It's the economy, stupid! (Finance-related news)

[Zetanio]

https://www.bloomberg.com/news/artic...-during-crisis

WOOOOOOOOOOOOOOOOOOOOOO BOI

[Deftscythe]

I can't believe that literally the only person in media I've heard talking about this is fucking John Oliver. We goin back to '08 yall

[Zetanio]

Well not exactly.

[Xno Kappa]

ELI5 why this is a big deal?

[Zealot]

On an auto subprime crisis? Ha ha ha, no, no, not likely.

No, it's when the student loan crisis hits, coupled with a second mortgage crisis, that's when we're all good and fucked.

[Zetanio]

ELI5 why this is a big deal?

In increase in defaults is always a bad sign. When subprime anything gets overloaded and defaults increase, it usually spirals into other sectors. I'll agree with Zealot though. This isn't the apocalypse but it's the first sign of an overloaded mortgage/loan market that's shaking loose.

An ELI5 would be.

If you are a bad promise keeper and everyone starts giving you lots of cookies if you promise to pay them back, it's bad.

[Niiro]

I blame the cookie monster for instilling bad lending habits.

[Zetanio]

This is all fucking communist Sesame Street's fault.

[Zealot]

To be fair to Cookie Monster, he was very up front about the fact that he was going to eat all of your cookies.

[Zetanio]

Yeah, let no one say he bamboozled them.

[Fondue]

As someone looking to buy a house what does this mean for me

[Zetanio]

Nothing. If you have decent credit you should get in while you can. Rates are going up.

[carlweathers]

Yeah, I'm no economics expert, but I don't think people are taking out loans and buying cars as a serious investment compared to real estate. I'm with Zealot, shit will go down real hard when the student loan bubble bursts.

[Fondue]

Nothing. If you have decent credit you should get in while you can. Rates are going up.

So this is only a millennial who can't pay a $200/mo car loan problem? I want a cheap house

[tyven]

So this is only a millennial who can't pay a $200/mo car loan problem? I want a cheap house

I'm sure that window will open again real soon

[Zetanio]

Yeah, I'm no economics expert, but I don't think people are taking out loans and buying cars as a serious investment compared to real estate. I'm with Zealot, shit will go down real hard when the student loan bubble bursts.

The loans we're talking about are student loans. Personal loans aren't even close to a blip on the radar compared to housing and student debt. CC debt is really bad too but thankfully has the safety valve of personal bankruptcy.

[Zetanio]

Also the housing market will probably implode again in the next 5 years. Looks like a lot of trouble is brewing in NYC's luxury market and hopefully it topples into everything.

[TsingTao]

Also the housing market will probably implode again in the next 5 years. Looks like a lot of trouble is brewing in NYC's luxury market and hopefully it topples into everything.

I just built 18 months ago, try and keep your imploding NY luxury market localized. I don't want the value of my house to fucking tank a second time.

[Xno Kappa]

Shiiiit! My house in CO has increased in value by almost a 100k since the legalization of weed lol. My house in VA stays steady. That NYC shit is for the birds!

[Zetanio]

Buying here is retarded.