The "EXPERTS" Are FREAKING OUT After Fed Rate Hike
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- เผยแพร่เมื่อ 25 มี.ค. 2023
- Many economists are freaking out and practically begging that the FED pause or reverse their interest rate hikes. They think they have gone too far too fast which is interesting considering that many of us here on the channel including myself, think they havent done enough yet to curb inflation.
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GUARANTEED Housing Market Defaults Coming (FHA) th-cam.com/video/qoL2Hqu3Pxc/w-d-xo.html
If money-market funds or banks try charging premiums for insurance, its real simple: the cash will be pulled OUT of the money-market fund, and invested directly in T-Bills at Treasurydirect. --- If you want to start a bank run, try charging me for insurance on my savings.
Hey Michael, here’s an example of inflation… and others should look at their experience: my wife and I haven’t changed our lifestyle at all, and definitely didn’t change our diet.
We repeat our orders every two weeks and this is year totals:
Groceries in 2020: $3,700.00
Groceries in 2021: $5,400.00
Groceries in 2022: $8,880.00
Groceries in 2023: on pace to $10,000.00 plus.
This includes pet food, same pets.
@@TimeToBeKind it’s all pretty wild. I can’t believe the streets aren’t full of people protesting and tearing shit up. All I see is full shopping centers, cars flying off the lots. My wife is a realtor in Pinellas county, houses are selling all cash, some still over ask and fast too. I don’t understand. There is also a lot more foreigners here permanently now. I had a producer store for a year and there was between 130-180 customers in a day. I talked with a lot of people. The amount of what looked like reg ol white people but then they start talking some other language was shocking this last couple years has increased double I feel. They are not German either I’d recognize that language. A lot from Eastern Europe
@@matthewsmith2362 Buddy was a Fireman there 20 years ago. Where the Hell are they all coming From?? LOL
the problem is NOT the rate hikes, the problem is that the rates were TOO LOW for TOO LONG. Peter Schiff talked about this since the last crash. All they have done is prolong the pain of 2008. Instead of experiencing a hangover cure, the FED passed out another round of Tequila shots.
KOOL AID... good one!!!! I am glad, my late dad taught me to live way below my means. I have very little debt. Home paid off. No car payment. No credit card payments. Diversified. I am ready for a downturn. I survived the 2007-2010 downturn. I did not lose my home. I had friends that lost their home. They over leveraged themselves. I think this downturn may be worse than the 2007-2010 collapse. I hope I am totally WRONG!!!
I am sorry to think that you are not wrong. Your dad’s wisdom fortunately has trickle down to you. Not many people are in as good of a scenario as you are now.
Same here Ed, I was raised the same as you, still driving a modest car have no debt plenty of equity in case it rains one day, it does rain!!!!
@@dennisgalic3421 thumbs up....the new generation have a lot to learn. they have a very short window to learn what we were taught.
@@jackjune156 ... My dentist shared with me that, "you do not want to be one of the richest person in the cemetery or crematory." So I have started to spend and enjoy , of course, I look for great deals, never pay retail.
@Carlavagnen 13 I do not worry. I have nothing to worry. A few years ago, I was at my dentist cleaning my teeth. He told me that, you do not want to be the richest person in the cemetery or crematory. So I told my spouse after I loss my two younger cousins 54 and 56. They died millionaires. We are going to enjoy life, so we are. We travel and very, very often.
Enjoy your Maserati. I would have leased it so after 36 months, you can get a newer model or another vehicle you like. You do not need to worry about the high cost of maintenance as it gets older. IMO.... enjoy life, Caravagnen....
The whole system is like a house of cards. My personal feeling about money market accounts was how long before it gets affected? It's very concerning.
I really appreciate the shots of the ocean and the boats to help the harsh reality go down
My natural gas here in San Diego increased by over double with less been used in Jan 2023. I paid over $500 just for power/gas for a 800 sqft townhome. Even with all the rain we had over the months I am averaging $180 a month for water. I don’t even use my dishwasher and shower at my local gym.
Prices in Colorado have doubled, too. Gosh, could it be that forcing our country to go green had anything to do with this? Everyone should have known this was coming.
These are really comfy walks. I love when you point out actual houses so we can watch it play out in real time.
Had a rent hike pending in Asheville, NC. Over the past 3 years, my rent in this place (1 bedroom) has gone up $500 altogether. I'm out, moving to another city. The price for single family homes in Asheville is ridiculous, and it just seems more reasonable to move to a city an hour away with more realistically priced homes.
How do these sellers not realize we can see what they paid for the property just a year or two ago?!?!? 😂
They know they don't need to sell that badly. No one will say,” you're right; I gain 20-30% in a short amount of time. Let me give you the price I paid for the house.”
What the seller paid for the house is irrelevant. It doesn't matter if you know.
@CWI'd homeschool, given the Woke nonsense they teach now. I'm surprised that's not a factor.
They must know we can get that online. Some of them must be sweating bullets, right now. People have watched too many of those fix and flip shows, and don't understand it's never that easy.
You haven’t looked at the Northeast in a while if you think rents are going down everywhere. Rents are going up here in New England a minimum of $200 every year. This year we are facing a $400 rent increase and have found a new lease because of it!
Beautiful views for sure, thanks for taking us along Michael!
I remember property taxes increasing in 2006, but they took longer to come down (of course!!) once home prices started declining.
I love hearing about what's going on in the USA. Thank you for your great info so i subscribed.🙂 I lived in Utah and I remember someone had told me "its a recession when your neighbors out of work and a depression when you are out of work." and that why i think people are surprised because out of sight, out of mind.
Great stuff Michael! Love it
Pulling old articles in 2007/8 is a great way to better understand the current situation. Spot on again..
I'm re reading some things from the 70s..also Volckers autobiography.
The issue the Fed is facing is that they waited a year too late to start increasing interest rates. Now added expenses are entrenched and it's going to be hard to have companies back off of price increases.
1000% correct. Interest rates should have started increasing in early to mid 2021 but political pressure would not allow it.
I would argue that the Fed should have been slowly ramping rates starting in 2016.
@@philmarsh7723 money wasn’t given away in 2016. They earned it.
I think they started 15 years too late. Why did we have zero interest rates since 2008? It destroyed the saving class , misallocated resources and created bubbles everywhere. That is why rates should be set by the market not the politically motivated Fed.
@@bigb6046 Very true! We have had A LOT of market manipulation by the Fed. Come to find out, they were profiting along with congress members. No one who can influence the market should be able to participate in it; yet, here we are ..
It’s refreshing to hear someone talking reality. Keep up the good work! 🏖️🏡💸
Thanks Mich
That is a beautiful neighborhood.
4.30 on a good day for gas in the Southbay, California. I got some in Santa Monica yesterday but it only filled halfway.
We want to go boating! You promised. Lol
The seventies was no party
‘That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.’
-Aldous Huxley
It's Jackson COUNTY, MO that sent out the notice on March 20, 2023, about a 30% increase in property taxes. I know cuz I am receiving the notice. Love your channel.
Great advice. Thanks for keeping it real.
Don’t drop your phone in the water!
Rents are still going up here in New England.
Maine is a renter’s worst nightmare!
It's Californians fault
Here in san Diego, gas is about $4.80-5 at the cheapest. other parts of town closer to $5.5-6.
Great nuggets of wisdom!!
I like that you are talking and then stop and show some houses rents and sales! Well done!
I remember when mortgages were transferable in a property sale. So if you had a low interest mortgage, that would be enticing to a buyer.
You can still do that. They're called assumable mortgages.
@@basha0810 delusional...
@@DRob-vb9mf VA loans r not transferrable. Lmao
@danman1287 yes they can be!
@@SamuelClemente7718 lmao. Think thru this monkey
Outstanding, always enjoy the perspective. This week is going to be Loony Tunes for sure.
My sister and I are looking for a second home in St. Simons, GA. Prices keep going up there, not to mention the interest rates and flood insurance. It’s so scary to think about making a big financial mistake, but on the other hand it’s possibly a great investment!
Great time to buy a second home.
Wait
Rents are not going down in Utah but taxes and insurance IS
Can't be going up. You guys are a Red State! Impossible
So on point 😊😊😊😊
I live in southwest broward county, and all I've seen is prices steady or increasing! Inventory is shrinking! And the falling apartment rents that you predicted are even skyrocketing higher
Miami
What up with all the crime in Miami
@@SamuelClemente7718 DEM Mayor ??
@jimshoe402 ya that's why
Glad I'm not the only one who has same thoughts. About 2 years ago I was telling friends in the Dallas/ fort Worth area that housing was going to crash. Everyone thought I was nuts.
One area that no one is talking about are corporations/companies. As people over leveraged themselves on homes, so did corporations. If the corporations can't borrow cheap money, they can't meet payroll demands. Forget short sales on homes, shoot for 25-30 cents on the dollar. Enjoyed video.
CBS reports home prices up 7.5% in Texas.
San Diego $4.99
Here is the problem with the Florida housing market and why it’s heading for a crash 1. The local median income or local jobs does not reflect property values. Miami has overseas rich investors and private equity companies buying up properties 2. The Tampa real estate market is mostly investor driven, there is a lack of high paying local jobs 3. If you compare that with places like Austin and Dallas there are high paying local jobs even though there has been a slight downturn in the tech economy, Apple, Microsoft, IBM, Google, Salesforce, Adobe, SAP, Meta, Oracle, Cisco,AWS, Dell Technologies, VMware, HP and Tesla, SpaceX, Boring Company, Salesforce and many more all reside in Austin (Elon Musk lives in Austin and has invested a fortune in Austin) there are also lot of high paying jobs in Dallas for Financial Services and Tech, not having high paid local jobs and more and more people being asked to come back to the office in the north east like NYC, Florida is heading for a larger housing crash than 2008 as the higher paid Florida jobs are remote workers and private equity companies
I would also like to add, that despite that Private equity firms and foreign investors buying the property, they too will succumb to the loses. They still have to pay the loans, to to the banks but to the shareholders, Imagine they flipped the property and cannot rent it out now? The expenses are growing, the cash flow is low. No good. The same with people with a good credit history, they too are going under after being fired from the remote job.
You've nailed it, perfectly.
I thought this too at first, but seems it's not actually happening. Have you heard of droves of people moving back to NY from FL since their job called them back to the office?? I haven't.
Your comments are well taken. I think this "perfect storm" includes so many things like this that haven't yet come to the forefront. COVID is something that created changes that we've really never had to deal with, so I think this year is going to be uniquely tumultuous.
CBS reports Home Prices in Florida up 7.5%
Another great insightful vid. This guy should have a million subscribers by now. Come on people, tell your friends and family about Michael Bordenaro. And no I'm not associated or related to him.
Hi Michael from California. Auto gas prices are about $4.80 to $5.15 a gallon now down from highs of $6.00 gallon. Nat Gas for heating is double from two years ago and January was a price spike to double from December rates. I had a $500 January monthly heating bill!! Used to $150 a month two years ago in California winter.
Your California winter is twice as costly as central Indiana. My Feb natural gas bill came today at $125. It peaked last month at around $250. Our gas is $3.35 per gallon. My home heating bill only exceeds my gasoline bill in dead of winter
Miami is such a beautiful city! You and sweet Lisi are blessed to live there!
Gas prices are going up quickly here in Toronto.
Only $4.4/gal for regular unleaded at Costco Woodland Hills, California. :)
$3.50 a gal here in Effingham Illinois
Rents are going up here in Wisconsin. Mine just increased 10 percent!
My rent went up 13.6% on Friday. They want $300 more a month
The property at 5423 looks gorgeous! Considering how much the others are wanting, this likely would have a very scary price if it was for sale.
Imagine you're a new subscriber and Michael unknowingly walks past your house and calls you out for your bad decisions lmao
He never goes as far inland Miami to where I live.
LMAO
Should have subscribed sooner, 😂
Priceless
Lmao!!!!!!
To summarize: FJB.
😂
This disaster was coming regardless
What. FDT😂😂
Whoever takes the WH would be manipulated by elites , Biden happens to be at it for a longer time than most
Didn’t Trump hire powell? 😂
Betterment increased their FDIC insurance from $1mil to $2mil after the last big banks went bankrupt. (They keep the money in multiple banks, hence why it's more then $250K).
They should turn those million dollar homes into private office buildings to get them sold.
you make a lot of sense
The problem with the fed hikes is that it doesn’t seem like it’s moving inflation much at all. High rates with high inflation helps no one but the very wealthy.
I agree with this 100%
I booked my flight to Miami. Can't wait to wear a tank top and flip flops for a few days. Btw I'm so glad I pulled out of real estate a few years ago and now into growing my stores. I wonder if there will be less small businesses opening up with this credit crunch...
I feel very lucky. When I was younger I didn't realize the actual capacity of my tribe having our own land.
In these times of terrible unrest and uncertainty, I'm able to have a safe place to land as well as my children and grandchildren.
Michael? I honestly believe you could be teaching home owners and home renters as well as educating landlords by way of a college course. Maybe not a college course but sessions in town halls or school cafeterias where by you can reach the masses.
Knowledge is power. Gen Z needs to understand all these facts you explain. Baby boomers, millennials and Gen Xers all need your expertise as well.
We need to give our generations to follow the ability to own homes and grow their families without having to be batrillionaires. There is a way to do this if we learn all the avenues and choices as well as what not to do.
Enjoying your commentary and spoken insight as usual, Michael. Thanks!
QQ... do you have a vid in your library discussing insights about how inflation got to this point or a similar topic of discussion?
I'll run a quick search in your library as well. Just wanted to say "hi" from Los Angeles, CA!
I've noticed that a millionaire isn't anything special anymore, ya gotta be a billionaire to be a "somebody".
Rather be a Millionaire than Thousandnaire!!
Most people are negative. They have no wealth at all if you subtract out their debts.
@@censoredeveryday3320 just 70%..
Burnie would agree with you
Fed is defending the USD.. more rate hike to come
Just under $4 here in Denver for gas
the only way I can imagine $17k/month rent can make ANY sense whatsoever is if you successfully sublet it through airbnb to wealthy people for like 6k per week
Home prices still going up in san diego where I live. Imperial beach
Thank you for what you do 🙏
I scrap a lot of items for metals to make extra money. While I process stuff I think about housing and the low wage people are still making and I can't get my mind around it. This is unsustainable. I don't know how people do it.
Even my coworkers say what they pay for housing and I don't know how they can afford anything else.
It’s only gonna get worse. And things like you do for extra money like other trades, will be worth their weight in gold. Even though there are other people doing things like that it’s very far and few between it’s like a trade of your own in what you’re doing
Over the last 3 years my property tax has more than doubled where I live at in Ohio.
Wow is this an appraisal year ?? By me every 4 years UP or down ..UP is 15% down is 2%..
Waiting here in SD CA one year now. Injoing my time...
It looks so much Brighter in Florida than most places, even on a sunny day most places aren't that bright.
That's because we are on a flat earth. Florida is closer to the center of the disc
@@censoredeveryday3320 Direct SUN !! Try HNL or SYD burn job..😒
@@jimshoe402 =] Will look it up. I was kidding about flat earth. haha
It's a new generation.
CBS News reports home prices in Florida up 7.5% .
Sorry Michael I’m behind on your videos. I was on vacation last week. Catching up now. Keep up the good work.
Here in southeren cali we're paying $420 per gallon
the lastest hike will be the last in history
$4,26 pr gallon in Reno
Thank you Michael 😄🙏🙏🙏
You are spot on with property insurance and everything else that is expensive about home ownership. Rent is still more expensive though in my opinion in most cases. I think what you will see in these cases is not so much people selling the house, rather more family and friends moving into the house to pay the bills and preserve the equity. Multi-generational living, friends/family discount come live with us so we can keep our home.
I would recommend, if you own a home, have room and don't mind living with a roommate, to get a roommate.
Exactly
In your opinion? Rent is more expensive than home ownership....baaah haaah... This is math... Ownership cost is higher than renting
@@danman1287 it depends. In Oklahoma, owning is cheaper than renting. In Miami, renting is probably cheaper right now
@@censoredeveryday3320 I bet also Flint Michigan where water is undrinkable... He said in most cases.. dufus
MORE TO COME
I will drop my rent prices when the government drops my taxes! And insurance companies drop my premiums!
Nobody should be blaming landlords. It's a snowball effect with increased costs. Either you raise the rent or go bankrupt. Plus your labor, trash, electric, everything has gone up. And most likely will go up more.
@@junserafin5241blame Californians
GOOD !!! How about all the Fees and BS u have to do to be a landlord so UP !!!🤑🤑
Phoenix $4.65/gal
Gilbert (last I saw 2 days ago) $4.49/gal
As to the houses wanting 21k to 17k for rent it makes me wonder if that was the goal. Show a loss for a tax write off knowing full well that no one will rent at those prices.
U can ONLY write off ur Costs to have the Rental NOT $17K a month..LANDLORD !!
This is a cycle. It will keep happening this as long as housing is allowed to be used as a vehicle for profit.
Thank you you too warm on YouT
30% tax increase is a lot? 😅 NC went up 87% on average. My coworkers and family saw their property taxes go up 90-120% early this year.
Paid $4.50 a gal. today in Ca.
Can you begin or do the entire video underwater, that way majority of us can truly relate? 😂
😂
LMFAO!! Very Clever!!
🤣
🛳🌊🏠💸📈📉🤯
Badum chhhh
$4.60 today for regular unleaded at the inexpensive station here in Palm Springs CA
If rates go down, more people will sell, not just more people will buy. Good point!
I remember 1986 ,,,,,you got 30 days to find a loan or foreclosure,,,,,,bank closed
If you get a charter boat for a video, make sure you include footage of catching some nice fish!
I wonder if municipalities get addicted to insanely high real estate prices meaning more income for them. Will they be able to survive if values drop and taxes drop?
In NW Ark my cost for natural gas and electricity has gone up a lot in the last year. My largest nat. gas bill from last year was $185 and this year was $265. Thanks Brandon.
Do u have Elect and gas companies u can switch to? My elect is HALF and N Gas is a little cheaper BUT I'm locked in for 3 years..
@@jimshoe402 No Jim we only have one choice for each. It would be nice to have some options.
The big banks are doing the same things they did in 2008. Only this time, retail investors caught on to their thievery, and they have no way out. They'll have to sell their positions, and get the money printer out.
Print money? You want even higher prices, costs and rent?
@@junserafin5241 no, but that’s what’s going to happen.
That is called catching a falling knife. Fix flip REI model in many crashing sub markets was done last August.
Rentals are still grossly overpriced in my market. It's pretty annoying really. These people here just aren't getting the memo. Renters and sellers are still asking too much for everything, and buyers are still willing to pay way too much for housing. Only the super nice houses are selling right now though, all the others have been sitting forever now with no takers. The houses that are selling are still going for 100k over their values in 2020 and 2021. I'm not sure where all these buyers are finding employment around here in order to afford these prices at the current rates. I'm very confused, yet every day another overpriced house sells in my area. 🤷♂️ It's not like I live in Florida where all the foreign investors and remote workers want to go, I'm in Oklahoma. There's nothing that great here.
Blame Californians
Should re-zone office space to mixed use, residential/business. Live in one area, walk 12ft and you're in your office work place.
Still some very greedy people out there! Sickening!
People just seem to want what they want . Home just sold Cape Coral on canal with no bridges to river . Two years ago I believe they paid 425k , put about 14 into it , rented it out , no dock no pool . Guy from Boston just paid about 650k . It makes no sense but people are keeping it going at least in some areas . My big question is so what if you get inflation to 2 % . It’s 2% year over year which has already rise. 25% for food , and staples . Need to have deflation on the goods and services side
It's all superficial, the core things never change.
Rate hiking and QE are in place at the same time!
We have been blessed with great weather lately. *Knock on woodie*
They may be hope I here there are 2 million people in states are in need of a water supply asap
Anyone that bought at the height of the pandemic that has those low interest rates should check if their loan is assumable. If they need to sell the property and can transfer the lower interest rate to the new owner, they might be able to sell at a higher purchase price. Maybe not as high as it was during the peak, but possibly enough to for avoiding loses.
I remember 2007 like it was yesterday. Was a young Realtor and I had a few listings but things just stopped selling. Prior to 07', it was easy selling with little effort. It got bad and had to do other things by 2009. I do have regrets where I probably should have did short sales and leases but I left, but oh well.
I’m curious, what did you pivot into? How did you decide that.
I think it would be a huge mistake to increase FDIC insurance limit!!!