Name: Trump Just Did The UNTHINKABLE... It's REALLY Bad
Uploaded: 2025-11-10T17:58:14.000Z
Duration: 15 min 43 s
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The housing market is about to get really ugly.

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Buying a house for the vast majority of Americans have become an impossible dream because house prices have gone entirely out of control in recent years.

And in some specific places like California or New York, it is way worse than the national average.

And President Trump is about to make it a lot worse.

He just suggested that he is working on a plan to introduce 50 year mortgages.

On the surface, it seems like a good solution to a really complicated problem that the country has been facing over the last few years.

But if you dig into the numbers, it is actually a disaster.

It is literally going to turn these people into slaves.

And if you think that I am exaggerating, let me show you the numbers.

The real household income over the last 10 to 15 years haven't actually grown much in it has increased by about 18%, while house prices during the exact same period have increased by about 100%.

So if your essential expense have grown by 100% and your real income has grown by 18%, you simply cannot possibly afford that and it creates a problem.

So the real solution is either to increase your real household income so that it matches the house prices in the market or or bring down house prices to a level where you can actually afford them.

Any other solution doesn't seem like a real solution.

If we look at house prices, there are two ways to fix them.

Last time the United States brought down house prices, it crushed the entire US economy.

When house prices dropped in 2008, it took down with it the entire US economy.

As a result of that, it took down with it the entire global economy.

And the entire global economy was suffering for the next few years just because the housing market in the United States has collapsed.

So the government and the Fed most likely won't let anything like that to happen anytime soon.

The second way to fix the housing problem is to bring down the mortgage rates.

The best period for mortgages was after the 2008 financial crisis, up 2022.

We are not going back to that period, at least in the next 10, 15 years, primarily because the US government has generated trillions or dozens of trillions of dollars in debt.

And the US Government is forced to run a huge deficit to borrow money to ensure that it can pay the interest on that debt so that it does not default on that debt.

For example, this year, the total amount of interest the US government will pay is about $1.1 trillion.

1 While the total spending of the US government is about $7.2 trillion, while the tax revenues is about $5 trillion.

So because the government is forced to borrow that money, it increases massively government spending.

Massive government spending leads to high inflation.

High inflation pushes the lenders to demand much higher interest rate on their investments.

So the banks are forced to charge much higher mortgage rates.

Even Donald Trump understands that that's not.

He forced the Federal Reserve to start lowering interest rates.

The Federal Reserve has bent the knee to Donald Trump and lowered interest rates.

And based on the forecast, they will lower down interest rates to about 3% in the next six months.

But you don't see that affecting mortgage rates.

Mortgage rates are still above 6% and they're not going down anytime soon.

Best case scenario, they could go down to as low as 5.5%.

But even that most likely is not going to happen.

And that's why the average age of the first time home buyers have increased dramatically.

You got out of college, you worked for some time, you saved up some money, so you go and get yourself a house.

Now at 28 years old, most people cannot even dream for a house.

They have to save for the down payment up until they are 40 years old.

And you can see a dramatic increase back in 2020 because.

Because that's when house prices exploded.

So here is what Donald Trump is proposing.

To understand Donald Trump's plan, we have to understand what FDR did.

During Great Depression, the United States was facing the greatest crisis in the history of the US People start losing their houses, they began to default on their loans.

So FDR, as part of the New deal came out with the proposal.

If you got a mortgage and you cannot pay it off, let's restructure your mortgage for far long period of time.

And the government is going to back up that loan so you continue making your mortgage payments and you won't end up in the streets.

The problem is that 30 year mortgages is not popular at all.

The bank takes money from the people with extra cash and it has to pay them some interest.

The bank will take that money and will provide it in form of different kind of loans, such as mortgages to people who want to borrow that and will charge them interest.

Interest will go back into the hands of the bank.

The bank will pay a portion of that interest to a borrower.

So the bank can actually offer you 8% and then pay the lender a 5% interest.

And the 3% difference is going to be in the pockets of the bank because the bank is responsible in the front of the borrower.

The bank does not want to provide 30 year mortgages since a lot of things would actually happen since and during that period, the longer the loan, the riskier it is going to be.

Do you want to tie up all of your cash in the hands of somebody that will be paying you interest for the next 30 years?

Imagine you take a mortgage, a 30 year mortgage in 1935.

By the time you pay it, it is going to be 1965.

So during that time World War II happens, the entire world changes.

The US dollar becomes the global reserve currency.

The Vietnam War most likely happened during that time.

The imagine how many things happen in that 30 years.

And that's why the bankers are like, we can offer you loans but for five years, 10 years, best case scenario, 15 years.

But if the government of the United States will back up those mortgages, then the risks instantly go down.

And that provides some kind of security to the banks to offer 30 year mortgages.

And that's how FDR solved the housing crisis back during the Great Depression.

It wasn't a perfect fix, but it actually worked for some time.

And now Donald Trump wants to propose something like that.

But with 50 year mortgages, is it going to help?

Well, let's take a real life example and see how that is going to impact you.

Let's imagine the size of the loan is $400,000.

Either you're taking a complete mortgage for $400,000 or you are getting or buying a $500,000 house, putting a $100,000 down payment, which makes the total amount of the loan 400,000.

And let's assume that your mortgage rate is about 6%.

So if you're actually taking a 30 year mortgage, your monthly payments would be $2,398 in total.

You will end up paying $863,000 and the total amount of interest will be even higher than the price of the house at $463,000.

Well, that's the price that you pay because you couldn't actually afford it with cash.

And you are borrowing that money for the next 30 years.

And now let's take the exact same scenario and apply it to a 50 year mortgage, assuming that it is going to be the exact same loan and the exact same mortgage rate.

Your monthly payments wouldn't be that different at about $2075.

But in total you will pay about $1.2 million.

And the total amount of interest will be $865,000.

Do you see how much in interest you are going to pay just because it's a 50 year mortgage?

Basically, you will pay far more in interest than the price of the house.

And that's primarily because when you take that mortgage, most of your payments are going to go into interest payments.

And as you start building up equity in that house, the interest payments are going to go down.

And most of your payments would go into building equity and home ownership in that house that you have purchased.

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Trump Just Did The UNTHINKABLE... It's REALLY Bad

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