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The Good Days Have Come To An End And The Promises Have Turned Into A Nightmare

A report from CTV News in Canada. “Vancouver rents have been falling since the start of the COVID-19 crisis, and are down by as much as 15 per cent for some types of apartments, according to data pulled from Craigslist. David Hutniak, the CEO of LandlordBC, is now lobbying for the B.C. government to bring a moratorium on evictions, to an end. He said landlords, especially smaller ‘mom and pop’ landlords, are suffering financially because some tenants aren’t paying their rent, and there’s no legal recourse left to landlords who are renting to tenants who refuse to pay.”

The Winnipeg Free Press in Canada. “According to the CMHC, seasonally adjusted annual rate of housing starts in May were 3,335 in Manitoba compared to 6,320 in April. From April to May, the 47 per cent drop in starts in Manitoba was the largest in the country. Heather Bowyer, CMHC’s senior market analyst for Manitoba, also blamed the large percentage decline in Manitoba on the fact that the market has been dealing with an overbuilt condo market for some time. ‘One caveat to this is that condos have seen a bit of a downward trend in new construction over the last little while anyway. We have seen a lot of overbuilding in that market segment,’ she said.”

From Dutch News. “While the average price for a non-rent controlled property is €1,230, in Amsterdam the figure is €1,700. However, this is down from the €1,800 peak registered a year ago. In Amsterdam, supply has increased because landlords who usually rent out property via holiday agencies like Airbnb are now turning to long-term rentals as tourism dries up.”

The Edge Malaysia. “Sleepless nights – that would best describe the mental state of Alex, a property investor, these past few months. He had been optimistic about three years ago when he bought several properties on the advice of a ‘property guru.’ Property prices will go up, you can enjoy bulk discounts and benefit from the rebates now, he was told. The good days have come to an end and the promises have turned into a nightmare. He is but one of many individuals going through such a situation.”

“‘Many developers have offered all sorts of freebies, including DIBS (developer interest bearing scheme), free furniture and fittings, and cash back,’ says Rahim & Co International Sdn Bhd real estate agency CEO Siva Shanker. ‘In fact, cash back is a prevalent trend now, where, in some cases, a purchaser can get back more than RM100,000 in cash when buying a property.'”

“This will enable people who don’t have money to buy properties based on pure speculation, he cautions. ‘Most of all, these so-called property gurus have no credibility and they have done it in a way that is nothing more than a skim cepat kaya or Ponzi scheme,’ he adds.”

The Daily Telegraph in Australia. “Rental properties in the Sydney CBD continued to empty last month. Close to one in six rentals – 16.2 per cent – were vacant in May, more than double the vacancies recorded at this time last year, SQM Research figures showed. Higher inner Sydney vacancies were the result of a decline in international student numbers, Airbnb rentals becoming available on longer term leases, and many hospitality workers moving back in with parents.”

“A similar trend was observed in the inner suburbs of other major capital cities: 13.3 per cent of Brisbane CBD rentals were vacant last month, while in the Melbourne CBD it was 9.3 per cent. Nic Fren recently moved into a new apartment in Rushcutters Bay and said he was ‘very happy’ with the price. ‘I was picky with properties. This place was just perfect,’ he said. ‘You know something is up when agents start phoning you about available properties. They never did that before.'”

The Australian Financial Review. “Soaring vacancies and widespread rental discounting have squeezed investors’ cash flows to the extent that almost two in every five landlords are in a position of financial stress. Competition for tenants has further intensified as short-stay landlords switched properties into the long-term rental market, leading to situation in which the owners of 820,000 rental properties were stressed and an additional 123,000 were ‘severely’ stressed, analysis by Digital Finance Analytics for The Australian Financial Review shows.”

“‘We’re now being forced to cut our rents by at least $100 per week,’ said Brisbane-based investor Lisa Liang. ‘One of the three international students renting my South Bank apartment went back to China and now she couldn’t return. The remaining tenants could not afford the rent so my property manager told us to cut our rents.'”

“It is putting Ms Liang’s investments at risk. ‘But we’re paying $6500 in body corporate fees each year on top of everything else, so if I’m getting less rent and still paying all these costs, then it’s going to be difficult to hold this rental,’ she said.”

“Ms Liang said she wanted to sell her South Bank apartment, but could not because it had already shed $20,000 in value since she purchased it in 2014. ‘I’m happy to sell it for the same amount I paid back then, and even take a small loss, but I’m not confident I can find a buyer in today’s market.’ Another apartment she bought in Hamilton six years ago had lost $100,000 in value, she said. ‘So given all these issues, I will not invest in apartments ever again. I’d be lucky if I get back the $1 million I paid for these two apartments.'”

The South China Morning Post. “The number of foreclosed properties in Hong Kong could reach the highest level since the global financial crisis early next year, as owners struggle to repay mortgages amid a recession-hit economy that has taken a toll on businesses and pushed the unemployment rate to the highest in more than 15 years.”

“‘The number of foreclosed properties will surge next year to [between] 1,000 and 2,000,’ said Henry Choi, a director at property auctioneer Century 21 Surveyors, comparing the situation in 2009 when a downturn induced by the global financial crisis led to 3,600 foreclosures. ‘It is expected that the unemployment rate will rise and next year’s economy may be way [worse] than this year. The chain of business [activity] has been broken, with small and even [big] companies on the brink of survival.'”

“There were 94 foreclosed properties on the market this month versus 56 in June last year, and almost four times higher than the 19 recorded in the same month in 2018, according to Century 21 data. Peter Au, managing director at AA Property Auctioneers, said he expects foreclosures to rise because of the poor economic conditions. AA will auction 39 properties next Tuesday.”

“He also said that there has been a 10 to 15 per cent jump year-on-year in the number of properties that homeowners have commissioned to auctioneers. These customers, he said, were looking to offload their property for a number of reasons, including emigration, liquidity problems and a pessimistic market outlook.”

“‘In the past year, social sentiment has not been very good, followed by the pandemic,’ said Au. ‘Now, nearly 10 out of about 30 properties on auction are commissioned by homeowners.'”

This Post Has 100 Comments
  1. ‘I’m happy to sell it for the same amount I paid back then, and even take a small loss, but I’m not confident I can find a buyer in today’s market.’ Another apartment she bought in Hamilton six years ago had lost $100,000 in value, she said. ‘So given all these issues, I will not invest in apartments ever again. I’d be lucky if I get back the $1 million I paid for these two apartments’

    Don’t screw up the comps Lisa.

    1. Where did Li Li get the do re mi of 1M for a couple investment properties? Surely not from illegal sources in China! First rule is no tickee no washee!

  2. ‘Sleepless nights – that would best describe the mental state of Alex, a property investor, these past few months. He had been optimistic about three years ago when he bought several properties on the advice of a ‘property guru.’ Property prices will go up, you can enjoy bulk discounts and benefit from the rebates now, he was told’

    There’s other FBs and STR tales of woe in this link.

  3. Vancouver, WA Housing Prices Crater 19% YOY As Vancouver, BC And Seattle Housing Markets Meltdown Under Weight Of Toxic Mortgages

    https://www.zillow.com/vancouver-wa-98684/home-values/

    *Select price from dropdown menu on first chart

    As a noted economist stated so eloquently, “A house is a rapidly depreciating asset that empties your wallet it every day you own it.”

    1. That’s a lot of damage considering…

      “The vast majority of protests where peaceful.”

      Looking at this quote again I’m not sure what my astute 3 letter friend fjm meant, the vast majority of protests where peaceful or the vast majority of protests were peaceful?

      1. The vast majority of protest nationwide were peaceful. Not sure about Minneapolis.

        One thing I have learned is that 30 years goes by pretty quick. Another is that cities are pretty big places.

        So of those properties end up abandoned for 30 years, plus or minus 10, I’ll bet no one living near them will feel like rioting and looting again. And then in 30 years, perhaps the private sector will rebuild.

        Instead of making money available, taking that money from other things and people, I’d loosen up the zoning and allow people to open businesses in nearby residential buildings that were not destroyed.

        1. “The vast majority of protest nationwide were peaceful.”

          Comrade,
          Name one major city where there wasn’t vandalism and looting.

        2. “The vast majority of protest nationwide were peaceful. Not sure about Minneapolis.”

          You’re “not sure” about Minneapolis?? Really?

        3. Minneapolis Issues Map Showing Extent Of Buildings Damaged In Unrest Over George Floyd’s Death
          June 16, 2020 at 5:00 pm

          MINNEAPOLIS (WCCO) — Minneapolis city officials now say 700 buildings were damaged, burned or destroyed in the recent unrest following the death of George Floyd.

          The city released a new map that breaks down the damage into four categories: cosmetic damage, minor damage, major damage, and wholly destroyed, which included 12 structures, many with multiple businesses within them.

          “This is not just the structures that have been impacted, it’s the community that’s been impacted, and if you take a look at where the destruction has happened, some of it is not because of the uprising, some of it is because people came into the community and tried to terrorize some neighborhoods and set buildings on fire,” Erik Hansen, director of economic policy and development in the City of Minneapolis, said.

          1. Mostly 100% peacefully though.

            Several loud bangs were heard in the mostly peaceful motorcade carrying the mostly alive president in Dallas.

        4. …I’ll bet no one living near them will feel like rioting and looting again

          The people who rioted and looted are being praised and defended. Why shouldn’t they do it again? They’ll just have to go to the areas where there still are open businesses to loot.

          Heaven help any remaining business in the Twin Cities (and any other US city) if any or all of those cops are aquitted.

      1. From that link:

        “Another BLM supporter, ESPN writer Chris Martin Palmer, who commented “Burn it all down,” when retweeting a photo of a Minneapolis building in flames in late May, had a different reaction when rioters came close to his house, The Sporting News reported.

        “Get these animals TF out of my neighborhood,” Palmer wrote. “Go back to where you live.””

        1. I think it’s fair to assume that BLM and Antifa only partially overlap in goals and might actually oppose each other in other areas.

    2. Today’s Washington Compost has an article* about “militias” using their weaponry to intimidate peaceful protests in smaller towns. The commenters were very quick to call such armed citizens as snowflakes and manbabies and the like, that they can’t handle a few protesters. Evidently the libs forgot about the fires in Minneapolis, the widescale looting in LA, and threats about “expanding to the suburbs.”

      Oh, and the Compost castigated the militias for “using Facebook” to organize. Which is a hoot. I guess only libs are allowed to use FB?

      ——————
      * Can’t find the article.. they are too busy gloating about the DACA case, which was decided on a technicality.

      1. The commenters were very quick to call such armed citizens as snowflakes and manbabies and the like, that they can’t handle a few protesters.

        Alinski rule #5 IIRC.

      2. It was a town in Ohio, Bethel. There were rumors that outsiders were being bused in. There have been other similar events in other towns. In some the outsiders did show up, and quickly left when they saw that the locals would not stand by idly as their town was vandalized and looted.

        Heaven forbid you might want to keep rioters out of your town. That makes you a Nazi or something.

  4. Does a junk credit rating suggest that India’s stock market is primed to soar? Remember, in the COVID-19 pandemic economy, bad real economic news is a harbinger of skyrocketing stock prices.

    1. The Financial Times
      Updated at 6/17/2020, 1:49:20 PM BST
      Adam Samson an hour ago
      India at risk of junk rating as Fitch cuts outlook to negative
      Benjamin Parkin in New Delhi

      Fitch has cut its outlook for India’s credit rating to negative, leaving the country at risk of falling into junk status.

      The ratings agency scores India at BBB-, the lowest investment-grade credit rating. The negative outlook comes after Moody’s this month downgraded India to Baa3, meaning that the three large international ratings agencies including S&P now rate the country one notch above junk.

      Fitch said India’s economy was likely to contract 5 per cent in the ongoing financial year, which could exacerbate its public-debt load. It said the disruption due to the pandemic and India’s multi-month lockdown threatened longer-term damage to the economy’s growth prospects.

      “It remains to be seen whether India can return to sustained growth rates of 6 per cent to 7 per cent as we previously estimated, depending on the lasting impact of the pandemic,” Fitch said.

      The agency highlighted the strain on India’s financial sector, where an unresolved pile of loan defaults has pushed a number of lenders to near collapse since 2018. While India had reduced its non-performing loan ratio before the pandemic, Fitch said renewed increases “now seem inevitable.”

      1. What score do these agencies give to Uncle Sam’s debt? Without checking, I’d guess it’s a lot higher than it should be.

    2. It’s a broke back financial system.

      The Financial Times
      Coronavirus business update 30 days complimentary
      US Dollar
      The fall of currencies under the spell of stocks worries strategists
      Analysts note that exchange rates have become detached from the usual drivers
      Despite local economic turmoil, the Australian dollar is up about 18% against its US counterpart since March’s market rout, while the pound has gained 9%
      © FT montage
      Eva Szalay in London yesterday

      Currency analysts are lamenting an avalanche of cheap money from the US Federal Reserve, which they say has created bizarre conditions in which exchange rates track stocks rather than economic fundamentals.

      For decades, strategists have analysed exchange rates on the basis of the outlook for growth and interest rates in the countries concerned. Generally, the better the prospects, the better the currency can be expected to perform.

      But that relationship has broken down since March’s market rout, analysts say. As the global economy moves towards one of its worst recessions in history, currencies that are usually most sensitive to growth have become the best performers against the US dollar.

      The Australian dollar, for example, which usually weakens when demand drops, has gained about 18 per cent against its US counterpart over that period — despite Covid-19 disruption to global trade hitting the export-dependent economy hard. Sterling, meanwhile, has climbed about 9 per cent despite difficult Brexit negotiations, mounting UK unemployment and a collapse in economic output. The OECD predicts the UK will suffer the largest contraction this year among advanced economies.

      Ben Randol, a currency strategist at Bank of America, said fundamental economic indicators have not mattered for currencies since the Fed’s series of interventions in March. Instead, US equity markets have become the significant driver of the value of the dollar, which has weakened as stocks have soared.

      The situation was “antithetical to the way FX markets are supposed to work,” said Mr Randol.

      “FX trading has been reduced to a leap of faith in the Fed ‘put’,” he added, alluding to the belief that the central bank will always be on hand with measures to alleviate shocks to asset prices. “Macro factors . . . and terms of trade have simply not been relevant.”

      According to the bank’s analysis, the correlation between equity prices and major currencies is at its strongest for 15 years, turning currency pairs into a “blatant reflection” of US stock markets.

      Dominic Bunning, a currency strategist at HSBC, agrees that the relationship between the two has been unusually close since March, meaning that “as the S&P 500 falls, the dollar rallies . . . as the S&P 500 recovers, the dollar sells off”.

      1. “In addition to these pragmatic goals, the powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent and private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank, in the hands of men like Montague Norman of the the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the bank of France, and Hjalmar Schact of the Reichsbank, sought to dominate its government by its ability to control Treasure loans, to manipulate foreign exchanges, to influence to the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world. In each country the power of the central bank rested largely on its control of credit and money supply. In the world as a whole the power of the central bankers rested very largely on their control of loans and of gold flows”.

        — Dr. Carroll Quigley, “Tragedy and Hope”

      1. LOLZ! Bovines sure are dumb animals.

        Asked what level of exposure investors should have to U.S. equities, Grantham offered an unflinching view that may leave some bulls gobsmacked.

        “I think a good number now is zero and less than zero might not be a bad idea if you can stand that.”

        1. If you want to bet against the S&P 500 going up you can do so by buying this ETF. It is leveraged 3 to 1 so whatever the S&P does it will do the opposite, and it will do it three times faster …

          Direxion Daily S&P 500® High Beta Bear 3X SharesNYSE

          HIBS is its stock symbol.

          FWIW.

          1. Not playing that game until the market’s no longer being juiced to sway the election.

          2. Not playing that game until the market’s no longer being juiced to sway the election.

            So, they’re juicing it to support Trump but they wouldn’t juice it for Biden if he won? I’m not buying that. I will not touch stocks again until the FED is out of the picture, and I don’t see that happening. The whole thing is rigged.

          3. I’m not buying that.

            Same here. Maybe they’re juicing it to prevent civil unrest.

            Oh wait…

  5. Who knew rising COVID-19 cases was good for Treasury bond prices?

    Bonds
    Treasury yields fall as fears grow of a rise in coronavirus cases
    Published Thu, Jun 18 2020 2:38 AM EDT
    Elliot Smith

    Key Points
    – Texas saw an 11% rise in hospitalizations related to Covid-19 on Wednesday, while Arizona reported a record daily high of new confirmed cases.
    – Investor focus will also be attuned Thursday morning to last week’s jobless claims numbers, set for publication at 8:30 a.m. ET.

    U.S. government debt prices were higher Thursday morning as spiking coronavirus cases in some U.S. states and also China dented hopes of a rapid economic recovery.

    Treasurys

    At around 2:40 a.m. ET, the yield on the benchmark 10-year Treasury note was down at 0.7167% and the yield on the 30-year bond fell to 1.5017%. Yields move inversely to prices.

    Texas saw an 11% rise in hospitalizations related to Covid-19 on Wednesday, while Arizona reported a record daily high of new confirmed cases.

    Meanwhile, a new cluster of infections in Beijing prompted the city to cancel flights, close schools and block off certain neighborhoods, according to Reuters. The virus has now infected at least 8.3 million people around the world and 2.1 million Americans.

  6. ‘I’m happy to sell it for the same amount I paid back then, and even take a small loss, but I’m not confident I can find a buyer in today’s market.’

    You can find a buyer tomorrow, Lisa. But it’s going to involve some serious sawin’ and slashin’.

  7. ‘Now, nearly 10 out of about 30 properties on auction are commissioned by homeowners.’”

    Minor point of correction: The “homeowner” is the lender until the last mortgage check clears. Don’t confuse FBs with people who own their shacks free and clear.

  8. I’ve got a great idea: How about if we all print our own money, to make ourselves rich?

    If it works for the Fed, it seems worth a try.

    1. How are the tax burdens on transactions in these local currencies?

      June 12, 2020
      Why a small town in Washington is printing its own currency during the pandemic
      In a bid to lessen the blow of COVID-19, the town of Tenino has started issuing its own wooden dollars that can only be spent at local businesses. Will it work?

      Wayne Fournier was sitting in a town meeting when he had his big idea.

      As the mayor of Tenino, Washington (population: 1,884), he’d watched the pandemic rake local businesses. Residents couldn’t afford groceries. Long lines snaked outside the local food bank. For more than a month, the downtown area looked almost abandoned.

      To bring back the economy, Fournier needed to act. “We were talking about grants for business, microloans, trying to team up with a bunch of different banks,” he tells The Hustle. “The big concern was, ‘How do we directly help families and individuals?’”

      And then it hit him: “Why not start our own currency?”

      The plan came together fast. Fournier decided that Tenino would set aside $10k to give out to low-income residents hurt by the pandemic. But instead of using federal dollars, he’d print the money on thin sheets of wood designed exclusively for use in Tenino. His mint? A 130-year-old newspaper printer from a local museum.

      Fournier’s central idea is pulled straight from Tenino’s own history. During the Great Depression, the city printed sets of wooden dollars using that exact same 1890 newspaper printer. Within a year, the wooden currency had helped bring the economy back from the dead.

      By reinstating the old currency now, Fournier has accidentally become part of a much bigger movement. With businesses worried about keeping the lights on and people scrambling to find spending money, communities have struggled to keep their local economies afloat.

      So they’ve revived an old strategy: When in doubt, print your own money.

      Today, these so-called “local currencies” might help small communities recover from the economic fallout of COVID-19.

      1. If this catches on, the bankers won’t like it, and will get their pocket politicians to put an end to it.

      2. The Tenino dollar has as much backing it, as the US dollar. Granted Tenino doesn’t have a nuclear arsenal, etc., but otherwise they’re both fiat currencies. Worth as much as people believe they are worth.

        1. The Tenino dollar has as much backing it,

          Fiat currencies don’t need backing to have value. They need trust. The issuers need to hold to commitments and keep promises made. If they lose trust, they fail. And zero reserve requirements do a great deal to reduce trust.

        2. I don’t believe the Tenino labor force has quite the productive potential of the global community of dollar users.

          But tax free trade must be nice.

      3. This town is arguably in violation of Section I.8.5 of the Constitution. Only Congress has the power to coin money. Why not hand out gift cards instead? In fact I’m surprised someone hasn’t cracked down on btc yet.

        1. Only Congress has the power to coin money.

          Technically, I believe it’s scrip and not currency.

          1. For one thing, it’s not legal tender and no one has to accept it as payment for a debt.

    2. You can look forward to a lot more local currencies spontaneously springing up if central bankers proceed down the path to replace dollars with BitBux.

      Your Digital Self
      Opinion: Central bank digital currencies would ‘increase government’s grip on money’ with few benefits for the rest of us
      Published: June 17, 2020 at 11:29 a.m. ET
      By Jurica Dujmovic
      Money transfers and bank clearing would be faster, but governments would have greater financial-surveillance powers

      1. This is the goal. They want to end paper money so the bankers get a cut of every transaction, and the government can eradicate the gig economy for their tax cut. They’re going to get a revolution with this crap.

    3. How about if we all print our own money, to make ourselves rich?

      How did that go for George Floyd?

  9. ‘Hertz Global Holdings Inc. suspended plans to raise cash by selling new shares that the bankrupt car renter described as potentially “worthless” after its proposal failed to pass muster with U.S. regulators.’

    ‘The company halted sales while it deals with issues brought up by Securities and Exchange Commission officials, according to a filing. The stock, whose trading had been halted earlier in the day, rose 5 cents to $2 Wednesday, while its bonds tumbled.’

    ‘Hertz warned at least half a dozen times in its offering that would-be buyers could be wiped out. The company had said stockholders wouldn’t get anything from its bankruptcy plan unless those with more senior claims, including bondholders, are paid in full. The most junior bonds alone have seen more than $2 billion of value evaporate, enough to erase the shares several times over.’

    https://finance.yahoo.com/news/hertz-suspends-plan-sell-worthless-191935694.html

    1. “Because Americans are the dumbest investors around, and there’s lots of liquidity in this market.” – George Economou, CEO DryShips

    2. ‘Hertz Global Holdings Inc. suspended plans to raise cash by selling new shares that the bankrupt car renter described as potentially “worthless” after its proposal failed to pass muster with U.S. regulators.’

      Seems much like other instances of financial transactions where the underlying item being traded is fundamentally worthless, like buying and selling intrinsically worthless bitcoin or beanie babies.

      But so long as there is someone on the other side of the transaction willing to pay more Powell Bux than you did for the pleasure of HODLing, then why not?

      1. like buying and selling intrinsically worthless bitcoin

        The Bitcoin people crack me up. They try to pass Bitcoin off as a currency when all it is is a highly speculative, rigged gimmick. What I really get a kick out of is those same people complaining when the price is essentially parked at the same level, because they can’t make any money buying and selling.

  10. ‘Château Margaux, the last of the first growths to unveil its 2019 wine, has released with an opening price 19.1% below the 2018, while the critically acclaimed Clinet has reduced its price by 18.8%.’

    ‘The estate has also released its second wine, Pavillon Rouge, and its white, Pavillon Blanc. The former released at €120 per bottle ex-négociant, down 16.7% on the 2018 release price of €144. The wine, which attracted scores of 96-97 points from James Suckling and (92-94)+ from Perrotti-Brown, is being offered at £1,500 per 12×75, a 16.2% decrease from the 2018 opening price of £1,790 a case.’

    ‘Also released was Pomerol property Château Clinet at €52 per bottle ex-negociant, down 18.8% on the 2018 release price of €64. It is being offered by the international trade for £650 per 12×75, down 15.4% on the 2018’s opening price of £768 per case, according to Liv-ex.’

    https://www.thedrinksbusiness.com/2020/06/bordeaux-2019-last-of-the-first-growths-releases-with-19-reduction/

    1. California Grape Glut Helps Send Wine Prices Plummeting – CBS San Francisco
      https://sanfrancisco.cbslocal.com/2020/02/16/california-grape-surpluses-lower-wine-prices/

      (some snips)

      “Vineyards in Northern California began planting thousands of acres of new vines in 2016, and with more efficient harvesting methods, it has led to more bountiful harvests of grapes.”

      Lots of grapes get produced. Got it.

      “Having more grapes to make wine sounds good, but if there’s not enough demand to support increased production, the surplus grapes go to waste.”

      Got that as well.

      “Jeff Bitter, president of Allied Grape Growers, told CNN that it’s possible for surplus grapes to make it to the secondary market, where they’re used for brandy or as grape concentrate. But that market doesn’t typically provide sustainable returns for growers.”

      I hate it when this happens.

      “’The main cause of oversupply today is the culmination of a few years of slowing wine shipment growth, with an ample 2018 wine grape crop as an exclamation point,’ Bitter said. ‘Until 2015, wine shipments had grown, almost predictively, for two decades. The slowdown in growth has caught the industry by surprise.'”

      “’Since it takes up to five years to bring wine to market from the initial planning stages of planting a vineyard, it makes hitting future demand very complicated. In this case, we overshot demand.’”

      Shocking!

      1. I personally know some people who got into the wine business ten-or-so-years ago. The wine business is a prestigious business to get into so it is dominated by rich deep-pocketed individuals.

        An observation: If you want to lose lots of money then jump into a prestigious investment dominated by people who have money to burn.

        Horse racing comes to mind, and so does wine production.

        1. “The wine business is a prestigious business to get into so it is dominated by rich deep-pocketed individuals.”

          There is a wonderful “Gatsby lifestyle” to be had living on your own 300-acre vineyard.

          1. There is a wonderful “Gatsby lifestyle” to be had living on your own 300-acre vineyard.

            Definitely. Like others are mentioning there are also some great lifestyle benefits to having your own music/movie studio or race team. Anything that involves burning a lot of money. I just feel bad for the starry eyed kids from the hinterlands who think it’s a money making endeavor rather than a money burning endeavor and make their career choices based on that misunderstanding. Lots of cargo culting there.

        2. Don’t forget formula race cars and becoming an ‘executive producer’ on a Hollywood movie.

          Gotta look at the bright side. I am sure you will get invited to some pretty wild parties. Maybe some drunk will try and sell you some real estate?

    2. To be fair a large number of chateau reduced 2019 pricing to take the sting out of the 25% tariff imposed by the US, so as not to lose market share. Most chateau have reduced somewhere around 25%.

  11. Big Blue city chit holes are bleeding people and rents are falling. On the other hand small cities and towns in flyover states are gaining people and real estate prices are increasing. Missoula is a perfect example. But same can be said of Bozeman, Spokane, Boise and the like. Problem is those locusts will in the long run vote for the same policies that destroyed their cities and turn their new home cities into chit holes too. See the entire state of Colorado as Exhibit A.

    I’ve seen several articles recently asking the question: why live here when I can work from anywhere? Be it NYC, Bay Area, Seattle, Los Angeles. The question is the same. And the answer is increasingly, yeah I’m out of here.

  12. ‘Two Cody businessmen who share a vision have teamed up to bring a new housing concept to Cody: Luxury multi-story townhouses that blend a city vibe with small town, western living.’

    ‘They will feature open-concept layouts with high ceilings, second-story outdoor patios for entertaining, and a rear ground-level patio for entertaining with custom outdoor kitchens. “Our goal is to create high-end, low maintenance homes so our residents can be in walking distance of all the amenities Cody offers downtown,” Allison says.’

    ‘Other amenities will include elevators, electronic steam showers, floating stairs, mirrored privacy glass to accentuate the views of Cody, wine cellars and under-stair beverage centers with custom cabinetry, built-in furniture, hidden rooms with custom doors and specialized custom steel interior construction.’

    “Our project on 12th Street is exciting, as we believe there is a need in downtown Cody for a ‘live, work, create’ space,” Erynne Selk said when the city planning and zoning board approved the subdivision in late 2018.’

    “We envision these smartly planned residences to cater to those who love Cody’s downtown lifestyle and appreciate little or no maintenance in a living space,” she said. “The commercial zoning would allow, for example, a potter to create and sell pottery out of the residence.”

    ‘Or such homes may appeal to snowbirds, she said.’

    Snowbirds in Wyoming? The page says it’s 55 degrees F there right now.

    1. mirrored privacy glass

      Nothing says “small town, western living” like a neighborhood of mirrors.

      1. I’m sold on the idea of having hidden rooms. Add a few peepholes and party time can be a really fun time. A profitable time as well if some hidden cameras are installed.

        Mortgage debt overwhelming you? No problem, have your party guests help you with the payments.

        Bahahahahahahahahahahahahahahahaha.

      2. “small town, western living”

        The sales pitch didn’t say anything about where to park your horse.

    2. The page says it’s 55 degrees F there right now.

      That is cool for this time of year. Today on the Colorado front range the forecast is 70 today, 64 tomorrow. It was 90+ yesterday.

      Cody’s forecast shows it returning to the 80’s next week.

      Not much “vibrancy” there. They do have a Walmart, though.

      1. They do have a Walmart, though.

        Speaking of which, that makes them the regional center for anyone who doesn’t want to drive all the way to Billings, MT to shop.

    3. “specialized custom steel interior construction.”

      That’s code for chaep @ss 25-Gauge EQ tinfoil like metal studs.

    4. Cody is my hometown. I’ve wondered before if anybody would ever try to make living downtown cool. Being the east gate to Yellowstone there are a lot of tourist dollars and downtown is nice for a town that small. But normally the people who live there prefer to spend their money on horse property outside of town. I’ll be surprised if these sell well.

    5. “all the amenities Cody offers downtown”

      So let’s take a look at the amenities in downtown Cody: Dude Rancher’s Association, Cody Dug Up Gun Museum, Fat Racks BBQ, Bargain Box Clothing Store, Paul Stock Aquatic and Recreation Center, NAPA Auto Parts, Cody Firearms Research, Whitney Western Art Museum, Denny Menholt Chevy Buick GMC, Boot Barn, Church of Jesus Christ of Latter Day Saints.

      Probably not a bad place to live, but not somewhere I would want to buy some citified luxury townhome for… I dunno, the high $600s?

      1. Being that the city relies on tourism there are probably a lot of gift shops, native jewelry and craft shops, outdoor gear shops and a variety of places to eat.

        1. Exactly. A lot of cheap to midrange motels/motor lodges as well. I could tell stories about every one of those places oxide mentions :-). But yes, it makes zero sense for any downtown townhome/condo to sell for more than 200k no matter how nice.

    1. It’s not too late to get your…

      Donald Trump Talking Coffee Mug FOR DAD – Simply Lift Mug to Hear POTUS Deliver a Personal Greeting to Your Father – Says 5 Lines – Trump’s REAL VOICE – Fun Trump Gift –

      Dad, you’re making parenting great again.

      Believe me you’re doing a tremendous job.

      Total class, High IQ, amazingly handsome, just a terrific father.

      You’re proving once and for all that fatherhood isn’t fake news.

      Everyone agrees.

      https://www.amazon.com/Donald-Trump-Talking-Coffee-Mug/dp/B07VYVWR77

      1. I saw one runner up Fathers Day mug at the bottom of that page.

        It reads…

        Great Job DAD

        I turned out AWESOME

          1. I keep adding the f so it’s consistent. Please check before you post and this problem will go away.

          2. “I keep adding the f so it’s consistent. Please check before you post and this problem will go away.”

            Thank you

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