– The US economy has been doing well, but there is a silent threat on the horizon
– Layoffs and bankruptcies are increasing
– Inflation is cooling, interest rates are dropping, and asset prices are at an all-time high
– J Scott, an investing legend, talks about housing crashes, economic predictions, mortgage rates, consumer sentiment, and the silent threat to the US economy
– J shares his thoughts on another housing crash, the possibility of America becoming a “renter nation,” the impact of dropping rates on home prices, and the economic risk to businesses and employees
– The episode also discusses mortgage rate predictions and the potential closure of a big bank bailout program.
The US economy has survived the past few years surprisingly well. But there’s one huge threat on the horizon no one is watching. With layoffs and bankruptcies already starting to tick up, a new wave of misfortune could hit consumers EVEN as inflation cools, interest rates begin to drop, and asset prices hit an all-time high. What’s coming for us that only the most economically inclined know about? We’re about to break it down on this BiggerNews.
J Scott, investing legend and author of too many real estate books to name, is back on the show to talk about housing crashes, economic predictions, mortgage rates, consumer sentiment, and the silent threat to the US economy that nobody is thinking about. J knows the game better than most and is the furthest thing from a bubble boy or permabull. He’s got his finger on the economic pulse and uses the most up-to-date economic data to form his opinions.
On today’s episode, J shares whether or not he believes another housing crash is coming, how America could become a “renter nation” over the next decade, whether or not home prices will stay high once rates drop, how low mortgage rates could go in 2024, and the biggest economic risk to businesses, employees, and anyone operating in the US economy.
Click here to listen on Apple Podcasts.
Listen to the Podcast Here
Read the Transcript Here
Watch the Episode Here
Help Us Out!
Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds and instructions can be found here. Thanks! We really appreciate it!
In This Episode We Cover:
- The likelihood of another housing crash, especially if America falls into a recession
- A silent risk to the US economy that could hit everyday Americans hard
- Why Americans are pessimistic about the economy but spending more than ever
- The economic “musical chairs” which must come to a stop sometime soon
- Why home prices could continue to rise as mortgage rates begin to fall
- Mortgage rate predictions and J’s forecast for how low they’ll go in 2024
- The big bank bailout program that could be coming to a close
- And So Much More!
Links from the Show
Books Mentioned in the Show:
Connect with J:
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected].
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.
Property Chomp’s Take:
Title: The Silent Threat Looming Over the US Economy
The US economy has remained resilient over the past few years, but there is a significant threat on the horizon that has gone largely unnoticed. While inflation cools, interest rates drop, and asset prices soar, layoffs and bankruptcies are starting to increase. This silent threat could potentially impact consumers, leading to unforeseen consequences. In this article, we delve into the insights of J Scott, an investing legend and author, who sheds light on housing crashes, economic predictions, mortgage rates, consumer sentiment, and the biggest economic risk facing the US economy.
The Likelihood of Another Housing Crash
J Scott, an expert in real estate, addresses concerns about the possibility of another housing crash, especially if the United States falls into a recession. While the housing market has been performing well, there are factors that could trigger a downturn. The current economic climate, coupled with increasing interest rates, could potentially impact home prices and affordability. J Scott provides a balanced perspective on the risks involved.
The Silent Risk to the US Economy
One of the most crucial aspects overlooked by many is the silent risk that could profoundly impact the US economy. Layoffs and bankruptcies are already on the rise, which could have severe consequences for everyday Americans. This silent threat has the potential to hit consumers hard, even as inflation remains low and interest rates decrease. J Scott sheds light on this hidden danger, emphasizing the need for awareness and proactive measures.
Pessimism vs. Increased Spending
Despite pessimistic views about the economy, Americans are spending more than ever. This paradoxical behavior raises questions about the sustainability of consumer spending. J Scott discusses the economic “musical chairs” scenario, where eventually, the music will stop, leading to potential repercussions. The reasons behind this behavior and its implications are explored, offering valuable insights into consumer sentiment and its impact on the economy.
Rising Home Prices Amid Falling Mortgage Rates
As mortgage rates begin to drop, there is speculation about the impact on home prices. J Scott provides a nuanced perspective on this issue, suggesting that home prices could continue to rise. The interplay between decreasing mortgage rates and increasing home prices is analyzed, offering a comprehensive understanding of the possible outcomes and their implications for the economy.
Mortgage Rate Predictions and the Future
J Scott shares his predictions for mortgage rates, offering a glimpse into what the future might hold. His insights provide valuable information for potential homebuyers, sellers, and investors. By analyzing the current economic climate and historical trends, J Scott presents a forecast for how low mortgage rates could go by 2024. These predictions give listeners a sense of the potential opportunities and risks that lie ahead in the real estate market.
The Potential Closure of the Big Bank Bailout Program
Another significant aspect discussed by J Scott is the potential closure of the big bank bailout program. This program, which has played a crucial role in stabilizing the economy, could soon come to an end. J Scott assesses the implications of its closure and the potential consequences for businesses, employees, and anyone operating within the US economy. Understanding the ramifications of this program’s conclusion is crucial for all stakeholders.
As the US economy continues to thrive, it is vital to remain vigilant and aware of potential threats. J Scott’s insights shed light on the silent threat looming over the US economy, providing valuable information for investors, businesses, and consumers alike. By understanding the risks and opportunities that lie ahead, individuals can make informed decisions and navigate the economic landscape with confidence. It is crucial to stay informed, adapt to changing circumstances, and proactively address potential challenges to ensure long-term economic stability and prosperity.