This is some very ugly math

Median household income $74,580 = $55,935 after taxes = $4661/month.

-2894 mortgage -$500 car loan -$500 insurance -$400 utilities -$200 gas

=$167 per month for food/clothing.


It gets worse. We are about to have a flood of foreclosures, because everyone who stupidly took a 5/1ARM in 2019/2020 is about to eat a payment they can’t make; IF they can even requalify. Then when the housing market crashes due to all the foreclosures, everyone who bought into this insane market the past two years will be trapped in a property that can’t appraise, and how many of THEM took ARMs because rates went up? Fun times.

17 thoughts on “This is some very ugly math”

  1. The question that noone asks is “why are mortgages so high”? I think there are several reasons:

    1) Availability of loans. Easy money means that sellers have the ability to charge higher prices, knowing that SOMEONE will have the ability to pay the asking price.

    2) Demand for a “dream home”. Americans have this idea that they deserve a large house, in a nice area, with little work to be done. This means people are foregoing cheaper, more affordable houses in favor of more expensive ones.

    3) The debt paradigm. Debt is a foregone conclusion in life: you need a loan to get a car, you need credit cards to buy things, and you absolutely need debt to go to school or buy a home. The idea that debt is NOT good is a foreign concept.

    1. Mortgages are high because fewer entities own all the homes and they collude. BlackRock, etc. That’s why. When loans were cheap during the surprime mortgage crisis, home prices were much lower. This crisis is about creating fake scarcity by taking away choice.

      1. Scarcity in terms of availability of loans does not generally lead to an increase in prices. That is because people who don’t have access to money aren’t going to spend higher prices. It is a general economic principle that when more money is made available (through loans or an increase in wages), people are willing to spend more, driving prices up.

        What we are facing now is not “artificial scarcity” in terms of loans. Rather, it is price gouging by the financial firms, who in 2020 and 2021 used cash to purchase homes in certain areas above the asking price. Those large numbers skewed the “average home price” value, which then raises the amount homeowners are going to ask for (and in the process, prices many homebuyers out of thr market).

        One principal idea to revive a struggling economy is to increase access to loans. That happened in 2020-2021, as mortgage rates dropped…and home prices went up. Now, we have an elevated market, which will take time to correct, in a normal cycle (foreclosures are, I believe, a part of that), unless we have a repeat of 2020-2021 when “investment firms” seek to buy out houses to rent off.

        1. The artifical scarcity isn’t about loans, its created by lack of choice in the market. The price is set by the few firms that are buying up all the property. They collude to set a price. And good luck finding something cheaper ..

    2. White Americans don’t want to live around blacks, who are increasingly taking over white neighborhoods and bringing all kinds of drama including loud car stereos played at all hours of the night, and high crime rates. The only remedy is to buy a house in a more expensive area where blacks can’t afford.

  2. Maitreya told his chums that he would show himself after the US economy is destroyed, sometime before 2025. I am expecting his arrival by the end of 2025 but, hey, it’s not like the antichrist wouldn’t lie and make up some lame excuse for his credulous devotees. And he might not be the antichrist and just some false Christ.

  3. It’s very scary. We bought in June 2020, when the world was still locked down, before the market went crazy, and got a 30 year fixed at 3.25%. That is a mortgage we will never refinance, but we can afford it, at least. I don’t think we could afford this house for what we paid then, at the current rates, never mind the current rates.

  4. The housing market is propped up at all costs. The financial system is propped up at all costs. The Church stopped talking about usury. Our whole system is about creating debt slaves. People live large at no risk to themselves off that debt. They will send other peoples sons and now daughters to die for it.

    1. The price of silver is suppressed. It SHOULD be a 30-1 ratio between silver and gold. It’s much higher that that. Why? If people actually knew how insolvent the system is, they’d divest from it and look towards land and precious metals…which are now being acquired by the cabal.

      1. Land, metals, whatever. When the powerful want it they will take it. No one understands the world we are living in. We don’t own anything anymore. All that’s left is a fake catastrophe to make it official.

  5. My take:
    When lending money at interest is permitted (and even promoted), this is the result. The amount of money required to repay compound interest on loans in a country will eventually be more than the amount of money in circulation. The only solutions are to return to just, moral financial practices or to run the printing presses to perpetuate the system. It’s obvious which choice has been taken.
    So, now that inflation has been chosen to continue to allow immoral loans to continue, the biggest lenders and owners of rentable goods/properties will get larger and larger while they squeeze the average Joe financially for the sake of their own greed.

    1. In my area, they are promoting rental housing over single family. Home ownership used to be a great way for people to gain some actual wealth. In their system only apartment corporations will own anything.

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