GoingMadlem

This...doesn't concern anyone else?https://twitter.com/tony_sagami/status/955463194868301824 …

Home prices are up partly because of the complete lack of new home construction during the recession, we're still behind on catching up to market needs. Saw similar effect on auto markets but they're able to shit cars out faster than they are houses

Yeah, are high prices intrinsically a problem? No, not if they are back by good fundamentals. Housing bubble was driven by greed and speculation, so if it's different now, it might be ok

Agree, no more securitization of mortgages which was causing most of the problem back then. This seems to be a more natural growth out of a recession.

No more securitization of mortgages? Ever heard of Bespoke Investment Traunches? They are doing the same thing as before, but adding toxic student loan debt as well as consumer credit debt and predatory car loan debt on top. We are headed for a worse collapse than before.

There's nothing wrong with securitization of mortgages per se; are they being marketed as high yield low risk? That would be an issue. Is there a large volume of these being transacted? Smaller volume, less systemic risk.

Smaller volume? The same products are being offered and more money is being wagered on them. There is approx. $1.4 QUADRILLION in derivatives. THAT WE KNOW ABOUT. the real estimate is closer to $3Q. That doesn't even factor QE into the equation which is a whole other nightmare.