PRESIDENT TRUMP PROPOSES 50-YEAR MORTGAGE LOAN CAUSING MUCH CONTROVERSY

🔹 President Trump posted on Truth Social the idea of a 50-year mortgage, comparing it to the 30-year mortgage from President Franklin D. Roosevelt's era.

🔹 The 30-year mortgage became popular in the 1950s after the U.S. government established the FHA and Fannie Mae to assist people in homeownership following the Great Depression. This form allows buyers to pay less each month and stabilizes long-term interest rates, becoming the standard in the U.S. housing market.

🔹 The head of the Federal Housing Finance Agency (FHFA), Bill Pulte, called the 50-year proposal a "major turning point" that would make it easier for people to buy homes. The goal of the 50-year loan is to reduce the monthly payment, making housing more accessible for low-income earners.

🔹 However, this could push home prices even higher, as buyers have more spending power while the housing supply is still short by about 4.7 million units nationwide. According to estimates, borrowers with a 50-year loan will pay 86% more in interest compared to a 30-year loan.

🔹 The core issue remains inflation, excessive government spending, and a lack of policies to promote the construction of new houses to address the root of the problem.

🔹 This trend is similar to the automotive market, where loans of 60 to 72 months have become popular. Buyers pay less each month, but the total cost is higher. By extending the loan term, buyers are more likely to choose cars or homes that exceed their capabilities, creating financial pressure and leading to an endless cycle of debt.

🔹 At the same time, the retirement age in the US has also begun to gradually increase since 1983, when Congress passed Social Security reform. Previously, Americans could fully retire at age 65, but now it is gradually increasing to 67 for those born after 1960. This is the result of prolonged inflation, higher life expectancy, and ballooning public debt.

🔹 All of these trends, such as longer borrowing, later retirement, and asset prices rising faster than incomes, are consequences of prolonged inflation and unresolved public debt. As the government continues to spend beyond its means, prices rise and the currency depreciates, real assets like houses, gold, stocks, and crypto become safe havens, making the financial market increasingly speculative and forcing people to invest to protect their assets instead of just saving to live.#CoinDeskNovGateReportComing #LaunchTokensOnSquareToGrab$1,000 #ShowMyAlphaPoints $BTC $ETH