this isn't just affecting the lowest/most desperate classes, though they're certainly the ones who are going without food. personal savings are on their way to record lows and debt is at record highs. we're 5-6 months into a new financial crisis and wall street hasn't caught up to the picture. the panic selling and layoffs will come later this year when the middle classes start to default on their debt in order to afford food. the fed is laughably late to raise interest rates if they wanted to prevent a recession. now they need to do it anyway so people don't have to break out the wheel barrows to afford food and pay rent. but those rates rising now -- rates that will rise even if the fed does nothing because it's bond holders demanding a return higher than inflation that are driving up rates -- will force people to default sooner. home prices are on their way down and, within a year, people are going to be underwater on their mortgages again while new buyers are staring at 7+% rates on loans.
this is like watching a trainwreck in super slow motion. the denial from the stonks people/real estate investors is really funny and I'm hate reading :reddit-logo: just for the schadenfraude, as the game of musical chairs plays out and investors are forced to run for the exits.
I think the major hedge funds took all cash positions earlier this year - is this what you're referring to? cause yeah, the major financial institutions are absolutely going to try and profit on this, even as the crisis ripples through the industry. anyone who didn't exit the market at the start of the year is absolutely not going to be able to cash out without losing significant money - it's these people who are going to be left holding the bag when the music stops and the fire sales begin.
this isn't just affecting the lowest/most desperate classes, though they're certainly the ones who are going without food. personal savings are on their way to record lows and debt is at record highs. we're 5-6 months into a new financial crisis and wall street hasn't caught up to the picture. the panic selling and layoffs will come later this year when the middle classes start to default on their debt in order to afford food. the fed is laughably late to raise interest rates if they wanted to prevent a recession. now they need to do it anyway so people don't have to break out the wheel barrows to afford food and pay rent. but those rates rising now -- rates that will rise even if the fed does nothing because it's bond holders demanding a return higher than inflation that are driving up rates -- will force people to default sooner. home prices are on their way down and, within a year, people are going to be underwater on their mortgages again while new buyers are staring at 7+% rates on loans.
this is like watching a trainwreck in super slow motion. the denial from the stonks people/real estate investors is really funny and I'm hate reading :reddit-logo: just for the schadenfraude, as the game of musical chairs plays out and investors are forced to run for the exits.
deleted by creator
I think the major hedge funds took all cash positions earlier this year - is this what you're referring to? cause yeah, the major financial institutions are absolutely going to try and profit on this, even as the crisis ripples through the industry. anyone who didn't exit the market at the start of the year is absolutely not going to be able to cash out without losing significant money - it's these people who are going to be left holding the bag when the music stops and the fire sales begin.