10-15-2021, 06:39 AM
(10-14-2021, 11:58 PM)crimsonghost747 Wrote: China is making some moves.
https://finance.yahoo.com/news/china-eas...31162.html
Long story short: the Chinese government is now telling banks to lend more money more easily to home buyers, as well as letting banks sell residential mortgage backed securities in large amounts again to limit their own exposure.
Looks to me like a lot of people have lost confidence in the real estate market, and now they need to find ways to push more capital into buying houses so the overleveraged developers can remain afloat. Might just be a strategy to buy some time since I don't see this as a long term solution.
Giving out mortgages to people who logically can't afford it, pushing the risk to secondary markets through RMBS, the whole real estate sector being overleveraged... 2008 vibes anyone?
Yikes. Praying that China's mortgage problem doesn't affect the US too much.