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DisconnectedDays t1_j5dbjm3 wrote

Layoffs everywhere with record household debt and coupled with the fact that so many people over paid for houses….

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Radman41 t1_j5eh76d wrote

= soft landing!

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Spare-Competition-91 t1_j5fff7o wrote

= soft landing for the wealthy!

= hard landing for everyone else!

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Reggie_001 t1_j5g9kqu wrote

Yep, soft landing because they are landing on us.

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blaze13541 t1_j5kcka1 wrote

It's ok, the poors will break our fall. -Wealthy People, probably.

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h1g440rs3 t1_j5dgq9u wrote

“Overpaid” but monthly mortgage payments are still very affordable.

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DisconnectedDays t1_j5dgvu1 wrote

Not without a job and if they’re forced to sell they’ll most likely not have any equity.

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dismayhurta t1_j5dmrvt wrote

This is what corporations want...desperate people who'll sell cheap and take shit jobs.

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JiggyJerome t1_j5e1304 wrote

Capitulation. That’s the sophisticated word that banks and financial institutions use when retail investors give up and sell off their equities in order to pay for essential needs.

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VallenValiant t1_j5emk82 wrote

But not shit-paying jobs. Inflation means it is a waste of time working for minimum wage. You would only die tired. So it is either getting better wage or roll the dice and start a business.

There are some shitty jobs that pay well, and that is the way it should be. But shit-pay jobs will die out because people can't afford to work in those jobs.

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[deleted] t1_j5exp8i wrote

[deleted]

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Reggie_001 t1_j5ga732 wrote

The problem is that when too many people end up having to do that there is a collective energy that builds. To put it into perspective, things are exponentially worse than when the American revolution began, we are getting close to how bad it was when the French revolution began..

It's fine when the born-poor are forced to do it, but once even more middle class people are forced to it there will be violence.

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DiriboNuclearAcid t1_j5gma6n wrote

Ya people tend to forget the reason the American Revolution started is because people were mad about not having enough money. That freedom shit is just propaganda at best, delusional idealism at worst.

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__Sky_Daddy__ t1_j5exv0l wrote

This, to me, is exactly what is happening. Going to be brutal for Corporations operating with slave labor.

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midwestck t1_j5f5igf wrote

Nah they’ll just rely on expanded welfare paid for by middle-class income taxes

See: Walmart’s labor model

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__Sky_Daddy__ t1_j5f9hdc wrote

Nope. That doesn’t work at scale

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midwestck t1_j5fobn3 wrote

Yeah $6.2bn to Walmart workers alone is definitely not already to scale

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patriots317 t1_j5ezm84 wrote

Not just corporations…. Really everyone. With people as comfortable as they have been with an abundance of jobs, and employers desperate to hire, it has contributed greatly to the rampant inflation we’ve seen.

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ameldrum902 t1_j5e8plj wrote

In Canada they are allowing people to make interest only payments and defer the principal. This is not a good look.

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Lionel_Hutz_Lawfirm t1_j5ep6p3 wrote

Holy fuck UNLIMITED ROI! Smartest invention since sliced bread.

Mortgage holders will hate this one simple trick!

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Outis7379 t1_j5ffnkd wrote

Ever wonder why any idiot gets a credit card in this country?

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Outis7379 t1_j5ffisk wrote

Ah yes, let future me/government/whoever solve the problem.

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ronincelwarrior t1_j5gmd4n wrote

Interest rates aren’t locked in in Canada, though.

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ameldrum902 t1_j5gnfmq wrote

Mortgages come in fixed and variable. Banks have been calling the variable holders and offering to go fixed mid-term on their mortgage lately in an attempt to prevent defaults. Those that are too deep are being offered to just pay the interest portion and defer the principal portion back into sum owed. The banks know people over leveraged themselves on property that has an over inflated price.

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dvo3000 t1_j5hguwn wrote

Where did you hear this?

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ameldrum902 t1_j5ht0w8 wrote

I know 3 people, two with cibc and one with bmo, who got called to go fixed 5yr to drop their variable 5yr. One person I know took it because they had 3 years left on the floating variable mortgage they were currently in.

And the deferred principle payments, that was in the news for a bit a couple months back.

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dvo3000 t1_j5huh40 wrote

That’s interesting, and could mean different things. Thanks

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ameldrum902 t1_j5huvs5 wrote

Canadian banks hold too much consumer debt. Defaults would sink them. The numbers are in on this. I believe Scotiabank and TD were in the worst spot at the moment. I just hope we, the tax payers, aren't going to be on the hook for a 2008 style bail out.

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loudifu t1_j5ivutc wrote

Had the Canadian RE ever come back down to earth? I don't follow the Canadian RE market, but I'm under the impression that the RE market in the metro areas like the greater Toronto/Vancouver went to the moon, and pretty much stayed there until the pandemic hit. But as soon as the coast was clear, it rebounded with full vengence surpassing pre-pandemic levels, just like the rest of the world. Sure, sales have cooled off substantially now, but prices remain elevated if the Canadian market is anything like its southern neighbor. I wonder how many actually overpaid and were stuck with high interest rates??

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ameldrum902 t1_j5ix3y1 wrote

I'm in Vancouver. There's a population here that bought at the peak with 2.5% interest rates. When it comes time to refinance it will be painful or you will just be paying more in the long run. And if market value drops below your trigger, you will need to pony up the difference upon refinancing. Housing payments already account for 50%+ of people's household income. People are over leveraged on extremely heavy debt loads also. You add up all these factors and I'd say there might be a storm brewing.

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h1g440rs3 t1_j5djrj0 wrote

I refuse to believe they can’t make ends meet in some way. They made a high salary before, they’ll be able to get it again.

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Limonlesscello t1_j5e0929 wrote

Yea, skills don't disappear overnight lol. From what I've gathered, laid off individuals were able to garner higher salaries from smaller firms coming from the Big names.

This ain't the same as being laid off from Starbucks or Mcdonalds and having to work at Wendy's like some of you degenerates. XD

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National_Smoke4580 t1_j5egt3c wrote

Not if there are millions of other laid off “smart” people.

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Minds_Desire t1_j5ep9ps wrote

There won't be millions in the tech sector. Those skills are highly desirable at basically all levels of the economy.

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National_Smoke4580 t1_j5epgn3 wrote

If your ego allows you to work at Wendy’s with your fancy tech degree.

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Sea_Mathematician_84 t1_j5g3kgb wrote

There aren’t millions being laid off in tech. Big names laying off 10k but with the nuance being they hired 30-40k last year.

There’s about 12M tech workers in the US broadly speaking (and I mean BROADLY, as most estimates say 5-7M. **12M is all employees, including clerical corpo etc. ). If there were millions laid off we’d be talking about a catastrophic impact. Most of these people will be swept up by smaller firms and especially cybersecurity firms which pay just as well and have been taking off in the last 5 years like crazy thanks to the GDPR and other PII laws.

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ronincelwarrior t1_j5gmxel wrote

There’s also things like permanently open jobs in government for lower salaries because they need people but can’t compete with Google’s salary range. That said, demand for people who can code is basically infinite, the top tech firms laying people off are mostly cutting expensive management, junior devs, and non technical people.

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DiriboNuclearAcid t1_j5gn7i9 wrote

You can't pay a mortgage working minimum wage when you bought the house with your salary in mind. Some will say that's their fault for overextending but if it's happening across the country that's a crisis, not an individual problem.

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h1g440rs3 t1_j5h3phi wrote

Those that lost their jobs won’t work for minimum wage

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DiriboNuclearAcid t1_j5hp3cs wrote

Based off no evidence, just my personal bias. I think most people being laid off won't find another high paying job because their whole sector is laying people off. The ones who get a new high paying job will be a minority, everyone else will be taking a substantial pay cut.

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h1g440rs3 t1_j5hrhqk wrote

Lol but to minimum wage jobs?? That’s accepting nearly a 60% pay cut. That’s not likely at all.

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Hacking_the_Gibson t1_j5djmdp wrote

This is what I have been telling everyone.

Two years ago it was “the loans are so good this time,” yeah well if the borrowers were in tech or finance, look out.

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NoMuff222Tuff t1_j5eb4e0 wrote

Can’t afford a House with a $700 Corolla Payment and no job 🤣

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lockll t1_j5fd69z wrote

A lot of places are hiring and are desperate for people but k

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lostmypeachshorting t1_j5enoq8 wrote

1600 is our monthly mortgage. That is less than we paid to rent a 2br apartment. That is 800 per person. Even with a minimum wage job I can afford it. Low rates really were a blessing

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ThetaForLife t1_j5f6nvf wrote

How much is your area’s minimum wage? Lots of places still pay $7.25-15 or $2900-$4800/month if both work full time. After tax it is likely be $2300-3800. After $1600 mortgage it is $700-$2200. Hope 2 adults can pay for: food, electricity, phone, internet, gas, clothing...etc with $700-2200.

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DiriboNuclearAcid t1_j5gr9y1 wrote

Another thing that could be an issue is that those middle class tech workers getting laid off probably have a mortgage payment much higher than $1600 a month. Not to mention those people have families which is even more expensive than just 2 adults. If enough people default then we have 2008 part 2.

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ThetaForLife t1_j5f5zp8 wrote

Good for people who will afford to pay. For people who cant and have to sell, They need extra $50k-100k to “sell” the house.

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StankFist1397 t1_j5fxb5t wrote

just cuz its affordable doesn't mean you should overpay

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h1g440rs3 t1_j5h3zup wrote

Lmao people have been waiting their entire lives for a chance at an affordable house. And those who waited will wait for their entire lives if they want to “underpay” for a home.

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NoMoreLandBro t1_j5f857a wrote

Fear mongering. Layoffs only hitting the tech, financial, and real estate sectors. Still tons of grocery store clerk jobs and waitress jobs open.

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goodasseyebrows t1_j5fydkm wrote

That’s right… I forgot the economy is strong off of server jobs and not engineers and doctors

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NoMoreLandBro t1_j5g4ddj wrote

Somebody has to serve the engineers and doctors. Who will be unemployed.

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DiriboNuclearAcid t1_j5glg8e wrote

Sounds like the service industry would have low demand if their customers are unemployed and going through a foreclosure. No sector is safe from this.

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stupid2020 t1_j5fe7lr wrote

Also going to be a LOT of construction layoffs.

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Malalang t1_j5ir1bl wrote

I feel confident knowing that the economy is propped up by my waitresses and bag boys.

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sound-of-impact t1_j5ekpdj wrote

People are going to forget about how bad 08 was when this pops.

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MicroBadger_ t1_j5fjzg5 wrote

Not with the amount of morons talking about their war chest of cash licking their lips to pounce at the "bottom".

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defnotabot_bot t1_j5fxcrz wrote

That will last around two weeks, when they’re hit with that sweet SECOND/THIRD/FOURTH bottom

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Potato_Octopi t1_j5dfcr7 wrote

Household debt isn't in a bad spot. It's historically low relative to income.

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CaptainStonks t1_j5e823y wrote

Not if your laid off and your income is zero.

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Potato_Octopi t1_j5eo5q6 wrote

If you're laid off your income doesn't fall to zero.

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Matt_Riley2010 t1_j5eyhp3 wrote

Please explain how to be laid off and not make 0 I live in an at will state and makes it impossible for unemployment.

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WhynotstartnoW t1_j5h95nz wrote

>Please explain how to be laid off and not make 0 I live in an at will state and makes it impossible for unemployment.

If you're laid off due to staff reductions and not fired for cause, your employer is literally telling the state you qualify for unemployment insurance benefits.

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Beasting-25-8 t1_j5edl0e wrote

You're*

If you're fired from Google, most likely, it's going to be easy to find a new job. Unemployment is still at rock bottom.

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PotatoWriter t1_j5ef0gf wrote

Interviewing in tech is still a huge pain in the ass. Not everyone is from Google, don't know why you picked the cream of the crop to represent the average tech worker lmao

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[deleted] t1_j5f1f85 wrote

[deleted]

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trowawee1122 t1_j5figji wrote

> She had to do 32 hours of interviews and assessments with 12 different people before she was told whether or not she got the job.

That sounds like a tremendous waste of resources.

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TX_CastIron t1_j5fwlh1 wrote

Agreed. I had a VP position at a major US bank and my interview was an hour at a Starbucks with an SVP and a couple 15 minute meetings with the other VPs. I had previous dealings with that group as a banker at another firm and I wasn't totally unknown, but still... I miss the 90s.

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WhynotstartnoW t1_j5hasxx wrote

>Interviewing is a huge pain in the ass, regardless of role.

I'm a plumber. every interview I had, apart from my initiation as an apprentice, was an informal ~10-15 conversation. I got one job while leaning my forehead against the sales counter at a wholesale parts warehouse, when a dude walked up and told the counter guys to refer anyone looking for a job to him, and I raised my hand and said I'd take the job, less than a minute unscheduled interview to get that job.

Another interview; I had just gotten my $15 bowl of chicken noodle soup with zesta crackers at a ski resort lodge and sat down at a random table. Guys at the table were talking about their projects in the resort town. I pulled a PBR out of my jacked pocket, cracked it open, and I butted in to asked "you need a plumber...?". They asked "You got a license?", and I was like "yeah I got a license." Pulled my master plumber endorsement card out of the wallet and slapped it on the table. $45/hr with full benefit suite, that job lasted 4.5 years before I rage quit.

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DodgeBeluga t1_j5dxtwp wrote

Layoffs everywhere but all the partisan ostriches everyone are still parroting the same old lines of “record employment and the layoffs are only in HR and recruiting”.

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1Litwiller t1_j5ezsme wrote

Factories and service industry still hiring like crazy, guess the jokes on white collar folks this time. AI is gonna take their jobs, poor people still work cheaper than robots and keep their jobs.

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Kcnflman t1_j5f9kjf wrote

Bullshit. Banks are absolutely criminal, they have plenty of money, which is distributed to the top executives

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Berisha11 t1_j5f0ici wrote

And yet, every jobs report is still showing growing numbers, strong numbers, what's going on here...

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Million2026 t1_j5f8kuc wrote

Demand is not slowing down whatsoever. Sure layoffs are happening but people are quickly finding new jobs other places. If you go out, every restaurant, bar, mall, is packed.

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Ihaveasmallwiener69 t1_j5fp6ss wrote

I donno man I still see long lines for expensive shit like five guys and people mass spending

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DisconnectedDays t1_j5fuwem wrote

Household debt is at an all time high. We are about to hit a trillion

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Fast_Championship_R t1_j5hdh1h wrote

My biggest concern is the credit card debt. The inversion of savings to debt the last 6 months has been insane. Give it a few more months, and people Will not be able to spend more on their cards.

That’s when shit will start hitting the fan.

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DisconnectedDays t1_j5hdos5 wrote

Yep. I’m glad that I sold all my Tesla stock before the Twitter fiasco and used the money to payoff all my credit cards

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Majestic_Salad_I1 t1_j5g6da1 wrote

“Overpaying” means nothing when your interest rate is 2.6%-3.5%.

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DisconnectedDays t1_j5g6iw0 wrote

Can’t pay that mortgage with no job and if they have to sell they’ll be underwater

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Majestic_Salad_I1 t1_j5gcyds wrote

You act like they’ll never have a job again. And most of these companies are giving out very generous severance packages lasting months. People can find a job anywhere in the country while working from home. They don’t need to sell their house to move to another city for a job.

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