The last GFC for real estate was fueled by bad debt . This one will be driven by continued high interest rates and rising insurance costs
@DavidEvans9 So many people are not paying to the insurance issue. I guess they think the govt will bail em out
@DavidEvans9 The last GFC was fueled by floating rate subprime loans (interest rates). Fed hikes in 2004, paused in 2006, and poor creditworthy borrowers stopped paying their mortgages because they went from 4% to 7.25% rate payments. Sounds familiar?
@DavidEvans9 Respectfully disagree - this crunch will not become a full on financial crisis. The GFC was the very real risk that an opaque web of risk sharing and leverage on top of leverage would take down the system. This is about P&L items and boring balance sheet losses.