How The Housing Crash Will Happen (Video)

The 7 Stages: Stage 1: Speculation = drives prices up (prices families out) REITs gain ground Stage 2: Low interest rates = Equity Release, housing becomes leveraged investment for further investment release Stage 3: People live beyond means = Over optimistic GDP (Fake GDP) Stage 4: Problem occurs (2008: ARM aka Subprime crisis / 2020 Virus) = Spending stops Stage 5: High Unemployment = Start of Recessionary Cycle, mortgage & rent payments missed… unemployment scarring. Wage reductions. Stage 6: Quantitative Easing… Stage 7: CRASH! Stage 7: Brand NEW BONUS Stage! Mortgage forbearance Stage 7: People can’t afford to pay their mortgages when forbearance runs out = House prices reduced to reflect supply & demand

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