Monday, June 3, 2024

No money down on a house?

 Is a good way to go bankrupt sort of like being a day trader through Covid era.Why? 

Because no money down might work okay in good times but in bad times you are going to be underwater if what you pay for your house drops (value wise after purchase) and then you will be bankrupt because it won't likely be worth keeping your house as the value plummets. It's okay to own a house outright (if you want to live there forever) even if it devalues. But, for most other people that aren't in their homes forever this could be a disaster both financially and otherwise. When many people losing everything during the Great Recession which wiped out 75% of the savings of the middle Class and made Angry Trumpers is something to think about.

Whoever thought that no money down again on a house was a good idea is heading this nation for another Great Recession.

That was less than 20 years ago and created a potentially worse experience for the country as the great Depression. Only Because Fed Chairman Bernanke had studied the Great Depression did we come out of that as well as we did.

If the no money down thing gets going (as it might) this time the Great Recession could look like child's play compared to what we face next.


No comments: