Posted BY: Kara | NwoReport
The article highlights concerns about a looming financial crisis similar to the one in 2008, with potentially severe impacts on the U.S. economy. Drawing parallels to 2008, the article mentions investor Michael Burry’s substantial bet of 1.6 billion dollars on a stock market crash, reminiscent of his successful actions in the previous crisis.
The housing market is exhibiting worrisome signs, mirroring the conditions prior to the 2008 crash. Both residential and commercial real estate markets are under strain. Mortgage rates have surged past 7%, a level not seen in over 20 years, causing considerable distress in the housing sector. Existing home sales have plummeted by 18.9% compared to the previous year, and high mortgage rates are making housing increasingly unaffordable for many Americans. Teachers’ ability to buy homes near their schools has dropped dramatically, with only 12% capable of doing so.
The Federal Reserve’s role is contentious, as it seems poised to further raise interest rates despite the already challenging economic conditions. There are concerns that additional rate hikes could lead to even greater problems, with some economists warning that rates could reach 8%. The potential repercussions of such decisions on the housing market and the financial industry are deeply worrying.
The article concludes with a sense of urgency, stressing that the majority of Americans are ill-prepared for harsh economic conditions. Many live paycheck to paycheck, lacking a financial safety net. The anticipated economic crisis could result in job losses, home foreclosures, and heightened delinquency rates. As a result, the article urges readers to brace themselves for a tumultuous period ahead, emphasizing the need to be prepared for potentially challenging times.