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When do you think it will all come crashing down?
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Mrs213
????????
Member since 2/09 18986 total posts
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When do you think it will all come crashing down?
The crazy inflation, housing prices out of control, stimulus checks for everyone. I have a bad feeling there will be a worldwide economic crash or even a depression. Thoughts??
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Posted 7/26/21 9:16 PM  |
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LittleDiva
LIF Adult
Member since 9/11 1284 total posts
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When do you think it will all come crashing down?
When they are all voted out
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| Posted 7/27/21 6:22 AM |
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RomeyT
LIF Infant
Member since 1/21 355 total posts
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Re: When do you think it will all come crashing down?
Posted by LittleDiva
When they are all voted out
Honestly, probably sooner. This administration is a disgrace.
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| Posted 7/27/21 7:25 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: When do you think it will all come crashing down?
Inflation really isn't out of control. Yes, there are costs that have risen but some of those costs are indicative of a healthy and robust economy. The rise in housing prices is as reflection of the really cheap money out there. We are so used to cheap money as interest rates have been so low for over a decade that 50 bpts gets people nervous.
Gas prices are rising all over the world and that is due to the lifting of restrictions and more demand. Summer formula for gas is also more expensive.
Supply chain bottle necks are alleviating. Car companies and chip makers feel that they will have resolved the chip shortage by the end of the summer and will be increasing production up to 60%. If we are indeed in a mid cycle...that will last an average of 7-8 years so I am not sure a shoe is going to drop any time soon.
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| Posted 7/27/21 8:59 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19460 total posts
Name:
L
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Re: When do you think it will all come crashing down?
House prices have stabilized to a new normal. The issue is that more people have left the city. Until people want to use public transportation again, roads will be busier which increases demand for gas and the prices increase. The airlines have already said today they see increased pricing for gas. That is not coming down for a while. Car companies are saying that increased demand is expected for the rest of the year. So that will again negatively impact cars and they will cost more. I think we are in this era of inflation for at least a year.
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| Posted 7/27/21 2:39 PM |
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JennP
LIF Adult
Member since 10/06 3986 total posts
Name:
Jenn
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Re: When do you think it will all come crashing down?
Posted by CookiePuss
Inflation really isn't out of control. Yes, there are costs that have risen but some of those costs are indicative of a healthy and robust economy. The rise in housing prices is as reflection of the really cheap money out there. We are so used to cheap money as interest rates have been so low for over a decade that 50 bpts gets people nervous.
Gas prices are rising all over the world and that is due to the lifting of restrictions and more demand. Summer formula for gas is also more expensive.
Supply chain bottle necks are alleviating. Car companies and chip makers feel that they will have resolved the chip shortage by the end of the summer and will be increasing production up to 60%. If we are indeed in a mid cycle...that will last an average of 7-8 years so I am not sure a shoe is going to drop any time soon.
This.
Modern data shows that the US economy typically expands under Democratic presidents and contracts under Republican presidents because Democratic presidents are more likely to enact budgets, policies, and legislation that are favorable to middle and lower income people, who are more likely to spend that extra money, growing the economy.
That often takes time to happen as administrations change, but it is happening a little faster than usual here for some of the reasons discussed above along with the ambitious legislation passed a few months ago.
According to my realtor (a family member is moving) the market is just starting to slow ever so slightly. It's still a seller's market; there is just a little less frenzy. The fundamentals of the RE market are also not like they were in 2008 in terms of the creditworthiness of the buyers out there and the supply of houses due to building costs so there won't be the same type of crash. It will be a slower leveling out.
Barring some new catastrophe, I expect some type of economic growth as long as we have a Democrat in office, ending roughly 1-3 years (depending on policy changes) after electing a Republican president.
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| Posted 7/27/21 3:36 PM |
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