Housing Market In CHAOS On 2008 Crash Anniversary | Breaking Points with Krystal and Saagar

Saagar takes viewers back to the 2008 housing crash and how the unresolved problems from then are affecting the housing market chaos of today

To become a Breaking Points Premium Member and watch/listen to the show uncut and 1 hour early visit:

To listen to Breaking Points as a podcast, check them out on Apple and Spotify




Chicago Tickets:

Glenn Greenwald:

Written by Breaking Points


Leave a Reply
  1. I think Florida is too far gone . I became a deputy and graduated college during the Covid with no debt. Went from 11/hour to 25/ hour and I didn’t gain anything at all . Florida is literally the HAVE AND THE HAVE NOT. I live 45 min south of Tampa and the average house is 400k brand new or old !! Average rent now is 1800 for a one bed room apartments and 2k + for 2 bed room . Everybody on Facebook is always talking about rent increase. I live with my mom n her landlord raise rent by 600$ . Of course he’s a boomer with 28 houses 🗣 most were purchased for 60k in the 80s and now worth 300k. Florida isn’t affordable and the only people that thinks it’s affordable are those with houses 🤷🏽‍♂️🤡

  2. When it comes to 2008 crash Breaking Points always focus on the housing market crash (which is fine) but overlook the real problem that made it a worldwide economic crisis and that was the explicit deregulation of under-the-counter financial derivates like credit default swaps lobbied by Alan Greenspan and Larry Summers during Clinton administration against the wishes of the then CFTC chairwoman Brooksley Born. Along with Hank Paulsons successful lobbying effort to ease the SEC limits on leverage ratio of investment banks it allowed for the housing bubble to be just a fuse to a nuclear bomb. If the worthless mortgage backed securities and CDOs wouldnt be tied in CDS contracts to major financial institutions like AIG the housing bubble would just burst (certainly cause some damage) but it wouldnt ruin the world economy. This was a result of coordinated deregulation effort by wall street ghouls like Robert Rubin, Larry Summers, Alan Greenspan, Timothy Geithner or Hank Paulson and a testament to the US government being captured by Wall Street CEOs (after securing the merger Rubin went on to work for Citygroup, Paulson was CEO of Goldman) and Chicago School of Economics. And no one held those people accountable. The Wall Street got their bailouts, their friends got bonuses and the business as usual continues to this day. Some of these assholes like Geithner or Paulson are even lauded for saving the economy. No one points out they had to save the economy they ruined themselves in the first place.

  3. The 20% down payment rule is crazy to me. My girlfriend and I bought a house this year in the Netherlands and paid… 3% down. No way we could have afforded 20%. Almost everyone who's under 30 and doesn't come from wealth is excluded from entering the housing market this way.

  4. "House Prices Declined 0.7% MoM in August"
    Must be all that "Sub-prime." Saagar would be dangerous, if he was not so stupid as to believe whoever is advising him on economics. "Inflation is 'trasitory.'" Who's his source, Larry Summers?

  5. "AMERICAN EXCEPTIONALISM" … America's great dream 2022 … Give the masses a couple cases of overpriced light beer, some hot dogs and nachos, some cheesy cheap Americans flags made in Communist China to wave, a ball game, and some corporate/banking owned politicians with loud mouths, repeating what you already know … and American's will believe they're in Heaven🟪

  6. If people just start making more then houses will just keep costing more. What needs to happen is people need to start spending less. I know that's not popular but the whole economy has been this rampint sellers market for 40+ years. We keep paying more and creeping into more debt to do it which btw means you pay a little more on the more you're paying.

    Lots of ways to pay less too. Cut out what you don't need, live in cheaper areas, live together with someone in a family rather than separate houses as single parent families do. I know it's not ideal and not easy but I bought an 80K 1000SF home as a young 20 something college drop out with a 4 year old to take care of. No help financially from anywhere and from a home that was a bad scene in general. I got lucky no major problems cropped up. Wish I had waited to have 20% to put down. I'm no handyman with no father to teach me, but hey there is YT for that and I've done no big expensive remodel yet. It's in a small town safe area good public schools and under an hour away from work. Is it perfect, hell no! 2 bed 1 bath no garage etc. But it's a starter home and one I could afford on 40K a year with a child. I make double that now and still would not want to purchase a home for 250K even as an upgrade. But a starter home isn't what lots of buyers are looking for and thus not what builders are making. Our standards in general have gone way up for home buyers and the prices reflect that too. So don't buy, don't rent at those prices, get room mates, go van life, or whatever you have to until the market comes down to a level you find reasonable because it will… if people spend less and the market has to compete for us again. Consequential I believe we'll also be paid more. I mean heck even Henry Ford created the 5 day work week so that his employees would have a reason to buy a Ford and time to drive it around town.

  7. Your math is incorrect. Banks will not approve a loan unless you have the ability to repay. Your math at 20% down for a $474k home only accounts for principle and interest. You are forgetting taxes, insurance, flood and HOA. Which banks take into account for ATR (ability to repay). So the purchasing power is far less than $474k and the market for anything less than $350k in a high demand market is almost non-existent.

  8. I don't think the solution is that complicated. It's simple: the class of the super rich are cage free criminals-globally and nationally. They're in every part of our society like parasites sucking our lives and hopes for a harmonious future away. WWT, worker wage theft, is the greatest theft of all the looting and stealing we're seeing in our society. Until we organize and attack collectively, nothing substancial is going to happen. And, the two party mafia isn't going to get us there.

  9. Holding employers responsible to keep up with the greed of landlords and home sellers is highly inflationary itself. It's also unattainable, and renders domestic manufacturers unable to compete with foreign manufacturers, increasing our dependence on foreign manufacturers and eating away at our ability to sustain ourselves.
    Better idea: reform our unlimited, feudalistic property laws in the vision of Madison, Jefferson, or better yet Lincoln. Removing investors and their capital from the housing market will decrease demand substantially, bringing affordability back to a healthy level.

  10. I believe this is happening because corporations don't need to finance the way home buyers do. So people have been priced out due to monthly payment amounts while corporations can buy all cash. this benefits them by keeping purchase prices lower but still pricing us out. RENTER NATION. WE OWN NOTHING THEY OWN EVERYTHING.

  11. That or…… you get your degree or experience in the tech field, take a remote job and leave the US to live more comfortably abroad. Just as retired people are starting to realize they would have to leave the US to live comfortably.
    The US is a rigged game and it damn sure isn't rigged in the average persons favor.

  12. The problem is there’s only so much land in desirable locations. The reason you don’t see $200k houses in Denver metro anymore is because the population of the US has almost doubled since the 70s.

  13. I didn't understand why people put their money in the stock market to begin with I mean it's just fake money it's not like it's going to get you anywhere in the long run and I didn't understand either why our governments were so stupid the bell them out they shouldn't have been bailed

  14. You guys are so bad at economics. The impact of the 7% mortgage rate is not felt yet. Right now housing prices represent june rates. It is going to take some time but housing will collapse for major corrections

  15. The Fed enriches the super-rich with low interest rates so they can acquire assets after a crash. The Fed enriches the super-rich when it raises rates to cause the rest of us to eventually be forced to sell our assets due to high prices and job losses. The Fed is pure evil.

  16. The more we reject free market housing, the more you'll only have the most profitable housing built, because so few are allowed to be built and regulations will force high costs on builders.

  17. One reason why developers don’t make affordable housing anymore is because of the incredible cost and red tape associated with it. My family does this And the incredible amount of upfront cost for entitlements, title 24, purchasing land, etc., makes it so that it’s not profitable to Build affordable homes. There’s just as much demand for Bay Area, Los Angeles, and Seattle transplants who are looking for a home and are willing to pay triple what does property is worth two years ago.

  18. Saagar you are so off on this. For a data person you should remember that the mid 80s' had double digit mortgage rates. Reaganomics and Thatcherism was the foundation for what we are experiencing today in almost every facet of our lives.

  19. My prediction: Large corporations will buy up all this overpriced property at a loss. When they own enough of the market and are too big to fail the govt will bail them out. Essentially we will pay for them to monopolize the housing market.

Leave a Reply

Your email address will not be published. Required fields are marked *