No more bets ?
Since mid-2022, real estate prices in the United States have dropped by an average of 20%, compared to a total of 23% during the cataclysmic subprime crisis.
It was 23% at the time from 2007 to 2010, whereas we’re dealing with a 20% decline over 20 months now.
This would suggest that the collapse is far from over in the current cycle.
Struggling, US banks are resorting to offering discounted mortgages and even offering a first year at 1.99% interest, putting their balance sheets at risk as they necessarily borrow at higher rates.
When the US catches a cold, Europe sneezes: a real estate crisis plus a banking crisis: who can top that?
Dear readers,
For more than 15 years I have maintained this blog with assiduity and passion. Over the years, you have appreciated my often avant-garde, sometimes provocative, always sincere analyzes and positions. We form a community that has often been right too soon, which can nevertheless pride itself on having often been right. As you know, this work has – and will continue – to remain voluntary, accessible to all. For those who would like to make a one-time or recurring donation, I nevertheless provide this payment platform. I would greatly appreciate your pecuniary contributions and I would like to sincerely thank all those who decide to take the step of making me a donation that I like to describe as “intellectual”.
Sincerely,
Michel