When the bough breaks.. stock market, housing, collector car

Is it just me, or just my area, but I feel we are living in a false sense of economic state of health.

How in THE hell is the stock market doing this well with so many unemployed, under-employed, living off unemployment, living off stimulus checks people in this country???
This virus has killed more independent businesses than it has taken lives.
Inflation is rocketing out if control, housing market is a bidding war to see who can offer the MOST over asking price, the used car market is a joke, I suspect not enough people working who can afford new, so majority is forced to buy used, which is creating a supply/demand issue, hence driving the costs and availability of used vehicles through the roof.
Don't get me started on classic car values, auction results,etc.
Junk, un-restorable project car prices are crazy, because you can't afford to restore them anymore, and driver quality and semi restored cars are at equally crazy highs.
I don't get it. I think we have a false sense of security, when is the cradle going to come crashing down? When will this bubble burst, and how bad is the crash going to be??
I think it's coming, and it's going to be waaaaay worse than it was back in 2009.
People, or the Banks anyway, are going to be stuck with the paper on a 275,000 mortgage, where the house is going to only be worth 125,000 once things crash and the dust settles.
Your thoughts guys???

 

I agree Tom. It makes no sense for this to be occurring during a pandemic that has cost so many jobs. The only thing that I can say is my financial guy that manages our 401k seems to think we are in for a good year this year, but who knows after that. I’m hoping to time it right to get out of the market before the crash, but he seems to think it will be awhile...

 

The global banking elites have created a completely baseless economy worldwide. They can’t keep the illusion up much longer. This is why they are trying to complete the “Great Reset”, a way to avoid being held accountable for essentially devaluating each currency. Only once this system collapses will people see that they were tricked the whole time. Each war was created to make money, each depression and recession was caused by the bankers. The private western central bank can’t stay afloat much longer, the whole system is imploding, finally.

Way back in 1791 the Rothchild family started the Central Bank and in 1913 the same people created the current “federal reserve bank”. Only once this corrupt system is eliminated will a real functioning economy prevail.

The good news is that once this system collapses completely and people see how badly they were duked there will be a better system built, complete with checks and balances.

 

I'm half tempted to sell my place. We refinanced last summer. The house was appraised for nearly 100k more than we paid and we paid a substantial chunk of it off in the meantime. It would be a gamble but take the money and rent a place for a couple years and let the market return to normal. Try to invest wisely and they pay cash for a place. The housing market will collapse. Just about everything sold in the last year will be under water if it was financed. Lots of foreclosures/short sales will be happening in the next five years...

 

I normally take the position that the vast majority of people want to work, but this time I'm not so sure. Example: Both Waste Pro in Lee County and Waste Management (Collier County) are desperate for trash truck drivers. I realize that driving a trash truck is not the childhood dream of most people, but in both cases the trash trucks are what I call "one armed pickypackers" that lift a standardized container into the truck. There is no heavy lifting and at least here in Collier county the trucks are in good shape and clean. The salaries start at about $33,000 per year and rise to $54,000 over time. Waste management will pay for your CDL training and provide a truck free for the CDL driver's test. Waste Pro will fully reimburse the new hire for the test and training after the driver works for them for a year. They simply cannot get drivers. Wanna job? Come to sunny SW Florida.

 

I agree... and this is why there is a push for basic universal income worldwide... if people don’t wake up very quickly this is the future the global bankers have in store for us. They even have slogan “you will own nothing and you will be happy”

 

Hoping material cost don’t become the “ norm
“ or no blue collar worker will ever be able to afford a home .

 

The stock market is nothing more than an illusion of a free and open market. A dog and pony show. Just a distraction, another TV program while they further their monopoly on the economy.

 

Started looking for a retirement/lake house in Jan. Overheated to say the least and lenders aren't real eager to jump into second homes. Had mortgage commitment go from 20% down to 30% down with 24 months of reserves and 401k doesn't count as reserve even though we're eligible to draw penalty free. Doubled my cash to close requirement so we are on the sidelines for a while unless the perfect house comes up.

 

I agree it can be used like any other tool to make gains, I didn’t say that there wasn’t any money to be made on the market.... Its just that most people don’t understand that it has very little reflection of the actual overall economy.

At the end of the day the only thing that holds true value is hard assets. Gold, silver, real estate, and goods that people need. If money has no backing and they are allowed to print money un checked most investments are as uncertain as gambling.

 

Read an article yesterday about restaurants begging for workers. They can't find them. Some moved away, but alot are doing better with unemployment and the enhanced unemployment which is non taxable at the federal level. Go to work and make X, stay home and make X+. Easy decision for most.

 

...yeah, but it's not a sustainable career solution. Kinda like making the lottery part of one's employment/retirement strategy...

 

Right but few people realize how close we are to global guaranteed basic income. If people don’t stand up soon this will be the new reality. It’s the 2030 agenda.

 

Tom, the housing market you speak of is happening in Colorado big time for a variety of reasons. I see you are from Michigan(?) is your observation a reflection of what’s going on in that state as well?

Steve weim55 Colorado

 

Part of the housing issue is the cost of materials. Wood, especially, is through the roof. My house has gone up over 50% in 15 years and houses here are also selling for over asking price. It is nuts.

 

The stock market is, in general, forward looking. Consider the interest rates, profits, amount of free capital etc in 6 months. Since these are always assumptions any surprises, good or bad, usually cause the market to go down. The only impact people working has is the number of people who can buy goods. If too many people are working that may cause inflation, which will drive the stocks lower. Crazy, huh?