Jamie Dimon: The “Crisis” Forming in the Real Estate Market
Вставка
- Опубліковано 11 бер 2024
- Click this link to get up to 15 free stocks from moomoo U.S when you make a qualified deposit! Terms & Conditions Apply: j.moomoo.com/00mF1u
You’re going to want to hear what Jamie Dimon has to say about the future of the real estate market and the economy. Dimon is the CEO of JP Morgan Chase. With 3.7 trillion dollars of assets, JP Morgan is one of the largest and most powerful financial institutions in the world. Dimon’s position as CEO gives him an inside perspective of what’s happening in the economy that is unmatched by anyone else on the planet. That is why he got my attention when in a recent interview Jamie Dimon discussed the quote unquote crisis that is forming in the US real estate market.
For generations real estate has been considered an incredibly safe investment in the United States. It was almost as if investors couldn’t lose money with real estate, even if they bought in some lets just say… less desirable neighborhoods. The reason why real estate has been such a great investment over the better part of the last 50 years has to do in large part with interest rates. This chart here is the Fed Funds Effective rate. Think of this as a proxy for interest rates in the economy. As this chart shows, interest rates peaked in the 80s. Since then, interest rates have been on a consistent, steady decline. You can literally add an arrow to this chart that follows the path interest rates took over a 30 year period.
Decades of declining interest rates acted like jet fuel for real estate, pushing values to the stratosphere. You see, commercial real estate is valued using what is known as a capitalization rate, or cap rate, for short.. A cap rate is just a fancy name for the rate of return an investor anticipates for a property based on the income that property is expected to generate. The cap rate formula is super simple. Just take the income the property is expected to generate, and divide it by the value of the property. So let’s say we have a property that is going to generate 80,000 dollars in income this year. Let’s also say that property is worth 1 million dollars. By dividing the annual income by the property’s value, we get the cap rate. So in this case, 8%. The higher the income relative to the property’s value, the higher the cap rate. The opposite is also true. The lower the income relative to the property’s value, the lower the cap rate.
This video covers topics including Real Estate, economy, Real Estate market predictions, Jamie Dimon, Jamie Dimon Economy, Jamie Dimon Real Estate, Jamie Dimon Commercial Real Estate, Commercial Real Estate, Jamie Dimon Inteview, Jamie Dimon CNBC, and much more
Click this link to get up to 15 free stocks from moomoo U.S when you make a qualified deposit! Terms & Conditions Apply: j.moomoo.com/00mF1u
The fact there's persistent videos on this topic (this one being one of the best) just shows what kind of times these are with regard to very unprecedented economic conditions.
Investors should not be able to buy single family homes. Leave those for the next generation to raise their children
You oppose a free market?
@@1Skeptik1 I oppose unfettered capitalism
Some people WANT to rent
@@zm5513 most people want the opportunity to atleast afford to buy
I oppose companies like blackrock buying up houses on the cheap money they got from their banker friends, that called communism not capitalism!!
Time to Dimon clock was brilliant. Always great content! Thanks!
Glad you enjoyed it!
i've always wanted to watch full analysis on this interview, thanks!
The Roman Empire spread itself out too big, ran out money to fund itself, lost huge numbers in the military and kept the people distracted with Bread and Circus…
Meanwhile outsiders wanted to come in and enjoy the luxury of Roman life… BUT they didn’t want to pay any taxes and they didn’t join the military. Eventually this became wide spread and the Empire started to fail… Skilled workers who guarded their trades and secrets died off or were executed by Barbarism….
Left without any military, no wealth and no skilled workers Rome fell… It was eventually divided up and the rest is History…
So you are correct and I agree 100 percent, history does repeat itself, every past Powerful Empire failed mainly because of greed, "a halty spirit goes before destruction"!!!
As we will be
What Jamie said does not match with what’s being explained..the discussion was about commercial real state market..and the lady is explaining residential real estate. They work very differently..
My question is, aren't the banks' liquidity connected? If they take huge loss in one book dont they have to liquidate funds to compensate? Therefore, triggering a liquidity crisis in another sector? You can't act like the banking system won't have a systemic problem
I agree with Jamie Dimon, JPM is making a living off of Consumer fees!
Fed is partial to JPM
@@Coco-yw9nf Absolutely, 1 of the "Too Big to Fail" banks, they got an awful lot of COVID stimulus checks for distribution, I'll bet my life on the fact that not all of them were distributed and are making money for JPM.
Thanks for this intuitive explanation on how interest rates and property value can ultimately affect rental properties
Absolutely!
? Model of opening a 2nd. restaurant elsewhere is gambling the customers will come from competitors (loss). Have we not created a situation that will put price pressure on the local restaurant business? Is anything gained?
Thanks for the excellent explanation 👌👏… looking forward to the next one
Glad you liked it!
The west has to look at the new BRICS.
The new BRICS currency.. This is the new world order. That will challenge the U.S.dollar. This BRICS is also a major blow to G-7. WE should of never kicked out Russia from the G-8.
"Domino Effect"
2:27
Great Explanation........
How did this video turn into a real estate investing course ?
You're going to create some artists asbwell..LMFAO 😅😂
Anytime you got a downgrade on bonds and a US national debt of 34 trillion,three wars ,and inflation rising,the house is a Poor Investment with no return.This video is a Lie.
US is at war in 3 places? News to me. Wonder why we have the highest growth of any developed economy. Weird. Almost as if you only see it half empty.
there already is real estate problems. artificial 0% rates for 10 years did that. Selling more stocks.
Great video!
Thanks!
The explanations are somehow true but they do not clarify the trigger behind which is: with the interest rates falling imvestors go away fromnthe bond and treasury markets and invest in real values which can be real estates, equities gold and commodities. Tgis im turm make imcrease the demand of real estate hence their prices. Secondly to get the same annualnreveue of before (80k) with a liwer cap rate an investor need to spend more money if the return is only 5% instead of 15%. Hence again the price is higher. Thats the true economic explanation
What?
Commercial RE is NOT the entire US economy. And as Jamie Dimon said, the residental RE is a lot bigger than commercial. STOP making scary headline.
This is no different than the 80’s!
Yes they will
When the world financial groups. Start telling us. .That every thing is going to crash. That you must go now and go throught the big door. They tell us. To go through. You need grab they by the belt. And hold on .I an sure they will take us to some door different. That is safe and sound..
The cost of real estate has been going down over the last decade for all of us bitcoin monetary system participants. It will continue to go down.
Two perspectives exist and the fiat system perspective is not the only show in town. Fiat users living inside of Jamie’s illusion.
Thank you ,and Hi from germany.
Hier the same.
Hello there!
Present 😊
❤️
Does anyone actually believe Jamie Demon has your best interest in mind? How clueless can you be?
BLESS YOU JAMIE DIMON OF MORGAN CHASE!!! ... THIRD GOD,
MICHAEL HACHERO AFABLE,
THE HOLY SPIRIT
🙏❤️🙏
Interest rates do not go up during a recession. He knows exactly what will happen. Which is the recession is guaranteed. What was normal for interest rates in the 1970s and 80s is not normal now and the economy cannot function at this level.
i thought we werent going to make it in 2023?
Never trust an adversary.
The high price of homes is the real problem, not the interest rates. Now Americans are selling or giving pt away to the enemy!...How's your Chinese? Will robots that replace human workers need homes?
Jamie Dimon said not to buy bitcoin.
And other crypto pseudo currencies. They are certainly risky and impossible to place a value on.
@@snwbm not impossible. Total value locked. Hash rates. Finite supply. Declining dollar value. Etc.
I mean, Bitcoin has all of gold’s properties and many more gold doesn’t have.
It’s like saying, beach front property can’t be valued because it’s not backed by anything. Bitcoin doesn’t rely on quarterly earnings, board decisions, future products, weather, war, etc.
One thing he was right about
@CurieBohr first off there is no finite supply of crypto. It can simply be made or divided forever.
Total value locked and hash rates have existed on crypto currencies that have then gone to zero and no longer exist.
A beach house can be valued by rental income. That is how I value my beach house. Gold isn't an investment either.
Declining value of the dollar doesn't set any value of a crypto currency. Nothing you wrote is remotely true.
@@snwbm bitcoin has a finite supply. Hard stop.
Dont buy bitcoin. Continue to fall behind the gains of those that do. That’s your right.
Have a good day.
The woman interviewing my dad is an amateur
Anyone buying a house in 2024 will regret it for a decade
He has the Yellen perspective on the economy:
"As long as I'm ok, your lived reality isn't a fact."
Hi dad 😂
Guy holds NO weight. Useless to show.
Listen to the snake tell the rabbits they're safe. NYC IS BECOMING DETROIT ON A FAST TRACK SO STOP BULLSHITING EVERYBODY
All bank BS from Jamie.
He is part of the problems!
Did his bank pay back the taxpayers yet?
Liar
A great bullshit artist