Key Points
As long-term passive investors, it's essential to stay informed about the current trends in the real estate market, especially when it comes to the performance of loans and delinquency rates. A recent discussion on Reddit highlighted the concerning trend of US real estate loans reaching delinquency rates not seen since the Global Financial Crisis (GFC). While this may sound alarming, there are key insights that ethical investors can consider to navigate this challenging environment.
Summary of Discussion
First and foremost, it's crucial to understand the underlying factors contributing to the rise in delinquency rates. The economic fallout from the COVID-19 pandemic has undoubtedly played a significant role in this trend, as many borrowers have faced financial hardships due to job losses and business closures. As ethical investors, it's important to acknowledge the human impact of these challenges and consider how we can support those in need during these difficult times.
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