399: Interest Rate Shock: What It Means For The Housing Market with Eric Basmajian, EPB Macro Research

Accredited Income Property Investment Specialist (AIPIS)

Jason Hartman welcomes Eric Basmajian, economic analyst and founder of EPB Macro Research. Jason and Eric discuss the rapid decline in real personal income and standard of living, how the rate shock will filter through to the housing market and much more. Eric also talks about the single most important variable to understand where the next 10 years of the real estate market are going and the four corners of an economy: income, consumption, employment and production.

How far do our dollars actually go and how do we measure the standard of living in real terms? Eric looks for inflection points in long term economic cycles, what he calls secular economic trends, and cyclical trends to better position people for what's on the other side. We now have a rate shock being pushed onto the private sector which will cause a lot of problems as it filters through to the housing sector. So if you have no new home sales, or no new construction, and you have no existing home sales, how is that going to impact employment in the construction sector? How is that going to impact hours worked or hourly earnings in the construction sector? And as higher costs are being pushed onto the private sector, whether it's construction, food or gas prices, we're seeing a rapid decline in real personal income.

Eric Basmajian is an economic analyst providing research on the most critical secular and cyclical economic trends impacting interest rates and asset prices.

Learn about Eric's secular and cyclical framework: https://www.epbmacroresearch.com/

Key Takeaways:

0:47 Welcome Eric Basmajian, founder of EPB Macro Research

1:20 The Fed and increasing rates - did they panic?

5:34 Are we in for a 30 year housing shortage?

8:44 Homes for sale and permits for new construction

11:01 Higher costs pushed onto the private sector

13:43 As private borrowing rates increase, result will be a huge pullback in spending

15:37 Savings rate has come down substantially

16:53 The Consumer Price Index is understated

18:54 Almost no first time buyer market anymore

21:37 Working age demographics around the world

25:53 Secular economic trend predictions for the next 3-5+ years

26:50 Transfer of wealth from baby boomers to millennials

29:41 The single most important variable to understand where the next 10 years of the real estate market are going

33:25 The demand curve is set by those demographics

35:35 Immigration can help the demographic curve

37:13 Four corners of the economy: income, consumption, employment and production

39:51 Increasing talk of recession

41:47 We live in a centrally planned economy

44:26 Learn about Eric's secular and cyclical framework: https://www.epbmacroresearch.com/

GIVEAWAY ANNOUNCEMENT! Weekly Amazon gift card giveaway raffle! Comment on one of Jason's YouTube videos and/or leave a review for his Creating Wealth Show Podcast to be entered into a random drawing. Two winners weekly! Comment on this video and leave a review here: https://podcasts.apple.com/us/podcast...

Giveaway Rules: NO PURCHASE NECESSARY TO ENTER. Must be 18 years or older and a U.S. Resident. Void where prohibited. This promotion is in no way sponsored, endorsed or administered by, sanctioned, or associated with YouTube. Winners will be announced weekly and have 1 month to claim prize at www.jasonhartman.com/ask.

Follow Jason on TWITTER, INSTAGRAM & LINKEDIN https://twitter.com/JasonHartmanROI https://www.instagram.com/jasonhartman1/ https://www.linkedin.com/in/jasonhartmaninvestor/ Learn More: https://www.jasonhartman.com/ Get wholesale real estate deals for investment or build a great business – Free course: JasonHartman.com/Deals Free White Paper on The Hartman Comparison Index™: https://www.hartmanindex.com/white-paper

Free Report on Pandemic Investing: https://www.PandemicInvesting.com

Jason’s TV Clips: https://vimeo.com/549444172

Free Class: CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect

Special Offer from Ron LeGrand: https://JasonHartman.com/Ron

What do Jason’s clients say? http://JasonHartmanTestimonials.com

Contact our Investment Counselors at: www.JasonHartman.com

Watch, subscribe and comment on Jason’s videos on his official YouTube channel: YouTube.com/c/JasonHartmanRealEstate/videos

Guided Visualization for Investors: JasonHartman.com/visualization

Jason’s videos in his other sites:

JasonHartman.com/Rumble

JasonHartman.com/Bitchute

JasonHartman.com/Odysee

Jason Hartman Extra: https://www.youtube.com/channel/UC0qQ… Real Estate News and Technology: https://www.youtube.com/channel/UCPSy…