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September 21, 2021

Banks See Housing Bubble

by Bob Schwartz

Housing Bubble

The housing market has had an absolutely crazy time over the last year.

When the virus hit, the world panicked, governments shut their countries down, real estate agents were banned from showing houses, millions lost their jobs and the consensus amongst pretty much everyone was that a housing market crash was imminent.

Housing Bubble

Vista Del Cerro home for sale  -  Housing Bubble

Home prices were high, affordability was low, and suddenly a virus ripped through the world that forced millions of people to stop working, to make them stay at home, and to stop spending their money. It’s no surprise that everyone in the world thought a crash was coming, it seemed like the most logical outcome, but obviously, that never happened.

Instead, the housing markets in the United States, Canada, the UK, and Australia, Texas, California and Florida all exploded. We’ve seen ridiculous growth that didn’t really make any sense, of 15%, 20%, and even 25% in some areas.

Now despite these ridiculous levels of growth that are without a doubt unsustainable, lots of people think that the market is just going to keep going up, but that’s not what the banks think is going to happen. No, the largest banks in the world are busy preparing for the next crash, and the big problem with this, is that the banks just preparing for a crash, could actually be the cause of a crash.

Housing Bubble

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