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They Are Facing An Apocalypse, We’re Happy To See The End Of Them

A report from the Sydney Morning Herald in Australia. “The accommodation apocalypse that hit short-stay Airbnb apartment owners and operators in Sydney and Melbourne is leading to an oversupply of long-term rentals, sharply driving down rents. The sudden halt to international and local travel in March is flooding key inner Sydney and Melbourne markets with an extra 1000 former Airbnb and short-stay apartments a week. Melbourne’s waterside apartment haven, Docklands, is seeing a similar deluge.”

“‘It’s totally unprecedented,’ said Glenn Donnelly, managing director at City Residential. ‘There is an oversupply. The only way we can rent them out at the moment is to reduce the weekly rent.’ Mr Donnelly said about 30 per cent of City Residential’s rent roll is vacant. ‘We’ve never had that in sixteen years of business.'”

“Short-term rentals are suffering a ‘huge correction,’ said Trish Burt, whose group Neighbours Not Strangers campaigns against Airbnb in residential apartments. ‘I’d say they’re in huge pain. There are some city buildings where more than a third of the apartments are vacant. Airbnb’s business in city buildings has pretty much stopped.'”

“Docklands resident and spokesman for We Live Here, Marshall Delves, said: ‘We’re happy to see the end of them. They are facing an apocalypse. It’s given us back our homes and amenity and saved us a lot of wear and tear on our buildings. It’s been a godsend for people living in residential buildings.'”

“Edwin Almeida, director of Sydney-based Ribbon Property Consultants, said in some Sydney suburbs rents are down from $650 to $500. ‘They’ve dropped a good 25 per cent and tenants can negotiate,’ he said.”

From Domain News. “The number of empty properties in the CBDs of Australia’s three biggest cities has blown out, with new figures recording the largest monthly increase of the national vacancy rate in more than a decade. Australia’s rental market has been flooded with vacant properties as part of the COVID-19 pandemic, with new data from SQM Research revealing more than 88,000 homes were left empty last month.”

“‘It’s an outright tenants’ market,’ said SQM Research managing director Louis Christopher. ‘Rents have been falling and they’re likely to continue to fall for the foreseeable future. It is happy days for tenants and a bit of disastrous scenario for landlords.'”

“Holiday hotspots and CBD locations have been hardest hit. The vacancy rate in the Sydney CBD more than doubled from 5.7 per cent in March to 13.8 per cent in April – a record high on the SQM series – with the Brisbane CBD close behind with an increase from 5.7 to 11.3 per cent. Melbourne’s CBD fared better with the vacancy rate increasing 2.6 percentage points to 7.6 per cent, however in Southbank the vacancy rate jumped from 5 per cent to a whopping 13 per cent.”

“Mr Christopher expected the national vacancy rate to remain high until international borders reopened and warned it could push higher still, as new apartment supply hit the market at a time of reduced migration and local demand as households consolidated due to economic uncertainty. ‘We’re completing 170,000 dwellings this year, whereas real demand is going to be for somewhere along the lines of 90,000 to 100,000 properties,’ he said.”

The Daily Telegraph.”Landlords in some of Sydney’s most sought after inner suburbs have been offering apartments with hundreds of dollars slashed off the weekly rents as COVID-19 evaporates the tenant pool. New research showed average advertised rents are currently more than 10 per cent cheaper than they were a year ago in Pyrmont, Potts Point, Chippendale-Darlington and Bondi Junction. There was a similar trend in the Sydney CBD, where units were being listed for 14 per cent cheaper than a year ago, on average.”

“But the new vacancies were heavily concentrated in high density areas, including the Sydney CBD, where 13.8 per cent, or nearly one in seven, rental homes were empty. SQM Research analyst Louis Christopher said landlords were competing for fewer tenants and rents could plummet further if more rentals emptied out. Properties rented out on short-term rental sites were also being converted to long-term rentals, increasing the supply of available housing, he said. This was evident in the popular holiday rental suburb of Palm Beach, where about 16.1 per cent of rental housing was vacant.”

“Real Estate Institute of NSW chief executive Tim McKibbin said landlords were facing additional strain from the NSW government’s moratorium on rental evictions. Bank offers to defer mortgage repayments, often termed ‘mortgage holidays,’ would not solve the issue for landlords as they would have to pay increased interest down the line, Mr McKibbin said.”

“Continued rises in vacancies would have a devastating impact on the economy, according to Mr Christopher. There would be sharp falls in building approvals, which would increase the risk of a ‘major depression in our residential construction sector’ and create ‘rather obvious risks for housing prices,’ he said.”

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This Post Has 124 Comments

  1. ‘Holiday hotspots and CBD locations have been hardest hit’

    The most expensive stuff.

    DONG!

    1. That photo of Melbourne is classic. Was it purposely shot to mimic the famous postcard shot of San Francisco?

      Photo aside, look at all those construction cranes!

      1. Central business district.

        When you’re alone and life is making you lonely
        You can always go downtown
        When you’ve got worries, all the noise and the hurry
        Seems to help, I know, downtown

        Just listen to the music of the traffic in the city
        Linger on the sidewalk where the neon signs are pretty
        How can you lose?
        The lights are much brighter there

        So go downtown
        Things will be great when you’re downtown
        Don’t wait a minute more, downtown
        Everything is waiting for you, downtown

        https://genius.com/Petula-clark-downtown-lyrics

  2. ‘revealing more than 88,000 homes were left empty last month…‘We’re completing 170,000 dwellings this year, whereas real demand is going to be for somewhere along the lines of 90,000 to 100,000 properties’

    Wa happened to my shortage Australia?

    1. Sounds like homesellers in Oz have the same problem as oil producers, with demand off by 50% or so relative to supply.

      Let the price reductions to attract buyers begin!

    2. “Wa happened to my shortage”

      The shortage talk was last year. They filled in that shortage with new units, i.e., those 170,000 new dwellings that came online THIS YEAR.

      Of course, they built too many and too luxury, but that doesn’t mean there wasn’t a shortage in the past.

    3. “Wa happened to my shortage Australia?”

      Now the specu-vestors are heading to the exit and flooding the market with excess housing that wasn’t needed in the first place. Same thing happening here with the AirheadBNB collapse.

      Now there’s nothing left but the cryin……. and the dust cloud from the DebtDonkey Stampede.

  3. ‘landlords were facing additional strain from the NSW government’s moratorium on rental evictions. Bank offers to defer mortgage repayments, often termed ‘mortgage holidays,’ would not solve the issue for landlords as they would have to pay increased interest down the line’

    It died in the arse Tim. Did you snap up a few yourself?

    1. No Tim, it doesn’t “solve” the issue, but it solves 90% of it. Or by “solve” do you just want everything entirely for free? The increase in interest is your price of having a holiday. I’m paying MY mortgage on time, why should I have to keep paying while you get off scott free?

      1. I’m paying MY mortgage on time, why should I have to keep paying while you get off scott free?

        This is why I think if there is a forbearance bailout, that they’ll have to send a check to everyone to make it politically palatable.

          1. Remember that dad who got livid with Senator Running Dear over her student loan forgiveness plan?

        1. Reading some HI articles ….

          The progressives think that this is a step in the right direction, and with fed$s, they can guarantee a ‘living wage’

        2. Between the well publicized harassment of visitors by locals and the Hawaiian government’s treatment of them as criminals during this ordeal (forced quarantine, arrests), it is understood tourists are not welcome. There’s always been a love-hate relationship with them but the tourism board has quite the job ahead of it.

        1. Last time I was there, the other big group were Chinese and other Asians. I don’t expect there will be many of them coming soon. Meanwhile, I keep getting catalogs from Viking River Cruises.

          But if they want us to stay away, fine with me.

          1. Went to Waikiki Beach at the start of our honeymoon, 28 years ago. Felt like we had landed in Tokyo by mistake. All the signage and people we saw were Japanese.

    3. American Travelers Are About to Be Pariahs in This New World

      They’ll miss our money more than we’ll miss them.

      And I find it hilarious that we are the “pariahs” as most European countries have much higher infection and death rates than we do.

      1. We’ll miss our money too. See ya in the ramen line. I’ll save you a spot. Just don’t get in front of me, or there will be consequences.

    4. I don’t G a F. I’ve been overseas twice and that was enough. If I want to “go” somewhere, there’s google maps and street view. Strangely enough I find myself google-mapping small town America much more often than any foreign country.

        1. Southport NC looks a little poor and industrial. Not any good beaches right there, but maybe a good place to live and drive to nearby beaches resorts. Oh, and it’s hurricane country.

    6. Dumb article. Has little to do with the way americans behave, plus I’m sure we’re preferable to Chinese, Brazilians or Russians – I have heard this many times traveling. Of course we’re ranked behind Japanese (super polite) and Australians (super friendly). But rankings aside this country saved their asses several times and they should give respect to our experiment, it gets things right from time to time and when the world needed it to the most.

    7. American Travelers Are About to Be Pariahs in This New World

      Blaming America instead of China for the Pandemic/Hysteria seems to be a unified theme with Socialists. Don’t know anything about this rag, but it doesn’t pass the smell test.

      2. Blaming America instead of China for the Pandemic/Hysteria seems to be a unified theme with Socialists.”

        I know WTF ?? Some serious stupid out there

        1. It’s just another day in the “everything is Trump’s fault” narrative. China made a virus, Trump’s fault, vote him out. For examples, see any Washington Post comment section.

          Never mind that Russia is starting to see covid cases. And here I thought the mighty Putin could wrestle the virus in single combat.

  6. Re-post from the last thread:

    “Yet, according to prominent Democrats in Congress, instead of smartly reopening the economy, we should double-down on Keynesian economics and just print more money than ever. In other words, Americans ought to stay home and get “paid” by the U.S. government.”

    https://thehill.com/opinion/finance/497244-universal-basic-income-and-the-end-of-the-republic

    Imagine having children in this country, and having to lie to them and tell them they have a future? When hyper-inflation and the subsequent food riots happen, at least I can take the Hunter S. Thompson retirement plan and check out of this sinking boat…

    1. “Yet, according to prominent Democrats in Congress, instead of smartly reopening the economy, we should double-down on Keynesian economics and just print more money than ever. In other words, Americans ought to stay home and get “paid” by the U.S. government.”

      – This is a completely dystopian concept. Crazy talk. First, “stay home” means not working (ignoring the internet for the moment, which isn’t an option for everyone). Second, having “the U.S. government” pay us (for doing nothing) might sound egalitarian in the short run, however, it’s not sustainable in the long run. UBI and MMT can’t work in an economy because there’s no money coming in. Government doesn’t produce anything; it only taxes and spends. If no one’s working, where’s the income? Right, there isn’t any, but UBI and MMT… The lunatics are running the asylum.

      Margaret Thatcher, in a television interview for Thames TV This Week on February 5, 1976. Prime Minister Thatcher said, “…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”

      and

      “Fiat money eventually always goes back to its intrinsic value – zero” – Voltaire

      or

      “Nations are not ruined by one act of violence, but gradually and in an almost imperceptible manner by the depreciation of their circulating currency, through its excessive quantity.” – Nicolaus Copernicus

      “We pretend to work. They pretend to pay us.” – political joke from former Soviet Union

      1. Funny how for the last several decades its been conservative governments (Tories and GOP) who run up the biggest deficits.

          1. Democrats inheret the crashing economy. They tax more and spend more. The GOP inherit the booming economy. They tax less and spend mlre. All designed to ever bigger government, making the capital owners richer while keeping the social unrest at bay. Time to break this vicious cycle. Justin Amash for POTUS.

          2. Maybe with your stimulus check you can get yourself some spelling and/or typing lessons 😉

          3. Hoping to buy a guitar and stimulate some more guitar production at my favorite guitar factory.

          4. stimulus check

            Deposited to my account this morning. Going to pay health care costs.

          5. Hoping to buy a guitar

            I’ve got enough of those, but I’d like to buy a UA Apollo x4 for my portable one/two man band project. As much as I like a real tube amp if I can get decent sound for a whole band including amps in a backpack I’m in. Good recording capability is just icing on the cake.

      2. A man comes to the court and is asked to pay alimony to his wife, a third of his income. ‘I can’t. I’m already paying that to a wife.’ ‘Well, you must pay a second third.’ ‘I can’t. I’m already paying that too.’ ‘Well, then you must pay a third third.’ ‘I can’t. I’m paying that too.’ ‘What do you mean? You are paying all your wages to former wives? Then what are you living on?’ ‘I’m living on the alimony my wife is getting from five other men.’ 1930’s joke
        https://www.amazon.com/Its-Only-Joke-Comrade-1928-1941/dp/1985635828

        1. “1930’s joke”

          Back then it was easy to skip town on a freight train. Today, you can run, but it’s very difficult to remain hidden.

      3. Since California can’t print US$ it’s come up with some crazy plan to “ask” landlords to “pre-pay” a target of $25B of their taxes for vouchers to be retired over 10 years:

        https://www.latimes.com/california/story/2020-05-12/coronavirus-rent-relief-tax-vouchers-plan

        WHO IN THEIR COTTON-PICKING MINDS WOULD TAKE “VOUCHERS” OVER REAL BONDS?!?! With the money they collect, how do we know that they won’t just spend it and then deny those vouchers?

        I’m sure I’m not alone. We’ve got the Ministry of Health here in LA telling the County Board that we should cower in place through the end of July, albeit with exceptions that make no sense. They’re killing the county’s tax and fee base and probably expecting that a full “D” Washington will rain money at some point.

        With this kind of open talk in our state and local governments I think it’s time to start planning an exit for more rational lands.

        1. probably expecting that a full “D” Washington will rain money at some point

          I think they’re counting on that. I just can’t fathom what the final bill will be,

        2. I think it’s time to start planning an exit for more rational lands.’

          Amazing how FUBAR its becoming

    3. at least I can take the Hunter S. Thompson retirement plan

      Embrace insanity if you so desire. I have other plans.

  7. And it keeps getting worse:

    https://www.msn.com/en-us/money/savingandinvesting/public-pensions-swoon-in-worst-quarter-since-credit-crisis/ar-BB13Zkm0

    State and local government pensions had their worst quarter since the credit crisis more than a decade ago as the sudden shutdown of the global economy because of the coronavirus hit almost every asset class.

    The median government employee pension, whose assets are heavily weighted toward U.S. stocks, lost about 13% in the first three months of the year

    Oh oh.

    1. “And it keeps getting worse”

      Yeah it will. And when municipal property tax hikes start showing up in my lease renewal, I’ll leave.

      C YA later, CRATER municipalities.

      Choke on your unfunded liabilities and DIE.

    3. maybe make gov employees retire in late 60s like privsec workers

      age 55 in my county

      1. Do you mean,
        force them to delay retirement until late 60s
        or
        force them to retire in late 60s

  8. so are we going to become frugal and have the guts to walk away and say no to 0% for 84 months on a new $80K 2021 Monster SUV?

    1. what is jingle mail for a new car/truck?

      Can you take it back in 24 months —- and say i am sorry i have dont have cashflow any more? What is the hit to your credit

    2. have the guts to walk away and say no to 0% for 84 months on a new $80K 2021 Monster SUV?

      Guts? All it takes is a modicum of common sense.

      1. Can you take it back in 24 months —- and say i am sorry i have dont have cashflow any more? What is the hit to your credit

        My understanding is that in theory after selling the car at auction if the proceeds don’t fully cover the loan balance that they can come after you for the difference and even garnish your wages. Whether they will bother to do that is another matter.

        Credit hit? Beats me. Plus after the dust settles they might just say “all is forgiven, come down to the show room to see the latest and greatest!”

        1. Plus after the dust settles they might just say “all is forgiven, come down to the show room to see the latest and greatest!”

          The $30k millionaires keep the economy moving. It’s the sensible people with their savings accounts who need to be skinned just enough to remain alive for another skinning down the road.

          1. This is why there’s never been a better time to hold gold and cash in hand. Appear poor to the government, but remain rich.

      1. Do you think there will be more or less stealth Trump voters in 2020? I can see how it could go either way but I’d bet my money on “more”. I think even for the average fairly uninvolved person the Russian story may have gotten stinky over time and Biden is doing nothing to inspire anyone to follow him. The only wildcard I can see that might shake things up is the VP pick. Sure, 1/3 hate Trump and 1/3 love him, but those aren’t the people who will decide the election.

        1. the Russian story may have gotten stinky over time

          It’s getting stinkier by the day.

        2. Do you think there will be more or less stealth Trump voters in 2020?

          A very good question. I’m inclined to say more, but it’s purely a gut feeling.

  10. It looks like things are normal.
    *People buying houses
    *people getting new offers on jobs.
    *Most people paying their rent.
    *I haven’t seen a single towing truck hauling to fancy SUV and lifted trucks from deadbeat loan payers that are behind.
    *Lots of delivery trucks every day with multiple boxes to the houses that have been shopping.
    *Food prices have spiked
    *Everything is more expensive
    *Lowes and Home Depot are super packed. everyboy remodeling their investment as is gonna go up…

    anyway…apparently life is good 🙂

  12. Airbnb apartment owners and operators:

    Anticipated
    Income
    Renting,
    But
    Now
    Broke! 🙂

  14. The Financial Times
    Coronavirus business update 30 days complimentary
    Eurozone economy
    European investment plunge raises fears for future growth
    Businesses shift cash into working capital, while foreign investment dries up
    An employee works on a car production line in Wolfsburg, Germany
    Unctad expects global foreign direct investment to drop up to 40 per cent in 2020 from the previous year, with energy, airlines and the car industry being the hardest hit. © Getty Images
    Valentina Romei in London
    2 hours ago

    Investment in the eurozone has plummeted in recent weeks, creating a drag on the continent’s economy that economists warn is likely to last even after companies and workers emerge from coronavirus lockdowns.

    Across the region, capital expenditure has contracted sharply, according to data for countries that have published detailed gross domestic product data, while borrowing to invest has dropped across the eurozone, reflecting businesses’ rising cash needs and plummeting output.

    “Investment is crucial, it indicates what future growth is likely to be,” said Yael Selfin, chief UK economist at KPMG. “If you are not investing you are not going to grow faster later.”

    The proportion of eurozone banks reporting demand from businesses to take out loans for long-term investment fell to a balance of minus 15 per cent in the first quarter, from 0 in the previous three months, statistics from the European Central Bank show.

    In contrast, demand for working capital surged to a net balance of 26 per cent, from 0 in the previous quarter, as businesses sought cash to cover ongoing payment such as rents and wages.

    Andrew Kenningham, chief Europe economist at Capital Economics, forecast eurozone business investment would fall 24 per cent year on year over 2020, contributing to an expected 12 per cent contraction in GDP.

    “Many businesses are cash-strapped and will be reluctant to use scarce liquid resources to fund investment,” he said. “On top of the normal recession challenges, companies will be struggling with deferred tax payments and/or loan repayments over the next year or two.”

    In the first quarter, France reported its largest contraction in gross fixed capital formation, a measure of private and public investment, on record; Spain’s contraction was also near-record levels, according to preliminary data from their national statistics offices.

    Comparable data for Germany, Italy and the UK is set to be published in the coming days and are widely expected to show a similar trend. Claus Vistesen, eurozone economist at Pantheon Macroeconomics, said the fall in investment, along with a drop in consumer spending, were “likely to be the main drivers” of Germany’s expected economic contraction. Economists polled by Reuters expect Germany to record a 2.2 per cent quarter on quarter fall in GDP when the data is published this week.
    …

    1. Dumb question of the evening:

      Wouldn’t central bankers standing clear and letting stock prices bottom out encourage more investment than propping up share prices on a permanently high plateau?

        1. My son’s friend is making more now on unemployment than working at the movie theater.

          A neat trick to get millions of workers to bust it for paper dollars that the government makes for pennies. break that trust and you’ll have real problems.

          1. SBUX workers at my son’s location who opted to stay home are getting paid more than those who opt to work. Seems like a good recipe for a worker shortage.

          2. “Seems like a good recipe for a worker shortage.”

            Think of the pleb votes that could be bought.

          3. Not if this cheese is temporary. This is a three-year problem. At the end of those three years, hiring managers will look at resumes and know who chose to work and who chose to slack.

            But if UBI becomes permanent, especially at $2000/month, all bets are off. That’s the equiv of $12/hour. People won’t bother to get out of bed for less than 15. It’s a good way to import millions of illegals, “to do the jobs that Americans are paid to not do.”

          4. But if UBI becomes permanent, especially at $2000/month, all bets are off.

            That would be an extra $4000/mo for many households. SUV’s and pickups would fly off the lots. The luxury apartments would fill up.

            So, assuming this madness comes to pass, what would you do with your free cheese? Spend it before it becomes worthless? Save it? Save it where? PMs? Stawks?

          5. That would be an extra $4000/mo for many households. SUV’s and pickups would fly off the lots. The luxury apartments would fill up.

            Interesting to think about which things would instantly go up in price to the point that you still couldn’t afford it on $4k/mo and which things would suddenly sell much more. I’m thinking the middle class would lost a lot of it to taxes so not a lot would change in the market of selling stuff to them. But yeah…stuff made specifically as aspirational purchases for poor people (I’m thinking crazy car wheels) would go nuts. Low end housing demand would be really interesting to watch. At the higher end nothing would change but it could pull a lot of young people out of basements to compete for low end apartments. But will Airbnb collapse and make enough available to where the price doesn’t move too much? Or would poor people still be priced out?

          6. Even the unemployed and theatre ticket takers can’t stop housing prices from cratering.

            Granite Bay, CA Housing Prices Crater 12% YOY As Double Digit Prices Declines Envelop Sacramento Area

            https://www.movoto.com/granite-bay-ca/market-trends/

            As a leading economist advises, “Mortgage debt is the most toxic and damaging debt of all. Avoid it at all costs.”

    2. The end of the denial stage of the coronacrisis could be a painful awakening for stock market investors.

  15. Remember, with one world financial governance by central bankers, bad news for real economies is good news for stock market investors.

    1. U.K. GDP drops 2% in first quarter in worst fall since financial crisis
      Published: May 13, 2020 at 2:07 a.m. ET
      By Steve Goldstein

      U.K. GDP fell 2% in the first quarter, the Office for National Statistics said, which was the worst performance since the financial crisis in 2008. The 2% decline did however beat economist estimates for a 2.6% drop. In March in particular, the U.K. economy contracted by 5.8%. “With the arrival of the pandemic nearly every aspect of the economy was hit in March, dragging growth to a record monthly fall,” said Jonathan Athow, deputy national statistician for economic statistics.
      …

    2. Any thoughts on how long it might take the average 21st century resident of Planet Earth to realize that central bankers have not actually figured out the secret technology for using the electronic currency press to create real wealth?

      1. I’m not sure they will ever figure it out. They only notice their own purchasing power. And even when it falls they always look for a simpler reason.

  16. It’d be a logical error to assume that whatever Herbert Hoover did while he was in office caused the Great Depression, when apparently the bad gambling debt that created ripe conditions for a Great Depression was accrued during the preceding decade of The Roaring Twenties. If you want to find a smoking gun, perhaps the Easy Money policies of the Roaring Twenties would be a good place to start.

    2. Hoover stood his ground until the communists applied pressure leading to the election win by their chosen candidate FDR. FDR proceeded to prolong the pain for another 12 years.

      1. The Dust Bowl didn’t help matters much either.

        And let’s at least acknowledge that FDR made people WORK for their government cheese instead of handing it out as UBI. We still have the National Park trails and municipal murals and Hoover Dam to prove it.

        1. Nonsense.

          Paying to dig a hole only to fill it back in is the quickest path to poverty.

        2. We still have the National Park trails and municipal murals and Hoover Dam to prove it.’

          Sometimes on a hike I will come upon a stone house built by the conservation corps. So long ago.

    3. PB,
      It’s always been my theory that easy money and faulty lending is the set up to a crash.

      Borrowed bucks always distorts the price. It’s false demand really.

      With shelter it became acceptable to finance that purchase long term because very few people had enough cash to buy a house outright
      But the long term loan had to be made on the ability to pay long term, not based on real estate always goes up.

      Same with stock in the 20s. Buying stock on margin went widespread , and people prior to this weren’t Stock Market investors.

      It’s almost like they got the common folk to become gamblers by faulty lending on margin (90 percent loans) which drove up the price of stock to the moon.

      They enacted the Glass Steagal Act to seperate lending from investment . In other words , you can’t make a loan based on the concept of the investment going up rather than the ability of the person to pay the loan long term.
      The Politicians sold out in 1998 and they got rid of the Glass Steagal Act in spite of that Act serving this Nation well for 70 years.

      Wall Street wanted to get rid of this bill because the Bill limited the ability of investment Houses to make money. So Wall Street than could engage in any high leveraged Ponzi scheme using real estate as the underlying asset. Very similar to faulty leverage lending on stock in the great Stock Market crash of the 1920s.
      So, if you ask me, It’s always faulty lending that is the root cause for false pricing.

      Same with Student loans backed by Gov. driving up higher education costs. Same with credit debt keeping prices higher. Same with low interest loans driving up price of real estate.

      Price of Health care is simply just rigged by price fixing monopolies

  17. AP Moller-Maersk AS
    Maersk warns of 25% drop in shipping as virus snarls trade
    Chief says coronavirus does not necessarily spell ‘worst crisis’ for sector
    Maersk said that significantly lower oil prices and stable freight rates would help
    © Bloomberg
    Richard Milne in Oslo and Naomi Rovnick in London
    2 hours ago

    The chief executive of the world’s largest container shipping line warned global trade would drop by a record amount this year and that the coronavirus pandemic could lead to a rise in protectionism.

    Soren Skou, chief executive of AP Moller-Maersk, told the Financial Times that if his prediction of a 20-25 per cent fall in demand in the second quarter came true it would be “the biggest drop in demand on record, worse than during the global financial crisis”.

    Maersk expects global trade to contract in 2020 but declined to give a precise outlook, instead referring to World Trade Organization forecasts of a 13-32 per cent fall in merchandise trade.

    Mr Skou said that while companies worldwide were reviewing their global supply chains as a result of coronavirus, he expected them mostly to look for additional suppliers to ease their reliance on single companies rather than a widespread retrenchment.

    Asked about whether he feared the Covid-19 crisis could lead to a retreat in globalisation, he said: “The element I’m more worried about is whether the pandemic will lead to a rise in protectionism. I continue to be worried about the US-China situation. But there are a number of other areas where you could see flare-ups, It would be a huge mistake for global growth.”

    Maersk, a bellwether for global trade, transports almost one in five containers worldwide, shipping everything from clothing to components for trains and washing machines.
    …

      1. cant forget how farmers are dumping truckloads of milk letting potatoezzz rot just to get biden elected..

    2. “Longtime debates in the development world over the importance of hiring local foreign aid workers and the usefulness of cash transfers…”

      The Development World. At first I thought that was a typo. Making a business of managing rivers of charity cash?

      1. NGO’s don’t like using charity money to hire Western workers to go to Africa or wherever. Uses up too much funding. They can accomplish so much more by hiring African charity workers. That’s assuming, of course, that the local aid worker is capable of doing the job and isn’t corrupt.

  21. Housing prices were cratering long before CoronaScam

    Tampa, FL Housing Prices Crater 17% YOY As Guf Coast Housing Market Turns Toxic On Rampant Appraisal And Mortgage Fraud

    https://www.zillow.com/tampa-fl-33617/home-values/

    *Select price from dropdown menu on first chart

    As a leading economist advises, “Mortgage debt is the most toxic and damaging debt of all. Avoid it at all costs.”

  22. This is going to hurt the Snitch business.

    Coronavirus Confusion: LA Mayor Tries To Douse “Panic” Over Likely Stay-At-Home Order Extension Remarks By County Health Official

    By Dominic Patten
    May 12, 2020 3:04pm

    Eric Garcetti has almost never met a media opportunity he didn’t like, but today the Los Angeles Mayor had to jump into damage control mode over confusing comments the top Public Health official in the county made about stay-at-home restriction going deep into the summer.

    “I want to reassure people because I think there was a lot of panic suddenly the headlines said we’re all going to stay exactly as we are for three more months when that is not the case,” Garcetti told CNN’s Jake Tapper just now.

    https://deadline.com/2020/05/coronavirus-los-angeles-county-stay-at-home-order-confusion-cnn-eric-garcetti-barbara-ferrer-1202932884/

    ‘Snitches Get Rewards’: Garcetti Issues New Rules For Construction Sites, Encourages Community To Report Safer At Home Violators

    March 31, 2020 at 10:10 pm

    “If any non-essential businesses continue to operate in violation of the stay at home order, we’re going to act to enforce the safer at home order and ensure their compliance,” he said.

    “You know the old expression about snitches, well in this case snitches get rewards,” Garcetti said. “We want to thank you for turning folks in and making sure we are all safe.”

    Violations of the Safer at Home order can be reported online.

    https://losangeles.cbslocal.com/2020/03/31/coronavirus-los-angeles-eric-garcetti-snitches-get-rewards/

    2. “You know the old expression about snitches, well in this case snitches get rewards,” Garcetti said. “We want to thank you for turning folks in and making sure we are all safe.”

      Erich Honecker is smiling from the grave.

        1. Is it more like gamblers are attempting to frontrun the Frauderal Reserves statement they “could” buy stocks. The Frauderal Reserve isn’t buying stocks.

          Now stocks are cratering.

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