I see this gearing up to happen in our city, too. We’re still running on the dregs of the great pandemic population shift and stimmy boom, but signs of a coming bust are gathering. Of course nearly everyone denies it publicly, but privately, people are becoming worried.
The whole American economy is sliding into a disorganized hot mess of inflationary depression, IMO. Lots of developers and property investors are going to lose their shirts, and municipalities are going to lose a lot of tax revenue. This will mean that holders of muni bonds are either going to see the value of their bonds decline (as desperate cities offer higher interest rates to attract more outside investment), or they’ll simply lose their investments entirely as cities default.
The ripples will be wide. The consequences vast. Lots of wealth will change hands unexpectedly. Creative predators of failing single family homeowners have already started appearing with schemes to front run the collapse and those waiting to go bargain hunting in its aftermath. There will be, IMO, one grand, final feeding frenzy in which many who got fat and happy during the easy markets of the boom times, will see their gains evaporated and a new class of the wealthy and property owners appear, dominated by several large banks and hedge funds. Then the government will step in to “help” us little people with UBI, CBDC’s and other tools designed to manage the vast new slave population. And among those slaves will be many of today’s smug developers and property investors.
I blame the combo of economic intervention by the Fed, and the tax laws that override natural market forces and overly incentivize home building. But it WILL be sweet to see the many arrogant developers and investors finally get some comeuppance amidst the carnage they’re helping to create.
I see this gearing up to happen in our city, too. We’re still running on the dregs of the great pandemic population shift and stimmy boom, but signs of a coming bust are gathering. Of course nearly everyone denies it publicly, but privately, people are becoming worried.
The whole American economy is sliding into a disorganized hot mess of inflationary depression, IMO. Lots of developers and property investors are going to lose their shirts, and municipalities are going to lose a lot of tax revenue. This will mean that holders of muni bonds are either going to see the value of their bonds decline (as desperate cities offer higher interest rates to attract more outside investment), or they’ll simply lose their investments entirely as cities default.
The ripples will be wide. The consequences vast. Lots of wealth will change hands unexpectedly. Creative predators of failing single family homeowners have already started appearing with schemes to front run the collapse and those waiting to go bargain hunting in its aftermath. There will be, IMO, one grand, final feeding frenzy in which many who got fat and happy during the easy markets of the boom times, will see their gains evaporated and a new class of the wealthy and property owners appear, dominated by several large banks and hedge funds. Then the government will step in to “help” us little people with UBI, CBDC’s and other tools designed to manage the vast new slave population. And among those slaves will be many of today’s smug developers and property investors.
I blame the combo of economic intervention by the Fed, and the tax laws that override natural market forces and overly incentivize home building. But it WILL be sweet to see the many arrogant developers and investors finally get some comeuppance amidst the carnage they’re helping to create.
That is, if we survive the coming nuclear war….