Welcome back to real estate mindset Today's video is going to be absolutely Bonkers now the data is in we're going To listen to an Outspoken author Harry Dent now people Say that he's outspoken because he's Been warning people that we're going to Have the crash of our lifetime and that It's actually going to be worse than the 2008 recession and I'll be honest guys Originally when I first started Analyzing the housing market back in 22 I didn't really think that this crash That we are going to have by the way was Going to be worse than 2008 I it would Be more of a natural deflation type of Situation it goes down it goes up Together but now fast forward to to There's so much more inflation that's Continuously being kicked in the market It hasn't even stopped they keep kicking Inflation into our market and it seems As though that Society not everyone but A lot of people in society are Absolutely Clueless asked to what's Going on so this video it should be Absolutely Bonkers now we'll listen to a Brief Cliff of Harry D and then we're Going to go into an article and we're Going to ask ourselves do we agree with Him or not and some of the stuff he's About to say mind blowing hope guys Enjoy at least the first one was a Natural one you know in 20 25 to 29 was
A natural bubble there was no stimulus Behind that artificial stimulus per se So this is new this has never happened Governments have never felt the power to Just say well you know what we're not Going to take a depression after our Great bubble and party we're not going To take the hangover we're just going up What do you do if you want to cheer a Hangover you drink more and that's what They've been doing and so this is not Good policy my point of view and you Know what if this go if this can go Another five years I'm may have to admit You know what flooding the money with Extra uh the economy with extra money Forever might actually enhance the Overall economy long term but what we'll Only see when we see this Bubble Burst And again this bubble's been going 14 Years instead of most bubbles five to Six all right so the first thing I want To hack is is what does he mean that We've had bubble for 14 15 years and That's exactly what I want to show you Guys right now because I've been Constantly warning people you guys right Before we went into lockdown the Fed was Already trying to get control of the Bubble that we had before before the Lockdowns let me show you guys now again We're talking about before 2020 okay so Let's look right here this is an overlay K Shiller home value or Price Index so
It's not median they actually try to Have an index it's not perfect but it's Something but look at you guys Essentially from 2011 till about 2019 we Had a massive Gap happening between Basically what consumers are making and Can afford versus the prices of houses You see that right here I mean the Gap The base basically the Gap was similar To the Gap during the great financial Crisis that I'm right here so the great Financial crisis look at that bottom Black line and that top red line you see That gap between the two and again fast Forward to 2019 that Gap is almost Exactly the same so they knew that a Housing market bubble was forming before Lockdowns and I know that for a fact Because look at this they started Selling mortgage back Securities you Guys look at this in 2018 now this is Mortgage back Securities held by the FED Now when the FED purchases mortgage back Securities that's really called Quantitative easing and it allows Lenders to lend to us and to continue to Make profits so just keep giving Mortgages away don't worry the Government's going to buy that from you Just keep lending keep lending and keep Lending but again they try to soften That you can see that right here Mortgage back Securities going down down Down look at that they were doing a good
Job and then boom lockdown happened and The exact opposite happened mortgage Back security purchases skyrocketed to The likes of which we can't even Comprehend and that's why we have so Much pain that we're going through right Now and that we're going to continue to Go through we have to pay for this That's mortgage back Securities again Look at that right before lockdowns they Were trying to stop the bubble and it's Not just mortgage back Securities you Can see by looking at this chart this is The federal funds rate so back at the Beginning of 20 16 they started raising The federal funds look at this they Started raising it again to combat the Bubble that was here that no one's Talking about right before we went into Lockdowns you see that there's no Guessing here they raised the federal Funds rate look at this before 2016 it Was Zero you guys know that it was Already zero just like it is now look at That see it was 0.13 0.14 that's the Federal funds rate and then boom we got To ratchet this down we can't let the Bubble get any bigger and then what Happened as soon as lockdowns came look At that they slashed that sucker down And now we're in an even worse situation Than the GFC so don't forget that we Have a dual bubble going on here so we Have like a multibubble and then it's
Being held up by inflation now listen to What Harry has to say and some of this Stuff you guys it's going to get like Real juicy and real spicy and when we Get to the stock market understand I'm Not a stock guy so I don't know if what He's saying happen but he makes some Really alarming alarm in conclusions in 1925 to 1929 it was a natural bubble There was no stimulus behind artificial Stimulus per se so this is new this has Never happened before he's talking about Right now what do you do if you want to Cure a hangover you drink more alcohol And his point is is like you guys it's Destined to fail and the only way to Keep it propped up is is you make it Even worse you got to give it even more Drugs if it was hung over based on like Three shots of whiskey now we need four Shots of whiskey it's just going to get Worse until the wheels fall off now Listen to this guys this is crazy he's Going to go into the stock market if the Stock market goes that's going to be a Massive hit to every Market as markets Inch closer to the halfway mark of this Year US Stocks ended the month of May With gains as the tech heavy NASDAQ Nasda stole the show finishing up 6.9% Thep 00 was up 4.8% and the Dow was up 2.3% nearly two weeks ago Tekken AI Heavy Nvidia announced a 10 for one Stock split propelling shares P $1,000 3
Days Later making it an alltime high so You could kind of say that like all of The growth and like a feeling of success Is not in our homes anymore it's in the Stock in this literally like this one Stock think about what I'm saying now Actually you know what think about what He's about to say I think we're going to See the S&P go down I'm having trouble It leaving my mouth it's it's very Difficult but he's thinking that the S&P Is going to go down from its top 86% and that the NASDAQ is going to go Down 92% a hero stock like Nvidia as good as It is and it's a great company goes down [Music] 98% boy this is over Dent stressed you Guys I'm completely out of the stock Market FYI and thank God because if I Did not go out when I did and I got made Fun people like oh now you have a loss I Sold the stock at $60 okay that stock Right now I just checked last night is At $9 thank God that I sold Unfortunately I I shouldn't even messed With it to begin with but whatever we Have never seen the government sustain a Totally artificial bubble for a decade And a half and see what happens after That so they've been sustaining this Bubble for a decade and a half Unnaturally It's not just lockdowns is what I'm
Trying to tell you guys it's going to be Real bad when this corrects you guys Because people can't afford this life People cannot afford it I don't care What the data says and what these you Know economists say that sound like Encyclopedias it doesn't matter people Are suffering I know that for a fact but I can goes on but I can tell you there Has not been one bubble and this is far Larger and longer one major bubble in History that has not ended badly period It's going to end badly it is and I Don't know why this is so hard for Everyone to understand except for the Fact I get it because mainstream media It's all about optimism in as far as Getting you to spend your money so Optimism to spend money that's where the OPM is because that's what their Sponsors pay them to push the only edit To dense prediction is the timing the Timing has been hard because of why Inflation noting Market bottoms are Likely to show sometime between early And mid 2025 that's a year away at the Center of the bubble stands the real Estate market D previously predicted That housing would see 2012 lows this Year of 2024 so he's a pretty big Doomer And claimed Tuesday that us homes have Already increased by double or more what They'll soon be worth and honestly tell Me guys do you agree with him do you
Think home value is going to go back to 2012 levels do you really think that That's when that Divergence started to Happen personally I don't think we go Back to 2012 it's possible but 2012 Would be I mean could you imagine how Bad the economy and I mean so I just Want to know what you feel okay I'd be Happy if they went back to 2019 okay in Fact I can find very rare I can kind of Find places at 2019 right now they're Fixed up houses sweaty type houses They're not TurnKey but either way do You guys think that home value is going To go to 2012 levels no time in history Has housing been so widely owned and so Many people having second and sometimes Third homes just for speculation while Pointing out that countries like China And Japan are seeing a rise is seeing a Rising number of residents by empty Properties as collateral to a potential Market crash if you understand what the Cycles are you don't have to buy the Most expensive home in history right at The top of the market and then moan own 14 years while it goes through the next Downturn like 1929 1942 1968 and 1982 or What would have been without all this 27 Trillion stimulus 2008 to 2022 so he's Saying that we we avoided a depression Because the government printed us out of That depression do you guys agree with What he's saying I mean this guy is
Going heavy and I agree with a lot of What he's saying couple more paragraphs Here Dent also responded to critics who Have called his hyperthesis crazy and Accused him of fear-mongering it Fearmongering for what I want you to be Afraid so look after yourself I want you I'm going to fearmonger so you get Empowered I'm G to fearmonger so you Don't wastefully spend your money hm What a horrible person but he goes on I Just say what I see frankly don't give a Darn if people don't like it because you Have got to choose are you going to tell The truth or are you going to make People happy they call me a perab bear That's absolutely uncategorized that's Absolute BS looking at it from history And standing back nothing's been more Obvious and I agree with him a lot of Other bubbles in history just do not Have the steepness or the magnitude why We've never realized the power that Central banks the Federal Federal Reserve can have to just print money out Of thin air I like this guy people find Him radical thinking that mapping Long-term trends is easier than in the Short term according to the financial Author there really is nowhere to hide Except the safest Bonds in the world D Says and that's actually where I put all Of my liquidity is in the bond market so I appreciate what he's saying we're the
Largest economy in the world we will Endure this downturn and if they can Print money to create a bubble they can Print money to pay off their bonds of Course in the Great Depression the big Crash came between 1929 to 1932 and then The follow-ups was 1938 to 1942 It Reversed now because all of the stimulus We had made from the 2009 crash the big Crash is going to come on the back end This is going to wash all of the excess Out of the market bring the markets down To where they should be so the Millennial generation can have boom that Is healthier and that they can invest Their savings into for retirement that Sounds great anticipating the bubble of All bubbles Dent previously advised in December for investors to move their Capital out of the stock market if he Had to own a new home he'd pick Bitcoin wow that's crazy that he's Saying that let's go on here because It's in a leading sector now in its Early stage that has bubbled the most That's how you know a leading sector it Crashes Bitcoin already been down over 70% we haven't been in recession yet so That's how volatile it is it crashes the Most so that's what I would buy if I Could buy one thing two or three years From now near a bottom that's crazy then He goes on but Dent wants investors to Remember this the government created
This bubble 100% totally artificial injecting a drug To artificial Perform stronger it's like on steroids Right and again everything from human Life to history shows you don't get Something for nothing and Bubbles always Burst it's a much much it's a much much Higher probability than anyone gives it I mean seriously what do you guys think I personally I want to reach to him I Want him to come on my I want him to Talk more because I love it he's one of The few people that are actually like Acknowledging that we were already in a Bubble before we went into lockdowns and That the only reason that we're not in Depression and recession right now is Because the government printed money and Now they've printed too much money that We have nowhere else to go but pain and Crash you guys see the inflation Yourself I mean we see inflation and by Inflation I mean money the problem with Inflation is y'all it's not our money It's the government's money it's Corporation it's Bankers money it's not Our money money we just have to pay for It in the form of everything going up And and I'm going to tell you guys it's Not fair and I hate it and I don't think That there should be mortgage back I Don't think that there should be Quantitative tightening I think that
They needed to bust and we need to get This over with I mean if they would have Allowed the housing market to bust in 2022 2023 we would not have as many Buyers that are about to get burned Because they didn't know what was coming I mean think about it you guys think About all the people that blindly Purchased real estate because of Mainstream headlines saying or even Dave Ramsey saying that home prices go up Imagine being those people or you don't Have to imagine just literally go on to Google right now and type in Google home Buyers remorse and see what those people Are saying other than that guys we found Value in this video please don't forget Like the video really helps out the Channel give me some comments below if You guys can share it as well and don't Forget you guys I got it commercial Lending really excited about it need any Help with commercial lending reach out To me I have a form in my description Below I would love to help you but even More important I hope you got some new Value insights and perspective and now If you guys are out there investing in Real estate you guys already know I hope You win
