Hello, guys!
Today is Friday, and we decided to tell you about an excellent film for the weekend. This film is called
“99 Homes”.
Changing the key rate is not just an increase in the “cost” of money or, as they say, a washout of liquidity; it also impacts consumer behavior. If rates are low, we will unlikely take money to the bank. We will most likely prefer to speculate. The scheme is always quite simple: take a “cheap” loan, buy something unnecessary, sell something unnecessary at a higher price, repeat.
This is precisely what consumer behavior looked like in the United States on the eve of the subprime crisis 2008. From 2008 to 2009. consumer behavior has changed. American banks have increased their requirements for borrowers (real estate speculation has become more difficult).
The Fed traditionally launched the printing press, dropping the rate to the floor, which somewhat smoothed out the situation with speculation. By the way, the current year is somewhat reminiscent of the post-crisis period, only you can’t drop the rate so quickly.
The film
99 Homes tells about the situation in the real estate market in the United States during the crisis and post-crisis period. The film's hero loses his house for non-payment, but the realtor invites him to work for him. True, to earn real big money, you need... to sell your soul a little...
It is a straightforward story in the style of
The Devil Wears Prada. However, it shows how ordinary Americans felt, unable to pay off their debts and forced to leave their homes and intact families.
The film was released in 2014, i.e., we can say that the pain from the subprime shock has not yet passed, and this is well felt when watching.
We'd like to wish you a nice weekend! Click if you like such stories! See you soon!
