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Oh! Somebody Wants Our Money! Please Take It From Us

It’s Friday desk clearing time for this blogger. “Bryant Vayhinger, president of the Colorado Association of Real Estate Appraisers, is not exactly popular these days. ‘We’re providing a service, but our service is to the banks. That’s a misconception a lot of times is buyers think that we’re providing a service for them. But it’s to protect that loan on the bank side,’ said Vayhinger, who said appraisal gaps are a sign of a strong market. ‘But on the backside, it has to be supported,’ Vayhinger said. ‘We can’t just have unchecked growth or else it’s going to spiral out of control, and we’re gonna have the crash all over again.'”

“The Foxes tapped into a 401K, got money from family, sold a house in Texas they had planned to keep, and it still wasn’t enough to win a house. Instead of surrendering, though, they changed course, looking further outside of the Denver metro in Johnstown. They bought a new build that won’t be ready until September. ‘We’re happy that it’s finally over for us,’ Alissa Fox said. ‘You’re like, ‘Oh! Somebody wants our money! Please take it from us.'”

“According to Zillow, home values in the Phoenix area are up 20%, and homes are only on the market for about seven days before getting sold. Experts say this is not a housing bubble, as the demand for home far outpaces the supply currently. ‘We don’t have enough right now. That’s why we’re not going to see a bubble,’ said Tina Tamboer with Cromford Report. ‘The bubble means are we at risk of having vacancies. The number one risk to housing values is always vacancies.'”

“More than one in 10 Manhattan rental apartments is vacant, raising the prospect that discounted rents and other tenant deals could persist through at least the summer. Landlords are struggling to keep their buildings full. Many landlords have had to drop prices and offer incentives, like eliminating broker fees or offering multiple months of free rent, to get units off their hands. The vacancy rate south of 34th street is nearly 17%, according to Miller Samuel, and downtown Manhattan neighborhoods offer some of the most generous concessions and incentives. The owner of 25 Broad Street, a luxury condominium and rental building in the Financial District, is offering up to 4 months of free rent to new tenants.”

“In each of the last two years (2019 and 2020), the United States Census Bureau’s population estimates program has shown population losses in the six tidewater metropolitan areas in the Bay Area CSA (the San Francisco, Napa, Santa Cruz, Santa Rosa, and Vallejo metros). Overall, population losses became so substantial here, that the entire CSA posted losses in 2019 and 2020. If this were a mainstream media article on Japan or China, the term ‘demographic implosion’ would likely have been used for the San Francisco and San Jose metros, including the Silicon Valley. Most likely, with the Bay Area’s high cost of living and severely unaffordable housing, the implosion might well continue in the next decade as well.”

“‘People in Vancouver absolutely believe the market will continue to increase here, although not always at the levels we’ve seen recently,’ says Alma Pasic, a mortgage broker with Paragon Mortgage in Burnaby, B.C., a Vancouver suburb. ‘This city favours real estate more than any other investment.’ Buying at 20 per cent over list is common, but she says concerns about people overextending themselves are balanced by the protection mechanisms built in by banks and the government.”

“Ms. Pasic believes the banks aren’t about to bankrupt the citizens of Canada by raising rates quickly. ‘I think when people decide to buy, they look at the numbers and go through the process of the banking system, so they know that the banks are not going to overextend them,’ says Ms. Pasic.”

“Federal Reserve Bank of Dallas President Robert Kaplan repeated his call for policymakers to begin a discussion of slowing their asset purchases, a day after minutes of the Fed’s April meeting showed an increased interest in talking about tapering.”

“‘Maybe taking the foot gently off the accelerator would be a wise thing to do here so that we can manage this transition more effectively,’ Kaplan said. ‘That’s why I have encouraged sooner rather than later we begin a discussion of these purchases.’ The Dallas Fed chief said the bond buying can contribute to ‘imbalances’ and ‘excessive risk taking,’ noting that the U.S. housing market prices are at ‘historically elevated levels.’ He added, ‘private investors are now competing with families’ to buy homes.”

“A new report from Bankrate has found that more and more millennials are experiencing homebuyers remorse after purchasing what was thought to be that home of their dreams. The study found that nearly two-thirds of millennial homebuyers have expressed some degree of regret. Many cite the competitive market leaving very little time to make a sound judgement on a new home, forcing buyers into quick decisions. ‘Because the market is so competitive, you have less time to make a decision on a homebuying purchase than you do on a laptop at Best Buy,’ said Angelica Olmsted, an Agent with RE/MAX Professionals Cherry Creek in Denver.”

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  1. ‘We can’t just have unchecked growth or else it’s going to spiral out of control, and we’re gonna have the crash all over again’

    Already happened Bryant.

    ‘Because the market is so competitive, you have less time to make a decision on a homebuying purchase than you do on a laptop at Best Buy’

    I don’t recall ever having to hurry a lap top purchase Angelica.

    1. And I don’t recall reading any recent articles from the local Denver media that mention, even once, the ratio of median household incomes to median shack sales prices.

      Denver is a joke.

      1. I have a recent video saved from there with a UHS saying 27% of contracts fall out. Says it’s buyers remorse. So when do you see the red hotcakes get revised down cuz of buyers bailing?

        Never. These people are dogs.

      2. It doesn’t explicitly say the median income – but this article does say “A mortgage qualification calculator from NerdWallet estimates buyers last month needed to make about $100,000 a year to afford a middle-of-the-road house in Colorado — assuming they came with a 10% downpayment. The affordability equation is worse in metro Denver, where the median-priced crossed $500,000 several months ago and is marching toward $600,000, and in Boulder, which is above $700,000.” https://www.denverpost.com/2021/05/15/colorado-housing-market-real-estate-median-price/

        And another fun article about how “investors” are “aggressively” buying up the few houses available in Denver
        https://www.denverpost.com/2021/05/20/denver-homebuyers-real-estate-investors/

    2. And I don’t recall any MSM article about holding costs.

      It’s going to be really fun to see the surprised looks on loan owners faces when they receive that first property tax and insurance bill for a shack that they overbid on.

      Holding costs are a financial La Brea Tar Pit. Once you step in it, you ain’t getting out.

    3. Funny how the news always talks about the bubble in a future, what-if tense.

      Exactly how far disconnected do they expect to it be from income, for this to be official?

  2. ‘If this were a mainstream media article on Japan or China, the term ‘demographic implosion’ would likely have been used for the San Francisco and San Jose metros, including the Silicon Valley’

    Nobody wants to live there.

    ‘‘We don’t have enough right now. That’s why we’re not going to see a bubble…The bubble means are we at risk of having vacancies. The number one risk to housing values is always vacancies’

    Bay aryan vacancies are about one third Tina. BTW this outfit screamed “no bubble” right up to the foreclosure crater last decade.

    1. ‘According to Zillow, home values in the Phoenix area are up 20%’

      Interesting that zillow loses money on every shack flip, including Phoenix. Lots of money, every quarter.

  4. ‘I think when people decide to buy, they look at the numbers and go through the process of the banking system, so they know that the banks are not going to overextend them’

    Oh no Alma, banks would never do that! Tomorrow I’ll have a weekend topic showing the Canadia guberment and central bank are preparing to break it off in yer a$$, just like the Federal Reserve is gonna do.

    1. Seems like at least some Fed officials are fantasizing about tiptoeing away from hyperstimulus without popping any bubbles.

      Didn’t Alan Greenspan try this around 2006? How did it work out for him?

  5. Starting a new business helping wanna be homeowners write their letters begging owners to sell to them.

  6. ‘We’re providing a service, but our service is to the banks. That’s a misconception a lot of times is buyers think that we’re providing a service for them. But it’s to protect that loan on the bank side,’ said Vayhinger

    Why is this nugget of truth so difficult to understand? I suspect lying realtors distort it much in the same way they distort and misrepresent all relationships within the transaction.

    Regarding the nugget of truth…. everybody needs to wrap their skulls around it.

  7. “We’re providing a service, but our service is to the banks.”

    😁

    “That’s a misconception a lot of times is buyers think that we’re providing a service for them.”

    “Misconception”. Bahahahahahaha … how about a blatant lie told to the vast multitudes of totally dumbed-down ignorant pukes.

    “But it’s to protect that loan on the bank side,’ said Vayhinger, who said appraisal gaps are a sign of a strong market.”

    Damn right. God’s Plan.

  8. Globalist imports aren’t making much of an effort to assimilate. How’s that multiculturalism working out for ya, NYC?

    Pro-Palestinian mob throws FIREWORKS at pro-Israel supporters in NYC’s Diamond District injuring woman, 55, and scream ‘f**k Israel’ at Jewish people as cops arrest at least 20 in violent Times Square clashes

    https://www.dailymail.co.uk/news/article-9602881/Explosive-device-thrown-violent-clashes-pro-Israel-pro-Palestine-protesters-NYC.html

  10. Although I don’t personally know anyone who died from COVID-19 I do personally know 5 people who hired a passed around scam lawyer who for a fee, sues insurance companies to get new roofs and remodeled interiors that in no way were part of any storm damage or related problem.

    Storm season on the horizon, insurance market in crisis as homeowners face huge increases

    Susan Salisbury Special to The Palm Beach Post
    May 7, 2021

    Rising insurance rates are caused in large part by unnecessary lawsuits filed against insurance companies by unscrupulous contractors. After a storm, some contractors knock on homeowners’ doors, telling them they might have damage and should file a claim.

    In 2019, the latest year available, Florida homeowners accounted for 76 percent of lawsuits against insurance companies, according to the FOIR. That same year, Floridians accounted for only 8 percent of claims filed.

    https://www.palmbeachpost.com/story/news/local/2021/05/07/insurance-market-crisis-homeowners-face-double-digit-increases/4977002001/

  11. “The study found that nearly two-thirds of millennial homebuyers have expressed some degree of regret.”

    Two thirds.

    “Many cite the competitive market leaving very little time to make a sound judgement on a new home, forcing buyers into quick decisions.”

    These buyers who are “forced” into quick decisions are the dumbest of the dumb and the dumb prices being paid reflect this.

    “‘Because the market is so competitive, you have less time to make a decision on a homebuying purchase than you do on a laptop at Best Buy,’ said Angelica Olmsted, an Agent with RE/MAX Professionals Cherry Creek in Denver.”

    FOMO. Marketing 101 at it’s finest.

      1. Ah, metro districts, Colorado’s version of Mello-Roos. Pay twice the property tax.

        It sure seems that all new Colorado construction is in metro districts.

  12. I just heard Elaine Chao talking about some of the difficulties her family faced after they immigrated to the United States when she was eight years old.

    She said food was even difficult because Asians didn’t eat huge chunks of meat stuffed between two pieces of bread which made me think…

    Why not?

    I like mine with lettuce and tomato
    Heinz 57 and french fried potatoes
    Big kosher pickle and a cold draft beer
    Well good God almighty which way do I steer
    For my…

    1. Now double it and add a mega sized bag of Cheetos and a 2 liter bottle of diet Coke. Then you’re talking.

      1. This dude is a RINO cuck who is selling the US down the river. He should be facing the firing squad.

    1. Related anecdotal: I was one of less than 5% of customers without a mask at King Soopers (Kroger) yesterday.

      These people are slaves.

      1. These people are slaves.

        They think they’re selfless heroes saving lives by wearing masks and you’re a selfish Trump-voting MFer.

      2. ** “Related anecdotal: I was one of less than 5% of customers without a mask at King Soopers (Kroger) yesterday.”

        same experience/same ratio at Home Depot yesterday.
        noticed a few grouchy seniors & karens ready to let loose behind their masks but absolutely did not GAF.

          2. A sizeable segment of these people won’t eat genetically modified food but don’t mind becoming genetically modified.

          3. A sizeable segment of these people won’t eat genetically modified food but don’t mind becoming genetically modified.

            I keep scratching my head over that one.

          6. But hey, there’s one good thing: talk of a digital vaccine passport has really subsided. Now it’s a considered a big deal just to ask to see the paper card.

          1. See Dick’s car
            See the Biden/Harris bumper sticker on Dick’s car
            See Dick driving in his car alone while wearing a mask
            Don’t be a Dick

  14. Some Friday morning humor …

    First the set up: “They bought a new build that won’t be ready until September.”

    Then the punch line: “‘We’re happy that it’s finally over for us,’ Alissa Fox said.”

    “Finally over for us” … bahahahahahahahaha. It ain`t finally over, you stupid puke, it’s just beginning. Just beginning for you and just beginning for me. 😁

    “‘You’re like, ‘Oh! Somebody wants our money! Please take it from us.’”

    Yep.

    1. Chinese drywall. Check
      Lumber Liq flooring with offgassing. Check

      Enjoy your s,hitbox with cancer addons

    2. Let’s take a close look at this …

      “‘You’re like, ‘Oh! Somebody wants our money! Please take it from us.’”

      This is what her rational side is telling her. But she isn’t acting on what her rational side is telling her, she is acting on pure emotion.

      FOMO. She has been seized by the gotta-have emotion of FOMO and is at this point ready to sign any dotted line placed before her.

      A bankers dream.

      1. bankers dream = banker’s dream.

        The rational buyer would take a quick look around and realize the he/she is surrounded by emotionally crazed buyers and would immediately leave the scene, and this is what they do, they leave the scene.

        Rational buyers leaving the scene means the scene becomes populated by irrational emotion-driven buyers, and these are the stupid pukes who engage in bidding wars and it is the stupidest of these stupid pukes who submits the highest bid and thus lands the house and resets the values of the comps thus creating equity wealth for the neighbors.

        Oh, and also creating some juicy fees for the lender.

        😁

        1. ** “The rational buyer would take a quick look around and realize the he/she is surrounded by emotionally crazed buyers and would immediately leave the scene”

          good summary but not used very often in the modern land of emotionville.
          back in the days of 2005 as the house price runup gathered steam, I had the radical & (gasp) novel idea of just purchasing a vacant lot, park a doublewide, and get to building a good quality AFFORDABLE dwelling.

          people reacted in confusion. horror. bewilderment.

          you would’ve thought I proposed a settlement on Omicron Ceti III or something equally as preposterous!

  15. “We are seeing some early signs that the market has reached its maximum temperature,” said Redfin Chief Economist Daryl Fairweather. “Mortgage purchase applications and pending sales have decreased, which may be a sign that some buyers would rather spend their money on restaurants, vacations, and other things they have held back on for the past year, instead of on housing now that the threat of the pandemic is dissipating in America. But make no mistake, the housing market is still very hot and will remain hot for the rest of the year.”

  16. Vaxxed and waxed. Ready for action in clown world

    The White House teaming up with the largest dating websites aims to get more people vaccinated. President Biden desperately wants to reach his target of 70% of American adults vaccinated by July 4.

    Specific perks will vary by dating app. Axios provides a list of various types of premium content for vaccinated people mingling on dating apps:

    Tinder: Members will be able to add stickers to their profile including “Getting Vaxed” or “Vaccines Save Lives.” Those who get vaccinated will get a “Super Like” to raise their chance of being seen by a desired match.
    OkCupid: Daters will be able to add an “I’m Vaccinated” profile badge and those who are vaccinated will get a free “boost” and can choose to be paired with others who are also vaccinated.
    Bumble and Badoo will enable US customers to add a “vaccinated” badge to their profiles. Both apps will give credit toward premium features such as Spotlights and “Superswipes.”
    BLK, a site for Black singles, will add a new “Vaxified” profile badge and give a free “boost” to those who get vaccinated and display the badge.
    Chispa, the largest dating app for Latino singles, will add a new “Vacunado” profile badge option and also give a free “boost” to those who are vaccinated.
    Hinge: will encourage users to share their vaccination status on their profiles and give vaccinated users a free “Rose” — Hinge’s way to show extra interest.
    Match: Members will have the option to add a new “Vaccinated” badge and give those who are vaccinated a free “Boost” to help them stand out on the app.
    Plenty of Fish: Members will be able to add an “I Got My Shot” badge to their profiles in early June. Those who do so can receive 20 Live! credits to use on the Plenty of Fish Live! streaming feature.

    2. Dating apps, $1 million lotteries, pizza … I guess these politicians know how to incentivize certain segments of the population. I wonder what would happen if they incentivized with an extra buck tag and a box of 556.

      1. You hit on the pertinent point. Why all this fuss? Why the pressure campaign? Its bizarre and it turns people off

        1. hmmm maybe they made tens of millions of doses to many and dont want the public to know they were going to be dumped in a mass grave.

  17. “‘People in Vancouver absolutely believe the market will continue to increase here, although not always at the levels we’ve seen recently,’ says Alma Pasic, a mortgage broker with Paragon Mortgage in Burnaby, B.C., a Vancouver suburb. ‘This city favours real estate more than any other investment.’ Buying at 20 per cent over list is common, but she says concerns about people overextending themselves are balanced by the protection mechanisms built in by banks and the government.”

    “Ms. Pasic believes the banks aren’t about to bankrupt the citizens of Canada by raising rates quickly. ‘I think when people decide to buy, they look at the numbers and go through the process of the banking system, so they know that the banks are not going to overextend them,’ says Ms. Pasic.”

    “Federal Reserve Bank of Dallas President Robert Kaplan repeated his call for policymakers to begin a discussion of slowing their asset purchases, a day after minutes of the Fed’s April meeting showed an increased interest in talking about tapering.”

    “‘Maybe taking the foot gently off the accelerator would be a wise thing to do here so that we can manage this transition more effectively,’ Kaplan said. ‘That’s why I have encouraged sooner rather than later we begin a discussion of these purchases.’ The Dallas Fed chief said the bond buying can contribute to ‘imbalances’ and ‘excessive risk taking,’ noting that the U.S. housing market prices are at ‘historically elevated levels.’ He added, ‘private investors are now competing with families’ to buy homes.”

    https://twitter.com/RampCapitalLLC/status/1394815508608954370
    Ramp Capital
    @RampCapitalLLC
    Totally normal housing market
    https://twitter.com/RampCapitalLLC/status/1394815508608954370/photo/1
    6:41 PM · May 18, 2021·Twitter for iPhone

    https://twitter.com/windgineering/status/1394825095252750340
    Joshua Fausset
    @windgineering
    Replying to @GregDaco @paranoidbull and 2 others
    All of this is the handy work of the @federalreserve
    @NewYorkFed
    and the abdication of responsibility by the @congressdotgov @HUDgov and @USTreasury
    https://twitter.com/windgineering/status/1394825095252750340/photo/1
    7:19 PM · May 18, 2021·Twitter for iPhone

    https://twitter.com/GregDaco/status/1394805450777010183
    Gregory Daco
    @GregDaco
    🇺🇸Real home prices near an all time high
    Via ⁦@DeutscheBank
    ⁩ ⁦@SoberLook
    ⁩https://twitter.com/GregDaco/status/1394805450777010183/photo/1
    6:01 PM · May 18, 2021·Twitter for iPhone

    – This is fine.
    – The Fed’s $350B reverse repo yesterday a.m. says that there’s a problem with too much liquidity and that the banks (Fed’s masters) are worried. Gee, ya think?

    “A billion [trillion] here, a billion [trillion] there, and pretty soon you’re talking about real money.” – Everett Dirksen

    – I’m sure “it’s different this time,” and the Fed will engineer a soft landing instead of a crash.
    – Keep in mind that this is intentional. They own this. The Fed and other Central Banks started out with “the wealth effect,” targeting stonks and housing markets. But now they’ve created a massive “everything” bubble over the past 12+ years and can’t stop inflating it, since they know it will crash when they do. So the options are: Door #1: Continue inflating the everything bubble and kicking the can of the inevitable crash down the road a little further, or Door #2: Start tapering and end QE, which will crash these markets now. The Fed is trapped. They aren’t going with door #2, but that just guarantees a bigger crash when door #1 runs out of runway, which it always does, since “trees don’t grow to the sky.” Think heroin addict requiring ever increasing doses to maintain the same high. However, the risk of OD goes up as well, and the outcomes are never good. The global economy now addicted to cheap credit and liquidity.

    1. “Think heroin addict requiring ever increasing doses to maintain the same high.”

      The hair-of-the-dog hangover cure works well to treat alcoholism up until the onset of cirrhosis of the liver.

  18. Ms. Pasic believes the banks aren’t about to bankrupt the citizens of Canada by raising rates…

    Sorry Alma, the Canucks were bankrupted the moment they took out gigantic loans at temporary teaser rates.

  19. Have you considered investing in restarting an abandoned coal-fired power plant in order to feed the mass delusion that is Bitcoin mining?

    Better hurry! They ain’t making any more unmined pretend money.

    1. Markets
      Bitcoin Miners Are Giving New Life to Old Fossil-Fuel Power Plants
      The lofty prices of cryptocurrencies have investors sinking money into electricity generation, risking a backlash
      You may also like
      U.S. vs China: The Battle for Bitcoin Mining Supremacy
      Chinese bitcoin miners have long dominated the global processing power that runs the bitcoin network with sophisticated equipment and access to cheap electricity. But now, a group of U.S. miners with deep pockets wants to conquer a greater share of the industry. Photo: Adam Chapman for The Wall Street Journal
      By Brian Spegele and Caitlin Ostroff
      May 21, 2021 7:00 am ET

      Across America, older fossil-fuel power plants are shutting down in favor of renewable energy. But some are getting a new lease on life—to mine bitcoin. In upstate New York, an idled coal plant has been restarted, fueled by natural gas, to mine cryptocurrency. A once-struggling Montana coal plant is now scaling up to do the same.

      The lofty price of bitcoin and other cryptocurrencies has investors pouring money into power generation—and risking a backlash. Elon Musk tweeted last week that Tesla Inc. would no longer accept bitcoin as payment for vehicles over concerns about fossil-fuel use in bitcoin mining. That rocked the market; bitcoin prices are now down around 25% since last week.

      The drive for power has its roots in bitcoin’s intractable mathematics: To operate securely, the cryptocurrency’s network relies on computers solving puzzles; in return the solvers get fresh bitcoin. The higher the bitcoin price, the more of these miners compete to solve the puzzles—a process that chews up electricity. The more competition, the harder the puzzles get and the more electricity is used.
      …

      1. In upstate New York, an idled coal plant

        That one’s in my backyard on Seneca Lake. The stacks serve as a reminder to avoid the moored Navy Barge.

    2. The allure of bitcoin is that there are a limited number of these things possible under the current rules.

      However, anyone* can make bitcoin-2, bitcoin-3, bitcoin-N, with their unique group of coins.

      The creator of dogecoin said he made it in 2 hours. And there are no limits to the number of coins that can be created (it’s 21 million for bitcoin).

      https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/

      https://www.google.com/search?q=how+many+cryptocurrencies+exist

      I could be missing something but it seems like anyone can make a cryptocurrency and there are lots of them out there.

      What’s interesting though is that only some cryptos have “whales” – huge buyers that will step in to stabilize the price. I think probably only bitcoin has that. I heard a report that said 2 percent of wallets contain 95 percent of bitcoin. Doge has/had Musk, Bitcoin has a few high profile major holders. The whales guarantee the value and liquidity, so those speculating in them have more confidence. Sounds kind of familiar.

      One wonders how the whale concept would affect other markets, like stocks and real estate, down to smaller cryptocurrencies.

      ——
      * Suitably talented

      1. I could be missing something but it seems like anyone can make a cryptocurrency and there are lots of them out there.

        I’m surprised that Corporate America hasn’t started making their own: WalMart Coin, Apple Coin, Big Pharma Coin, etc. That said, I do recall a prediction from many years ago that large corporations would someday create their one (non crypto) currency.

        1. Companies and even towns have been making their own currency forever. It never takes too long for the government to shut them down.

        2. Article 1, Section 8: “The Congress shall have the Power To… coin Money, regulate the Value thereof, and of foreign coin, and fix the Standards of Weights and Measures.”

          In other words, Congress could regulate the value of Foreign Coin — which I guess includes Bitcoin — to $0.00, as of tomorrow. None of the crypto bugs have given me a good counter for this.

  20. “…we’re gonna have the crash all over again.’”

    Seems to happen every time, even when everyone knows it’s gonna happen.

    1. Pretty interesting discussion they have going on over at the Fed, especially the concern about private investors competing with families to buy homes.

      It almost seems like everyone expects to get rich by buying houses at a time of shrinking inventories and historically overvalued prices. This situation is what some of us call the parabolic price blowout phase of a housing bubble.

      “‘Maybe taking the foot gently off the accelerator would be a wise thing to do here so that we can manage this transition more effectively,’ Kaplan said. ‘That’s why I have encouraged sooner rather than later we begin a discussion of these purchases.’ The Dallas Fed chief said the bond buying can contribute to ‘imbalances’ and ‘excessive risk taking,’ noting that the U.S. housing market prices are at ‘historically elevated levels.’ He added, ‘private investors are now competing with families’ to buy homes.”

      1. …so that we can manage this transition more effectively…”

        Can anyone who thinks they understand what ‘transition’ he’s referencing please explain?

        1. Here’s an article with more context. It appears Kaplan wants to start to taper their bond purchases, given the uptick in the economy. Powell disagrees, saying it’s too soon to scale back emergency pandemic support.

          My guess is they want to manage the “transition” to pre-pandemic levels of money printing.

          https://www.dallasnews.com/business/economy/2021/05/20/dallas-fed-chief-robert-kaplan-maybe-taking-the-foot-gently-off-the-accelerator-would-be-a-wise-thing/

          1. Kind of like the long-discussed transition away from post-2008 extraordinary intervention measures? Still waiting for that to happen, aren’t we?

          2. Does that cause Real estate and Equities to “Transition” back to pre-covid levels as well?

    2. Inflation leads to deflation best case, worse case ruin. Which is it going to be ? Japan or Venezuela ?

  21. “Most likely, with the Bay Area’s high cost of living and severely unaffordable housing, the implosion might well continue in the next decade as well.”

    Sounds like a great development to help keep a lid on BayAryan rents for the next decade. Affordable rentals for everyone!

  22. Prospective homeowners shocked by $99,000 ‘surcharge’ added to homebuilding contract

    “In December, they agreed on a price of $369,990. By April 30, they had agreed to additional upgrades that brought the price to $390,706. Then, on May 17, they received an email letter from Lillian that due to “unprecedented market conditions” in the construction industry, and a “375% increase” in lumber prices in one year, that they had “no choice but to implement a surcharge that represents the increased materials cost.”

    https://www.wfaa.com/article/news/local/prospective-homeowners-surcharge-homebuilding-contract/287-2d91823e-9552-4f5f-8b37-22087edbe653

    1. a “375% increase” in lumber prices in one year

      Contract in December? Lumber futures only up 100% since then. Just the “futures”. Bunch of liars.

    3. WFAA wanted to ask Lillian Custom Homes about this and offered the chance at an interview. They offered a written statement, instead, that said, in part, that:

      “Certain factors, including but not limited, to COVID-19 pandemic and the Artic freeze has caused unprecedented changes in the construction industry. Demand for construction materials has increased even as shutdowns and supply chain issues have resulted in severe shortages.

      “…Unprecedented changes in the construction industry” and the cost of materials “have made the construction of new homes under…existing contracts with its customers economically unfeasible.

      “To achieve the best result for its customers and continue to build exceptional homes utilizing high-quality materials and experienced, professional craftsmen, Lillian has been left with no choice but to implement some new procedures with regard to its existing new home construction contracts.”

  24. From the front page of today’s deceased tree edition:

    House hunters waiting their turn at an open house this month in Northampton, Pa., north of Allentown.

    U.S. Real-Estate Frenzy Overwhelms Small-Town America: ‘I Came Home Crying’
    Buyers far from big cities lose out to investors and deep-pocket rivals in places where properties until a year ago offered affordable entry to the middle class
    By Candace Taylor | Photographs by Michelle Gustafson for The Wall Street Journal
    May 20, 2021 7:59 am ET

    Dominic Pollock, still in his work boots, stood on the lawn of a 1960s-era three-bedroom house for sale in the former steel town of Bethlehem, Pa., 60 miles north of Philadelphia. It was listed at $250,000.

    “I really, really like it,” Mr. Pollock told his real-estate agent Danny Hazim, a buddy from high school in neighboring Allentown, Pa. Groups of other interested buyers huddled nearby and whispered to their agents in urgent tones, casting sly glances at rivals.

    Mr. Pollock, 25 years old, was willing to go above the asking price. He and his fiancée, Brooke Terplan, 26, had made more than 20 offers on houses over nine months. Each time, they were outbid.
    …

      1. Most like those driving these bid wars are either households hoping to cash in on the hopes of continuing with remote teleworking after the pandemic ends, or investors hoping to buy and flip before the next crash.

        1. In other words, local median incomes are not a constraint on bid levels in the price wars.

  26. “The Foxes tapped into a 401K, got money from family, sold a house in Texas they had planned to keep, and it still wasn’t enough to win a house. Instead of surrendering, though, they changed course, looking further outside of the Denver metro in Johnstown. They bought a new build that won’t be ready until September. ‘We’re happy that it’s finally over for us,’ Alissa Fox said. ‘You’re like, ‘Oh! Somebody wants our money! Please take it from us.’”

    Johnston is a Dumver exurb, It’s 50 miles from downtown Dumver. I hope they enjoy the commute.

    1. “enjoy the commute”

      Buying gasoline and sitting in traffic is for the “little people.”

      1. Autonomous vehicles will make it better. Netflix and chill instead. Financial media was saying this seriously a little over a year ago.

  27. Odd…I don’t recall seeing anything remotely close to this level of media concern when the globalists’ BLM-Antifa darlings were rat-packing Trump supporters or when vibrants attack “random” victims. All animals are equal, but some animals are more equal than others.

    Anti-Semitic attacks surge by almost 40% in a WEEK across the US: Orthodox Jew is chased down by Palestinian protesters in LA, garbage is thrown at Jewish family on Miami street and Israel supporters are pelted with fireworks in New York

    https://www.dailymail.co.uk/news/article-9604689/Anti-Semitic-attacks-surge-40-PERCENT-Middle-East-conflict-continues.html

    Anti-Semitic attacks are surging across the United States following an outbreak of violence between Israel and Palestine in the Middle East.

    The Anti-Defamation League reported almost 200 attacks on American Jews in the seven days from May 10 – the date that Hamas first fired rockets at Israel.

    1. Globalists let their woke pets off the leash and now they run wild and start biting people.

      It’s called “losing control of #TheNarrative.”

      Globalists gonna globe.

      1. Mob attacks on whites: acceptable

        Mob attacks on Trump supporters: acceptable and encouraged

        Mob attacks on Chosenites: MSM loses it’s sh*t

  28. For your daily dose of Friday stupid…I can’t wait for these people to get punch in the face when the marketing blows up to the downside…

    “Buyers get the home but offer $300,000 over asking price to do it in red-hot Texas real estate market

    DALLAS — These are hard times to be a homebuyer in North Texas, even for those putting in competitive bids.

    Real estate broker Joe Atkins of Joe Atkins Realty said he has seen plenty of cases where it is extraordinarily hard to be selected as the winning bid.

    “You’ve probably got a 10% chance. I have made plenty of offers for clients this year and gone $50,000 or $100,000 over list…and lost,” he said.

    Those $50,000 or $100,000 bids over what the seller is asking aren’t on million-dollar homes.

    Atkins said that’s what is happening with $500,000, $600,000, $700,000 properties.

    As for million dollar homes, Atkins shared the story of one of his agents who recently had a buyer in that price range in Southlake.

    “He did not recommend this…they told my agent that they wanted to go $300,000 over (asking price) to try to secure the property. According to him, they got it but it was still tight,” said Atkins.”

    1. Same people that drop 10K on a fake electronic coin with an infinite supply.

      Dont tell me there isnt something in the water, wide spread ergotism or similar.

  29. More wokeness…

    Diversity is core to Haagen-Dazs’ rebrandin

    Elizabell Marquez, chief marketing officer of Haagen-Dazs’ parent company Dreyer’s Grand Ice Cream, shares how diversity is guiding the company’s rebranding goals, with plans that include the #ThatsDazs campaign with a $1.5 million commitment to supporting diverse creators and the new creative partnership with actor-producer Lena Waithe. “What’s exciting about the transformation that we’re making as a brand is [how we’re] really reflecting a broad consumer base, whether they’re new to our brand or have been with us forever,” said Marquez.

    1. The Safeway premium store brand ice cream is pretty good, and almost always far cheaper than the name brands.

    3. I already quit Ben and Jerry’s. Looks like Haagen Dazs just joined the banned list. I don’t need ice cream, so I could ban all brands. I like this game of chicken. You need my money. I don’t need your product.

  31. The globalists’ BLM-Antifa Red Guards, emboldened by their top cover from Soros-installed Democrat-Bolshevik DAs and municipal administrations, are stepping up their campaign of harassment and intimidation against anyone who won’t go along with their Communist insurrectionist agenda.

    EXCLUSIVE – ‘I feel like I can’t say anything’: California councilwoman is branded racist after revealing a text BLM activist sent HER warning ‘your name will be all over the papers’ when she didn’t vote his way on police reform

    https://www.dailymail.co.uk/news/article-9601501/Silicon-Valley-councilwoman-branded-racist-saying-felt-threatened-BLM-activist.html

    An Asian American California councilwoman who was branded racist because she revealed a text sent to her by a BLM activist that warned ‘your name will be in the papers’ for not voting his way has told DailyMail.com how she feels she’s now gagged by cancel culture.

    Lynette Lee Eng is a city councilwoman in Los Altos, next to Palo Alto, a rich and Democratic area of northern California. She was elected in 2016.

    1. a rich and Democratic area

      Now that Asians are being shown the door by their new masters, will they continue to pull the D lever, or will the finally understand that they persona non grata in the perty?

      1. “For a run down duplex.”

        Agreed. At least Laguna Niguel gets that rolling coastal fog when the Summer turns scorching hot further inland, but most of the housing is high density around there.

  35. Read everyday, rarely post. Please share. Also Squatter mcduck : i think you’re somewhat new here?, wanted to give you a shout out at making me laugh daily. We seem to share the same sense of humor.

    https://www.americasfrontlinedoctors.org/files/tro-motion-for-temporary-restraining-order-against-use-of-covid-vaccine-in-children

    https://childrenshealthdefense.org/defender/resources-federal-law-prohibits-mandates-emergency-use-covid-vaccines-tests-masks/

  36. Would you agree that governmental authorities are making a concerted effort to crush cryptocurrency sentiment?

    And doing a pretty good job so far?

    2. I quite honestly didn’t think that central bankers would take away the punchbowl until after the current plethora of asset price bubbles collapsed on themselves, but now I am seeing signs of a preemptive strike.

      It’s quite impressive!

      1. The Financial Times
        Markets Briefing Cryptocurrencies
        Cryptocurrencies take new dive to end turbulent week
        Renewed threat of Chinese clampdown knocks bitcoin price and bleeds into US equity markets
        Montage of bitcoin and chart
        Bitcoin fell 12% on Friday, its second big swoon in three days
        Francesca Friday in New York and Naomi Rovnick in London
        8 hours ago

        Cryptocurrency prices took a renewed dive on Friday after China launched its second broadside against bitcoin in three days.

        The new swoon wiped 12 per cent off the value of bitcoin, 20 per cent from ethereum and 18 per cent from dogecoin and also appeared to bleed over into the US stock market, where the tech-heavy Nasdaq dipped in the last hour of trading to close near its low for the day.

        A Friday statement from China’s vice-premier Liu He that restated Beijing’s determination to curb cryptocurrency mining and trading triggered the latest decline.

        The crypto exchange Coinbase was showing a bitcoin price just above $34,000 late in the US afternoon on Friday, still above the low of about $30,000 set on Wednesday after the People’s Bank of China warned financial institutions off accepting cryptocurrencies as payment or offering related services and products.

        The technology-focused Nasdaq Composite index ended 0.5 per cent lower on the day although the index remained 0.3 per cent higher for the week.

        The S&P 500 index closed 0.1 per cent lower, also near its low for the day and 0.4 per cent down on the week. The result meant the index’s first back-to-back weekly losses since February.

        On Wednesday the Federal Reserve published minutes of its latest policy meeting that showed some of its rate-setters thought the US central bank should “at some point” start to discuss “a plan for adjusting the pace of asset purchases”.
        …

        1. This thing is still grotesquely overpriced at almost $40k. Even $5k is delusional. $5 seems a stretch.

      2. Do you find it reassuring to know that a record number of people are borrowing money to buy stocks?

        I wonder how they will come up with the cash to repay the loans if stonks tank?

        2. You can borrow USD against your crypto currencies and use that to buy stocks. It’s a brave new world of unlimited profits.

      1. “The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.”

        Sounds like a safe, sustainable place to HODL your wealth.

        Come on in, the water is fine!

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