2020 US Presidential Election

[PeteJ]

Prices are uneven, it depends on the city. In Madrid I would say prices are stable. In San Sebastián prices probably went up. In general I think prices are stable or going down very slowly.

There seems to be a global real estate bubble, fuelled by the irresponsible actions of central banks (FED, ECB):

Pandemic fuels broadest global house price boom in two decades

Spain has areas that are as congested and densely populated as NYC or Shanghai (near Barcelona for instance: L'Hospitalet de Llobregat - it's a built up ugly town, looks a bit like China actually), and places where no one lives (maybe 85% of the country's surface). In the "empty Spain" there are less inhabitants per sq km than in Lapland. There may be opportunities in some spots of the empty Spain for rural entrepeneurs or online businesses (logistics).

I would say some Eastern European countries have retained some industry, as subsidiaries of German producers, or linked to German manufacturing. Maybe the Czech Republic or Poland still have some industry. Switzerland is another country that maybe still makes some stuff even if it is just watches... (luxury ones). Spain produces few things really, relative to the size of its economy. In my opinion a developed country should not focus on just serving beers to tourists. It's not a great plan for the future.

I think Spain should have moved on to technology, IT services, defence (this is an ok sector in Spain), aerospace, etc It would be great if capital was invested in industries that may have a future even if there is an economic downturn.

Tourism after all depends on the economic cycle and people cut their spending first on unnecessary expenses, stuff that is not essential like going on holiday or eating out.

The health care system is pretty good, but now the COVID-19 incidence in Spain is around 700 cases per 100.000 inhabitants. In Barcelona is close to 1.000 cases per 100.000 inhabitants, so hospitals are really overwhelmed, postponing surgeries etc just to take care of COVID-19 patients.

Still, our government opened up the borders to tourism without any other consideration than the economy.

Have you visited any of the hospitals or do you just believe the media unconditionally?

 

[Juan]

Have you visited any of the hospitals or do you just believe the media unconditionally?

Yes, I have used hospitals in Spain, and also know some nurses and doctors who work in public healthcare.

Right now the median occupancy of ICU is around 20%. This means in some hospitals is way beyond that mark, and can stand at 50%, which is a lot.

Healthcare workers are overwhelmed, and the government has laid off people who were temporarily working to contain the pandemic.

I would say now it is not safe to travel, let alone going to the Balearic Islands, like half of Europe is doing.

 

[Luman]

Did anybody else watch Biden on television today? It is difficult to comprehend the fact that this man is the leader of the so-called free world. He has about as much leadership capability as a fire hydrant. If he leaves, though, a worse situation will be presented - a cackling nincompoop who sold her body for political appointments, as his replacement.

 

[kingsfan]

True. Again, though, my question remains unanswered.

What was the question again? I'm sorry, I'm terribly forgetful.

 

[Juan]

Central banks are going to provoke the worst economic crisis ever seen:

Global house prices: Raising the roof

'It has never been like this': US house price spiral worries policymakers
FT Series: Pandemic-fuelled boom boosts smaller urban areas but revives affordability concerns

"Nationally, house prices in May were 16.6 per cent higher than the year before, according to the latest S&P CoreLogic Case-Shiller index update — the biggest jump in more than 30 years of data and up from 14.8 per cent in April."

And still Powell and the FED do not see inflation

 

[kingsfan]

Central banks are going to provoke the worst economic crisis ever seen:

Global house prices: Raising the roof

'It has never been like this': US house price spiral worries policymakers
FT Series: Pandemic-fuelled boom boosts smaller urban areas but revives affordability concerns

"Nationally, house prices in May were 16.6 per cent higher than the year before, according to the latest S&P CoreLogic Case-Shiller index update — the biggest jump in more than 30 years of data and up from 14.8 per cent in April."

And still Powell and the FED do not see inflation

Housing prices are out of control. Are we seeing the end of the middle class owning homes?

 

[Luman]

If people cannot afford a home, then they should not own one. The housing situation was fine in the U.S. until the government forced the banks to give mortgages to people who were not qualified, then the banks were blamed when they foreclosed. Prior to this, bankers were always very conservative about loans, and that is the way it should be.

 

[Juan]

Housing prices are out of control. Are we seeing the end of the middle class owning homes?

This is just the result of the FED purchasing 40bn dollars of mortgage-backed-securities every single month. The market is rigged in favour of banks and the rich (the billionaires), and the rest of people have to pay the bill.

 

[Juan]

If people cannot afford a home, then they should not own one. The housing situation was fine in the U.S. until the government forced the banks to give mortgages to people who were not qualified, then the banks were blamed when they foreclosed. Prior to this, bankers were always very conservative about loans, and that is the way it should be.

Maybe you are talking about what happened in 2008, but now it is the FED who has created an unsustainable and gigantic real estate bubble.

The US is, as always, heavily indebted and dependent on credit from the Chinese.

The "American consumer" is just a slave of central banks, and has been sold that tale of "freedom" while being tied to a mortgage for 30 years to be able to afford (maybe yes, maybe not... 30 years is a long long time) a mortgage.

Jay Powell, in 2013, stood for exactly the opposite politics he is putting now into practice. So the guy is just sold to the government and to Silicon Valley billionaires. He is "ruling" the FED in the benefit of a few very rich people, and ignoring 99% of the population. In Europe the situation is the same.

Interest rates decisions are rigged and markets are manipulated by central banks, fueling and increasing inequality.

 

[Luman]

Maybe you are talking about what happened in 2008, but now it is the FED who has created an unsustainable and gigantic real estate bubble.

The US is, as always, heavily indebted and dependent on credit from the Chinese.

The "American consumer" is just a slave of central banks, and has been sold that tale of "freedom" while being tied to a mortgage for 30 years to be able to afford (maybe yes, maybe not... 30 years is a long long time) a mortgage.

Jay Powell, in 2013, stood for exactly the opposite politics he is putting now into practice. So the guy is just sold to the government and to Silicon Valley billionaires. He is "ruling" the FED in the benefit of a few very rich people, and ignoring 99% of the population. In Europe the situation is the same.

Interest rates decisions are rigged and markets are manipulated by central banks, fueling and increasing inequality.

I am not a slave to anybody and if I cannot afford something, I do not purchase it. I never pay things off, over time. If people want to go into debt, and even become homeless by living beyond their means, having children that they cannot afford, etc., that's their problem and not mine. Stupidly breeds more stupidity.

 

[Juan]

I am not a slave to anybody and if I cannot afford something, I do not purchase it. I never pay things off, over time. If people want to go into debt, and even become homeless by living beyond their means, having children that they cannot afford, etc., that's their problem and not mine. Stupidly breeds more stupidity.

Massive stupidity as a reaction of nonsensical interest rates and QE, courtesy of incompetent central bankers.

People are given firepower and they play with it.

Tell someone in NY or SF or in London, or Paris, to buy a home using cash, with prices that have rocketed as a result of wrong economic policies and irresponsible central bankers.

The trick is selling them 30 year mortgages on overpriced property (due to the huge real estate bubble) so that they are tied to a bunch of bricks for their whole lives. Once that debt is created, that mortgage, bankers play with it in secondary markets, they securitise it, or assign it, etc.

The biggest industry in the US is creating debt that cannot be paid.

 

[kingsfan]

If people cannot afford a home, then they should not own one. The housing situation was fine in the U.S. until the government forced the banks to give mortgages to people who were not qualified, then the banks were blamed when they foreclosed. Prior to this, bankers were always very conservative about loans, and that is the way it should be.

???

 

[Exit]

I agree with Juan that today's trends in markets are very dangerous, it will be completely random if this pans out okay or not.

Why do we elect people that's dumber than the ordinary Joe...?

This is the time to start put on brakes gently...

But no one gives a shit. Money & glory today is too tempting.

 

[Luman]

Massive stupidity as a reaction of nonsensical interest rates and QE, courtesy of incompetent central bankers.

People are given firepower and they play with it.

Tell someone in NY or SF or in London, or Paris, to buy a home using cash, with prices that have rocketed as a result of wrong economic policies and irresponsible central bankers.

The trick is selling them 30 year mortgages on overpriced property (due to the huge real estate bubble) so that they are tied to a bunch of bricks for their whole lives. Once that debt is created, that mortgage, bankers play with it in secondary markets, they securitise it, or assign it, etc.

The biggest industry in the US is creating debt that cannot be paid.

All of this happened because the banking rules were changed by the government, to make it simple for unqualified people to get mortgages. Once that was done, it set off a chain reaction which included trading against the market. Both Democrats and Republicans did this, including McCain, a Republican, and Barney Frank, a Democrat.

There are chumps who believe that everybody has a right to own a home, or two, regardless of the consequences of being unqualified, financially. I have no sympathy for those who fall for this. I'm not responsible for it, and those that are victimized should have been smarter.

 

[Oabmarcus]

All of this happened because the banking rules were changed by the government, to make it simple for unqualified people to get mortgages. Once that was done, it set off a chain reaction which included trading against the market. Both Democrats and Republicans did this, including McCain, a Republican, and Barney Frank, a Democrat.

There are chumps who believe that everybody has a right to own a home, or two, regardless of the consequences of being unqualified, financially. I have no sympathy for those who fall for this. I'm not responsible for it, and those that are victimized should have been smarter.

The problem with you is that you have way too much common sense...

 

[kingsfan]

All of this happened because the banking rules were changed by the government, to make it simple for unqualified people to get mortgages. Once that was done, it set off a chain reaction which included trading against the market. Both Democrats and Republicans did this, including McCain, a Republican, and Barney Frank, a Democrat.

There are chumps who believe that everybody has a right to own a home, or two, regardless of the consequences of being unqualified, financially. I have no sympathy for those who fall for this. I'm not responsible for it, and those that are victimized should have been smarter.

How does one become qualified, financially? What are the steps to being able to afford a $775,000 home in Los Angeles County or a $895,000 in Orange County?

 

[Juan]

All of this happened because the banking rules were changed by the government, to make it simple for unqualified people to get mortgages. Once that was done, it set off a chain reaction which included trading against the market. Both Democrats and Republicans did this, including McCain, a Republican, and Barney Frank, a Democrat.

There are chumps who believe that everybody has a right to own a home, or two, regardless of the consequences of being unqualified, financially. I have no sympathy for those who fall for this. I'm not responsible for it, and those that are victimized should have been smarter.

Still, central banks are not doing their jobs, which is keeping inflation at bay. Neither the FED nor the ECB are doing what they should, which is raising the interest rates.

 

[Wrfortiscue]

How does one become qualified, financially? What are the steps to being able to afford a $775,000 home in Los Angeles County or a $895,000 in Orange County?

That's ridiculous lol.

What is that, a 2 bedroom?

 

[Exit]

That's ridiculous lol.

What is that, a 2 bedroom?

Probably just one bedroom or a studio

 

[Luman]

How does one become qualified, financially? What are the steps to being able to afford a $775,000 home in Los Angeles County or a $895,000 in Orange County?

The median price of a house in Brooklyn, NY, is now $900,000.

If there was no market for these houses, they would never be sold, so obviously people are buying them. If you cannot afford to buy a home in the most expensive cities in the country, then you can simply rent an apartment there, or buy a house somewhere else, that is affordable. I've rented my whole life, in NYC, as most people here do, and there's nothing wrong with it. Here are the cheapest states to buy a house:

https://www.apartmenttherapy.com/cheapest-states-to-buy-a-house-36672551

 

[kingsfan]

That's ridiculous lol.

What is that, a 2 bedroom?

Those are the current median home prices for each county.

 

[Exit]

The median price of a house in Brooklyn, NY, is now $900,000.

If there was no market for these houses, they would never be sold, so obviously people are buying them. If you cannot afford to buy a home in the most expensive cities in the country, then you can simply rent an apartment there, or buy a house somewhere else, that is affordable. I've rented my whole life, in NYC, as most people here do, and there's nothing wrong with it. Here are the cheapest states to buy a house:

https://www.apartmenttherapy.com/cheapest-states-to-buy-a-house-36672551

Problem is lending and borrowing without common sense... Here in Norway people increase house mortgage to buy Tesla's...
Very smart

 

[Luman]

If a young couple with graduate degrees, gainfully employed, works hard and sacrifices while saving at least 50 thousand a year, they should be able to buy a house in five years, almost anywhere.

 

[Juan]

The median price of a house in Brooklyn, NY, is now $900,000.

If there was no market for these houses, they would never be sold, so obviously people are buying them. If you cannot afford to buy a home in the most expensive cities in the country, then you can simply rent an apartment there, or buy a house somewhere else, that is affordable. I've rented my whole life, in NYC, as most people here do, and there's nothing wrong with it. Here are the cheapest states to buy a house:

https://www.apartmenttherapy.com/cheapest-states-to-buy-a-house-36672551

There is a market for those houses because in the US banks lend more money than in Europe, and because central banks have pushed interest rates to new lows, an artificial level that cannot be sustained, and that has generated a global real estate bubble.

If prices were rampant in NYC, LA and SF we could say that people earn more on those cities, or compete for property ther, but prices are rampant everywhere in the world.

My friend bought a one bedroom apartment in Oslo like 5 or 5 years ago, for 250.000 euros. Today a property like that is advertised for sale at 450.000 euros. That's just nonsense.... we are talking about like 55 sq meters.

 

[Lilah]

How does one become qualified, financially? What are the steps to being able to afford a $775,000 home in Los Angeles County or a $895,000 in Orange County?

I think couples with two good incomes who have been working for awhile and received pay increases (people who work in higher paid fields such as accounting, IT, nursing, etc.) could qualify for a mortgage around those amounts; it's not impossible.

However, most singles are definitely priced out. Personally I think homeownership is overrated. In the end homeowners are slightly better off when compared to renters because they have built equity, but they have had a lot of expenses along the way. A home can be a money pit. Adjusted for inflation and interest payments, the equity is worth less.

 

[kingsfan]

Renting has been a most horrible experience. Sorry. Everyone should be able to own a home.

 

[Luman]

Renting has been a most horrible experience. Sorry. Everyone should be able to own a home.

I disagree with this entirely, I have been renting my whole life. I do not want the responsibility, or the expense of maintaining a house with plumbing, roofing, windows, painting, flooding problems, fire insurance, etc.

If you want to buy a house on a shoestring budget, though, there are very cheap places to live.

 

[PeteJ]

Renting has been a most horrible experience. Sorry. Everyone should be able to own a home.

Yep. Plus, there's other places to live with cheaper homes.

 

[Luman]

We can now look forward to having illegal alien restaurant workers demanding to see our CDC vaccination cards, telling us whether we can be served or not.

The idiot VP that Biden chose for us, is doing absolutely nothing about the border crisis, or the low rate of vaccinations in many areas.

 

[Juan]

I disagree with this entirely, I have been renting my whole life. I do not want the responsibility, or the expense of maintaining a house with plumbing, roofing, windows, painting, flooding problems, fire insurance, etc.

If you want to buy a house on a shoestring budget, though, there are very cheap places to live.

People are priced out and cannot buy a house because central bankers have manipulated and altered the economy.

This is no longer capitalism, it is just socialism, where 99% of people have to pay tribute (in form of inflation and artificially low interest rates) to a few billionaires. This is the return to the Ancient Regime: it's like going to France in the XVIII century, prior to the French Revolution. And we now how everything ended: there was a revolution and people started getting beheaded, the king no less.

Soon people would stop sitting at home and will go pay a visit to the ECB in Frankfurt, and to the doors of the FED too.