5 ms·

How much was the US real estate bubble before it popped?

est31 4y ago
1.3 T according to: https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220425~6436006db0.en.html https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220...
medo-bear 4y ago
people are not going into debt to buy crypto
- nik736 4y ago
  I wouldn't say that. I know of people who took debt to get crypto because "the return will be much higher".
  - medo-bear 4y ago
    sure there are going to be some cases (outliers) but nothing like in the housing bubble
- birracerveza 4y ago
  I have no sources and neither do you, but I am pretty sure that this statement is factually wrong.
  - medo-bear 4y ago
    i am pretty confident that people are not taking out mortgage-sized-loans to buy crypto. if they are banks should be taken out of business ... by crypto [EDITED]
    - ekianjo 4y ago
      Mortgage is specifically for housing
    - ShivShankaran 4y ago
      HELOC says hello
    - zeusk 4y ago
      are you pretty confident people are not taking home equity loans to buy crypto?
      - medo-bear 4y ago
        in comparison to the amount of people taking out home loans in order to get in on the housing bubble that was subsidized by the government ... yes definitely
    - GrinningFool 4y ago
      Since you're confident, I'm sure that means it's not happening.
- base698 4y ago
  I know people even in the 2017 runup that got second mortgages and loans on their 401k.
  - deleted 4y ago
    [deleted]
  - medo-bear 4y ago
    a bank approved someone's second mortgage to buy cryto? that's awful! i really do hope that crypto takes traditional banks out of business :)
    - base698 4y ago
      HELOC.
    - GrinningFool 4y ago
      You seem to have changed your position from 'people are not doing this' to 'the banks shouldn't be letting people do this' That's a pretty big shift.
      - medo-bear 4y ago
        people are not doing this on the scale of real estate bubble. i am sure of that. but banks should be punished for giving out unsafe loans definitely
- pjc50 4y ago
  People have been taking out debt from crypto firms to buy crypto. That's what all the "staking" nonsense was about - and why it blew up. People are also buying on margin, which is a form of debt.
  - medo-bear 4y ago
    > People are also buying on margin people have been trading foreign currency with HUGE margins long before crypto
- Asparagirl 4y ago
  Unfortunately, lots of people are indeed going into debt for crypto. That’s what happens when unregulated gambling becomes widely available. “Survey: Americans Borrow Money, Default on Bills to Buy Cryptocurrency More than 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to invest in cryptocurrency, in spite of triple-digit interest rates… About 21% of crypto-investors said they’ve used a loan to pay for their cryptocurrency investments. Personal loans were most popular, but payday loans, title loans, mortgage refinances, home equity loans and leftover student loan funds also have been utilized… Investors are going into debt: Almost 19% of respondents said they’ve struggled to pay at least one bill due to the amount of money they’ve invested in cryptocurrency, and about 15% said they’ve worried about eviction, foreclosure or car repossession due to their investing… More than 35% have used a credit card to purchase cryptocurrency, with about 20% of those paying it off when the bill came due, and another 14% are paying it off incrementally with either an 0% APR introductory offer or at the full interest rate, while 1% maxed out their card altogether…” https://debthammer.org/cryptocurrency-survey/ https://debthammer.org/cryptocurrency-survey/ (shout-out to Molly White @molly0xFFF for continuing to meticulously document this disaster at https://web3isgoinggreat.com https://web3isgoinggreat.com)
  - medo-bear 4y ago
    my point is that the ammount of borrowing people are doing to get into crypto is nothing in comparison to the amount of borrowing that drove the real estate bubble
    - Asparagirl 4y ago
      Every dollar they put into crypto, borrowed or not, could have gone into something with an actual use case. A house has a use. A tulip bulb has a use.
      - medo-bear 4y ago
        > A house has a use yet the housing market crashed and will probably crash again

1.3 T according to: https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220425~6436006db0.en.html https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220...

medo-bear 4y ago

people are not going into debt to buy crypto

nik736 4y ago
I wouldn't say that. I know of people who took debt to get crypto because "the return will be much higher".
- medo-bear 4y ago
  sure there are going to be some cases (outliers) but nothing like in the housing bubble
birracerveza 4y ago
I have no sources and neither do you, but I am pretty sure that this statement is factually wrong.
- medo-bear 4y ago
  i am pretty confident that people are not taking out mortgage-sized-loans to buy crypto. if they are banks should be taken out of business ... by crypto [EDITED]
  - ekianjo 4y ago
    Mortgage is specifically for housing
  - ShivShankaran 4y ago
    HELOC says hello
  - zeusk 4y ago
    are you pretty confident people are not taking home equity loans to buy crypto?
    - medo-bear 4y ago
      in comparison to the amount of people taking out home loans in order to get in on the housing bubble that was subsidized by the government ... yes definitely
  - GrinningFool 4y ago
    Since you're confident, I'm sure that means it's not happening.
base698 4y ago
I know people even in the 2017 runup that got second mortgages and loans on their 401k.
- deleted 4y ago
  [deleted]
- medo-bear 4y ago
  a bank approved someone's second mortgage to buy cryto? that's awful! i really do hope that crypto takes traditional banks out of business :)
  - base698 4y ago
    HELOC.
  - GrinningFool 4y ago
    You seem to have changed your position from 'people are not doing this' to 'the banks shouldn't be letting people do this' That's a pretty big shift.
    - medo-bear 4y ago
      people are not doing this on the scale of real estate bubble. i am sure of that. but banks should be punished for giving out unsafe loans definitely
pjc50 4y ago
People have been taking out debt from crypto firms to buy crypto. That's what all the "staking" nonsense was about - and why it blew up. People are also buying on margin, which is a form of debt.
- medo-bear 4y ago
  > People are also buying on margin people have been trading foreign currency with HUGE margins long before crypto
Asparagirl 4y ago
Unfortunately, lots of people are indeed going into debt for crypto. That’s what happens when unregulated gambling becomes widely available. “Survey: Americans Borrow Money, Default on Bills to Buy Cryptocurrency More than 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to invest in cryptocurrency, in spite of triple-digit interest rates… About 21% of crypto-investors said they’ve used a loan to pay for their cryptocurrency investments. Personal loans were most popular, but payday loans, title loans, mortgage refinances, home equity loans and leftover student loan funds also have been utilized… Investors are going into debt: Almost 19% of respondents said they’ve struggled to pay at least one bill due to the amount of money they’ve invested in cryptocurrency, and about 15% said they’ve worried about eviction, foreclosure or car repossession due to their investing… More than 35% have used a credit card to purchase cryptocurrency, with about 20% of those paying it off when the bill came due, and another 14% are paying it off incrementally with either an 0% APR introductory offer or at the full interest rate, while 1% maxed out their card altogether…” https://debthammer.org/cryptocurrency-survey/ https://debthammer.org/cryptocurrency-survey/ (shout-out to Molly White @molly0xFFF for continuing to meticulously document this disaster at https://web3isgoinggreat.com https://web3isgoinggreat.com)
- medo-bear 4y ago
  my point is that the ammount of borrowing people are doing to get into crypto is nothing in comparison to the amount of borrowing that drove the real estate bubble
  - Asparagirl 4y ago
    Every dollar they put into crypto, borrowed or not, could have gone into something with an actual use case. A house has a use. A tulip bulb has a use.
    - medo-bear 4y ago
      > A house has a use yet the housing market crashed and will probably crash again