The Economic Cycle is BROKEN: Will Rates Stay at 7%? (Recession Risks)

[@TechOutAdam]

Real estate is moving so fast that all you can do is adapt on a quarterly basis. Never overpay for a house and if you're flipping make sure you truly have good contractors that can give you a good scope of work with a fast turnover. I know J. said "we don't know what things are worth" but I'd argue against that because we actually do. Price is not determined by sellers, it's BUYERS that determine price. A house is only worth what someone is willing to pay. Even if that's $100k over asking or $20k below list. So the real questions is not who is selling in 2025, it's who is buying. As long as you have people with money who can buy, you'll always have the ability to do deals. I see so many listings in my market sitting there for 2-4 months. We're not in the seller's market people think we are. 2020 was 5 years ago. 2008 was 17 years ago.

[@brady_morgan]

The Economic Cycle Is Broken: This section of the video you explain very well what I have come to figure out over the last few years about what is happening to our economy. We have witnessed a massive transfer of wealth to the top over the last almost two decades now. As you pointed out, there has been a huge amount of stimulus pumped out by the government since the GFC. That money comes from all of us (tax revenues) so essentially every tax paying citizen is paying that stimulus to the country despite it being disguised as the government giving money to you. Then the wealthy elite figured out how easy it was to scam that stimulus and horde the money, hence the massive wealth growth among the ultra-wealthy, while most people have no understanding of what is actually happening because they think its all being done to benefit them. And its not just the stimulus, its the tax cuts too, which have disproportionately benefited the richest in America, but they give the little guy a few pennies so he thinks it benefits him. Trickle down economics IS the scam. Always love hearing from J, probably my favorite contributor at BP. Please get him on more often! Thanks guys!

[@Michaelbesomeone]

I always click when I see Jay!

[@tomfitz1546]

I dont think a budget cut will hurt anyone of importance the way you described

[@NeoSoulCrew]

Stop bringing up 2008. 2025 is nothing like 2008.

[@kylelesch3847]

Feel like all bigger pockets is reruns over and over, rates aren’t changing. Do something fresh not 08 like no soul said

[@Michaelbesomeone]

It’s when Jay started his career. The most important time in my head is when I started my career as well. Natural for us to start our stories there

[@TimHudson-i1w]

Your correct it will be worse out debt is 8x larger that what it was in 2008. That includes consumer debt.

[@erickestrada6782]

But why are you crying?

[@beavsqueeze]

It's got a 2 and a 0 in both years 🤔

[@elvispresley3234]

Yes, rates will stay high for a long time. Just look at the Treasury rates. The smart, sophisticated institutional money signals that the Federal Reserve has it wrong. Treasuries DO NOT lie. It is not complicated.