HELOC Loan Apocalypse: 2008 Financial crisis Part 2

Not only that fren they have been packaging HELOC loans into MBS tranches

they are selling these HELOC loans as security packages
oh boy its 2008 all over again
wewlad

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Holy shit. I had some theories on how people were able to do this on average middle class salaries. I should have zeroed in on the obvious answer. This is bad... if you're a banker hahahaha

Kek it's kinda like your currency, debt that needs more debt to be printed to pay the never ending spiral of debt
Isn't debt a wonderful thing, magic GDP numbers from thin air

Yeah people have been overusing HELOC’s but they never read the fine print. The bank can freeze them overnight and you longer have access to the cash. People will get caught with their pants down with IO (interest only) loans with rising rates but HELOC’s won’t be causing people to be underwater on their homes like 2008-2010 levels, they’ll just get their helocs frozen and stuck with the expensive debt since HELOC’s are a form of revolving debt like a credit card.

foreclosure wave 2023-2024

day of pillow draws near

in practical terms it's borrowing against your house so you can blow the money on cosmetic improvements to it that will never recoup their cost unless you DIY them or going on an extravagant vacation or keeping your lifestyle up when you clearly can't afford it

>heloc loan is a loan you can pull out from the equity you have in your home
this is a reverse-mortgage?

Boomers gotta keep up with the joneses you know
Gotta have the rentals
the dream vacations
the boat
the toys

oh and theyll just use their childrens childrens childrens childrens futures to pay for it
because fuck you
they got theirs

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This is why housing is insanely expensive.
I fucking hate boomers.

hence all the investors buying shit houses for millions of dollars. Keeping the value of all these upsidedown houses sky high. The crisis is more imminent than it appears. If the money printer have slowed down to much then housing prices would plummet and suddenly all these 1m homes arent individually worth more than the 200k principle on the loans. Which means you gotta sell all your houses, including the one you live in. That's the real reason they're so brazenly doing this. They think if it all goes tits up then they'll sell 5 entire rental houses to pay off the 7 heloc loans. They keep their own house and got to live like they were rich for like 10 years.

You can use HELOCS to finance the purchase of rentals, your kids college, your business

its different
and its what is feeding into the next crisis

heres a boomer getting his HELOC having ass pushed in

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Its more like a loan against that equity. reverse mortgage is similar but you get monthly payments instead of lump sum and its more catered to retirees needing cash flow for regular living expenses.

>so now you have a 400k mortgage on a rental at 5.5% rate since boomers love adjustable rates
ARMS are still only like 5% of the market and a lot of them are for people like me who knew they would be moving before the interest rate floats. All ARMS start in a fixed rate period, usually 5 or 7 years

Home Equity Line of Credit

>this is a reverse-mortgage?
reverse mortgage is different, they give you payments until you "leave the property" (die), then they get it. You have to be older and I think the house has to not have any other liens on it.

If I'm reading it right, they still have their mortgage plus this new loan. I bet it's got your merchant senses tingling. All the possibilities!

Is there a term for debt based economics? This magical in the future numbers out the ass game is no longer capitalism of even communism, this is something else

Not it's more like restarting your mortgage from zero. A reverse mortgage is like seltl your house but slowly.

what people call a "second mortgage"

How do these 100% debt assets get cleared as collateral for a loan? Do you not have any kind of auditing in the US?

I debtmaxxxed and gifted homes and cars to my kids, the jews can't take anything away from me kek. My oldest son does legally own my car though hahahahaha fuck kikes

my dad gave me $60k but he just had it as cash. The assertions that (1) the parents are pulling HELOCs for it and (2) the kids are using HELOCs to pay it back (what the fuck kind of "gift" do you have to pay back?) needs backing up

>heres a boomer getting his HELOC having ass pushed in
that sounds more like milennial behavior to me
>freelance photographer
>invests heavily in FAGMAN
millenials are the evil spawn of boomers, so it makes sense

He also now owns 100% of your debt you stupid fucking boomer

It will happen during Bidet too so he will just give everyone a free house

>my anecdotes refute ur anecdotes thus ur anecdotes need backing up
Dude he backs it up when he says there are MBS tranches composed entirely of helocs.

like what the actual fuck. Could he not afford all the liquer he wanted living in his own fucking house and been happy? He's gotta create a debt katamari to...to what? What does he do now? Take pictures for paltry sums of cash and drink? Can't make the first goddamn payment. He had a house for 20 years, and he just thought he could file paperwork and get a better house?

>Is there a term for debt based economics?
fiat currency

What's the best resource to view composition of MBS tranches?

So what you're telling me is I need to cash in on my equity now and then declare bankruptcy?

re-read, house for 20 years. An X'er most likely, same as my generation, unfortunately some take the "Slacker" meme too much to heart.

Wtf

HELOC balls bitch

they all firmly beleive with every fiber of their being that if it ever gets too bad and we reach the breaking point the state will authoritatively bail them out. Meaning that the true value in our economy comes from state force. When people ask where the value of our currency comes from if there's no gold, the answer is violence.

>debt katamari
Based reference, I couldn't put it better

idk even what a MBS tranch is. mispelling of branches? I'm just saying to the other guy don't throw it back in his face in a kneejerk reaction when hes giving u new info for his assertion.

by "everyone" you mean "the banks" and by "free house" you mean "my house"

>Is there a term for debt based economics?
Judaism

Like in 2008 the lender plays hot potato and sells the bad loan off to loan servicers who repackage it to hide the burning shit smell and sell it off to the stupidest financial group they can find (usually pension fund managers and EU bankers).
Honk honk

Mortgage backed securities
basically you package a bunch of loans together and sell those loans as a package to other banks

its what caused the 2008 crisis
they are now doing Heloc based mortgage backed securities

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>idk even what a MBS tranch
a tranch is a fancy word for a slice basically. Like take all the mortgage backed securities a bank owns, package up just the HELOC ones, that is a tranche.

>my dad gave me $60k but he just had it as cash
>using HELOCs to pay it back needs backing up
Yes exactly. I'm not doubting boomers gave money to their kids, that happens all the time.

>backs it up
>SAYS there are MBS tranches composed entirely of helocs
Making an assertion without proof is not "backing it up"

>sell it off to the stupidest financial group they can find (usually pension fund managers and EU bankers).
I wonder if they will let the EU banks get free money at the discount window again this time?

Boomers will never suffer; they've entrenched themselves into the mechanisms of political power like royals have, and everything will be deferred onto gen xyz. Ffs they made the vax and its killing younger people faster than boomers, how is that even possible?

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I like 'Pilpul economics'.

>basically you package a bunch of loans together and sell those loans as a package to other banks

so the loans are getting passed around like a hot potato but there's no one to pay them?

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Thus we can conclude that the way to defeat the USA was never through economics, but with the capability and absolute will to use overwhelming and unceasing violence.
The Soviets in the 40s were right kek

you only have to pay incremental payments for debt, this is all manageable until something fucks up or people go overboard

our currency was fine until literally this year, and our debt scheme would be manageable if not for dem/liberal retardation.

Oh, so an equity loan. Why not just say that?

Is there an insurance industry around HELOC loans? The insurance bubble pop was what really set the flame back then

the gift thing is to evade tax or whatever. Its not 'really' a gift. you gotta pay me back kiddo. 80% of the boomers i know REFUSE to help their kids. Especilly on that level. Thats why its a family loan, kinda like the bidens do but instead of a international gas co its just a house.

Yes except this time instead of those hot potatos just being relegated to homes
boomers have been paying their kids colleges
paying their business expenses
and all kinds of shit

so instead of it just being isolated to the housing market
its everywhere
like a fucking parasite invading every host

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The idiot boomer didn't read the entire agreement.
He still thought the (((bankers))) were his friends.

People also use HELOC loans to play gambling man in the stock market
who knows how many stocks have been bought with HELOC loans

WEEEEEEEEEE
youtube.com/watch?v=zc6KUlXP--M

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home equity line of credit

>calls someone a stupid foreign fuck in thread about people in own country being a stupid fuck

I love yanks, no not really.

ok, then why would a bank buy a package of hot garbage loans if they know they could be the 1s stuck with the hot potato in their hands and know no1 will pay them off? Just hoping the hot potato turns into a golden egg when the bailouts come flying from congress?

Housing market won't crash user. Housing market to the moon!

this is troll economics

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>it works until all goes horrible wrong and takes everything down with it