Re:Wall Street Banks Warn Downturn Is Coming
by Spooky23 on Wednesday August 23, 2017 @02:19PM
(#15083808)
Most of the unpredictability is for things on the margins.
Fundamentally cheap capital available for too long lets dumb behavior sustain itself longer.
People stop questioning absurd market conditions, particularly in real estate. When growth slows down at all, over leveraged enterprises miss growth target, the cash spigot turns off and bust follows.
In my area, it's blindingly obvious that real estate is fubar. Single family home prices have been stagnant, and there are dozens of medium density apartment and condo developments going up that are only sustainable because of tax abatements and foreign money laundering.
Fundamentally cheap capital available for too long lets dumb behavior sustain itself longer.
People stop questioning absurd market conditions, particularly in real estate. When growth slows down at all, over leveraged enterprises miss growth target, the cash spigot turns off and bust follows.
In my area, it's blindingly obvious that real estate is fubar. Single family home prices have been stagnant, and there are dozens of medium density apartment and condo developments going up that are only sustainable because of tax abatements and foreign money laundering.