Josh Sigurdson talks with author and economic analyst John Sneisen about the alarming nature of San Francisco’s housing bubble as it gets close and closer to bursting.
Some tell tale signs of the inevitable bubble burst is the fact that non-tech middle class workers are being forced to move into dorms with shared bathrooms. When the middle class can’t afford housing, there’s a problem.
Starcity, a development company that buys up defunct hotels is catering to people who make less than 90,000 dollars a year by offering “affordable housing” for middle class workers where members pay between $1400 to $2400 a month for a fully furnished bedroom and a shared bathroom.
So, we all know that California’s an incredibly centralized state with regulations pushing small business far out of competition and social programs perpetuating problems left and right. It certainly doesn’t help that we’re seeing the return of collateralized debt obligations, credit default swaps and mortgage backed securities as derivatives heat up, manipulate markets and create further future problems.
The demand is simply not there, but that doesn’t stop banks or developers. Investor confidence is the only thing holding most of the system up and as soon as investors start to question their faith in the system, it all comes crashing down. The fundamentals aren’t there. But of course the fundamentals are off the table due to the level of manipulation in the markets and the monetary system, so we can’t put a date on the crash, but we know very well that it will most definitely happen. It’s inevitable.
So as people blindly euphoric with greed and false optimism continue to fall for the same old tricks, they will eventually get burned. We are seeing that in places like Vancouver, Toronto, Seattle, London, Sydney and Perth Australia, parts of Iceland, Oslo and many more parts of the world. The question is, are people going to be prepared? Or are we going to just repeat history once again?
It’s important that people are financially responsible and self sustainable. We can’t say it enough because it’s absolutely incredibly important. Responsibility is the hallmark of freedom itself after all. Let’s decentralize and look to ourselves for the answers. Not the government and banks. We will simply fall further into debt servitude if we continue to have faith in an antiquated system that has failed thousands of times.
Stay tuned for more from WAM!
Video edited by Josh Sigurdson
Graphics by Bryan Foerster and Josh Sigurdson
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