All Forum Posts by: Thor Sveinbjoernsson

What do you consider fundamentals of the economy? employment? GDP? US deficit? Consumer confidence?  Because all of these are as bad as ever. 

@Account Closed Very good points there. I agree

@Account Closed I would argue that the world view of the US has never been as bad as is it right now. The US is being mocked by other world leaders. I think there are number of countries in Europe that provide even greater freedom than the U.S by providing health care for everyone (which allows people to quit their jobs, start their own business or change jobs without worrying about loosing their health insurance), and an affordable education to those that are smart enough to get into universities. The US has a lot of great things going for it and there is a reason that the greatest companies in the world are mostly founded in the U.S, but right now the US seems to be very divided and not as great as it used to be.

@Joe Cassandra

Thank you for a great summary. You are right, the answer is not to liquidate all your assets but to potition yourself financially to be able to weather this downturn. I wonder if the people here responding with aggressive comments are overleveraged and are already starting to feel the impact on their investments.

@John Farady

Thank you for pointing that out. Half a million debt per citizen is scary. Its time for the government to start practice fiscal responsibility.

@Justin Thorpe

Great question, Justin. Very suprised that after 60 replies no one thought of asking that.

April had the highest jump in delinquencies ever. Now over 6% of all mortgages are delinquent. During the great depression it took 18 months to reach that amount. Things are happening unprecidently fast.

Source: https://www.usatoday.com/story/money/2020/05/21/coronavirus-mortgage-delinquencies-surge-1-6-m-april/5231835002/

@Mary White

Sounds like you are in a great position with your investing and that you are doing things the right way! I don’t want things to go one or the other way, just wanted to open up the discussion.

@James Hamling

Sounds good! Keep buying and don’t even consider any other possibility than that housing will go up.

I am sure you will do great.

Also, in your earlier post you said: “it was the housing collapse that made unemployment rise, not the other way around”. Which is why I asked you how reduced housing prices cause unemployment.

@Matthew Terry

I think you might be overstating the effect a forum post can have on real estate prices. There is no second motive here, I simply wanted to start a conversation around the correlation between delinquiencies, unemployment and housing prices. Thank you for your input.

@James Hamling

Thank you for your reply. I am in fact an accountant and I have passed all 4 parts of the cpa exam, no need to get personal here.

I am simply pointing out the correlation that I noticed with unemployment, delinguincies and housing prices. There are multiple other factors that come in play. I do not know what will happen to housing prices nor does anyone else. The title was chosen to get a traction of comments (which worked).

Most people here are long housing so it was expected that people would disagree with the post. However it is healthy to look at your investment from all angles in order to minimize risk to the downside.

Would you mind please explaining how reduced housing prices leada to unemployment?