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Buyers And Sellers Cancel Deals Due To Fear Of Job Security And, Just The Unknown

A report from the Wall Street Journal on Texas. “The Houston office market is poised to become the next commercial real estate victim of the economic shock waves from the coronavirus crisis. Houston’s problems also are closely watched along with other property markets because of broader concern that upheaval in the real-estate world may intensify the growing storm in the broader financial system. With some $3.6 trillion commercial real estate debt outstanding, a spike in defaults could further unhinge banks and other financial firms.”

“Defaults in the Houston office market already are rising. Last week, data service Trepp LLC reported that a $69.7 million loan backed by a 471,000-square-foot Pinnacle Westchase office building in the Houston area was transferred to a special servicer because it was facing ‘imminent default.'”

The Real Deal on New York. “Douglas Elliman’s new-development marketing division has closed all its on-site sales offices and galleries nationwide for the next two weeks, citing mounting health concerns over the coronavirus. Elliman’s not alone in closing its sales galleries. ‘I think it’s going to be difficult to get new deals done in this new world,’ said Michael Romer, co-founder of Romer Debbas. Though he said deals are still closing, there’s an added emphasis for clients not to appear personally and sign over powers of attorney and close in escrow, but the ‘lack of new deals has many concerned. We’re seeing more and more developers starting to close their sales offices and this is troubling because developers were previously concerned about lack of market activity and this is just going to add to that,’ he said.”

“There’s $5.7 billion in existing new development condo inventory on the market, $2.2 billion in contract and $33 billion of shadow inventory that hasn’t yet been listed, according to Halstead Development Marketing.”

The Wall Street Journal. “As the coronavirus pandemic shuts down whole sectors of the economy and cuts equity valuations by trillions of dollars, startups are racing to set up contingency plans, shore up their balance sheets with fresh funds, even appealing to customers to just keep buying. It is a sudden reversal from the decadelong bull market, when abundant capital encouraged aggressive spending to fuel growth. Not only are startup valuations likely to fall drastically, matching the public markets, but many may struggle to raise money just to stay in business.”

“In tough times even the most promising private tech companies may be forced to raise capital at depressed valuations. Deepti Sharma’s catering business, FoodtoEat Inc., is suffering because of the spike in remote work. ‘We’re probably down over 50%,’ Ms. Sharma said, referring to the company’s sales. ‘I imagine it’s going to get worse.'”

The Mercury News in California. “Elliot Eisenberg, partner economist with MLSListings, said the stock market retreat could hurt home sales in the Bay Area more than almost anywhere else. Tech workers with income dependent on equity grants often sell stock to accumulate the large down payments needed to get into a Silicon Valley home. ‘If the stock market stays down there for a while,’ Eisenberg said, ‘this could begin to eat away at the confidence of buyers.'”

“Early data from Redfin shows some slowing in the Bay Area and Seattle, which has also been hit hard by the virus. Economists at the National Association of Realtors also say foreign investments could take a short-term hit, particularly if fewer Chinese buyers go house-hunting in California. But the market share of Chinese buyers in the state had already dropped in recent years, from 8 percent in 2014 to 3.9 percent last year, according to the association.”

The Orange County Register in California. “Economic uncertainty overshadows the housing market just as it’s poised for its best spring home buying season in at least two years. Uncertainty is bubbling up across Southern California. ‘I am hearing (of) buyers and sellers cancel (deals) due to fear of job security and, really, just the unknown,’ said Dilbeck Real Estate agent Lisa Kaul from the Santa Clarita area. ‘One seller canceled their new purchase even though their home was already sold.'”

“Corona del Mar agent Pamela Howland said one couple she’s working with decided to lease a home rather than buying because cancellations are up for the Airbnb rentals they manage. ‘They’ve had to refund $20,000 because they’ve had so many cancellations,’ Howland said.”

From KGW 8 in Oregon. “These are tough times in the travel industry, including vacation rental properties. There are thousands of short-term rental owners and managers in Oregon and Washington who have seen bookings wiped out due to concerns over coronavirus. ‘Some owners will probably have to close their operations because of this,’ explained Becky Burnett, who owns one short-term rental and manages four others in Oregon. Burnett has seen 90% of her reservations canceled in March and April.”

“Unlike hotel chains, most short-term rentals are owned by individuals. They are small businesses that will have a tough time withstanding a prolonged slump. ‘There’s a big question how my business is going to be affected in the next couple of months,’ said Kate Simer of Descansa, a Portland-based property management company. Simer explained one rental property reserved for the entire months of June and July was canceled, along with other bookings throughout spring and summer. ‘This is my income,’ explained Simer. ‘Having 50-percent of my income taken away in 48 hours is a hit.'”

“On Twitter, numerous Vrbo customers complain they have not received refunds on cancelled reservations and Vrbo hosts refuse to provide their money back. Vrbo did not respond to KGW’s request for comment.”

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This Post Has 277 Comments

  1. ‘There’s $5.7 billion in existing new development condo inventory on the market, $2.2 billion in contract and $33 billion of shadow inventory that hasn’t yet been listed’

    Is $33 billions a lot?

    1. “…$33 billion of shadow inventory that hasn’t yet been listed…”

      Must be part of that huge shortage the REIConplex has been telling us all about.

    2. where is my free cheese

      Trust me, it won’t be free. Sure, in the short term it will be financed by deficit spending. But once the pandemic ends there will be pressure to keep it going, except it will be financed by a national sales tax (AKA VAT). Expect EVERYTHING to cost 20-30% more.

      Think about it, it takes 13% of our paychecks to keep social security going, and only a fraction of the populace collects SS.

      1. The good thing about a VAT tax that drug dealers hookers the underground economy will be also taxed when they spend the money

      2. A VAT would be suicidal. If Things cost 20% more, then people will simply stop buying unnecessary Things. It would crash the economy worse than handing out the free cheese.

        1. A VAT would be suicidal.

          Since when has that ever had an impact on policy? Aren’t $1 trillion deficits suicidal? Yet all federal .gov jobs depend on them.

          Financing the whole thing with deficits would cost 200,000,000 x $1000 x 12 = 2.4T a year.

          A lot of people are going to desperately need financial help during the pandemic. As we all know here, the majority can’t come up with $500 for an emergency. Personally, I would prefer enhancing unemployment benefits for those people as opposed to giving everyone free money, which will turn into a permanent entitlement.

          1. “Yet all federal .gov jobs depend on them.”

            Non-defense discretionary is 16% of the budget and could easily be covered by tax revenue.

        2. When you tax something, you generally get less of it.

          So is the goal of a VAT to reduce the amount of value in our consumption goods and services?

          1. I think its goal is to generate revenue for .gov; and to give everyone a grand every month will require a whole lotta taxes.

            What’s interesting about all this is that the common complaint about bringing manufacturing back is that stuff will be more expensive. Never mind the jobs created and all the taxes the employed will pay. But when it’s about redistribution, then higher prices are A-OK.

            But yeah, if you tax consumption, you get less of it.

          2. So we are going to hand everyone $1000 and tax ourselves to pay for it?

            Sounds a lot like the Biblical concept of manna from Heaven, except for the “pay for it” part.

          3. So we are going to hand everyone $1000 and tax ourselves to pay for it?

            I think the idea is that those with higher incomes, and thus more to spend, will do the heavy lifting. Of course, things don’t always turn out as planned.

      5. The idea that a VAT is suicidal might be amusing to people from many other countries.

        1. A VAT in and of itself isn’t a terrible thing, the problem is that VATs tend to be onerous in other countries. 20% in the UK, and 27% in Hungary. It’s 16% in Mexico.

          The Euros just grin and bear it. Of course, they tsk tsk us for being “consumerists”, but when you see the prices over there it isn’t surprising that they consume less.

          1. I have visited several countries in Europe as a tourist over the last few years including the UK and France and other than Switzerland and Iceland I didn’t think that prices were out of line with prices in my area of the US (New England). Hotels, restaurants, etc. were comparable to prices here. Gas was significantly higher there.

          2. other than Switzerland and Iceland I didn’t think that prices were out of line with prices in my area of the US

            Not my experience at all. I thought grocery store prices in the UK (not London) were sky high, and you had to bag them yourself AND they charged you for disposable bags. They even make you put a deposit on the shopping cart, which you had to bring back to the store entrance to get it back.

            Restaurants were pricey. Whatever it cost in dollars here, it costs the same number of pounds, and the portions are smaller.

            Munich was also very pricey. Budapest was very reasonable in comparison.

      6. People who keep spouting there will be inflation are ridiculous!

        CRUSHING DEFLATION IS NEXT!!!

        We’ve had 30 years of relentless credit driven inflation.
        THAT GAME IS OVER!

          1. I guess in Jeff D.’s world, there will be no massive intervention by monetary authorities to avoid deflation, which in their minds is akin to eee-bola.

        2. That game is not over until you’re eating cat food, and finally decide to pickup the pitch-fork. We’re not there yet

          1. The oligarchy is only going to get more ruthless in their looting and asset-striping of the proles. But first they have to disarm the targeted population.

  3. ‘There’s a big question how my business is going to be affected in the next couple of months,’ said Kate Simer of Descansa, a Portland-based property management company. Simer explained one rental property reserved for the entire months of June and July was canceled, along with other bookings throughout spring and summer. ‘This is my income,’ explained Simer. “’Having 50-percent of my income taken away in 48 hours is a hit.’

    You are fooked Kate.

    2. Probably the best possible outcome we could get from Covid-19 is the permanent destruction of the short-term rental industry.

      This is a bunch of people lining their pockets with zero regard for the consequences they leave behind in the communities where the properties are located.

      1. Thats a good thing, plus maybe we will finally have a discussion and a solution, as to why everybody has to work M-F 9-5 and create massive traffic jams in the process.

        1. Good point as well — I am working full time from home currently. It isn’t quite 100% equivalent to face time with co-workers and supervision, though.

          But it doesn’t have to be an all-or-nothing proposition, either. Work, say, 2-3 days from home, and 2-3 days at the office weekly. That alone would reduce at least some of the traffic congestion at rush hour. Not sure how increased electricity usage at home versus decreased fuel consumed works out individually or collectively, though, but offhand it seems like the former would be considerably less than the latter.

          1. Or time shift employment 11-7 1-9pm …why not give tax breaks to bussines based on the number of 2nd 3rd shift workers you employ when there is plenty of free parking and less traffic? Kinda like Luxury pays full price. No tax breaks from cities ( land use impact fees etc) unless you build basic 2-3x income affordable housing. and apartments.

          2. Good luck with that, DJ. If a city puts virtuous conditions on their tax breaks, a company will just find another city. And there will always be at least one city that caves.

        2. My office is working from home. If anything, I think my team has better communication because we are all on Slack all day. Instead of needing to get up, go to their desk, and interrupt, people can answer when convenient. Everything is still getting done and quite frankly I get a bit more sleep each day and the opportunity for a jog midday that otherwise would be considered unacceptable.

          Imagine the savings if work from home became more widespread — less cars, less gas, less of a need to pay rent on a giant office building and all of the maintenance workers. Heck, it may even make WeWork a viable concept for teams to meet every couple weeks or months!

          And seriously, the sky in Salt Lake Valley has never been so clean and pretty!

          1. I haven’t seen any real change regarding road traffic in my neck of the woods. And while the fast food joints interior is closed, I saw long lines in the drive thrus.

            Took the car in today for a recall. Picked it up this afternoon. Not a single customer in the show room.

          2. Traffic is noticeably dead on the main street of my little rural NY town.

            The mayor of NYC is such a Narcissistic embarrassment. Went to the gym this morning after having closed them. Said he has to keep healthy because he is the one running “this”.

          3. I’ve wondered for years why there is still so much old-fashioned commuting to an office to work. Or so much flying to meetings. Perhaps this whole ordeal will lead to some long-term changes.

          4. I’ve wondered for years why there is still so much old-fashioned commuting to an office to work. Or so much flying to meetings.

            It’s a management failure. The workers have been ready for a while and the tech has been ready for a while. But mgmt is uncomfortable. Same reason everybody has to live in San Jose and San Francisco. A bunch of those people would rather be somewhere else. But it works for the big cheeses.

          5. But mgmt is uncomfortable.

            Something to do with the Peter Principle. I’ve worked for a few very competent managers. They are skilled enablers. Many more only focus on control, which is best done face to face.

          6. I’ve wondered for years why there is still so much old-fashioned commuting to an office to work. Or so much flying to meetings.

            A boss really has to trust you to let you WFH.

            As for flying to meetings, individual contributors stopped doing that a long time ago. If you aren’t customer facing, you aren’t going anywhere. I attend all my meetings via Zoom.

          7. “If anything, I think my team has better communication because we are all on Slack all day.”

            Indeed. I really like this platform as managers find it easy to use and remain updated without disrupting those doing real work.

          10. I’ve worked for a few very competent managers.

            Actually I’ve got a great one right now. I’m sure that if it were just me and him we’d have come to an agreement on it a long time ago. But when I say mgmt is “uncomfortable” I mean that they are nervous about additional things, because the culture is biased against it. If anything goes wrong it will be their fault for allowing it. If any new person doesn’t feel sufficiently included and bails or never really gets up to speed it will be their fault. All of this being judged by the old guard who spend their lives on-site and that’s how they made it to the top.

        3. Most jobs that allow you to “work from home” are nothing more than residue of the biggest bubble in the history of mankind. Just sayin….this is gonna get ugly.

      2. Probably the best possible outcome we could get from Covid-19 is the permanent destruction of the short-term rental industry.

        Depending on COVID-19’s efficacy in removing Boomers, the destruction of the short-term rental industry might be the second best outcome.

        1. removing Boomers

          I suspect you’re not much of an asset to your community. If things get tough, I hope they take pity on you anyway.

      1. I hear Walmart still has jobs.

        I got an email out of the blue a few days ago inviting me to apply for a job at King Soopers (Kroger)

    4. So many Air BNB reservations cancelled and they had to refund $20,000…..

      I wonder if they “might could”
      Have to sell a home or 2 or visit BK?

      1. Would you want to run an Airbnb right now, with a possibly infected person staying at your personal residence or a house you own? Seems like bad ju-ju for a couple bucks.

  4. ‘As the coronavirus pandemic shuts down whole sectors of the economy and cuts equity valuations by trillions of dollars, startups are racing to set up contingency plans, shore up their balance sheets with fresh funds, even appealing to customers to just keep buying. It is a sudden reversal from the decadelong bull market, when abundant capital encouraged aggressive spending to fuel growth. Not only are startup valuations likely to fall drastically, matching the public markets, but many may struggle to raise money just to stay in business’

    ‘when abundant capital encouraged aggressive spending to fuel growth’

    Oh dear…

  5. The era of the global savings glut, with rising spending despite weak incomes financed by soaring public and private debt, is all that most people under 55 have known. With low (and eventually zero percent) interest rates, unlimited credit, soaring asset prices, a global surplus of goods, and a global crisis of demand.

    But this era was inconceivable before 1995. Might an aging population cause it to unravel to something inconceivable now? And might the coronavirus, which is a supply shock as well as a demand shock, accelerate the process? I ask that question here.

    https://larrylittlefield.wordpress.com/2020/03/17/federal-reserve-z1-data-for-2019-the-debt-driven-party-had-to-end-eventually-coronavirus-or-no-coronavirus/

    1. “people under 55”

      I’m under 55 and I know very well what it was like to grow up blue collar. Not to mention two Depression-era grandmas. The sheltered people are those under 40 — like… wait for it… MILLENIALS. And don’t think that there aren’t any Millenials who grew up poor either.

      1. I think that a lot of millenials got to watch their parent get laid off, often more than once, not to mention they’ve received their share of pink slips.

        1. I lived most of my life in the rust belt and this is so true. The American dream die awhile ago.

      2. You and your beef with millennials, lol! Maybe you should write a book – 50 shades of millennial grey 😉

        1. Ok, I’ll start on my novel-writing “journey.” <– That annoying overused phrase, applied to everything from finances to pet adoption, is part of my beef with Millenials. Everything is a "journey."

    2. The amount of money exhausted in the middle-east over the past twenty-years would have repaired or replaced all of our public infrastructure several times over. But members of Congress won’t even discuss this issue. Just imagine the missed job opportunities at all skill levels? You are on the right track, Larry, but your efforts will be wasted if you ignore the elephant in the room.

      1. Gotta have that cheap gasoline.

        Right down to the present day, as we watch both renewables and domestic fossil fuel production get wiped out so OPEC can jack up prices again later.

        2. “Gotta have that cheap gasoline.”

          Fuel efficiency has increased dramatically since the OPEC crisis, and we’re still waiting “Hey Seus” to arrive at the Mount of Olives. The people who have achieved “formal operations” in their personal development know exactly what’s going on despite the reticence.

        3. We have spent over $6 trillion on combat operations in the middle-east during the past twenty-years, and it is difficult to identify any lasting progress.

          Note: one trillion = 1*10^18 (lots of zeros)

          1. Well, we can point to the thriving Jeffersonian democracies we built in Iraq and Afghanistan, which are now bastions of stability and progress overflowing with love and gratitude for their American saviors.

            Oh, wait….

      2. +1. Imagine if the trillions squandered on neocon regime change fiascos, endless wars, and resettling refugees from same would’ve been invested in infrastructure and public health instead.

        1. We might have better roads, better schools, better everything.

          Heck, young people might even have hope!

        2. The flip side of that coin is asking if you’re rather have RUS or PRC deeply entrenched and pulling the strings on those resources. PRC has made major in-roads on the African Continent since 2000, which is the next (and last?) source of global arbitraged labor.

          I think that any number of trillions of $ in the current world reserve currency spent on keeping those baby-eaters at bay is worth it. You think we’re bad? Imagine what PRC thinks of the “sub-humans” outside of Asia…

          It’s ain’t about oil anymore. We got lots of that inside the Monroe Doctrine circumscription.

          1. “I think that any number of trillions of $ in the current world reserve currency spent on keeping those baby-eaters at bay is worth it.”

            Might as well address our trade deficit with the PRC?

  6. I’m listening to the President’s press briefing. Seems like the effort to respond to the coronavirus is coming together well.

    1. I$ there a connection between $tock$.in.thee.toilet & thee panic for wipe.yer.ar$e.ti$$ue?

      1. Ah yes, good old 20/20 hindsight. Could you imagine if Trump shut everything down 3 weeks ago? Dems would would impeach him again for violating civil liberties and freedom of movement or for keeping out foreigners. But go ahead and gloat if it makes you feel better.

        1. I was wondering this morning, where are the people who threw a hissy fit when he put on the travel restrictions against China? 🤔

          1. I asked some partisan hack over on Marketwatch the same thing. He didn’t answer, instead going off on some anti-Trump TDS rant.

    3. He rated his response a 10 out of 10, that’s pretty good right?

      Between that type of self awareness and telling governors to go find their own respirators, everything should be back to normal in a week or two.

      2. “Between that type of self awareness and telling governors to go find their own respirators,”

        So how long have you been repeating the lies you were fed?

        First grade?

        High school?

        First or second job?

  7. Centreville, VA Housing Prices Crater 23% YOY As Fairfax County Slips Deeper Into Mortgage Defaults And Foreclosures

    https://www.movoto.com/centreville-va/market-trends/

    As a noted economist said, “I can ask $50k for my run down 10 year old Chevy truck but where is the buyer at that price? So it is with all depreciating asset like houses and cars.”

  9. “particularly if fewer Chinese buyers go house-hunting in California”

    The word is out in the Chinese community that high end real estate in CA is getting a beat down like a bourgeois capitalist roader in a Mao era labor camp.

    2. Dollar is surging as trillions in US denominated debt is coming due (dollar shortage). Compared to the devaluation coming in China, California RE is a bargain, and probably the greatest protection/preservation in capital for the CPP elite lucky enough to launder their funds out.

    3. john g,
      does this mean that the chinese are starting to rebuy orange county etc?

      How are they even getting themselves and their currency out of china? or was this pre-staged here

  10. Here come$ thee “more.monie$!” Calvary! Giddy.up!

    Breaking:
    Mnuchin Says Government Wants to $end $timulus Check$

    Investing.com | Mar 17, 2020

    Investing.com – The U.S. federal government is looking to get ca$h into the pocket$ of Americans as fa$t as po$$ible to cu$hion an economy hit by Covid-19, Treasury Secretary Steven Mnuchin said Tuesday.

    “(W)e’re looking to send Americans checks now,” Mnuchin said, adding that that would preferably be within two weeks. He said details would come later after discussions with Congressional Republicans.

  11. The Financial Times
    Oil
    Saudi oil war: ‘The beauty is you can blame it on the Russians’
    Battle between strongmen threatens to upend markets and damage economies
    Prince Mohammed bin Salman’s reputation as an impetuous leader is likely to be reinforced by the decision to take on Russia in an oil price war
    © BRENDAN SMIALOWSKI/AFP/Getty
    Andrew England and David Sheppard in London and Henry Foy in Warsaw yesterday

    Crown Prince Mohammed bin Salman was at a low ebb when President Vladimir Putin of Russia swept into a room packed with world leaders. Saudi Arabia was facing its biggest diplomatic crisis in years after the murder of Jamal Khashoggi weeks earlier, and the kingdom’s heir-apparent, who many blamed for the journalist’s killing, had faced a cool reception at the G20 gathering.

    But Mr Putin smiled broadly as he high-fived Prince Mohammed and took a seat next to the beaming Saudi. The meeting in Buenos Aires in November 2018 epitomised the warming relationship between two authoritarian leaders whose nations spent decades on the opposing sides of global divides but had found common interest: maintaining the stability of oil prices.

    That compact collapsed spectacularly last week as two of the world’s top energy producers became embroiled in an oil price war that wrought chaos on global markets already reeling from the coronavirus pandemic.
    …

    1. All risk assets seem to be rising today from the ashes of yesterday’s meltdown, EXCEPT for oil.

      Energy
      Oil prices could hit teens in coming weeks as markets crater over coronavirus and price war
      Published Tue, Mar 17 2020 7:36 AM EDT
      Updated 5 hours ago
      Natasha Turak
      Key Points
      – Oil could fall below $20 a barrel and “stock markets could easily shed another 30-40% of their values,” one analyst said.
      – The biggest shocks will likely come after April 1, when Saudi Arabia and Russia ramp up their crude production after a previously-agreed OPEC+ deal expires.
      – “The last time there was a global surplus of this magnitude was never,” Jim Burkhard, head of oil markets at IHS Markit, wrote Monday.
      …

  12. NY TIMES CAUGHT LYING BY OMISSION OVER TRUMP CORONAVIRUS QUOTE

    This is why you should think for yourself, instead of letting media do all the thinking for you

    Infowars.com – MARCH 17, 2020

    In an article published on Monday, the Times claimed President Trump simply told governors that “Respirators, ventilators, all of the equipment — try getting it yourselves.”

    Additionally, a Times editorial board writer claimed Trump said governors ‘are on their own,’ which isn’t actually what he said at all, as reflected by his full quote.

    @MaraGay

    Trump told governors this morning they are on their own:
    “Respirators, ventilators, all of the equipment — try getting it yourselves,” Mr. Trump told the governors during the conference call, a recording of which was shared with The New York Times. https://www.nytimes.com/2020/03/16/world/coronavirus-news.html#click=https://t.co/RKZusLK5oY …

    But here’s the full quote from President Trump, with emphasis added on the part not included in the Times article:

    “Respirators, ventilators, all of the equipment — try getting it yourselves. We will be backing you, but try getting it yourselves. Point of sales, much better, much more direct if you can get it yourself.”

    The full quote was, ironically enough, shared on Twitter by a Times correspondent, although as of this writing it wasn’t in the article itself:

    1. Eye’m surprised dtRumpsis isn’t demanding to see the State Governor’s birth.certificates before di$tributing anti.chinese.death.germ.fund$.

    2. There’s a fun article up on Marketwatch (via AP) that flat out shows how in the tank they are.

      ————
      Feds to drop case against two Russian companies accused of 2016 election meddling (Published: March 16, 2020 at 11:06 p.m. ET)

      [The case] revealed a sweeping Russian effort to influence, or interfere in, the race between Republican Donald Trump and Democrat Hillary Clinton.
      ———–

      Since when does “influence” equate to “interference?” If influence is the standard for prosecution, then you would need to prosecute not only Russia, but FoxNews, MSNBC, CNN, PBS, every grandma on Facebook, and every social media platform and blog, including HBB.

      And I’m still waiting for a legal definition of “meddle.” Please clarify kthanx.

  13. I am of the opinion that this whole shutting the economy down with the exception of “essential businesses” will do more harm than good. It is going to destroy not only the economy, but millions of peoples’ financial lives.

    By the way, how is Tesla an “essential business?” I’d imagine currying political favor is the difference between essential and getting shut down.

    1. I see Tesla is not shutting their factory down even when everyone else is. I understand the business case for that, but if they end up becoming a virus hot spot because of that I think it could be doom for the company.

    2. “I am of the opinion that this whole shutting the economy down with the exception of “essential businesses” will do more harm than good.”

      I’m sure you could find a real cheap tourist package to Milan.

          1. Evidently it’s too late. And IIUC, they aren’t being “reinfected.” They are just letting folks out of quarantine and being infected for the first time from either asymptomatic or long residence time. (?) Hope other countries are watching.

      2. All of our businesses are closed down while the young people party shoulder to shoulder on spring break, and fly around the country taking advantage of cheap flights and hotels. But closing all of those businesses sure is going to stop this thing in its tracks. Uh-huh…..

        1. There are a couple reports that up to 50% of infections are from asymptomatic carriers, many of them likely youngsters.

    3. Can’t make mortgage payments

      I know some lender (Probably many) that is/are Discussing “opt to miss a payment.”
      That offer may already be offered but I am not aware of any, YET.

      1. I haven’t seen direct offers, but my mortgage bank sent me an email that said “uh, talk to us if you’re having, um, problems.” They want to stay vague.

  15. aq.dannyboy, would like to remind everyone, that “thee.donald” is only re$pon$ible for the U$ deficit$ #’$ total’$ on the last day he is departing thee White.Hou$e throne to Moscow.

    $QUAWK ON THE $TREET:

    Mnuchin approve$ Fed to help busine$$e$ get up to $1 trillion$ in funding.

    In a move much anticipated on Wall Street, Treasury Secretary Steven Mnuchin announced that he has approved the Federal Reserve to set up a special credit facility to purchase corporate paper from issuers.

    2. Didn’t Dr AQ.Dan say Gringos don’t catch this disease. Italy must be full of chinese people.

      3. I think we may have seen the last of ABQDan. His prognostications on the Kung Flu were so incredibly outlandish and incorrect that there’s no recovering from that nonsense.

        3. AQ Dan has disappeared for long periods before. I don’t know if he just gets busy, or if he is taking “involuntary breaks” from the blog.

    1. A friend of mine went to our local Sportsmans Warehouse, and was flabbergasted to see their usually abundant stocks of defensive handgun ammo completely sold as – as were all other popular calibers. Not coincidentally, my Vista Outdoors (VSTO) stock (sells guns and ammo) popped 37% today as people are massively gunning up. I’m almost incentivized to mount a search and rescue expedition at the bottom of the lake where I lost my AR-15 and ammo in that tragic boating accident.

      Joe Biden is going to bitterly regret embracing Comrade Beto and his “Hell yes, we’re going to take your AR-15!” bombast. The Democrats and their globalist oligarch bankrollers were WAY premature in dropping the mask on that one.

      1. First find out the depth at the location of your tragic mishap. Then hire a scuba diving pair to search and locate. If you have a couple of friends that know how to dive it will save you some money.
        btw, why were you carrying your rifle and ammo on a boat? Shooting fish?

        3. btw, why were you carrying your rifle and ammo on a boat? Shooting fish?

          I might’ve been carrying my precious metals, too. It depends on whether “they” try to confiscate those, too. Memory is kinda hazy on everything I was hauling in my boat that fateful day.

  17. “Elliot Eisenberg, partner economist with MLSListings, said the stock market retreat could hurt home sales in the Bay Area more than almost anywhere else. Tech workers with income dependent on equity grants often sell stock to accumulate the large down payments needed to get into a Silicon Valley home. ‘If the stock market stays down there for a while,’ Eisenberg said, ‘this could begin to eat away at the confidence of buyers.’”

    Used home sellers in the Bay Area face bigger issues than stock market losses, as people hunkered down at home by government decree don’t seem likely to be out shopping for their next real estate purchase.

    In ‘defining moment,’ San Francisco to order residents to stay home over coronavirus
    Mayor announces drastic measures to curb spread of COVID-19 alongside five other Bay Area counties
    Joshua Sabatini and Michael Barba
    Mar. 16, 2020 11:35 a.m. News The City

    With the coronavirus pandemic rapidly spreading throughout communities around the nation, city leaders are taking the unprecedented step of placing San Francisco on lockdown for three weeks beginning Tuesday at midnight.

    The City will legally prohibit residents from leaving their homes except to meet basic needs including visiting the doctor, or buying groceries or medicine, until at least April 7, Mayor London Breed announced Monday.

    The dramatic restrictions, imposed under a city-issued Public Health Order, will also require non-essential businesses like bars and gyms to close. But pharmacies, banks and other businesses that perform an “essential” role for society will be allowed to remain open.

    In a statement ahead of a City Hall press conference with city officials, Breed urged the public to remain calm and emphasized “that all essential needs will continue to be met.”

    “This is going to be a defining moment for our city,” Breed said. “We all have a responsibility to do our part to protect our neighbors and slow the spread of this virus by staying at home unless it is absolutely essential to go outside.”
    …

    1. It appears the SFO homeless population will be confined to their “homes” also, wandering like zombies.

      1. I’m sure some well-meaning activist will use the virus as a reason to build apartments for the homeless. You can’t quarantine in an apartment until you get an apartment.

        1. I guess they got stucco with a bunch of homes they bought at whatever they thought market value was up until a few weeks ago…

      3. Just LOL at believing Zillow. That was their estimate based on lower than expected mortgage rates, pre-Corona. They’re fooked.

  19. I guess today’s the day for 5000 points ramp up in DOW.

    Let’s bring on more stimuli! By the time they are done, they will hand out heroin, cocaine and other illegal stuff.

      1. This is no different than 2008, nothing goes to heck in a straight line. The overall trend is clearly down. Futures are already clawing back half of today’s gain.

        1. It is different, as the bailouts are starting sooner, bigger, and with less of a formal approval process than in the wake of the 2008 financial meltdown.

          1. Not sure it matters, they’ll be less effective because this market was already high on stimulants as it is…

  20. Now Gayle (Gee I wonder how Oprah’s best friend got this job) King on Big F#%king surprise CBS Morning News as if quoting the above referenced misquoted BS NYT article is saying the President says the states should get their own supplies in the 2:40 Doctor on coronavirus medical shortage video which aired this morning. You really don’t need to watch any more than this 2:40 segment to see the real journalists propaganda trying to shape the thoughts of this country’s citizens.

    But if you’re still not convinced just look how giddy the whole gang is as if they had just found out Moochelle Obama had thrown her hat in the ring on this and the 4:38 Staying connected despite social distancing segment.

    https://www.cbs.com/shows/cbs_this_morning/

      1. “Does anyone actually watch those shows?”

        Looks like the propaganda peddlers still get 8.6, 7.9 and 5.8 million viewers in the evening with New World Norah O’Donnell bringing up the rear.

        Oprah’s pal makes $11 million a year to draw 3.83 million viewers in the morning.

        I catch the State sponsored evening news when I can, that way I don’t have to wait for the late night hosts to hear the same material.

        ‘CBS This Morning’ Ratings Drop 21% With Gayle King’s New Co-Hosts

        Mark Joyella
        Jun 26, 2019,12:16pm EDT

        In May, the New York Post reported that CBS This Morning co-host Gayle King had more than doubled her salary, agreeing to a new contract with CBS that would pay her $11 million a year

        CBS This Morning drew a total audience of 3.83 million viewers

        CBS anchor Norah O’Donnell’s ratings in freefall

        By Alexandra Steigrad
        October 20, 2019

        To be sure, all three nightly newscasts have gotten slammed as viewers increasingly defect to the web. In the 2018-19 season, ABC’s “World News Tonight” with David Muir came in first place, slipping 0.3 percent as it attracted 8.6 million viewers. On NBC “Nightly News,” Lester Holt’s total viewers fell 2.6 percent to 7.9 million, although he led the 25-to-54 group with 1.7 million.

        But CBS’ dismal 2018-19 decline — in which its overall viewership sank 6 percent to 5.8 million through the middle of last month — has only worsened with the arrival of O’Donnell.

      1. 17 years ago, when my Ex went full straight jacket, I took the kids and went under so deep that there was no cable available. They really didn’t miss the TV either.

      2. Gotta watch Jeopardy with my wife occasionally, or I am not a good soulmate. Otherwise, why watch television when there’s the HBB, Reddit, Twitter, etc., that provide much better content and entertainment value.

      3. And to think that some people actually PAY to have the propaganda delivered into their homes.

        1. As former sheeple get red-pilled en masse, globalist propaganda outlets are axing Real Journalists and folding en masse as their subscriber base dries up. It’s like the former Soviet Union’s Pravda and Trud media flagships that died when people saw through their lies and omissions.

          1. Google’s search algorithm also seems to have lost some of its censorship functionality in the last few days.

      4. I haven’t had a TV in my home since 2005. 😉 So no cable/sat bills all that time either.

        I’m just not a TV or movie watching person, so no I don’t have Netflix or any of those zillion other things. In fact, I never got around to setting up internet access when I moved into this place (in November). Which I might regret, depending how crazy this virus thing gets. (I do have a mobile hot spot on my phone.)

  21. San Mateo, CA Housing Prices Crater 12% YOY As Bay Area Rental Rates Plummet And Inventory Balloons On Collapsing Housing Demand

    https://www.zillow.com/san-mateo-ca/home-values/

    *Select price from dropdown menu on first chart

    One Bay Area Broker Conceded, “If you’re a buyer, the broker is lying to you. I know liar when I hear one. I’ve been lying my entire life.”

  22. Well not in Sacramento! According to local agents aka realtards, homes are receiving multiple offers 10k over asking prices due to low interest rates and low inventory! So this corona joke won’t do much.

  23. Houston’s problems also are closely watched along with other property markets because of broader concern that upheaval in the real-estate world may intensify the growing storm in the broader financial system. With some $3.6 trillion commercial real estate debt outstanding, a spike in defaults could further unhinge banks and other financial firms.

    The chickens are finally coming home to roost. And now the full magnitude of the fecklessness and criminal negligence of the Keynesian fraudsters at the Fed is going to be laid bare for all to see. Eleven years of can-kicking have accomplished one thing: made the impending financial meltdown exponentially worse than it would have been had the speculative excesses been allowed to be purged from the financial system in 2008.

  24. “There’s $5.7 billion in existing new development condo inventory on the market, $2.2 billion in contract and $33 billion of shadow inventory that hasn’t yet been listed, according to Halstead Development Marketing.”

    B…b…but I thought shadow inventory was a conspiracy theory pushed by fringe housing bubble blogs frequented by libertarian-leaning contrarians.

    1. B…b…but I thought shadow inventory was a conspiracy theory pushed by fringe housing bubble blogs frequented by libertarian-leaning contrarians.

      😉

      1. Of course they didn’t mean THAT shadow inventory. It’s a different one that just popped up.

  25. ‘One seller canceled their new purchase even though their home was already sold.’”

    That’s kinda their prerogative, Lisa, especially when they see that we’re on the cusp of yet another great financial crisis caused yet again by the Fed and its Wall Street cohorts.

    1. As of right now, my friend who sold her house and can’t move into her new house until the end of June is still moving by the 24th into an Airbnb.

      1. she ever hear of contingencies… i hear the market down there can melt iron so why wouldn’t she have put in a clause or rent back period?

        1. “Force Majeure” is a legal term, you know. It’s been getting invoked quite a bit lately, in contracts that are not written by idiots.

          1. She’s an attorney. Renting back at new owners’ PITI would have been more than Airbnb and storage.

  26. “On Twitter, numerous Vrbo customers complain they have not received refunds on cancelled reservations and Vrbo hosts refuse to provide their money back. Vrbo did not respond to KGW’s request for comment.”

    If you read the fine print, Vrbo offers you a recourse in such situations: stamp your little feet!

  27. Reorganization after bankruptcy and financial responsibility going forward.

    Too good a deal for young student loan borrowers.

    Too harsh a consequence for highly leveraged businesses.

    So no Chapter 11 for airlines and hotels. Can you think of any politicians who are Kings of Debt who own hotels?

    1. US airlines are already asking for about $50B in bailouts. United’s CEO said today that it’s possible that almost all flights could be cancelled.

        1. Now that’s a real trip down memory lane. I still remember the jingle on AM radio….. “Allegheny Air system… has a lot more going for you.”

      2. A CNBC article notes that some Democrats are pushing back on a “blank check” for airlines. The same airlines that spent $39 billion on stock buybacks…

        1. It would make sense that the govt should get that stock in return for the bailout. But at today’s prices, not the price they paid.

          1. Managers conspiring to hollow out a company to increase their own compensation are practicing organized crime. Their assets should be treated like those of a drug lord. Their persons should be treated similarly. Just sayin.

        2. The same airlines that spent $39 billion on stock buybacks…

          This has become a cancer. Apple spent $100B last year on buybacks and was planning on $75B this year.

          1. In retrospect, wouldn’t it have made more sense for these companies to maintain a rainy day fund to hedge against an event such as the one at hand?

            But I guess with the prospect of bailouts in the moment of need, there is no need to worry about future rainy days.

          2. But I guess with the prospect of bailouts in the moment of need, there is no need to worry about future rainy days.

            Only the little people are supposed to save for a rainy day.

    1. At this point I’m getting nostalgia for just stopping by the store or to Home Depot to get a few things. This sheltering-in-place thing is harder than I thought. It would be easier if this were winter.

  29. WSJ: SoftBank Backs Away From Part of Planned WeWork Bailout

    SoftBank Group Corp. 9984 -0.74% is backing away from part of its planned bailout of WeWork, people familiar with the matter said, privately citing several regulatory investigations of the office-sharing company.

    A notice sent to WeWork shareholders Tuesday said that SoftBank believes regulatory probes into the startup’s business, including from the Securities and Exchange Commission and Justice Department, give it an out under the deal struck last fall to purchase $3 billion of WeWork shares from existing investors.

    That would include Adam Neumann, former chief executive of WeWork parent We Co., who had the right to sell up to $970 million in stock as part of the October deal that led to his ouster from the company’s board.

    1. And just 3 weeks ago it was the best economy in history, with the stock market as all-time highs. Sorry, I’m not buying into this bullshit. Let all the debt-junkies fail. It’s time to burn it all down and start over.

        1. Exactly, no one asks the “little people” for their opinion.

          Here’s your $1000 check, now shut up!

    2. Just eliminate Social Security and Medicare for those born after 1957 and you can pay it all back, says Generation Greed. With the bailouts, those at the top won’t need it.

      Chapter 11 is the only bailout they need. Wipe out the shareholders, and some of the paper wealth of the bondholders, and eliminate excess executive pay.

      It was the free market when worker wages fell for 45 years. But not in 2008, and not now.

    1. We have been building tents in hospital parking lots since last week, running PVC or rigid across the landscaping or pavement to bring in a data line from the building, and hooking up generators to the electrical panels inside the tents.

      That’s all I want to say about that for now.

        1. They’re not Walmart tents, they’re likely canvas that you could live inside of in the Alaskan interior, which by the way people do. You just need a heat source, which is simple.

    2. Real estimates of mortality following COVID-19 infection

      As of March 1, 2020, 79,968 patients in China and 7,169 outside of China had tested positive for coronavirus disease 2019 (COVID-19).
      Among Chinese patients, 2,873 deaths had occurred, equivalent to a mortality rate of 3.6% (95% CI 3.5–3.7), while 104 deaths from COVID-19 had been reported outside of China (1.5% [1.2–1.7]). However, these mortality rate estimates are based on the number of deaths relative to the number of confirmed cases of infection, which is not representative of the actual death rate; patients who die on any given day were infected much earlier, and thus the denominator of the mortality rate should be the total number of patients infected at the same time as those who died. Notably, the full denominator remains unknown because asymptomatic cases or patients with very mild symptoms might not be tested and will not be identified. Such cases therefore cannot be included in the estimation of actual mortality rates, since actual estimates pertain to clinically apparent COVID-19 cases.
      The maximum incubation period is assumed to be up to 14 days,
      whereas the median time from onset of symptoms to intensive care unit (ICU) admission is around 10 days.

      Recently, WHO reported that the time between symptom onset and death ranged from about 2 weeks to 8 weeks.

      We re-estimated mortality rates by dividing the number of deaths on a given day by the number of patients with confirmed COVID-19 infection 14 days before. On this basis, using WHO data on the cumulative number of deaths to March 1, 2020, mortality rates would be 5.6% (95% CI 5.4–5.8) for China and 15.2% (12.5–17.9) outside of China. Global mortality rates over time using a 14-day delay estimate are shown in the figure, with a curve that levels off to a rate of 5.7% (5.5–5.9), converging with the current WHO estimates. Estimates will increase if a longer delay between onset of illness and death is considered. A recent time-delay adjusted estimation indicates that mortality rate of COVID-19 could be as high as 20% in Wuhan, the epicentre of the outbreak.
      These findings show that the current figures might underestimate the potential threat of COVID-19 in symptomatic patients.

      https://www.thelancet.com/journals/laninf/article/PIIS1473-3099(20)30195-X/fulltext

      2. The John Hopkins data says there are 7,954 Total Deaths and 81,960 Total Recovered.

        Thus the death rate among resolved cases is
        7,954/(7,954+81,960) = 8.8%.

      3. Wow. Usually, symptoms to ICU in 10 days would kill off a virus, since it makes people too sick to contact others and spread it. But this asymptomatic transmission .. carried by energetic youngsters. Hoo boy.

    3. In the U.S. It’s 100, Washington state has more than 50 deaths with 25 of those from the Life Care Center in Kirkland, Washington.

    4. No.

      Anyone who has died of it but was never tested will get counted as dying from something else.

  34. Get shorty!

    The Financial Times
    Federal Reserve
    Fed to lend against stocks and bonds in bid to stabilise markets
    an hour ago

    1. The futures are down ~550. Stocks appear to be grossly overvalued heading into Great Depression 2 and 20% unemployment.

    2. The S&P 500 was at 2,000 in 2016, and at 3,400 at the top. How high a price do older generations and the rich have a right to, to be paid for by those with no rights for five generations?

      1. I wonder how Boomer stew tastes with salt and pepper and seasonings? It could get ugly out there…

      2. high a price do older generations and the rich have a right to

        Talked to one of these older guys today, about 50. Says his retirement account got wiped out.

        1. Says his retirement account got wiped out.

          ??
          What was he invested in? The NASDAQ and the SP500 are down 20% this year.

        2. “Says his retirement account got wiped out.”

          Former boss liked the stock indices, watched his Schwab widget all day long. Then 2008 happened, he got out at the bottom with a major haircut, and then the fed rescued Wall street. I introduced a Chatsworth, CA acronym to him, “DAP.”

    3. The Financial Times
      Federal Reserve
      Fed to lend against stocks and bonds in bid to stabilise markets
      Revival of crisis-era credit facility is its third new intervention in 24 hours
      FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo
      © Reuters
      James Politi and Brendan Greeley in Washington, Colby Smith in New York and Joe Rennison in London 3 hours ago

      The US Federal Reserve took aggressive new action to shore up liquidity in financial markets on Tuesday night by allowing approved dealers in government debt, including the largest banks, to borrow cash against some stocks, municipal debt, and higher-rated corporate bonds.

      The move, which revived a tool used by the US central bank during the last financial crisis, highlighted the Fed’s concern for the health of the short-term funding markets which have been thrown into chaos by the coronavirus pandemic.

      In a statement, the Fed said its primary dealer lending facility would “allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households”.

      “What this tells me is the Fed is creative and willing to do what it takes,” said Priya Misra, global head of rates strategy at TD Securities.

      Steven Oh, global head of credit and fixed income at PineBridge, added that the move was intended to prevent an “avalanche of defaults” due to a “liquidity shortage”.

      “A lot of what the Fed is doing in addition to providing support is to make sure an element of fear does not grip markets,” he added.

      The new facility will offer funding with maturities up to 90 days starting on March 20 and be in place for at least six months. Credit extended under the new facility for primary dealers would be collateralised by a “broad range” of investment grade debt, including commercial paper and municipal bonds, as well as equities, the Fed said. The interest rate charged would be the discount rate of 25 basis points.

      The new facility — rolled out just two days after the Fed slashed its main interest rate to near zero and agreed to buy $700bn in assets in co-ordinated action with other central banks — was established with the approval of Steven Mnuchin, the US Treasury secretary.
      Coronavirus: can we protect markets and companies?

      “The global coronavirus outbreak has contributed to significant financial market volatility,” Mr Mnuchin said in a statement, adding that the move would “help address illiquidity, mitigate disruptions in funding markets, support smooth market functioning and help facilitate the availability of credit to American workers and businesses”.
      …

        1. “Mnuchin told Republican senators that unemployment could reach 20% if Congress doesn’t enact the trillion-dollar stimulus package he proposed, CNBC reported Tuesday evening, citing a source familiar with the matter.”

          1. unemployment could reach 20% if Congress doesn’t enact the trillion-dollar stimulus package he proposed On the other hand, unemployment could still reach 20% but somebody’s income/net worth would have been stimulated.

        1. I don’t even know a single trans person and wouldn’t even venture to guess on your second question.

        2. How many trans Republicans do you know or think there are?

          “Lady MAGA” at CPAC comes to mind.

      1. Same to you, jeff ☘️
        Did you have any corned beef? I had planned to do it up, cb and cabbage, carrots, potatoes, but they only had the meat – everything else was wiped out. Even when things are normal, they don’t go crazy here about St. P’s day. It’s relatively subdued, unlike NYC.
        People are on nextdoor bartering for toilet paper. Good times 🙄

        1. Got me some corned beef and cabbage. May need to hunt for some potatoes, carrots and onions before making good use of it.

        2. “Did you have any corned beef?”

          Not the last couple of years but I have memories of St. Patrick’s Day corned beef dinners to last a lifetime.

          2. Yeah, me too ☘️
            One year because of a miscommunication I ended up with a corned beef burrito. Better than you’d think, but really salty.

          4. For other recipes, search for “Irish Car Bomb Cupcakes.”
            Wow, that’s a boozy cupcake!

          5. For other recipes, search for “Irish Car Bomb Cupcakes.”

            I envision a curvy lass with Alabaster skin, full breasts heavily sprinkled with freckles, cold light-blue eyes topped with a fiery red hair and a strong Irish brogue.

            Too bad I’m agnostic.

          7. “In Ireland and Scotland 14% of people have brown eyes and 86% have either blue or green eyes…” —wiki

            I never hooked-up with a strawberry-blonde. Maybe Google will get their Virtual Reality thing figured-out before it’s my turn to walk toward the light.

          9. “Mine will be hazel.”

            As an engineer who considers other opinions I spent some time searching redheads, and I agree with you. She has hazel green eyes!

          10. LOL. My reality. The US/Canada border just closed to “recreational” travel. So I guess my reality will be virtual for a while.

  37. no wonder the millenials are out partying and celebrating, the #BoomerRemover virus will finally undo Generation Greed’s hold on assets, something they failed to do pollitically. One big reset coming, virus or not by 2027.

      1. Oh, they will be … until they find out that the family fortune was already spent on their college.

    1. I read about it. Evidently Florida Man gave him a pay raise. What’s with the greed? He’s already got enough money. (I know he’s got some business going, maybe he wants to cash up for that.)

  39. Oh no, Tesla manufacturing has to stop?!

    “Tesla stock drops after hours as county says Fremont factory is not an ‘essential business’

    An official tweet from the Alameda County Sheriff says that Tesla’s Fremont, California, car factory is not an “essential business” and can only maintain “minimum basic operations.”

    Under the county’s order, those operations do not extend to manufacturing new cars.

    The sheriff’s tweet contradicts what Tesla recently told employees about working during the coronavirus COVID-19 shelter-in-place order. ”

    https://www.cnbc.com/2020/03/17/tesla-fremont-factory-not-essential-business-says-alameda-county.html

    1. not an “essential business”

      It’s a perfect storm, no Teslas and no toilet paper!

      Speaking of which, I took my daily walk aimed strategically at the auto parts store downtown. The spirits of other of the Not Removed similarly walking were quite uplifting. At the parts counter, as I inquired about spark plugs for my generator tuneup, the guy behind the counter pointed out a free roll of toilet paper by the register, still in the wrapper. He nudged it towards me, inviting me to pocket this treasure. These rednecks have a weird sense of humor. I politely declined, and suggested that he save it for some desperate snowflake. His laughter brightened my day.

      Glad I had pockets. Bags are illegal here now.

    2. not an “essential business”

      It’s a perfect storm, no Teslas and no toilet paper!

      Speaking of which, I took my daily walk aimed strategically at the auto parts store downtown. The spirits of other of the Not Removed similarly walking were quite uplifting. At the parts counter, as I inquired about spark plugs for my generator tuneup, the guy behind the counter pointed out a free roll of toilet paper by the register, still in the wrapper. He nudged it towards me, inviting me to pocket this treasure. These rednecks have a weird sense of humor. I politely declined, and suggested that he save it for some desperate snowflake. His laughter brightened my day.

      Glad I had pockets. Bags are illegal here now.

      1. “Bags are illegal here now.”

        I bought two heavy duty polyester bags with continuous straps underneath, generous over lapping where the spliced ends come together and all double stitched. Load ’em up ’til you can barely lift ’em! Oops, I didn’t buy the cotton ecology bags with the cheap straps box-stitched at top edge, so now I’m not cool. Haha, engineer = not with it, out of touch! 🙂

  40. I had occasion to drive past South Point Hotel and Casino here in Vegas, while I was driving on I-15 today.

    On the south side of their property is a very large area that is used for RV camping and horse trailer parking during their rodeo events. I think the whole area is paved now.

    Today, there are hundreds of vehicles of various makes and models parked there. Mostly cars with some vans and the odd pickup sprinkled in. They are not parked as if for an event, but packed in, nose to tail in long lines.

    I didn’t make calls to verify. But I’m presuming this is much of the Vegas rental car fleet. Vehicles that normally would be out with tourists, but instead now must be parked somewhere for the forseeable future.

    1. China expelling all western reporters did I read that right ? Virus is back in China. More bad news ? Good news we got potatoes and onions

      1. They may well face another wave of cases in Hubei Province, due to excessive haste in trying to get their economy up and running again.

        And if Western journalists are excluded, we may never get an accurate account of the details.

    2. Wuhan

      Lies and Coverup
      Lies and Arrests of Leakers
      Lies and Lockdown
      Lies and Fear of Loss of Face in Economic disaster
      Lies and claiming Victory
      Lies and telling the world to apologize
      Lies and garnering praise from the NYT
      Lies and it sure looks like the WHO is very compromised. “If I got the virus I’d want to be treated in China.”
      Lies and the virus came from the USA
      Lies and China sends much needed expert help to Italy
      Lies and Billionaire who criticizes CCP on his blog goes missing

      It is difficult to predict what kind of news will come out of China next.

      1. “It is difficult to predict what kind of news will come out of China next.”

        On par with dtRumpsis twitter.thumbs

      1. This was only four months ago. It’s amazing how quickly the outbreak has spread to every corner of the globe, including all 50 U.S states plus DC.

        The first known case of Covid-19 in China dates back to November, but the hunt for “patient zero” goes on. Photo: EPA-EFE
        China / Society
        Coronavirus: China’s first confirmed Covid-19 case traced back to November 17
        – Government records suggest first person infected with new disease may have been a Hubei resident aged 55, but ‘patient zero’ has yet to be confirmed
        – Documents seen by the Post could help scientists track the spread of the disease and perhaps determine its source
        Topic | Coronavirus outbreak
        Josephine Ma
        Published: 8:00am, 13 Mar, 2020
        Updated: 12:45am, 14 Mar, 2020
        The first case of someone in China suffering from Covid-19, the disease caused by the novel coronavirus, can be traced back to November 17, according to government data seen by the South China Morning Post.

        Chinese authorities have so far identified at least 266 people who were infected last year, all of whom came under medical surveillance at some point.

        Some of the cases were likely backdated after health authorities had tested specimens taken from suspected patients.

        Interviews with whistle-blowers from the medical community suggest Chinese doctors only realised they were dealing with a new disease in late December.

        Scientists have been trying to map the pattern of the early transmission of Covid-19 since an epidemic was reported in the central China city of Wuhan in January, two months before the outbreak became a global health crisis.
        …

  45. It was always just a matter of time.

    Coronavirus
    Published 8 hours ago
    West Virginia becomes 50th US state to confirm coronavirus case
    By Nick Givas | Fox News

    Gov. Jim Justice announced that West Virginia has recorded its first case of the novel coronavirus (COVID-19) on Tuesday, making it the 50th state in the U.S. to have a confirmed case of the disease.

    During a televised address, Justice said the patient is in the Eastern Panhandle, which is close to Washington, D.C., but he did not specify which county.
    …

  46. So why is it again that companies buy back their own stocks? Isn’t that a form of high-risk gambling that is destined to end in tears if share prices ever decline?

    2. The Morning Shift
      The Airlines Want A $58 Billion Bailout After Spending $45 Billion On Stock Buybacks
      Raphael Orlove
      Yesterday 10:18AM
      Filed to: Planelopnik

      …from 2010 to 2019, U.S. airlines spent 96% of their free cash flow, some $45 billion, to purchase shares of their own stock, according to data compiled by Bloomberg. The world’s largest carrier, American Airlines Group Inc., was the biggest buyer, spending $12.5 billion.

      Share repurchase programs aim to help boost share prices. And that effort — as opposed to using the cash to build up reserves — is bound to draw attention as the question of aid is debated.
      …

      1. Help.u$!, Help.u$!, Help.u$!, we’ve fallin’ down & can’t get back up! … we promi$e we won’t feed our$elve$ like pig$, tru$t u$
        we’ll be good, hone$t!, ju$t $ave.u$! Hurry, hurry, NOW!

    3. They buy back stock to offset the stock the C-suiters who sit on each others boards issue to each other, so as to avoid diluting existing shareholders.

      Of course the buybacks are in place of dividends paid to those existing shareholders, or investment in the company.

      It’s about executive pay. They have transferred ownership of corporate America to themselves.

  48. The Financial Times
    Coronavirus
    China lacks the appetite to save the world economy, analysts warn
    Beijing adopts more conservative approach in tackling latest crisis compared with 2009
    Mandatory Credit: Photo by ALEX PLAVEVSKI/EPA-EFE/Shutterstock (10585644c) A man stands by his packed goods in mobile phones and electronic supplies market in Guangzhou, Guangdong province, China, 17 March 2020. China’s value-added industrial output, fell 13.5 percent year on year in the first two months of 2020 as the coronavirus outbreak stalled activities, according to a report issued by the National Bureau of Statistics issued on 16 March 2020. Covid-19 epidemic economy in China, Guangzhou – 17 Mar 2020
    China reported some of the worst economic figures on record this week, as coronavirus brought the economy to a standstill
    © ALEX PLAVEVSKI/EPA-EFE/Shutterstock
    Don Weinland in Beijing and James Kynge in Hong Kong 2 hours ago
    …
    The pace of capital investment in the country, which creates global demand for building materials and machinery, was slowing even before the coronavirus crisis, according to Mo Ji, chief China economist at investment manager AllianceBernstein.

    That means even a powerful stimulus programme in China would struggle to boost global growth. “No matter how much credit corporates take, there is nowhere for further capex expansion,” she said.

    Neil Shearing, group chief economist at Capital Economics, said he expected China to launch a stimulus to engineer a recovery from what will probably be China’s worst quarter since the Cultural Revolution in the 1960s and 1970s. Capital Economics estimated that gross domestic product contracted by 13 per cent in the first two months of the year.

    Mr Shearing expects the stimulus to be equivalent to about 2 per cent of GDP and come from various sources: targeted fiscal support in the form of loans and subsidies to the hardest hit employers and loosening monetary policy. In addition, the central bank could offer cheap finance to banks lending to the most affected sectors.

    This will cause the budget deficit to balloon this year and add to China’s already huge pile of debt. But Mr Shearing believes Beijing probably possesses the financial headroom to avoid slipping into a debt crisis.

    “A significant stimulus would be an issue for China’s medium-term debt structure but it would not cause a short-term fiscal crisis,” he said.

    China’s total debt load amounts to about 310 per cent of GDP, one of the highest levels among emerging markets, according to the International Institute of Finance.

    “The macro stimulus effort is going to be much more timid than in 2009, as large-scale stimulus does not sit well with the current mindset of policymakers in Beijing,” said Louis Kuijs, head of Asia economics at Oxford Economics.

    Chen Yulu, PBoC deputy governor, noted recently in the Financial Times that the central bank intended to maintain “normal monetary policy”, signalling it would avoid introducing negative rates.

    “My sense is that the leadership, even at the current moment, puts greater emphasis on financial stability than was the case in 2008 and 2009,” said Nikolaj Schmidt, chief international economist in the fixed income division of investment manager T Rowe Price.
    …

    1. What if they stop buying U.S. Treasuries and try to call that money home?

      As I’ve said, we’ve been in this previously inconceivable era of a global savings glut since 1995. We may be about to hit an abrupt end to that era.

      2. If the Chinese stop buying dollars, then RBS or UBS or BOJ will buy them. We’re headed for MMT now, there is no other choice. But China may be left of the party this time.

    1. Then they become eligible for food stamps, don’t they?

      Recall when Trump called Obama the “food stamp President?”

      1. And the electric bill, rent, etc.?, no sir…Roubini has it right. If those $1,000 checks don’t start soon it’ll be Rodney King riots on steroids. If the arson and looting begins those $1,000 checks will look cheap. Like Hurricane Katrina the police will be at home protecting their own families.

        1. f those $1,000 checks don’t start soon it’ll be Rodney King riots on steroids.

          Probably why both sides of the aisle are eager to send them out, they just need to stop attaching extra spending for pet causes to the bill.

  50. Hello buyers: please remain calm and continue buying loans.

    https://www.housingwire.com/articles/why-the-housing-market-might-dodge-the-recession/

    “ But that doesn’t mean the housing and mortgage industries will suffer the same fate as the travel industry.

    The most important thing to keep in mind when evaluating how those sectors might fare in a recession is: Don’t go by what happened last time.”

    We are sticking with our moto. Its different this time!

  51. Harbor Bluffs, FL Housing Prices Crater 14% As One Pinellas County Broker Shared, “If You Have A House On The Gulf Coast, Dump It For Whatever It Will Fetch And Do It Soon”

    https://www.zillow.com/harbor-bluffs-fl/home-values/

    *Select price from dropdown menu on first chart

    As a noted economist stated, “If you paid more than $500 for an acre of land, you got ripped off.

  52. “The Devil Went Down To Georgia”

    The Devil went down to Georgia. He was lookin’ for a roll to steal
    He was in a bind with a dirty behind. He was willing to make a deal
    When he came across this young man sawin’ on a fiddle and taking a dump. The Devil stepped in the next stall and said ” Listen up you chump”.

    “I guess you didn’t know it, but I’m a fiddle player, too
    And if you’d care to take a dare I’ll make a bet with you
    Now you play a pretty good fiddle, boy, but give the Devil his due
    I’ll bet a fiddle of gold against your roll ’cause I think I’m better than you”

    The boy said, “My name’s Johnny, and it might be a sin
    But I’ll take your bet; and you’re gonna regret ’cause you ain’t gettin my Charmin

    Johnny, rosin up your bow and play your fiddle hard
    There’s no TP left in Georgia and the Devil deals the cards
    And if you win you get this shiny fiddle made of gold
    But if you lose the devil gets your roll

    https://www.youtube.com/watch?v=K6RUg-NkjY4

    1. IMHO,

      C-19 is going to overwhelm the medical system.

      Went out early to get stuff and all the supermarkets had long lines.

      I have a senior friend who hasn’t been able to get toilet paper every time he had tried. He asked me if he could borrow some toilet paper.

      1. “C-19 is going to overwhelm the medical system.”

        I respectfully disagree.

        I remember 2009 and I have looked at the H1N1 CDC numbers which have been revised wildly upward for the world and U.S. numbers listed below which make it very hard for me to believe the estimates of running out of hospital beds and 2 million deaths in the U.S.

        In 2009 nobody even bought an extra box of Kleenex.

        Wikipedia

        On February 12, 2010, the CDC released updated estimate figures for swine flu, reporting that, in total, 57 million Americans had been sickened, 257,000 had been hospitalized and 11,690 people had died (including 1,180 children) due to swine flu from April through to mid-January

    1. “We have handed control of nearly everything in our lives to the government.”

      For something that may or may not end up being what H1N1 was in 2009. 108 mostly old and already sick people died as of yesterday that may or may not have joined the 14,000 or so lost to the seasonal flu has claimed already this season.

      Some make fun of how much influence the MSM still has but hey got a lot of sheep to wipe out grocery stores across the Nation, shut down restaurants etc, stay home from work and “Shelter in Place” didn’t they.

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