The 50-Year Mortgage Is a Total Scam and Here’s Why

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Yeah, 50 year mortgage. Thomas Massey, as he said something funny, it’s kind of like the World Economic Forum where they were saying, you’ll own nothing and you will like it. I give you the 50 year mortgage. Anyway, what this is, is in my opinion, is a bailout. It’s a massive bailout for home builders. Home builders and also to be quite honest, you probably a lot.

of holders of various different types of paper, commercial mortgages, office, more. We talked about the default rates, which are at record levels in these areas. I’ve explained the concept of extend and pretend. This will allow refinancing to a 50 if the government’s gonna find a way to back it. Yeah, you can extend and pretend.

a hell of a lot longer. Now, many people out there, well, you know, it’s going to be good. Young people can’t afford homes and it’s going to allow them to afford more homes because it’s going to extend it. Milton Friedman talked about this concept. I forgot about it. I was watching a video of him today, the scene and the unseen and what most people, most voters

They see the immediate, look at this. This is wonderful. It’s gonna bring prices down. But it’s the important thing is not what you see, but what people don’t see. The more you study the real world.

economics. I often I often allude to the fact that call Washington DC, well, the Capitol building, the Cathedral of unintended consequences, because they’re politicians, and they don’t give a damn. They don’t give a damn about the unseen. All they care about is the scene. What’s in the here and now next election cycle. That doesn’t bode well for our country’s future just doesn’t. Okay, it’s not a great way.

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to run a business, it’s not a great way to run a country. But anyway, neither here nor there. What do you think is going to happen? I just want you to get your arms around this for a second. What do you think is going to happen when all of a sudden the prices, the monthly prices are gonna come down based upon this 50 year mortgage? Do you think the price of homes are gonna come down?

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They’re not. They’re gonna go up. There is that inverse relationship which I have explained here on many occasions. Prices for homes are gonna go up. Prices for homes need to come down. We need a housing correction. The market is screwed up because you have all of this corporate ownership that’s involved. You also have various different government rules and regulations making it difficult for people.

to sell homes that they might want to sell. Whether it be for property tax, potability, capital gains, whatever it may be. I have made it perfectly clear here on the program that a nice big fat housing correction would be friggin’ awesome. I don’t give a rat’s buttocks if the value of my home drops. My house doesn’t shrink.

Does it? Same house. I’m still living in it. What do I care? I don’t treat my house like a damn financial asset. Like many Americans do. Americans do this crap all the time so they can, I can take money out of my house. You see all this crap on social media with all these like wizard of smart mortgage experts. All right, got to take your money out of cash out of this and then do this and then do this, then buy this. Buying things that they shouldn’t have.

Quite frankly, people get themselves into trouble by doing that more often than not. Leverage. Charlie Munger! How wealthy people go poor. What did he say? Wine, women, and leverage. Leverage.

Do you understand that the amount of principal you’re gonna be paying towards that house? Most people, and I get it, it’s just another financial instrument and some people will know how to handle it properly, but most won’t and it’s not gonna solve the problem that homes are too expensive. You are already seeing. You’re already seeing builders all over the country. I’m seeing, they’re doing the mortgages much lower.

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much lower than anybody else, giving all sorts of incentives to move homes that they can’t sell because people are not buying. Why do you think Bill Pulte, why do you think he is so thrilled about this? Why housing? Why do you think that is? He’s a home builder.

This is great for him. This is fantastic for him. yeah, no, no, they don’t have to offer any incentives. They don’t have to lower their prices. They get paid. That’s all this is. The only thing is, again, you’re going to get this. You’re going to find an army of realtors, the mortgage salespeople. Yeah, home builders, they’re all going to be like, yippee ki-yay, this is the greatest thing. Trump’s awesome.

Again, what is seen and what is unseen. Talk about, you know, watching things and actually thinking things through. People, unfortunately, they don’t do that. The more you see it, the world for what it is, kind like the Matrix, where the Matrix, where he finally sees, you know, the simulation and the numbers and all that stuff later on, he kind of gets it.

You have to get to that point in time. Not how you would like the world to be, but how it is. Many of the things that I talk about here on the program, it was a great idea I had there, Chris. Well, that made a lot of sense. This is timeless stuff. It’s like me saying that I invented gravity. I didn’t, okay?

They’ve seen an unseen, Friedman talked about it that way, me, church of unintended consequences. This is what happens, okay? And this is how people get duped. This, my friends, is not a good idea. Not a good idea, but again, they’re gonna get the armies, armies of lobbyists and influencers and all that good stuff, and they will take the social media and they’ll be,

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all over the business programs out there telling you how awesome this is. 50 year mortgage.

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