@Anonymous wrote:
@CA4Closure wrote:
People stop being a fatalist. I happen to be doing well in the stock market and my 401k is doing fantastically. Right now my rental and commercial income is doing good. No evictions and Reserves are great.
We all know there will be a RESET for certain states like California whose real estate market is crazy high. This is because of over regulation. If you live in California, you will be the one in a financial crisis if you did not save for a rainy day.
In the business world, companies are investing in manufacturing in the States but states like California won't see it because of the over regulations. Texas, Tennessee, Kentucky and states that do not over regulate will reap these rewards. If Trump is re-elected the recession will be mild compared to the last recession.
The currect financial mess is due to the Corona Virus and China's inability to ship product. But companies are switching to other manufacturing countries like Vietnam, Dominican Republic, India and Mexico.
We view things VERY differently.
I see the mess as only partially happening now. The real one is going to come when the people that have been out of work for two weeks can't pay their rent *next* month and the month after that at.
There are too many restaurant, service industry, travel and retail employees out of work right now. They make up a huge portion of the economy, and they're also the folks least likely to have emergency funds.
Everyone's real estate market got crazy high (relative to their particular areas, of course) I don't think any area is safe with the number of people missing wages right now.
This isn't going to hurt everyone and some small pockets of real estate are quite safe. It's hitting a pause button on sales, but those will pick right back up as soon as things start to reopen. Those neighborhoods will not see significant value reductions, demand reductions, or difficulty selling. These neighborhoods are also areas with an outsized concentration of residents in tech, biotech, or medicine (fields that will ultimately benefit from the pandemic), are already gentrified to the point the people who work the jobs at risk now were long pushed out to other neighborhoods, and will continue to be ivory towers.
Of course, other parts of the country are about to become an all-you-can-buy foreclosure buffet.
The pandemic will cause a recession for about 85% of the working population and an economic boom for the other 15%. Those on the boom side of things are still doing fine and will do fine throughout the recession while the other 85% fight for scraps. At the end of the pandemic, that 15% will be even further ahead of the rest than they already were, making the existing income inequality gap even larger.
