KENNEDY: IS THE ROOF CAVING
IN ON HOUSES MARKET,
PREDICTING HOUSING CRASH
WITH A COMBINATION OF
INFLATION AND HIGH INTEREST
RATES, MORTGAGE RATES OVER
7%, SOME ECONOMISTS NOW SAY
WE WON’T SEE A CRASH LIKE IN
2008 BUT WHAT DOES THAT MEAN
FOR HOMEOWNERS AND BUYERS?
HERE WITH ME CAPITALIST PIG.
HEDGE FUND MANAGER, JONATHAN
HOENIG, HE IS HABBER
DASHERRED AND READY TO GO.
MAYBE YOU CAN BRING SOME
CLARITY, PEOPLE ARE SCARED
THEY WILL NOT BE ABLE TO
AFFORD A HOME.
AND IF THEY ARE SELLING A
HOME THEY ARE WORRIED THAT
THEY WILL NOT GET ANY BITES
AT THEIR APPLE.
>> EVERY INDICATION, CRASH
IS A LITTLE BIT HYPERBOLIC,
BUT AT LEAST FOR NOW,
HOUSING PRICES WILL CONTINUE
DOWNWARD DRAMATICALLY LOOK
AT DATA.
MORTGAGE CONTRACTS, NEW HOME
SALES EVERY ELEMENT OF THAT
HARD DATA SUGGESTS HOUSING
CAN WEAK, EVEN SOMETHING LIK
FUND THAT TRACKS U.S. REAL
ESTATE INVESTMENT TRUST DOWN
SWEAT%28% THIS YEAR, WHEN
YOU CONSIDER WITH WHAT
GOVERNMENT DID TO PROP THEM
UP, THE PRICES ARE COMING
DOWN TO REFLECT REALITY.
>> PERHAPS A BUBBLE BURST,
WE NEED TO RESET AT A NEW
BASELINE, PEOPLE ARE WORRIED
BECAUSE CIRCUMSTANCES ARE
DIFFERENT, FROM 2008 WE
DON’T KNOW WHAT THE
RAMIFICATIONS WILL BE.
YOU REMEMBER IN 08 WE HAD
TOO MANY HOMES THERE WERE SO
MANY BUILDERS MAKING SO
PLANE PLACESMANY PLACES TOO
LIVE.
AND WHEN THE WEATHER --
PEOPLE WENT BANKRUPT THEY
DEFAULTED ON THE GLUT OF
HOMES, THEY STOPPED BUILDING
THEM, NOW WE HAVE A HOUSING
SHORTAGE.
WITH INFLATION, AND HIGH
MORTGAGE RATES.
>> THERE IS -- PEOPLE CAN --
ARE NOT AS LEVERAGED AS THEY
WERE IN HOUSING IN 2008, THE
SIMILARITY THAT GOVERNMENT
IS AT THE KEY OF MAJOR
MALINVESTMENT, THINK ABOUT
LAST COUPLE YEARS GOVERNMENT
KEPT INTEREST RATES LOW.
TO INSPIRE THE ECONOMY, THEY
HAND THE OUT CHECKS A HAD
THE OF THAT MONEY WENT TO
REAL ESTATE, REALLY PRICES
UP A WHOLE 41 41% IN TWO
YEARS THERE IS NO SUCH THING
AS FREE LUNCH, NO ONE IN TC
IS LISTENING.
LISTENING, HOUSING PRICES
ARE COMING DOWN TO REFLECT
REALITY.
>> WHERE TO WE GO?
>> TREND IS DOWN, MY FEAR IS
NOT SO MUCH FOR HOMEOWNERS,
A LOT ARE FIRST TIME
HOMEOWNERS, NOT EVEN SO MUCH
THEY MADE A BAD INVESTMENT,
THEY MIGHT HAVE TO STICK
WITH IT I LOOK AT HISTORY IN
JAPAN IN LATE 1980s
GOVERNMENT DID THE SAME
THING, IT TOOK 30 YEARS FOR
CONDO PRICES IN TOKYO TO
REACH 1990 HEIGHT.
TOOK 30 YEARS, I DON’T WANT
TO BE A CASSANDRA BUT
EVERYONE TIME GOVERNMENT
GETS INVOLVED IN
MANIPULATING ECONOMY, THEY
HAVE WITH INTEREST RATES AND
HOUSING AT LARGE WEALTH
DESTRUCTTION FOLLOWS, I AM A
REAL BEAR WITH MY OWN
INVESTMENT AT CAPITALIST
PIG.
>> HOW DO YOU FEEL ABOUT
SQUATTERS RIGHTS.
>> IF A PROPERTY HAS BEEN
ABANDONED, IT IS ABANDONED.
WHAT IS FRUSTRATING ABOUT
SOME OF THE AREAS, I THINK
THIS IS WHAT I HEAR YOU, YOU
HAVE PEOPLE LOOKING FOR
HOMES THAT CANNOT GET INTO
HOMES BECAUSE TO YOUR POINT,
HOMES ARE NOT BUILT.
THERE IS AN UNLIMITED AMOUNT
OF HOMES THAT BE BUILT IF GOVERNMENT ALLOWS IT.
GOVERNMENT ALLOWS IT.
THE MOST EXPENSEIVE HOUSING
MARKETINGS, 8 OUT OF 10 ARE
IN CALIFORNIA, THE LAND OF
NIMBY WHERE THEY WANT
EVERYTHING EXCEPT
DEVELOPMENT FOR PEOPLE WHO
CAN AFFORD TO PLACE TO LIVE.
KENNEDY: THEY SHOULD NAME A
HOUSING DEVELOPMENT IN BEL
AIR, NIMBY.
APARTMENT BUILDINGS NIMBY.
JONATHAN GREAT TO SEE YOU