[quote=deadzone]I think we are clearly on the road to things being worse than 2008/2009. Regarding mortgage market, it has been completely manipulated via Fed involvement (through printing money to directly purchase MBS) non-stop since 2009. So in reality we never truly recovered from the 2008 crash or else why has the Fed been continuously purchasing MBS?
Now with inflation out of control, the Fed has no choice but to remove some of their support for the mortgage market and US treasury market. So we will soon find out if there is anything underneath after they pull their rug of support, or does the entire house of cards collapse?
I definitely expect within the next 5 years, there will be an entirely new set of movies, documentaries, etc. Like Margin Call, all over again to explain this crash.[/quote]
I assume that existing homeowners will be fine with priced-in loans. What happens to mortgage brokers and other financial employees is more worrying. My own company is a start up that will be attempting to raise money in 2023. I am guessing it will be harder to raise money now. Although so many investors are sitting on piles of depreciating cash I guess that things might be still ok.
