trailer for 8 months got home renovated, house had been empty 7 years, great aunt told me to give her 25,000, we did, hubby and uncles and brother did most the work in renovation. Never had a mortgage and I won’t get one , we got 3/2, small yard, don’t care. This housing crisis is ridiculous and scary.

[@trucuriousity]

You were very lucky to have that opportunity and all those people to help.

[@comment8767]

You sound really, really smart.

[@primeracalidad8320]

Anything you have to pay yearly taxes on. You don't own.

[@Bitachon]

Yup. Crazy

[@inacoma001]

Rent and pay someone else’s taxes

[@ritap4385]

Oh, you pay taxes! You think the landlord aborbs that cost? He just puts it in your rent!

[@alicia_nicole]

What about taxes you have to pay for your own business? Sounds good tho

[@wisdomcards7695]

Bingo. You are essentially leasing your property from the govt

[@ProvocateuAstrology2]

Never use a home equity line of credit or you will go down for the count

[@nokateno]

Good advice. It’s predatory.

[@TheDuke792]

I low key miss the post Pandemic Mortgage rates, those were good times ! The market correction has been massive and with the impending recession it seems like things are only going to get worse.

[@JasonAmir-qo4uo]

You can say that again! I have pity for people who spend above 50% of their take home on rent, to think that things aren’t really looking up for the economy and inflation is driving the average cost of living to insane highs, a lot of people might not be able to get through the coming phase.

[@John-ww2fv]

Well that’s why financial literacy is really paramount, as much as the market can be quite unpredictable and a lot of variables have to be considered while making decisions, one still has to be aware of the basic principles that govern these things in order to avoid obvious pitfalls.

[@GibsonJames-gr3on]

I personally tell people to try hiring an expert financial advisor. It’s how some of these investors on KZbin get their info on the investments they make…. It’s also how I handle my investments in these our current economy

[@LilianScott-dy5nz]

That’s what I have been doing. A year ago I hired an advisor and at the time I have had 58k saved up. He got me into investing in stocks. I eventually got lucky with a boost the got me up to 207k

[@OwenFlex]

that’s nice…. Lucky you. Who’s your advisor? I would love to get acquainted with him

[@madjack8893]

Of course they’re offering that, As soon as they have enough people taking it, the property values will drop and they’ll take possession for private equity firms. Don’t do it.

[@sprN0VA]

Just another reason to only buy what you can afford, not what you can fit into your monthly cash flow budget.

[@davesmithmusic]

The purpose of this program is to protect the corporate REITs. If the housing market crashes, it will negatively affect the investment housing market. By creating a program to keep people in their homes during a downturn, they will artificially keep inventory in the housing market lower than it would be, keeping values higher.

[@MomoGetsMoney]

Programs already exist to keep people in their homes if they struggle with mortgage payments. What does that have to do with corporate REITs?

[@davesmithmusic]

@@MomoGetsMoneyMany REITS have commercial loans that funded their purchases. When they need to refinance their loan they will have to do it at a higher rate. If they don't have equity in their portfolio because of a downturn in housing marker value, banks will be less willing to refinance. This is why you see property managers offering 1-3 months free as a move-in special, but the monthly rate is sill high. This way they can show a high unit rental amount to show the value (the bank won't see the free months, just the leased monthly amount). During the pandemic the government required lenders to put missed payments onto the end of the loan so people wouldn't lose their home, and they did this under a public health issue. A market downturn wouldn't be the same. So Freddie Mac and Fannie May are setting up a system for them to loan the missed payments as a second mortgage to homeowners who can't pay (or for those with equity and want to take money out but don't want to refinance their lower rate loan because of the high rates). That would serve to purposes 1) provide more spending money to consumers, and 2) keep people from having to sell because of economic conditions. If too many homes come on the market it will send prices down. That puts the corporate REITS in danger because they leveraged the equity in their portfolios to buy buy buy. If the corporate REITS are forced to sell because prices are falling and they can't borrow money to refinance their debt load, it will add more homes to the market, and then cause prices to fall more. There wouldn't be forced selling or foreclosures if people had real options to stay in their homes if they can't pay. BTW the government doesn't do anything to help the middle or lower class people. They only do things to help the wealthy people and corporations who fund their elections. So this move by the government isn't to save the people. It's to save the corporations. They will just say it's for the people because they want votes.

[@SmoggyFroggy]

Boo hoo, I'll be so upset the investment house hoarders will get taken to the cleaners while most people can't even afford 1 home.....🤡💩

[@davesmithmusic]

@@MomoGetsMoney I replied to your comment but it disappeared. maybe i gave too many details.

[@luisarevalo8394]

@@davesmithmusicwhat was it tho

[@SeanTalkoff]

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

[@lawrencedyke]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@PASCALDAB]

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@PASCALDAB]

My CFA ’’ Sharon Ann Meny , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..!

[@philmiska7295]

The Fed is the reason there’s is inflation. THEY create it.

[@seansurfn2]

the fed is rothchild operated and will operate to help destroy the market and implement agenda 2030

[@joelmayer8363]

Straight talk from Larry....I have to agree that the second mortgage is a terrible product that will make so many more families lose their houses to a rising variable rate. Thanks! Larry

[@SweetLife27]

But I would argue that’s part of the plan!

[@gatz900]

thank you for this video. I am not 100% informed on second mortgages, etc but your video opened my eyes.

[@thecloudtechguy]

You know I about fell on the floor(like laughing in disbelief) when I saw that the stimulus was about home equity, I was thinking they were going to stimmy the housing market with incentives for buyers(the few left).. I am like you got to be kidding, these white collar thugs are just pure evil. I totally agree with your forecast, these "financial gimmicks" are just beyond untenable to anyone who sees them.

[@Monkehrawrrr]

I don't trust this greasey ass dude, yall are regarded for trusting this guy.

[@ValerieClemens-uy3fw]

Spot on!! Could not agree more.

[@crypto_chick_]

There’s a bunch of new programs to “help” ppl get into NEW homes they can’t afford so they’ll go belly up too. The 400$ mortgage assistance for 2 years program. If you can’t pay now, you probably really can’t afford two years from now when the assistance stops and a loaf of bread is 12$.

[@pizzaparty-r1c]

I just got a $50k home equity loan. Paid off all my debt with the exception of my house of course. My total monthly debt payments used to be $3600 per month. Now my only payment is my mortgage at $1300 per month. If you play your cards right, using home equity is a good thing.

[@BrewerVera]

fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.

[@FaithAndrada-xo9ou]

Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.

[@AndersonFair-cy2bb]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@Raymondcraw1967RaymondCrawley]

nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?

[@AndersonFair-cy2bb]

Her name is. 'RACHEL SARAH PARRISH’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@Raymondcraw1967RaymondCrawley]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@CeeCeeImohlaapohko]

Thank you very much for your honesty and kindness 😊

[@annetteringo6544]

It means...YOU WILL OWN NOTHING AND BE HAPPY...leave that trash in the garbage.

[@w1ldthin9]

yeah this is the move. get people to take out the equity of their homes, then tank the housing market forcing everyone to sell off so blackrock can snatch up the remaining properties.

[@SarahSmith-vt3oc]

how you gonna be happy, unless it's w fentanyl? or fentanyl laced xanax?

[@Edvilla24]

In California, many of my clients use 2nd mortgages to finance building rental ADUs. Great investment

[@Toastcat890]

What I don’t get is how no one leaned from 2008 it’s wild we’re getting ready to repeat that again and it may even be worse.

[@trucuriousity]

And now my insurance company is going to drop me unless i replace my roof. Happening to many, many people. I will be forced to take a home equity loan.

[@jamesbuchanan210]

The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I've seen. I personally don't see anything that extreme coming, but who knows.

[@ConstanceSperl]

And that would be a terrible situation that no one should root for.

[@rubyquinn2189]

It will happen if we stop QT and lower interest rates. we have printed more money than inflation so there is room for things to continue inflating. we need to reduce the money supply and the only way to do that is deflation.

[@Hannaa22]

With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and husband.

[@jamesbuchanan210]

Consider reallocating from real estate to stocks. Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice but it may be wise to invest, as cash isn't ideal in this period. I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of over $900k after subsequent investments.

[@Hannaa22]

This is quite huge ! much more info needed please, what did you invest in?

[@christopherbuckley7544]

So you bought your 500K home ten years ago on a 25 year mortgage, but your interest payments have only lowered the remaining balance by 25K. So you have 475K of debt to pay off, but you have 25K in "Collateral" or what everyone else wants to call "Equity" although you have no equity. With a "secondary mortgage" you can amortize your "equity" out 25 years too, and put yourself another 250K in debt. What a GREAT idea!!!!

[@SPM-tv]

$100 says people still go for it!

[@glorgau]

Never, never, never take out a second mortgage for anything but options on foreign exchange interest rate swaps. And it's gone...

[@Eag757]

@@SPM-tvfolks always fall for these tricks; that's how evil corporations thrive, become wealthy.

[@MaxMoonMax]

Why should a person in that example take a $25k collateral and get another $250k mortgage?

[@ronv6637]

In most markets that 500k house is now 1MM,with a refi mortage rate in 2%-3% range with low fixed monthly and 25+ yr payoff. Pretty good position unless taxes and upkeep force you out. Smart move is to put it in land trust(can't trigger loan being called) and sell off equity with subject to land contract(10%-12% interest payment doubles+ mortage) ,prepay mortage and downsize on free money praying new owner defaults and you can do it again. Great strategy for rentals if terms are good.

[@bernadofelix]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[@BridgetMiller-]

Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.

[@RaymondKeen.]

You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who were forced to witness the 2008 financial crisis could expect to generate a large wage.

[@SandraDave.]

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@RaymondKeen.]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@HectorWhitney]

Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.

[@auggieoutdoors3325]

This is simply a lifeline by Freddie Mac to Independent Mortgage Banks (Rocket Mortgage, Loan Depot, etc..) who are all struggling to stay afloat right now. Very few of their customers are refinancing their 1st mortgages, and purchase loan demand is in the gutter.

[@ronbork8454]

Nice to see that someone understands the reason for this. Banks have helocs, the bankers have a few but at higher rates. Freddie looking to even the playing field.

[@ImprovisedExpletiveDevice]

Can you explain in more detail? Are you saying that independent mortgage banks are dying because no one is buying loans or are the loans they made coming back to bite them somehow? I'm just trying to understand how a mortgage bank is struggling so much so quickly after years of exploding housing prices. I mean, people can't refinance forever, right? How does your business model not factor in some slow down to loan origination rates? Were the loans they made so unsustainably cheap that they can't afford the administration costs of just holding what they have?

[@zombieceg]

Kick the can down the road economics. We are in stagflation.

[@flexjay87]

Maybe Biden will forgive all Home loans ! What could go wrong :)

[@misterogers9423]

Everything. Inflation would go insane since it would free up so much discretionary income, but I know you are joking at least I hope you are.

[@flexjay87]

@@misterogers9423 , i gotta work on my sarcasm :)

[@Fluffydoom]

​@@misterogers9423but if they raise the minimum wage to 100,000,000 per hour then we will all be millionares

[@hanselito2416]

if he wanted to actually do his job he would push the price down of education, not justify its cost by paying the loan

[@cjmuniz12]

@@hanselito2416If garbage government would exit student loans, education costs would go down

[@Alex-xh7dm]

It is still unclear for me: if the current mortgage borrowers will start taking the second mortgages, than they don't need to sell their houses to get some money. Shortage of the houses supply and hyperinflation will push the home prices up! Correct me if I am wrong.

[@gragnaktube]

yes, which solves 2 problems. Inflation makes the gov able to afford paying the debt, and liquidity goes into bonds so gov can keep spending

[@alphaomega1351]

Let's be honest this debt based economic system is no longer working. Time to be realistic and consider a via alternative, one that isn't predicated on obscene debt. 😳

[@siddreddy1416]

The debt economy is predicated on everyone being consumers. If you think about it, that’s what our society is. Consume things with credit/debt. Stop consuming will result in stopping of debt, which will result in the house of cards collapsing. The last the the powers that be want

[@gragnaktube]

Just say no to debt!

[@defaultname7685]

Bitcoin fixes this

[@firefeethok_tui2355]

I cant believe how horrible the USngovnt is at managing money, stealing from working people and robbing peter and paul, to never paynit back.im sick of this. Imworkmless now bc of how bad money is managed.

[@ravbarring]

The government is in a business relationship with the Federal Reserve. The Government acts like it’s being fiscally irresponsible. As long as they can cast this image to the general public. The Government can and will continue to be spend the currency they can conjure out of thin air from the product manufacturer, aka, The federal reserve. The Government doesn’t manage what doesn’t exist at their level of disposal. What doesn’t exist? Value doesn’t exist at the point of fiat creation. It’s only when we the people are ‘compelled’ to use the dollar does value get created and Taxes are generated.

[@mushroomzulu]

You say that like it's not intentional.

[@rangerdoc1029]

Why? That's the real purpose of government. To live lavishly at the people's expense.

[@melissajackson79]

I posted your vid on Facebook because i think you are on to something. Thank you for your video because for the life of me i couldn't understand why they would do this now. Thanks again, you got yourself a new subscriber and i hope through me even more.

[@LarryCheungCFA]

Thank you !!

[@DaBlaccGhost]

There needs to be regulations of vc and investment groups purchasing homes and large plots of land for build to rent. It's a VERY real problem.

[@DionTalkFinancialFreedom]

My take away “People are dumb and will do dumb things”

[@weetaoneo3081]

What the fuck 😂, are they trying to get the money pumped into the stock market so that they can cash out ?😂

[@wigzzborz6759]

Actually . . . .don't be surprised if that is the agenda.

[@ronv6637]

More like pimp my bond market. They are hoping to get 9%-15% securities and wipe out whole traunches of 1.5%-4% long term mortages at the same time clearing the books of those "toxic liabilities" that will immediately Bankrupt them if forced to "mark to market"

[@Tonyrg1988]

Cashing out of the stock market is dumb. It always makes its way back into it anyway.

[@weetaoneo3081]

@@Tonyrg1988 yea keep holding on to yours bro 🫢

[@wigzzborz6759]

@@Tonyrg1988 How about Bud Light?

[@riley3760]

I stopped watching you for a bit and I have to say, holy cow! If this is the kind of content I can expect I’m here for it.

[@MandalorianFanboy]

It's only a transfer from homeowners to banks if you borrow the money and squander it. I will be doing this if they offer it and buying more Bitcoin with the money. Then one day after yield curve control has been running for a while, I will settle my first and second mortgage balances with a fraction of the Bitcoin I purchased with the loan.

[@Ella-Bella2024]

Not a good idea to gamble with borrowed money. You'll end up just like the other people who get the 2nd mortgage.

[@oneisnone7350]

When most of the country cannot pay, it will eventually break.

[@OvBigG]

Massive transfer of wealth mechanism is exactly what it is. Very interesting.. just subscribed great content

[@siulanainad]

Coming up next after this runs its course and consumes itself, 100 yr home loans. That’s the “ you will own nothing” in disguise

[@thyslop1737]

Scratching my head on the economics of real estate. Work as a vendor to large real estate landlords and property managers. Live in one of the hottest real estate markets in the U.S. For the last couple of years one investment firm that I know has a lot of multiple properties that are super high vacancys and unkept, as well. I am just wondering how in the heck are they doing it, how are they able to carry these properties with high vacancys all this time?. When you read this investment firms website it is nothing, but glowing and how their investment strategy is unique. Something does not add up.

[@lilymcnabb6621]

I saw a video about price fixing in AZ. DA is going after them. The premise is charge max rental prices. It will weed out some and make many homeless. The plan is to make same income with fewer occupants. GREED!

[@chadwells7562]

There are no economics or logic to it, it’s all driven by cheap and easy credit

[@JS-tj6ph]

They are using the term secondary incorrect: The secondary mortgage market is a marketplace where home loans and servicing rights are bought and sold between lenders and investors. A large percentage of newly originated mortgages are sold by the lenders who issue them into this secondary market, where they are packaged into mortgage-backed securities and sold to investors such as pension funds, insurance companies, and hedge funds. Secondary should not be confused with second

[@DolceIbarra]

How is this any different than now? Homeowners have massive equity and can get home equity lines of credit and second mortgages now. How is this changing things?

[@gragnaktube]

It lowers the interest on the second mortgage, increasing borrowing, and allowing payments to continue on that first mortgage!

[@ElegalvicnLa]

I made that mistake on my last house I told myself I would never take out a loan from my house again

[@jrobbins8058]

When the government pumps more free money into the economy.What do you think that does for home prices?Exactly.They will double just like they did a few years ago.

[@REOHomes]

It’s good that you reported on this. Converting equity to cash through debt will create a strain to the economy as in short order folks will further struggle to pay the principal back with interest. As a correction here, Freddie was already a part of the “secondary” mortgage market, this is the marketplace where existing mortgages are bought and sold. Evidently Freddie was not trading HELOC loans and will begin doing so. That is partly because the transaction count is lower nationwide and the banks only earn when they create loans. To your video point, there may be larger forces directing an equity grab, consumers will need to be wary.

[@tsniebeling]

Perhaps if you have more debt than equity in your home it is already a liability.

[@jenninemorel7693]

Understanding how economics works is critical thinking

[@IOSARBX]

Larry Cheung, CFA, I really enjoyed watching this, so I hit the like button!

[@MrsamH08]

Hi, new subscriber here. Thank you for this information. Would like to see some videos on your personal strategy to come out ahead in the circumstances you describe -as well as any advice you may have for retirees during these tumultuous times. Thank you.

[@hold.aaronnorman]

Very good video. Thanks Larry!

[@yiayiaapril9151]

Wow great information! Thank you!

[@Fortefinancialmortgage]

As the owner of a mortgage company I would welcome a debate on this. The point of this is for people to pay off high interest debt at much lower rates and payments not to transfer wealth to banks. Happy to discuss and help educate you and your audience further as I do on my channel

[@rphrules1]

Interesting. If this is the case, I wonder if it will further impact housing supply issues? I’ll go to your channel and watch.

[@siddreddy1416]

Mortgage itself is a scam. Sorry but it’s true. Think for urself people. Do the math and run the numbers. Interest and inflation is just a way for the powers that be to make money of the real working class. It’s a glorified criminal mafia with govt backing

[@andyholder6039]

Please drain that equity folks. I need you maxed out. I'm very patient and debt free. Let's practice discipline and stack interest earning cash.

[@oneisnone7350]

This is simply trying to create another housing bubble.

[@leondonald]

I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.

[@donna_martins]

it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.

[@Walter_hill_]

well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.

[@Robert_Seaman]

Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.

[@ilyaveysman.]

this is all new to me, where do I find a fiduciary, can you recommend any?

[@Robert_Seaman]

'vivian jean wilhelm' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@Mechulus]

The inflation this will cause will utterly crush the lower class (who are already renters and cannot use this 2nd mortgage), whilst ensuring the middle class will enter the lower class when they lose their home to the bank / IRS. In the short term, it seems like a good time to be in the stock market (particularly the banking sector). Just stay away from banks with lots of commercial property loans. Those banks are done for when interest rates inevitably rise.

[@crypto_chick_]

The only question is, what is the timeframe? How long will it take to see this all play out? They have the 400$ a month mortgage assistance right now too. They’re doing whatever they can to get ppl to buy homes then default on them.

[@DameTryvHJ]

I'm so confused why we're always supporting the secondary market. GSES such as Fannie Mae and Freddie Mac are government sponsored entities, not the government. It is time for people to write letters to the FHFA.

[@debbieramsey8933]

Thank you!!! I’m a senior with $ issues, was thinking about a HELOC-not now!!! God help us all!

[@IamCurrentlyAscending]

"You'll own nothing"...eventually.

[@anapantz]

It's so awesome to see so many people who know what's going on. The more people wake up, the less likely they will be able to fully execute their agenda.

[@jackblack3886]

Just found your channel. Common sense analysis! Im now subscribed!

[@josephbattisto8294]

Great analysis, Larry, and I am happy to be a new subscriber.

[@bell1435]

2:31 700 billions in 2008 and 350 billions equity outstanding right now BUT how many mortgages in the market are we talking about in each case?

[@waynesutherland-rs6ct]

a line of credit loan is usually simple interest. could be used to pay 10% of the first mortgage which would pay down the former in 10 years.

[@ImprovisedExpletiveDevice]

no. Fixed rate mortgages are already simple interest. Look at any repayment schedule.

[@j3ffn4v4rr0]

Is it likely that these new secondary mortgages would be fixed rate or adjustable?

[@SPM-tv]

I heard most mortgage applications these days were 2nd mortgages anyway. Are people going to have to qualify for these loans or are they automatically approved?

[@jeremylundeen9798]

If you can afford the mortgage it doesn't matter if the loan is bigger than the value of the home. It will reverse again. It's just a matter of waiting.

[@Honeycomblife]

Sounds predatory

[@edcleaves3957]

Thanks Larry - great info.😊

[@SHabirAhmed-mw8ob]

Whats the point of having so much equity in your home if you dont tap into it?

[@detroit_bum5966]

As a current mortgage payer, I have no desire to take out a loan like this. I'm skeptical of the potential demand for this "financial product"

[@jdogsupreme]

Would like to know how best to position oneself given the upcoming change. What if you are a home owners with no mortgage? What is if you are an investor looking to position oneself in a way to take advantage when this change comes?

[@LarryCheungCFA]

I would say definitely don't convert your asset into a liability using the secondary mortgage, and wait for the Fed to cause dislocations in housing before touching the property sector

[@bensavage6389]

But it's only for Freddy Mac loan holders. Freddie Mac alone might account for just around 20-25% of the total mortgage market, so it's very limited.

[@colinscrypto3307]

No correction as long as institutions can keep inventory off the books.

[@LindaWalker-xr3vx]

Allow me to say when the dust settles foreclosures will be astronomical and as usual the rich will get richer and the poor will become poorer and of course you don't have to be a chest player to see that this was strategically orchestrated.

[@LarryCheungCFA]

Well said !

[@Ella-Bella2024]

You're so right, Linda. And I have positioned my self to get richer.

[@Eag757]

As an analyst the globalization is about gains and profits, preventing 2008 bubble. Instead killing the homeownership wealth transfer. Folks that offer more to home than worth are hurting most.

[@Joesire]

Just don't take out a second mortgage then right?

[@LarryCheungCFA]

People need liquidity. Sometimes, it must be used

[@Ella-Bella2024]

Right. Become debt-free, establish and emergency fund and amass wealth. Stop borrowing money. Pay off your home, don't borrow against it.

[@ElleKay4Life]

God bless Dave Ramsey. I am debt free including my home. That man has instructed millions on how to avoid this type of thing.

[@user-zu4pm2lr8s]

what. thats the worst thing to do in this economy and any time.

[@atbhill]

Invest in lead life ain’t going back to normal fools

[@Ricgibs]

From $7K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me

[@waynes4369]

I agree just reached my goal of $100k monthly trade earnings. Setting realistic goals is an essential part of trading

[@nissan38p69]

Please educate me, i'm willing to make consultations to improve my situation

[@Melbn-di6mi]

Get yourself someone like Stacey Macken who understands the market very well and is also a professional in placing trades. That's the key

[@Kristenshwan]

Stacey's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her signals are top notch .

[@adamdouglas9888]

Wow! Kind of in shock you mentioned expert, Stacey Macken. What a coincidence!!

[@AnnieEwing33]

Home equity loans aren't new, what makes this different?

[@BridgetMiller-]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[@berniceburgos-]

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@berniceburgos-]

I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.

[@isaiasgarza5721]

This is not going to bring home prices down. This extra liquidity is very inflationary and many will lose their jobs homes, and no benefit. Timing is everything. Now one has two payments to make. This can work but inflation has to come down to less than 2 % . Good idea but not anytime soon. Great video .

[@rossg8]

we are already at 2% inflation (if you use european model to measure inflation, which is more accurate). The way CPI is calculated doesn't show it yet. Look at deutsche bank recent report. Indicating inflation will re-accelerate suggests people have tons of money they will be spending, which the current data just doesn't suggest.

[@joannabusinessaccount7293]

Really? Already at 2% inflation? So how come a meal at McDonald’s now is $12? A bag of nuts at an airport is $15? A cheap hair cut at Supercur is $27?

[@rossg8]

@@joannabusinessaccount7293 prices you name have nothing to do with todays inflation. 2% is current rate of increase. The big inflation which led to “$12 mcD meal, etc” are all a product of inflation past 2 years. If you expect prices to come down, you will need DEflation, which at this point can only be achieved if there is mass unemployment

[@MrSteeDoo]

@@joannabusinessaccount7293 McDonald's charge that much because PEOPLE will pay that much.

[@GEORGEEEJ]

Good report. The stimulus package spiked “Greedflation” rather than inflation. There are many issues triggering inflation like the endless wars etc. It seems like we are nickel and dime to death here in the US. Subscriptions, outrageous internet and entertainment expenses, etc, etc etc. I feel that the gross mismanagement of foreign policy, and the US “bullying” through US dollar sanctions on so many other countries they have now banded together forming BRICS, which will certainly challenge the USD hegemony. This could be a serious impact each US Citizen’s lifestyle.

[@mm-tc3kt]

How will a secondary mortgage allow homeowners to use their "old" rate ? I've never heard of a HELOC or a Home Equity loan rate approximate the primary mortgage rate. Second, banks won't lend unless the borrower has sufficient income to service all the debt. So, will the stimulus affect mainly those borrowers who lose their jobs after obtaining the second mortgage and go into default ?

[@LarryCheungCFA]

Yes it will allow to use the old rate

[@ImprovisedExpletiveDevice]

@@LarryCheungCFA Well that does make it make more sense if you invest the money and don't consume it. That is not the intent of the instrument but that is what I would do.

[@craigsimons4930]

I guess I'm not getting it. Home equity loans and HELOCs have been around for decades. What's different now?

[@misterogers9423]

Despite the satirical and hyperbolic tone, I agree with the broader message. This whole situation seems way more like the 80s overall with the affordability of the 08/09 sprinkled in. As someone who works in the industry, the fact that far fewer loans are adjustable is also factor as well as much tighter lending standards with Dodd Frank. Any predicting a copy and paste repeat of the 08/09 crash will be straight up wrong. Inflation is way different, employment is currently decent, and the banks have somewhat learned from their mistakes. So I predict the next crisis will be 80% 1980's style with about 10% from recent trends and 10% from other things and 08/09 bank/lender related issues. That being said due to the affordability and more connected markets and past learned mistakes that 80s fed chair made, I doubt we will ever get inflation or rates as high as the peak of that crisis. However if they cut rates or inject in money with the current trends, we could have taste of this for sure. If am I wrong and this become worse than the Carter era economy with things being way less affordable now - it will be a horrendous sight to behold. This helicopter money needs to stop and the fed needs to stand strong on rates and not cut things until inflation goes down or we will have an 80s style inflation bomb.

[@Newlinjim]

China letting their bond holdings run off, Japan can’t afford to maintain their purchasing of U.S. debt, that leaves the FED in a box. He either follows his mandate or is buyer of last resort which would inflationary.

[@siddreddy1416]

Banks learned their mistakes? This is all by design and done by them on purpose. Them being stumbling buffoons is just a cover. A common tactic thru history to deflect a more discerning eye.

[@johndrew9382]

We don’t have a shortage of demand, of buyers. We have a shortage of supply. We need more homes built. Local government is where the rubber meets the road, that has the zoning authority, and says no too frequently to new development.

[@seanmcgee3770]

If this extra liquidity is going to be available, the banks still require a debt to equity ratio before handing out any money. Not as many people are going to qualify for this program as you think. Since the rise in inflation recently, people have higher expenses and higher debt service. Hard to believe this liquidity option will happen at any large scale.

[@KarlsLabReport]

Wow - this is unbelievable!

[@cheersmodreams691]

People with cancelled summertime projects and vacations because of inflation, may take some cash out to fulfill those goals. This would help fuel goods inflation, which is already beginning to turn up, and travel services inflation which is beginning to turn down. Then there are retired folk with little left on their mortgages (and a lot of trapped equity) who may take some cash out to help support their depleting nondiscretionary budgets. All-in-all, we should see interest rates move up during this period which would become a headwind for stocks.

[@ajwilson313]

The "progress" they've made?!! What a joke.

[@chrisbecker3629]

Imagine if you could loan hundreds of thousands of $ that didn’t exist and the person paying you back is doing so with actual money. That would be great.