A New Housing Bubble And The Federal Reserve: When Worlds Collide. By Gregory Mannarino
What most people fail to realize is the Federal Reserve has been successful in creating yet another massive bubble in not just the stock market, but also in real estate-A bubble which the general public is not prepared for.
After the stock market/credit bubble/housing meltdown of 2008, the Federal Reserve began "extraordinary monetary policy," they artificially suppressed interest rates, which would open the door to re-inflating the current stock market bubble and a new housing bubble.
The actions of The Federal Reserve, if you recall, was purchase what was known at the time as "toxic assets" from the Wall Street banks, essentially freeing them from any financial wrong, they were known as "too big to fail."
By the Federal Reserve buying these toxic assets, also known as mortgage-backed security's from the banks, the Federal Reserve hyper-inflated their balance sheet, their debt load, to greater than the GDP of most countries.
The Federal Reserve bought these "toxic assets" from the Wall Street banks who were pushing the public into the street, people became homeless. Now we find out that the Federal Reserve is talking about reducing the size of their balance sheet now that they have created a market for these new "nontoxic assets," which were once known as toxic assets, or mortgage backed securities. How? By deliberately re-inflating a housing bubble...
Does anyone here reading this article find it somewhat suspicious that the Federal Reserve is now talking about dumping their balance sheet right at this particular moment in time?
Is the Federal Reserve signaling a top to the current housing market?
Why dump the mortgage backed securities now?
Are we about to witness the bursting of this new deliberately Federal Reserve inflated housing bubble?
What do you think?
Gregory Mannarino
Gregory,
I know you are new to SteemIt, but using tags in your posts that are not associated with subject of your post could get your post flagged.
There are a wide variety of tags used on SteemIt. Here is a link to some of the more popular ones: https://steemit.com/tags
For this post you could have used the tags:
money economy housing bubble fed
Using descriptive tags helps to organize the content on SteemIt and increase the search-ability of your posts.
By the way, I commented to several other YouTubers about your SteemIt video. (Its a great video!) I hope more YouTubers follow you to SteemIt.
Have a great weekend!
Steem on,
Mike
Thanks for the heads up. had no idea.
Absolutely no problem, when I was a newbie I made the tagging mistake a few times too.
Your informative posts will be a great benefit to the SteemIt community.
I am following you on YouTube and here on SteemIt too. I look forward to reading your future posts and re-steeming them to give your informative posts the widest audience possible.
In one of your recent videos you said you were going to spend some time at the pool. I know SteemIt can be addicting, but please take some time to enjoy the weekend!
Steem on,
Mike
I forgot to mention you can makeup a new tags too. Like marketreport, market-report, gregory-mannarino, etc.
You can only use one "-", hyphen, in a single tag.
Example: market-report housing-bubble
Thank you!! I really appreciate this.
Great input Mike!
Welcome to Steemit Gregory. Stephen
Thank you!!!
You are welcome. If you want to do a skype next week I am happy to bring up to speed on STEEMIT/STEEM and the mind blowing potential here when you combine the concept, methodology and technology. Stephen
Another thing that was precipitated by the housing bubble bursting was the mortgage industry being blamed. Not that it wasn't, in large degree their doing because of some questionable practices on their part, but the subprime market totally failed. This however, was due in large part to the Clinton then Bush administration easing mortgage requirements to the point one barely qualified for a mortgage. The philosophy here was that home ownership strengthened communities. This was true, of course, until the homes went vacant after foreclosure.
another great job, Greg.
Thank you
I agree you should have your own topic . . . Market-report or similar. It would be an easy place to find your work on steem.it.
Now that you have been introduced to the topic rule, the next is when/if you get flagged by one of the Steem.it whales for providing excellent content.
I know this one is silly . . . don't be alarmed . . . hopefully as the platform advances, then the flagging will follow more understandable parameters.
And that should be all the unpleasant surprises that you may encounter.
I appreciate this. Thank you.
Agreed. Anyone with notoriety or building a brand per se, should just post under their own tag first, followed by other tags more pertinent to what they are talking about. Of course that is risky, because the first tag is so important to get eyeballs. But, if you already have a name or following, it definitely helps find that person or their content.
I am no financial expert but if it looks like a duck, walks like a duck and sounds like a duck....
You are 100% correct.
Hey Greg,
I've been following you on youtube for quite a while. Glad to see you here too. Glad to offer my humble opinion on some or all of your questions.
I am also watching for a top in housing but hope we have another year or so. Plan to put my home on the market in spring or summer of 2018. In the last 2 years, housing has really appreciated a lot but mortgages are still near historic lows and it is still pretty affordable for most buyers. Dumping MSB's. Could it politically motivated? Does the fed want to make problems for the current administration?
Hope the bubble stays with us for at least another year and the current rate of appreciation continues. Of course, you can predict and event or you can predict the timing, but trying to predict both almost never works.
I am Ok with living here for a longer time if my timing is off.
The bigger problem is the overall debt in the country. Government, business and individual debt. Watch for big bankruptcies and rising rates of foreclosures.
We are existing in the biggest debt bubble the world has ever seen, and it will burst at one point, there are no exceptions, bubbles all burst.
Great to see you on steemit.
Happy to be here. Thank you.
Great Steemit video you put out this morning!
Thanks!!
Welcome to Steemit! I've been watching your video for years and it's great to have you join us here!
Thank you so so much for saying this. I plan to put out even more better info on Steemit! I am very excited.