/biz/ - Business & Finance

>>25159922
Checked, but think more about the mortgage aspect. Mortgage rates are based on MBS. If middle class mortgage plebs default in-,ass and foreclose, the value of those MBS plummets, and the rates rise bigly. Property values may drop as middle class try to dump their bags, but unless you have cash, you would be looking at a 5%+ mortgage again, which prices out just enough people. This gives me more conviction that its going to play through that way.
>middle class panic sells
>mortgage rates too high for rentcucks to buy
>only buyers left are cash chad elites

The kink in this scenario is if the Fed backstops MBS enough to prevent rates from rising.