- Charlie Bilello explains that the 50-year mortgage only slightly lowers the monthly cost while almost doubling the amount of interest a person pays over their lifetime
- After one of the longest winning streaks in history, the S&P 500 has fallen below the 50-day moving average for the first time since April 30
- Michael Burry is criticizing top AI firms, arguing that these companies are hiding the massive costs of building their AI data centers, which makes their profits and stock prices look better than they really are
The US markets are entering a period of growing uncertainty as new housing proposals, stimulus ideas, and shifting rate expectations collide with weakening consumer data, which are all the themes highlighted in the latest The Weeks in Charts analysis by Creative Planning’s Charlie Bilello.
The 50-Year Mortgage Trap: Doubling Interest Costs
With housing being the least affordable it has ever been, some officials have suggested a 50-year mortgage to make monthly payments cheaper. But as Bilello explains, this only slightly lowers the monthly cost while almost doubling the amount of interest a person pays over their lifetime.
On an average home, a 30-year loan already costs over $400,000 in interest. Stretching it to 50 years brings that total close to $800,000.
Financial experts warn this could falsely increase demand for houses, causing prices to rise even more and ultimately repeating problems created by past policies like super-low interest rates, COVID stimulus checks, and the Fed buying huge amounts of mortgage debt.
Related: “The Only Winning Move Is Not to Play”: Michael Burry’s Warning Shakes Crypto Twitter
S&P 500 Breaks Key Trendline as Burry Warns of AI Bubble
Market sentiment is also shifting. After one of the longest winning streaks in history, the S&P 500 has fallen below the 50-day moving average for the first time since April 30, suggesting a return to more normal ups and downs.
Related: Peter Thiel Dumps Entire Nvidia Stake — What It Signals for Crypto, Bitcoin ETFs and AI Tokens
The change comes as well-known investor Michael Burry is criticizing top AI firms like Nvidia and Palantir. He argues that these companies are hiding the massive costs of building their AI data centers, which makes their profits and stock prices look better than they really are.
Fed Rate Cut Odds Plunge to 50%
Additionally, Polymarket’s expectations for a December Fed rate cut have fallen to almost 50%, down from 90% near the end of October, as inflation stays high and a recent government shutdown delayed important reports.
All of this, together with the general economic situation, matters a great deal for the crypto industry.
When the stock market gets shaky, hopes for rate cuts fade, and inflation worries return, Bitcoin typically moves more in line with tech stocks. At the same time, fears about excessive spending on AI could also affect crypto tokens linked to artificial intelligence, as these often rise and fall with the overall mood in the tech industry.
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