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It’s Possible The Market Overshot And Is Now Settling At A New, Higher Plateau

A report from the Real Deal on Florida. “Ken Griffin has left Faena House. The CEO of Chicago-based Citadel sold his remaining penthouse at the ultra-luxury Miami Beach condo building, a three-bedroom, 4,243-square-foot unit, for $11.2 million. Griffin paid $60 million for two penthouses in the building in 2015. The purchase was considered a record for residential real estate in South Florida at the time. He sold the larger unit, a four-bedroom, 7,433-square-foot condo, in December for $35 million. That means he sold the two for about 23 percent less than their combined purchase price, incurring a loss of about $13.8 million on the properties.”

From New Jersey 101.5. “With real estate being snapped up the way it is here in New Jersey and buyers bidding for homes in a frenzy, it is rare to see a home that sits on the market not selling and then have to reduce its price. But that’s the case with New Jersey’s most expensive mansion, listed in 2020 for 39 million. It can now be bought for a cool 33 mill. You don’t see many $6 million price reductions in this real estate market! For $33 million, you could get this ornate, opulent mansion in Mahwah, NJ.”

From Mansion Global. “Townhouses have long served as status symbols in New York City’s luxury market, but in recent years, facing stiff competition from amenity-packed condo developments, sales have slumped and prices have softened. ‘These properties have been depressed for a long time and there’s a lot of value in them,’ said Kobi Lahav, senior managing director of Living New York. ‘Upper East Side townhouses that five years ago were going for $8 million or $9 million are now going for $5 million or $6 million, and there’s no way that won’t go back up, so there’s value there.'”

“Townhouse prices most recently peaked in 2017, and ‘today we’re at about 20% below those peak prices,’ said George Vanderploeg, a broker with Douglas Elliman in Manhattan, adding that such homes have lost about 10% just since the onset of the pandemic. ‘But sales are strong, so at some point, prices will begin to firm, and that may even be happening now.'”

The Star Tribune in Minnesota. “By virtually every measure May was a record-setting month for Twin Cities home sales, but there’s at least one indication that an ever-so-slight seasonal slowdown might be in the offing: an uptick in price cuts. ‘It’s a terrible time to buy, but we weren’t going to wait and ‘time the market,’ said Alex Bauman of Minneapolis. ‘We needed a place to live now, not whenever the market cools off.'”

“Bauman said that while they love the house and feel fortunate to be finished with the house hunt, he isn’t without concern that at some point demand could slow and prices could ease or even tumble. ‘Every time I look at the numbers I worry about the huge investment we’ve made and whether or not we’ll get a return on that investment,’ he said.”

“Across the country, signs are emerging that point to a possible slowdown in the market. A Zillow market repor shows that the share of listings with a price cut in the Twin Cities metro area grew from 6.2% in April to 7.1% in May. That’s the first time that stat has grown since November. Still, it’s considerably lower than it was last May, when 12.9% of listings had cut their price.”

The Los Angeles Times in California. “When Arthur and Rini Kraus bought their condo 19 years ago in Venice, every day was a postcard from paradise. A little over a decade ago, things began to change. The neighborhood took on some harder edges, more people began camping along the boardwalk, and the Krauses no longer felt as safe as they once had. ‘I see people wake up, lower their pants and go to the bathroom,’ Rini said. ‘I can’t even have my grandchildren here now,’ said Arthur.”

“Twice, the Krauses have listed their condo for sale but didn’t get any offers to their liking. Prices are depressed because of what’s happened to the neighborhood, Arthur said, and they’re not yet fully committed to leaving a place they fell in love with almost 20 years ago.”

The Epoch Times. “Some California landlords are pleading with state and local governments to end the eviction moratorium on rental properties as planned June 30, rather than extending it. Dan Faller, founder and chairman of the Apartment Owners Association of California, said some residents have been taking advantage of the moratorium. ‘They’re stealing from apartment owners, and it’s legal,’ Faller told The Epoch Times.”

“He gave an example of a young man who told his landlord he was saving money for a house and wouldn’t be paying rent. Even with knowledge of tenants taking advantage of the moratorium, landlords are unable to evict them, Faller said. ‘They can’t do anything about it,’ he said. ‘The big owners have the big buildings; they have enough units that spread it out, and they can stay in business. But it’s the older couple who owns a duplex or a triplex. … They save their money to buy it, and they were counting on it being their retirement, and now the tenants don’t pay.'”

The Financial Post in Canada. “There was evidence last week that Canada’s latest bout of housing mania might have peaked, as the current price of a backyard and/or a home office clashes with the reality of what people are willing and/or able to pay. It’s possible the market overshot this spring and is now settling at a new, albeit higher, plateau.”

“Builders such as RioCan aren’t betting on an exodus to the suburbs. The calculation could be that while the pandemic will be life-altering, it might not be life-changing. For Canadians, who seem bent on owning real-estate no matter what, the calculation could be as simple as this: if they are going to be house poor no matter where they go, they might as well settle in a big city, where they will at least be able to find something to do.”

“The Canadian Real Estate Association reported on June 15 that monthly sales of existing homes dropped 7.4 per cent in May, following an 11-per-cent decline in April. ‘More and more, there is anecdotal evidence of offer fatigue and frustration among buyers, and the urgency to lock down a place to ride out COVID would also be expected to fade at this point given where we are with the pandemic,’ said Cliff Stevenson, the association’s chair.”

From Mortgage Broker News in Canada. “After the frenetic pace of homebuying in Canada barely gave mortgage professionals the chance to catch their breath during the opening half of the year, the market appears to have cooled somewhat in recent weeks. That development was hardly unexpected: even before the Office of the Superintendent of Financial Institutions’ (OSFI) decision to hike the stress test for uninsured mortgages came into effect (with the federal government following suit for insured products), a slowdown had been in the cards.”

“In fact, an expected market surge as homebuyers rushed to complete deals before those changes took place appears to have failed to materialize. ‘Most people in the industry expected to see a very frenzied couple of months before June 01, but we haven’t seen that,’ John Pasalis of Realosophy Realty told BNN Bloomberg just before the qualifying rate hike.”

“Shawn Stillman, principal broker at Mortgage Outlet, said that an eventual cooling off in the market was inevitable, with prospective homebuyers repeatedly frozen out in the hyperactive bidding process. ‘In the past where there were 20 people bidding for a home, there are now four people bidding. There are still transactions going on, but you don’t have all these people chasing after something that was really unattainable,’ he said.”

“That change of pace has proven welcome for both homebuyers and mortgage professionals, with Stillman describing market activity in the first half of the year that simply couldn’t last. ‘It was just not sustainable,’ he said. ‘The last three months have been our best months ever as a brokerage, and June will beat it. But July is definitely calming down to more manageable levels. I don’t think anybody ever thought that this could continue at its pace.'”

“‘People are going to wait and see what happens with their jobs,’ Stillman said. ‘Some people are going to work remotely, but others are going to go back to the office. In that case, are you going to want to commute downtown if you’ve bought a house out in the middle of Barrie? Probably not.'”

From Domain News in Australia. “When Zoe Foster visited her doctor for a routine COVID-19 test, the doctor regarded her swab with horror. ‘Your nose is black inside!’ she exclaimed. ‘It looks like … mould spores.’ Ms Foster, 37, was, in turn, aghast. ‘I couldn’t believe it,’ she said. ‘But I knew exactly what it must be. I’d had so many problems in my new apartment, including leaking balcony doors and water running down the balcony walls from upstairs. There was mould on the walls and, when I’d torn up the carpet, the underlay was covered in black mould. And now I realised it must also be affecting my health, especially with the lockdowns in Melbourne when I’d been confined to the apartment.'”

“Ms Foster purchased her two-bedroom unit in the 253-unit Atria Apartments in Hawthorn in April last year for $672,000.”

“‘This was my first home but it’s become a nightmare,’ said Ms Foster, who works as an executive assistant in commercial property firm Cushman & Wakefield, and whose father is a builder and mother worked in real estate. ‘I’m well-informed about real estate and I did everything I could to make sure there were no problems, but the system let me down. I should be in love with my home but at times I’ve absolutely hated it, and everything it’s put me through.'”

“‘What I’m hearing more and more is that agents and buildings are keen to hide any possible defects in their buildings because they want to keep problems out of the public eye,’ said Australian Apartment Advocacy CEO Sam Reece. ‘We did a national survey of 3,600 apartment owners, which found that 60 per cent of Victorian apartment owners experienced defects of some sort. Only 25 per cent of those said their defects has been fixed, but 55 per cent said they’d only had part of the defects fixed and there were outstanding issues still to be resolved.'”

This Post Has 114 Comments
  1. Griffin paid $60 million for two penthouses in the building in 2015. The purchase was considered a record for residential real estate in South Florida at the time’

    The winnah!

    ‘he sold the two for about 23 percent less than their combined purchase price, incurring a loss of about $13.8 million on the properties’

    2015 was the peak in Miami Beach Ken, you got schlonged.

    Wa happened to my plateau?

  2. ‘a young man who told his landlord he was saving money for a house and wouldn’t be paying rent’

    That’s the spirit!

    ‘it’s the older couple who owns a duplex or a triplex. … They save their money to buy it, and they were counting on it being their retirement, and now the tenants don’t pay’

    Yip yip yip yip yip yip yip yip
    Sha na na na, sha na na na na
    Sha na na na, sha na na na na
    Sha na na na, sha na na na na
    Sha na na na, sha na na na na
    Yip yip yip yip yip yip yip yip
    Mum mum mum mum mum mum
    Get a job, sha na na na, sha na na na na

    1. Enabling parasitism and dependency is the supreme duty of every Democrat apparatchik and D voter. Forward, Soviet!

    2. a young man who told his landlord he was saving money for a house and wouldn’t be paying rent
      I’m no fan of landlords but he casual criminality of people these days slays me.

  3. ‘Every time I look at the numbers I worry about the huge investment we’ve made and whether or not we’ll get a return on that investment’

    Yer fooked Alex.

    ‘the share of listings with a price cut in the Twin Cities metro area grew from 6.2% in April to 7.1% in May. That’s the first time that stat has grown since November. Still, it’s considerably lower than it was last May, when 12.9% of listings had cut their price’

    So we’ve had price cuts all along? Wa happened to my red hotcakes?

    Somebody has been a lion.

  4. ‘Upper East Side townhouses that five years ago were going for $8 million or $9 million are now going for $5 million or $6 million, and there’s no way that won’t go back up, so there’s value there’

    ‘Townhouse prices most recently peaked in 2017, and ‘today we’re at about 20% below those peak prices,’ said George Vanderploeg, a broker with Douglas Elliman in Manhattan, adding that such homes have lost about 10% just since the onset of the pandemic. ‘But sales are strong, so at some point, prices will begin to firm, and that may even be happening now’

    Translation = those Mini Cooper payments aren’t going to make themselves.

    1. ‘But sales are strong, so at some point, prices will begin to firm, and that may even be happening now’

      Um, yeah…vibrant cultural enrichment might be putting a damper on those “resurgent price” REIC wishful thinking.

      Illegal party continues in crime-plagued Washington Square Park as NYPD cops fail to impose midnight closing time a night after bloody stampede

      https://www.dailymail.co.uk/news/article-9707983/Illegal-party-continues-crime-plagued-Washington-Square-Park-NYPD-cops-fail-impose-curfew.html

      Illegal raves continued in crime-plagued Washington Square Park last night as New York City cops failed to impose a midnight closing time after a bloody stampede last week.

      Revellers gathered around thundering sound systems for another night of drinking and smoking marijuana despite a police order to close the park after people ran away from a man who was brandishing a knife and a taser on Friday night.

  5. ‘I don’t think anybody ever thought that this could continue at its pace’

    That’s interesting Shawn with a dubbya, cuz none – not one – of you REIC dogs said that just a few months ago.

    ‘others are going to go back to the office. In that case, are you going to want to commute downtown if you’ve bought a house out in the middle of Barrie? Probably not’

    But they did buy a loan for a shack in Barrie! Maybe they can give it back?

  6. ‘I see people wake up, lower their pants and go to the bathroom’

    The weather Rini, the weather!

    ‘Twice, the Krauses have listed their condo for sale but didn’t get any offers to their liking’

    You stand yer ground, don’t give it away. Also from the article:

    ‘One of the Krauses’ sons, Mitchell, told me he still visits his parents with his son. But they are more likely to stay in the house than they used to be. ‘My parents are very socially liberal,’ he told me. ‘They just want people taken care of, and they want the neighborhood to be nice for everybody’

    It’s a socialist sh$t hole Mitch. So drink yer coffee and enjoy the stank. I wonder if there’s an audio accompaniment when these bums drop their trousers?

    1. ‘I see people wake up, lower their pants and go to the bathroom’

      Funny, where I live I don’t get to see this.

      ‘They just want people taken care of, and they want the neighborhood to be nice for everybody’

      Everyone has to live somewhere. I fully support his tolerance for the outrageous behavior of others and very much hope the population of vagrants that surrounds him greatly expands.

      Better him than me.

      1. The Los Angeles Times in California. “When Arthur and Rini Kraus bought their condo 19 years ago in Venice, every day was a postcard from paradise.

        I had a girlfriend in marina del ray about 8 years ago and you could walk to Venice from there. That’s not that long ago and it was still an ok place to hang out. The rate at which the place has descended into misery and chaos is shocking. But I guess it shouldn’t be. Look at any country taken over by socialists. A land of plenty is turned into abject destitution and hopelessness overnight.

        1. I think the homeless are finally being swept out Venice Beach. The sheriff’s deputies are there, huge clean-up crew, 30-yd trash bins, etc., as a crazy woman with a fixed blade knife while a politician was there speaking was the last straw. The sheriff says it’ll be cleaned-up by the 4th of July!

          1. The YouTuber German in Venice is covering it. He’s a lot of fun to listen to…toss him a couple views.

    2. ‘My parents are very socially liberal,’ he told me. ‘They just want people taken care of, and they want the neighborhood to be nice for everybody’

      Translation: your libtard parents are reaping what they voted.

      1. The bail out monster grows another limb. CA to pay all back rent accrued during COVID crisis. If you paid your rent in CA, the government is going to use your tax dollars to give deadbeat tenants a free apartment for a year. With all the PPP and unemployment money being dished out how many people actually couldn’t afford their rent? Well it’s just a drop in the bucket compared to the bail out they are going to implement to pay off all the delinquent mortgages.

        https://www.newsweek.com/california-pay-off-all-past-due-rent-accrued-during-covid-giving-renters-clean-slate-1602556

          1. Here’s a couple comments from the article:

            ——————-
            Sad: I am that guy who sold his car to save on insurance and gas money, and still paid his rent on time. I didn’t want to rack up debt, but I guess that’s punished in this world today.
            Luckylurker: I’m happy for the people who will benefit from this. In the end, we all benefit when we have diverse, healthy neighborhoods. This will keep families in their homes. It’s not a “punishment” for anyone who struggled but was able to pay. You were able to. That’s the difference.
            —————

            No you commie moron. Sad was “able to” 🙄 because he sold his car. The freeloader probably kissed off his LL and bought a sexi-trux. THAT’s the difference.
            They should have simply handled this through the unemployment system. Just pay the people who actually lost income, and make everyone pay rent and utilities.

            They’re making more Independent voters every day.

      2. Translation: your libtard parents are reaping what they voted.
        Same thing I hear in Canada. (Toronto) Just heard a friend’s parents and brother are only allowed to leave the house for going to the store and the doctor and if they come to the states they would lose their Canadian insurance. My friend can’t go back home.
        I guess the Cucks, em I mean Canucks are getting what they deserved.

        1. Canada had a mere 771 infections today, down from 11,000+ in April. The whole country is locked down for this.

          Most of the Anglosphere will still be in lock down in December, even though the the number of daily infections will be utterly trivial.

          1. What’s trivial is the deaths “with Covid” in Canada. It has been through their entire so-called third wave. The PCR test is a complete fraud, and has been since the PTB decided to standardize on an insane 45 amplification cycles. By their own published statistics, the pandemic in Canada is over. Yet they cling to their restrictions.

            The socialists are hard at work in Canada. They have cancelled their national hero, John MacDonald. Destroy the culture, destroy the traditional family, erase history. Then give them something to replace it, good and hard.

          2. an insane 45 amplification cycles

            I was listening to this recent interview of Dr. Michael Yeadon yesterday and my jaw dropped when he said countries were using amplification cycles this high. I knew they were high but not that high.

          3. In that interview, I love how Dr. Yeadon catches himself being mostly pro-vax to a predominately anti-vax audience. It hasn’t dawned on him yet that there are legitimate concerns regarding other vaccines and their ingredients. The censorship methods and personal attacks against him today are the same tactics used against Del Bigtree and mothers of autistic children trying to sound a similar alarm. Dr. Yeadon recognizes and acknowledges that there are people in power who intend to do harm. He’s almost there.

  7. ‘purchased her two-bedroom unit in the 253-unit Atria Apartments in Hawthorn in April last year for $672,000’

    Is that a lot?

    ‘This was my first home but it’s become a nightmare…’m well-informed about real estate’

    So you knew most of the airboxes are junk, right? It’s only been in the news for years.

    ‘and I did everything I could to make sure there were no problems, but the system let me down. I should be in love with my home but at times I’ve absolutely hated it, and everything it’s put me through’

    Well it was cheaper than renting, black nose Zoe.

  8. ‘You don’t see many $6 million price reductions in this real estate market!’

    Actually I see them every day. Oh, forgot the (!)

      1. I’m taking full advantage of any and all opportunities to exchange my debauched Powell Bux for physical precious metals.

        1. “I’m taking full advantage of any and all opportunities to exchange my debauched Powell Bux for physical precious metals.”

          – Not investment advice, but IMHO:
          – PMs: Buy the dips. Last week, for example, or even today.
          – Overpriced stonks: Fade the bounces.

      1. Thirty-year bonds are a good choice when low inflation is expected. Two-year bonds are preferred when high inflation is anticipated.

        What that chart shows is a rotation from short to long duration bonds to price in the Fed’s hawkish shift.

  9. ‘Upper East Side townhouses that five years ago were going for $8 million or $9 million are now going for $5 million or $6 million, and there’s no way that won’t go back up, so there’s value there.’”

    NYC is a Bolshevik-malgoverned urban dystopia where the vibrants are capering with impunity and all manner of malevolency flourishes. Prices are headed on one direction: straight down.

  10. Every time I look at the numbers I worry about the huge investment we’ve made and whether or not we’ll get a return on that investment,’ he said.”

    You’re schlonged, Alex. You’re just too stupid to realize it.

  11. A little over a decade ago, things began to change. The neighborhood took on some harder edges, more people began camping along the boardwalk, and the Krauses no longer felt as safe as they once had. ‘

    You ain’t seen nuthin’ yet, Krauses. California under Democrat-Bolshevik uni-party malgovernance is in a terminal downward spiral. Venice in particular is reaping what it voted.

  12. Prices are depressed because of what’s happened to the neighborhood, Arthur said, and they’re not yet fully committed to leaving a place they fell in love with almost 20 years ago.”

    No, Arthur, prices are depressed because of what’s happening to California and its tax base. The place you feel in love with 20 years ago is Paradise Lost, thanks to the commies that idiots like you installed at the state and municipal level who turned the former Golden State in a socialist dystopia.

  13. ‘They’re stealing from apartment owners, and it’s legal,’ Faller told The Epoch Times.”

    Cry me a river, Faller. Were you somehow unaware you were living in a Democrat-Bolshevik malgoverned socialist utopia where enabling and encouraging freeloading off the kulaks is official state policy?

  14. But it’s the older couple who owns a duplex or a triplex. … They save their money to buy it, and they were counting on it being their retirement, and now the tenants don’t pay.’”

    If there’s a downside here, I’m not seeing it. Wanna-be real estate moguls counting on rental properties being a ticket for financial easy street isn’t the way it’s supposed to work. They’re speculators who banked on draining tenants through sky-high rents. Only now they’re belatedly figuring out that in the eyes of the commies in the California statehouse, they’re kulaks who will be forced to render involuntary “compassion” to freeloaders (D) until they’re insolvent. If you fail to understand the nature of the Bolsheviks or their pernicious ideology, despite all the historical precedents, I have no sympathy for you as a “real estate investor.”

  15. criminals rejoice,

    PATERSON, N.J. (AP) — New Jersey landlords won’t be able to inquire about potential renters’ criminal histories under a new law signed by Gov. Phil Murphy.

    The Democrat signed the Fair Chance in Housing Act Friday on what was the state’s first official celebration of Juneteenth as a paid holiday for state workers.

    Murphy also signed legislation making the third Friday in June a state holiday.President Joe Biden signed similar nationwide legislation on Thursday. The new New Jersey housing legislation aims to eliminate housing instability that contributes to recidivism, according to the governor.

    https://www.audacy.com/1010wins/news/nj-law-bars-landlords-from-asking-about-criminal-histories

  16. I’m well-informed about real estate and I did everything I could to make sure there were no problems, but the system let me down.

    And therein lies the problem. You were “well informed” by the globalist media and the REIC – dissemblers and liars of the highest order. “The system let me down” – what did you expect, when “the system” is run by globalist Quislings and sheeple like you sanction corruption with your votes for the crony capitalist status quo?

    1. “The truth is nobody knows exactly what is driving the increase”

      LMFAO@ this fool and the Real Journalists who publish this nonsense. Imagine actually paying property taxes to this sh*thole city.

  17. I am contemplating selling my rentals. But I always went into it for the cash flow and long term investment without appreciation being a factor. It is tempting to cash out and run. But after refinancing them all with cheap 15 year money I kinda like the monthly income and with inflation being what it is, my cash will erode.

    All these stories of non paying renters need to be taken with a grain of salt. If you rent to deadbeats, what do you expect? I have had zero issues with payments. Because I do not ever rent to trash. This isn’t rocket science.

    1. If you rent to deadbeats, what do you expect?

      A county district attorney making $250K/yr and renting a La Jolla home with a million dollar view is an unlikely deadbeat, but it happens.

      1. There is always an anomaly like that DA. But I would bet the ratio of $250k a year renters defaulting to $30k a year renters defaulting is like 1:200.

    2. “If you rent to deadbeats, what do you expect?”

      Oh, the sub-prime fallacy from 2008. No it’s not the sub-prime that collapsed the housing, it was the PRIME.

      Same applies for renters.

      1. The facts are even more interesting. Yes, 95%+ of defaults were prime loans. But the concentration, or “footprint” of the bad loans were made at the peak, meaning they borrowed at the top. Not among those who lost jobs, etc. It strongly suggests that the primary issue in foreclosures last decade was being underwater. This in turn points to speculation. As soon as the money tree was bare, they stopped paying – en masse.

        I had some links saved that discussed this at length long ago. All scrubbed from the intertubes. It’s somewhere on my blog though, around 2009.

  18. The Turkish lira is hitting all-time lows against the dollar and euro. Turkish developers who took out massive euro- and dollar-denominated loans from insolvent PIIGS banks to fund a speculative building spree don’t have a hope in hell of repaying those loans – it’s a good thing for the banksters that globalist Quisling Frau Merkel put German taxpayers on the hook for covering any and all bankster gambling losses.

    https://www.marketwatch.com/investing/currency/usdtry

  19. Anyone can look at the data and tell there are no plateaus. Anybody outside of ownership now shouldn’t be looking for when prices drop to a fair level; they should wait the extra time it takes to get some restitution for all this waiting and wasting time. Like for me, all the years my family has had to go tiptoeing around someone else’s property, not able to customize it, own a nice big dog, set a up proper workshop, kitchen, etc. If I’d known how stupidly long I’d wait because the public was going to reach so stupidly high and repeat 2006, I would have bought in several years ago. My fault for being so “smart” that the crowd made me look stupid. But I can’t change the past, so I’m going for blood, once I smell it in the water.

    1. Was talking to my buddy last week. He wants to sell his townhome he bought in 2010ish. He’d make out real well, but is hesitant to do so as his options on where to move are really limited. We’re in the same boat, we’d like to move to an area with a better public school. We’d have to down size/grade considerably for the numbers to work. We’ll end up doing an in district transfer to another grade school, or go to the magnet school.

      My comments to him were that true price discovery for sfr’s may be some time off with all the institutional money going into single family. It is a weird time for sure.

    2. Feel the same way. My brother manages to work in how dumb I am for renting all these years every other conversation. Meanwhile, he owns a condo and made a tidy sum in crypto. I say very little now because who the hell knows what’s going to happen.

  20. The Financial Post in Canada. “There was evidence last week that Canada’s latest bout of housing mania might have peaked, as the current price of a backyard and/or a home office clashes with the reality of what people are willing and/or able to pay. It’s possible the market overshot this spring and is now settling at a new, albeit higher, plateau.

    – Classic!

    Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.” – Irving Fisher, Ph.D. in economics, Oct. 15, 1929

    “What’s past is prologue.” – William Shakespeare, The Tempest

    “That men [and women] do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.” – Aldous Huxley

    1. Nothing is brand new in commie heaven Takoma Park. The shacks there are 100+ years old and all well-maintained.

      1. There is a development nearby, that began selling shacks about 3 years ago. They would build each shack after the contract was signed. 3 years ago they sold at a snail’s pace, asking low 300’s. Now they are going fast, as much as $450K, and the last remaining lots are under construction. Oh, and did I mention they’re duplexes?

        These are 1700 sq ft shanties built on postage stamp sized lots.

        1. I am working on a commercial building in Weld County that is nearing completion, but I also drive past many new residential developments in the area.

          Our blog host’s recent comment about these overpriced shacks being “stapled together by Guatemalans” sounds about right. All advertised “from the 400s” or “from the 500s”, and all sub-prime, sold to HowMuchAMonth’ers who never graduated beyond DonkeyMath.

          ClownWorld gonna clown.

  21. If you want to know why the economy is doing so well, it’s the PPP money. I know many people that received hundreds of thousands of dollars and they didn’t need, so they just get to keep it.

    The website is through the sba. federalpay.org ppp

    1. With 120 million unemployed working age adults out there, how is the economy doing well?

      1. On the spending side it is doing well. Try to buy a boat,rv,motorcycles side by sides. Most dealers can’t keep them in stock. I personally know people that bought houses, a new BMW X5M $125,000. Another, a $100,000 mastercraft boat, all with PPP money. Look at all the new dualy pickups…they are everywhere.

        The is a landscaping company near me, Southern shade tree that got over a million dollars and their business was great. It’s all fake but that’s our new economy.

          1. From everyone I’ve talked to about it they said they have already been forgiven. It will be the biggest fraud/scam in american history…mark my word. I’m just shocked at the amount of my customers that got a ton and our business was good in covid. I’ve sent email about it to 60 minutes and several local news. Don’t know if they will ever run it, but when they do…they’re going to be some embarrassed people on one side and mad on the other. Look up companies in the website I send..

          2. That’s not the way it works. Atlas air freight got 300 million, they had a record year because the airlines carry a lot freight so they picked it up, and when they were confronted about it, they said went by the rules and we are keeping the money. One of buddies was laughing about the money he got. It’s sick.

        1. The forgiveness application for loans <$150k is basically a one page affidavit. I'm sure it is all on the up and up.

          SBA did say they'll audit everything over $2M.

          1. Ben Jones I wasted over five years of my life working in government contracting, sitting in a grey cubicle surrounded by grey people with grey personalities.

            “America isn’t a country, it’s a game” — Anonymous

        2. Can confirm. I have a friend that runs a DoD contracting business in Charleston SC. They also got PPP funds they didn’t need and don’t have to pay back.

          1. Ben, most people/companies applied right before the shutdowns….not knowing how bad things would be….and I don’t have a problem with that part. I’m just shocked how Lose and free the program is. It should’ve been worded: use some of this for worked pay and send the rest back.

            I’m telling you, when the country ever finds out about this, people will feel different about everything. The funny part is, when the program was introduced in 2020 they wanted to keep the details secret. Thank God the SBA, stood up to them and No! We don’t operate in secrecy.

          2. “Why did they apply for them? Sounds fraudy.”

            Another Amerikka exceptionalism. People actually flaunt how smart they in defrauding others.

            Can you blame though? Top to bottom rotten to the core.

          3. I’m hearing more and more of these stories. It’s disgusting. The amount of money they printed and just gave away is beyond repulsive.

          4. The total of the PPP loans is $800 BILLION. That alone has replaced the lost economic output. This was an absolutely ridiculous knee-jerk overreaction by the FED and .gov.

  22. Sorry, independent landlords, but the Comrades of Proven Worth (D) will always side with the deadbeats and freeloaders over the kulak “enemies of the people.” But Comrade Newsom says “California” will make landlords whole with taxpayer dollars. So California taxpayers get to involuntarily pay for both the deadbeats AND the wanna-be property moguls. Forward, Soviet!

    California considers extending eviction protections for unpaid rent past June

    https://ktla.com/news/california/california-considers-extending-eviction-protections-for-unpaid-rent-past-june/

    Gov. Gavin Newsom says California will pay off all the past-due rent that accumulated in the nation’s most populated state because of the fallout from the coronavirus pandemic, a promise to make landlords whole while giving renters a clean slate.

    Left unsettled is whether California will continue to ban evictions for unpaid rent beyond June 30, a pandemic-related order that was meant to be temporary but is proving difficult to undo.

    1. Gov. Gavin Newsom says California will pay off all the past-due rent that accumulated in the nation’s most populated state because of the fallout from the coronavirus pandemic, a promise to make landlords whole while giving renters a clean slate.”

      yea screw infrastructure projects = water shortage forever .

  23. Oh dear – soaring housing prices have claimed their first political scalp, as Sweden’s globalist Quisling Prime Minister gets ousted. Are Swedish cuck voters finally getting a clue?

    Sweden PM loses confidence vote amid housing crisis, toppling government

    https://www.timesofisrael.com/sweden-pm-loses-confidence-vote-amid-housing-crisis-toppling-government/

    STOCKHOLM (AP) — Stefan Lofven, Sweden’s Social Democratic prime minister since 2014, lost a confidence vote in parliament on Monday amid a housing crisis and skyrocketing real estate prices, making him the first Swedish government leader ever to lose such a motion.

    The vote was initiated by the small Left Party, an ally of the minority government that is not in the two-party center-left coalition but had provided the votes to pass legislation.

    1. Stefan Lofven, Sweden’s Social Democratic prime minister

      Why is he wearing a face diaper? Hasn’t he had the jab yet?

    1. Key Words
      Ray Dalio says Fed can’t tighten ‘without having big, negative effect’ on markets
      Published: June 21, 2021 at 2:10 p.m. ET
      By William Watts

      Referenced Symbols
      DJIA
      1.74%
      SPX
      1.35%

      ‘You saw the reaction in the markets when the Fed just even hinted at tightening. I don’t’ think they can tighten a lot without having a big, negative effect.’
      — Ray Dalio, founder of Bridgewater Associates

      Ray Dalio, billionaire investor and founder of Bridgewater Associates, the world’s largest hedge fund, took note Monday at the topsy-turvy reaction across financial markets last week to the Federal Reserve’s signal that it could begin to lift rates sooner than investors had expected and that policy makers had started to discuss the eventual slowdown of its monthly asset purchases.

      1. “Ray Dalio says Fed can’t tighten ‘without having big, negative effect’ on markets”

        So it’s officially a conspiracy fact now?

      2. Mortgage rates have been trending down for 40 years; the Federal Funds Rate has been trending down for 40 years. One wonders if there is a “stimulus wall”, caused by threats to the currency, demand satiation, or other limitations.

        Seems to me the Fed has one tool from which the others derive: the Printed Money Bazooka. They can act as a bottomless whale buyer in government debt, MBS, and, like the BOJ, I’d expect stocks at some point. They can make unprofitable transactions profitable.

        But then there’s the business cycle, when demand is satiated and drops for a while. And IF there is a stimulus wall, perhaps the financial economy will have to return to the business cycle. Trickle down stimulus will still be alive and well but for every interest rate basis point drop or every dollar injected into the financial system, the trickle down effect might become negligible.

    1. The last LOLZ will happen centuries from now, when Whitey has been hunted to extinction, and the illiterate vibrants are digging in the dirt with sticks to find bugs to eat, and telling stories around the cave campfire every night about how when Whitey went extinct, he took the water and electricity with him.

      See also: Haiti

    1. Once tweeted, never deleted.

      ‘“All hype/speculation is doing is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed,” he wrote.
      Crypto’s problem is in leverage, he said. “If you don’t know how much leverage is in crypto, you don’t know anything about crypto, no matter how much else you think you know.”

      Burry has retracted Twitter posts in the past. In February, he tweeted that Tesla had bought bitcoin as a distraction from concerns raised by Chinese regulators over quality and safety issues of its cars, before then deleting it.

      He also referred to bitcoin as a “speculative bubble,” comparing it to housing in 2007 and the internet in 1999, in another tweet he quickly deleted.’

      Related Stories:

      MarketWatch
      Was ‘Big Short’ investor Michael Burry right about crypto and meme stocks facing ‘mother of all crashes’?
      14h ago

  24. “And speaking of a brand new week, I will be sitting down this week with Project Veritas to discuss the discrimination that CBS is enforcing upon its employees,” Moss said Sunday.

    “There’s a narrative. Yes, it is unspoken. But if you accidentally step outside the narrative, if you don’t sense what that narrative is and go with it, there will be grave consequences for you.”

    CBS 62 Insider BLOWS WHISTLE On-Air During Weather Report, Will Detail CBS ‘Discrimination’

    Jun 21, 2021

    https://youtu.be/QynOGEal_Ic

  25. Looking at the way price-to-income ratio is spiking everywhere you have to wonder if 10s of millions are going to be forced to move into together or go homeless. I guess inter-generational family homes will become a thing again after 60 years of going the other way.

    1. millions are going to be forced to move into together

      What then would we do with the tens of millions of empty houses?

      1. What then would we do with the tens of millions of empty houses?

        Import more vibrants to live in them?

  26. Government forced moratoriums lead to government owned properties that lead to government allotted housing. But don’t fret, you get a place to live….when you get your shot.

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