People who have little money and buy private properties to flip will be in huge trouble soon.
Bankruptcy lists in the Strait Times will get longer and longer.
More will lose their jobs, cannot make mortgage payments. Bank will revalue their properties downward and get borrowers to top-up.
Cannot top-up, banks more than happy to get borrowers to liquidate and take over property.
Asset-rich people will get poorer. Cash-rich people will get richer.
But I doubt there are many cash-rich people. With deposit rates at sub 1%, most people parked their money in stocks, properties, businesses etc
This recycling is really good for the world. It weeds out the weak, rewards the strong. Natural selection process at its best.
Bankruptcy lists in the Strait Times will get longer and longer.
More will lose their jobs, cannot make mortgage payments. Bank will revalue their properties downward and get borrowers to top-up.
Cannot top-up, banks more than happy to get borrowers to liquidate and take over property.
Asset-rich people will get poorer. Cash-rich people will get richer.
But I doubt there are many cash-rich people. With deposit rates at sub 1%, most people parked their money in stocks, properties, businesses etc
This recycling is really good for the world. It weeds out the weak, rewards the strong. Natural selection process at its best.