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You Don’t Expect It To Go Down, That’s Heartbreaking

A report from Fortune. “So why is inventory rising now? ‘There’s a mentality among some sellers that if they don’t sell now, they’ll miss their opportunity to get top dollar,’ said Ali Wolf, chief economist at Zonda.”

From ROI New Jersey. “Kristin Ehrgott has been selling high-end homes in New Jersey for more than a decade. And she’ll be the first to admit that the frenzy that overtook the market in the opening months of the COVID-19 pandemic is over. ‘When anybody tells me, ‘We’re in a bubble, the prices are too high, I’m not going to buy right now,’ I tell them, ‘You’re absolutely wrong — and you don’t understand the market if that’s what you think,’ she said. And those looking to turn a quick buck already have come and gone, too, she said.”

From WATE on Tennessee. “Hancen Sale, the Governmental Affairs & Policy Director for the Knoxville Area Association of Realtors, said while prices are staying high, buyers can expect homes to stay on the market longer and to be competing with fewer offers. ‘Earlier in the year, we would see like 15 offers,’ Sale said. ‘I think we’ve gotten down to like three or four.'”

“Broker Lane Shuler said this cooled down period was expected. Shuler also talked about why more homes are going back on the market than in the past. ‘People feel like they overpay in the bidding process, they win the house, then when they go to the inspection, they sort of feel like they need to get everything that they’ve asked for because they feel like they overpaid,’ he said.”

The Sun Sentinel in Florida. “Q: Now that evictions are resuming, I need to deal with my tenant who is over six months behind. I have continued paying the mortgage, but it has not been easy. I need the cash flow from a paying tenant before I end up in foreclosure. Is there anything that I should know? A: If your tenant has a regular job or valuable possessions, it may be worth getting a money judgment and trying to collect.”

From 13 WHAM. “New York has extended eviction protections for tenants through January. Yet there’s a gaping hole involving landlords. Some are now falling behind in property taxes and that could ultimately fall back on the people who rent from them – and on the neighborhoods. ‘I don’t make enough to subsidize city rental properties,’ said Rich Tyson.”

“Tyson is a Realtor who wanted to do more to invest in Rochester neighborhoods, so he became a landlord. Gradually, over five years, he acquired and refurbished 37 properties. Then came the notices in the mail. ‘These are what I’m starting to get, which are back taxes,’ he told 13WHAM. Tyson says he owes a combined $52,000 in taxes to the City of Rochester and Monroe County. Some of that is in arrears. Tyson said he is now selling his properties to avoid bankruptcy.”

From Summit Daily in Colorado. “Breckenridge is looking to cap its short-term rental licenses, but local vacation homeowners are concerned about how this could impact their property values. In particular, owners along the Four O’Clock corridor fear the impact of licenses being nontransferable at sale. Abby Epperson, a Realtor who owns a unit and lives full time at the Park Place Plaza condominium, said the town should consider exempting this corridor. While she lives in Breckenridge for most of the year, she short-term rents her home whenever she is away. She said the inability of a new owner to get a short-term rental license will decrease the value of all the properties at the base of the ski area.”

“‘What the council is proposing is a serious, purposeful devaluation in our property prices,’ Epperson said. ‘They’re trying to do a blanket policy, so they’re picking winners and losers because it’s going to affect the values of our homes. When you have a residence for 17 years, you don’t expect it to go down because of the decision of seven people, and that’s heartbreaking.'”

“Gary Stephens has owned a condo at Park Place Plaza for 30 years. ‘I bought my place in this corridor with the hopes that its value would go up as all these new town and ski resort amenities were brought to fruition,’ Stephens said.”

The Globe and Mail in Canada. “Over decades, real estate has become an increasingly big slice of the economy, taking the mantle of Canada’s largest industry in the 2008-2009 recession. Before the COVID-19 health crisis, residential investment routinely amounted to 7 per cent of nominal gross domestic product. More recently, that’s surged to more than 10 per cent – or roughly double the equivalent rate in the United States. Now, things are shifting. As housing activity cools, the industry has become a drag on an economy that increasingly relies on it.”

“That was apparent last Tuesday, when Canada posted a shock economic contraction for the second quarter. Residential investment fell 3.3 per cent, or at a 12.4-per-cent annualized rate. And further drops are likely coming, given that sales are continuing to ebb in major markets across the country. ‘Where I do worry … is the more cash flow that consumers are putting into housing stock, the less is available to drive the economy,’ said Royal Bank of Canada’s Chief executive Dave McKay. ‘I think all policy-makers are worried partly … about long-term economic drag from that much cash flow going into servicing housing.'”

From Mingtandi. “In today’s roundup of regional news headlines, developer Oceanwide Holdings is seeking to offload its main office complex in Beijing, according to people familiar with the matter, in a bid to raise cash after a unit defaulted. Hong Kong’s government has banned the real estate magnate Pan Sutong from selling residential property off the drawing plan until its construction is completed, in an unprecedented exercise of its mandate amid concerns over the developer’s cash crunch.”

“China Evergrande’s Shenzhen-traded 5.9 percent May 2023 bond fell more than 20 percent in afternoon trade on Tuesday, extending falls since a ratings downgrade made the company’s bonds ineligible for use as collateral in repo transactions.”

From Fitch Ratings. “Fitch Ratings has downgraded to ‘CC’, from ‘CCC+’, the Long-Term Foreign-Currency Issuer Default Ratings (IDR) of Chinese homebuilder, China Evergrande Group, and its subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has also downgraded the senior unsecured ratings of Evergrande and Tianji to ‘C’, from ‘CCC’, with a Recovery Rating of ‘RR6’, as well as the Tianji-guaranteed senior unsecured notes issued by Scenery Journey Limited to ‘C’, from ‘CCC’, with a Recovery Rating of ‘RR6’.”

“The downgrade reflects our view that a default of some kind appears probable. We believe the recent drop off in contracted sales has weakened Evergrande’s ability to repay short-term debt, since contracted sales proceeds are its key source of liquidity. Reported contracted sales plunged by 26% yoy in August 2021, after dropping by 13% in July 2021 and 6% in June 2021, even though Evergrande has been selling properties at a discount to generate cash. The average selling price was down by 26% yoy in August 2021.”

From Mansion Global. “The market for what had been some of the most desirable apartments in China’s biggest and wealthiest cities has seized up, as Beijing intensifies a campaign to open access to education. Anxious parents have been snapping up apartments near well-regarded primary and middle schools in recent years, hoping to guarantee a place for their children. In seven cities where the ‘school-district housing’ frenzy has been most pronounced—which include the four megacities of Beijing, Shanghai, Shenzhen, and Guangzhou—prices for these homes have skyrocketed.”

“But in the space of a few months, China’s campaign to tamp down education costs—as well as real-estate frenzies—has chilled the once-hot market. In the centers of the seven cities, where school-district homes are clustered, the number of transactions fell 38% between January and July. owning a home close to a school will no longer guarantee a place in that school in Beijing and other cities, and primary- and middle-school teachers and principals will be rotated within the public-school system. That has undercut demand for apartments in those neighborhoods—bad news for families who emptied their savings to buy one.”

“Average home prices in three central districts of Shenzhen, where the city’s best schools are, tumbled by some 15% from January to July, according to E-House data. Chen Jinhua, a Shenzhen-based broker at Leyoujia Real Estate Trading Co., said a wave of homeowners scrambled to sell in early August, as worries grew about the new school policies. Since the guidance prices were introduced in February, asking prices have fallen by some 10%.”

“Among the newly dissuaded prospective home buyers is Su Min, a Beijing mother who had long been considering an apartment in Xicheng district in hopes of securing a coveted school placement in a few years’ time for her 2-year-old son. Though the asking price for one apartment she had been looking at was cut by 10%, or more than $120,000, Ms. Su now suspects that pouring her life savings into an old, small, shabby home that can no longer guarantee her son a desirable school placement doesn’t make much sense.”

“‘Fortunately we didn’t purchase at the peak,’ she said. ‘And now, maybe we don’t have to buy such a home anymore.'”

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This Post Has 92 Comments

  1. ‘Where I do worry … is the more cash flow that consumers are putting into housing stock, the less is available to drive the economy…I think all policy-makers are worried partly … about long-term economic drag from that much cash flow going into servicing housing’

    Shot yerself in the fook Dave. Housing bubbles are a terrible way to run an economy, and then they pop.

    1. “Where I do worry … is the more cash flow that consumers are putting into housing stock, the less is available to drive the economy …”

      But … but … but the cash flow that goes into the housing stock increases the values of this housing stock and these increases values is something that can be cashed out and spent. This is what drives the economy. Go here …

      https://images.app.goo.gl/NyiRyY3Y53Lm3Wps8

      It is noteworthy that most of the cashflow that goes into the housing stock is BORROWED rather than earned, which means the price increases of the few houses that are sold and thus creates enormous amounts of equity wealth for the many houses that are not for sale is borrowed.

      So borrowed money by one small group of people, the buyers, creates wealth equity for a larger group of people, the non-sellers, which gives this second group of people the opportunity to increase their borrowing because the amount of their equity wealth has been increased.

      I need to bottom line this:

      Borrowing by a few creates wealth for the many. This newly-created wealth is in turn borrowed, and it is spent. While it is true that the BUYERS of the houses have their consumer purchases restricted their NEIGHBORS have their opportunities for consumer purchases expanded.

    2. If housing values don’t go up then homeowners can’t borrow money to make their other payments. Every Californian alive already knows what other state’s homeowners are discovering, the HELOC [is] the economy!

  2. ‘the four megacities of Beijing, Shanghai, Shenzhen, and Guangzhou—prices for these homes have skyrocketed’

    Hurray!

    ‘bad news for families who emptied their savings to buy one’

    Well, at least they could paint the walls…

    1. ‘the four megacities of Beijing, Shanghai, Shenzhen, and Guangzhou—prices for these homes have skyrocketed’

      “bad news for families who emptied their savings to buy one”

      But good news for their homeowning neighbors.

      1. “….But good news for their homeowning neighbors….”

        Much like a primitive fire dance of bare feet on hot coals to curry the favor of a few beautiful maidens. Who wants to go first?

  3. ‘Tyson said he is now selling his properties to avoid bankruptcy’

    UHS say rents are red hotcakes! You can’t collect, but they are to the moon Alice!

    ‘Shuler also talked about why more homes are going back on the market than in the past’

    But Lane, these are the winnahs?

    ‘People feel like they overpay in the bidding process, they win the house, then when they go to the inspection, they sort of feel like they need to get everything that they’ve asked for because they feel like they overpaid’

    1. Nobody mentioned to Tyson until it was too late that he would have to cover the taxes on his 37 rental properties.

      1. “…[Rich] Tyson is a Realtor…”

        Me thinks Rich Tyson of the REIConplex is not the sharpest knife in the set.

        Question for the day: How many other Rich Tyson wannabe kazillionaires are out there?

        Looking at Mr. Bankers cash out refi chart, [previous comment] its got to be more than a few boatloads.

  4. So Fitch is on the ball, calling a default well after it’s happened. Ima start a new rating agency. Pay me, take half yer money and throw it in a fire. You’ll still come out ahead of Fitch.

      1. It’s roughly right on top of the San Andreas Fault, which creates extreme contortions of the landscape.

        Little known to many, downtown San Diego has similar features, as does Seattle, due to faults of their own (not the San Andreas). These locales are earthquakes in waiting.

    1. The usual purpose of federal money in local municipalities is control which leads to consolidation and centralization of power.

    1. (emphasis added; 1+2 includes “those who received 3 doses of vaccine, but have not yet completed 7 days since they received their third dose”)

      Now we have the deaths data by vaccination status on our COVID dashboard!
      There were 607 deaths in August 2021.
      Deaths by vaccination status:
      Unvaccinated->218 (35.9%)
      1 dose->14 (2.3%)
      1+2->313 (51.6%)
      1+2+3->62 (10.2%)

      579 of the deaths (95.4%)->age 60+
      https://datadashboard.health.gov.il/COVID-19/gener

  10. ‘When anybody tells me, ‘We’re in a bubble, the prices are too high, I’m not going to buy right now,’ I tell them, ‘You’re absolutely wrong — and you don’t understand the market if that’s what you think,’ she said.

    “Buying now at the peak of the bubble would be the worst financial mistake you could make,” said no realtor ever.

  11. ‘I don’t make enough to subsidize city rental properties,’ said Rich Tyson.”

    Then you never should’ve “invested” in rental property in a Democrat-Bolshevik malgoverned city, not-so-Rich.

  12. Then you never should’ve “invested” in rental property in a Democrat-Bolshevik malgoverned city,
    Since the CDC decided it was God (an un-elected God I may add) and started the eviction moratorium I know I will never own rental property in the US. Who knows who will declare themselves God next and demand “free rent” for everyone, for ever. Too risky for me.

  13. George Soros, Furious Over China’s Nationalist Turn, Demands BlackRock Pull China Funds

    by Chris Menahan | Information Liberation
    September 8th 2021, 4:05 am

    George Soros is demanding BlackRock’s Larry Fink pull his new China funds to punish President Xi Jinping for taking a hard right turn and throwing globalist billionaires in prison and seizing their wealth rather than letting them run his country.

    Xi has instituted an aggressive series of reforms cracking down on every element of the liberal world order used to subvert our societies.

    In just the past few weeks Xi has instituted new policies to enforce traditional gender roles on TV and throughout society, restrict foreign schools pushing woke bull****, ban “simping” and fandom culture, unleash China’s “childbirth potential” through a new three-child policy, cap rent prices to encourage family formation and much, much more.

    On Monday, Soros had yet another column published in the WSJ bashing Xi and calling on BlackRock’s Larry Fink — who manages over $9 trillion in assets through his investment management firm — to pull his China investment funds.

    https://www.infowars.com/posts/george-soros-furious-over-chinas-nationalist-turn-demands-blackrock-pull-china-funds/

    1. Bahawawa. Hahahahaha. I love it when their playbook spins on them, and in this case, by those who wrote the rules. Bawahaaaaaaaaaa.

      1. I told you the Commies and the Globlist were going to end up not being in sink with each other. This unholy alliance is going to fall apart , just like the Stalin/ Hitler alliance fell apart.
        Both the Globlist ideology and the Commie ideology both suck . This flight was built in the cards just like the Hitler/Stalin battle was.

    2. i guess ol’ chris menahan doesn’t know that seizing other people’s wealth and tossing them in prison are not ‘hard right’ tactics, but total left wing tactics. socialist soros has never been ‘right wing’ in his entire life. i guess menahan thinks socialism in on the right wing side of the political spectrum.

    3. “…BlackRock’s Larry Fink — who manages over $9 trillion in assets…”

      Gee, I used to think $1-trillion was a lot of money.

  15. Real Journalists.

    Note that in multiple recent articles about the “far right domestic terror threat” that reference the Department of Homeland Security and other alphabet agencies, the Anti Defamation League and the Southern Poverty Law Center are cited as some kind of authorities on the subject.

    Did you know that the ADL and the SPLC were, in fact, never elected to govern anything?

    These organizations do not have legal authority over anyone or anything, and should have their IRS non-profit status revoked, because they are operating as private, for-profit, domestic spy agencies.

    We are the leaderless resistance.

    1. The Wall Street Journal
      A Generation of American Men Give Up on College: ‘I Just Feel Lost’
      The number of men enrolled at two- and four-year colleges has fallen behind women by record levels, in a widening education gap across the U.S.
      By Douglas Belkin
      Sept. 6, 2021 1:12 pm ET

      Men are abandoning higher education in such numbers that they now trail female college students by record levels.

      At the close of the 2020-21 academic year, women made up 59.5% of college students, an all-time high, and men 40.5%, …

        1. “victims studies”

          GOTTdamn genius. . .which means I have to steal it & use it quickly before some radio talk show ruins it.

        2. “Much better to learn a trade than get a degree in Victim’s Studies (and owe $100K in student loans).”

          Yep. Then save, invest and retire in the Philippines or Thailand where the people appreciate men and the women actually like being women.

    2. Why would any white male run up huge student loans to subject themselves to four years of Cultural Marxist indoctrination blaming all of society’s ills on white males and western civilization?

      ‘My university sacrificed ideas for Ideology’: Portland State professor pens scathing resignation letter claiming school has become a ‘social justice factory whose only inputs are race, gender, and victimhood’

      https://www.dailymail.co.uk/news/article-9969771/Portland-State-philosophy-prof-quits-public-letter-calling-school-Social-Justice-factory.html

      A Portland State University professor has resigned in a scathing public letter in which he slammed the university for not allowing any type of thought that didn’t suit its liberal agenda, calling it a ‘social justice factory’ that drives ‘intolerance of divergent beliefs’.

      Peter Boghossian was a full-time assistant professor of philosophy at Portland State University until his resignation letter was published on Wednesday.

  17. I don’t blame men for not wanting the non-stop brainwashing BS in colleges today.
    How much can men take of this attack on their gender and white man attack.

    2. “I don’t blame men for not wanting the non-stop brainwashing BS in colleges today. How much can men take of this attack on their gender and white man attack.”

      A female Professor of mine was laying on thick the domestic violence issue on men attacking women. I raised my hand and pointed out that 3 out of 5 men arrested for domestic violence stated their woman hit them first. She hand-waived that eye-opening stat aside and said, “the women hit him first to get it over with, because they knew he was going to hit her.”

      Yep, that’s the insane mindset we’re facing right there folks. It’s not ok to hit a woman, but…it’s ok for women to hit a man if she FEELS like he’s going to hit her.

      You can’t make this stuff up.

      (needless to say, in that class I made consistent “A” work on tests and assignments and received the only “B” I received that undergrad year.)

  18. Posted this morning on the last thread:

    ‘It has been over a year now, and I can’t recall seeing any detailed explanation for China sealing-off the City of Wuhan from the rest of interior China due to a lethal virus rapidly spreading, but their International airport remained open serving arrivals and departures to destinations around the planet.’

      1. To spread the virus worldwide.

        Isn’t that the purpose of a bioweapon? Or are non virus deniers still questioning that’s what this virus is? Admittedly a sh!tty one but useful enough for totalitarianism to flourish.

  19. $549,000 3 bd 2ba 2,649 sqft
    Price cut: $40K (9/7)
    6485 E Crumb Rd, Kingman, AZ 86401

    https://www.zillow.com/homedetails/6485-E-Crumb-Rd-Kingman-AZ-86401/8345703_zpid/

    Date Event Price
    9/7/2021 Price change $549,000 (-6.8%) $207/sqft
    8/19/2021 Price change $589,000 (-7.8%) $222/sqft
    8/14/2021 Price change $639,000 (-3%) $241/sqft
    7/17/2021 Listed for sale $659,000 (+186.5%) $249/sqft
    9/6/2016 Listing removed $230,000 $87/sqft
    8/22/2016 Price change $230,000 (-4.5%) $87/sqft
    8/9/2016 Price change $240,900 (-3.6%) $91/sqft
    6/15/2016 Price change $249,900 (-3.3%) $94/sqft
    5/17/2016 Price change $258,400 (-0.2%) $98/sqft
    5/3/2016 Price change $258,900 (-0.2%) $98/sqft
    4/19/2016 Price change $259,400 (-0.2%) $98/sqft
    3/2/2016 Listed for sale $259,900 (-13.3%) $98/sqft
    4/4/2014 Listing removed $299,900 $113/sqft
    3/13/2014 Price change $299,900 (-14.3%) $113/sqft
    10/3/2013 Listed for sale $349,900 $132/sqft

    If at first you don’t succeed…

    2. That listing description is typical. Nothing that matters, only an opinion about how you can live your life, like you need instructions from a realtor who doesn’t even know you.

  20. Ok, nothing actually makes sense about the China reaction to being ground zero for the leak.

    China got back into productive mode rather quickly without shutting down their major Cities for long like the West did.
    No mass vaccination program in China. China is making old technology vaccines and selling them around the World.
    But, as you probably noticed , fake news isn’t talking to much about what China is doing regarding Covid, because it doesn’t fit into the narrative. Fake news isn’t talking to much about protests going on in Europe over the Mandates.
    If this is a global Pandemic, I’m very interested in what’s happening in the rest of the World. But no, fake news panned away from Global News.

  21. “When you have a residence for 17 years, you don’t expect it to go down because of the decision of seven people, and that’s heartbreaking.’”

    The poor heartbroken donks….. the poor poor heartbroken donks.

    Boulder, CO Housing Prices Crater 27% YOY As Fear, Uncertainty And Doubt Blanket Denver Economy

    https://www.movoto.com/boulder-co/market-trends/

    1. This debt donkey stated that is his primary residence and he rents it out while on vacation. I suspect it is opposite. His other home is his primary residence and this is the rental. Why be heartbroken about a week or two a year?

    2. Who is the owner of this HBB? Because I would like to report these posts with “Bitchute” links to the owner so they can block this poster’s IP address for “spreading misinformation.”

      Oh wait…

      P.S. any globalists reading this, plz go f* yourselves 🙂

      1. “P.S. any globalists reading this, plz go f* yourselves”

        I have taken to saying …

        Ahh go vaccinate yourself.

        To the out of control leftist.

        It’s happened twice.

        1. Female, heard yelling at pajama boy Trudeau: “You can take my jab up your asz, Justin, and the boosters, too, they’re all yours.”

  23. National Park Removes “Glaciers Will Be Gone by 2020” Signs
    Infowars.com

    September 8th 2021, 10:29 am

    A national park has removed “glaciers will be gone by 2020” signs because the “global warming” prediction never came true.

    Glacier National Park made headlines when it removed park signs meant to highlight “climate change” predictions by the U.S. Geological Survey.

    The park attempted to save face by claiming the glaciers “are still shrinking:”

    https://www.infowars.com/posts/national-park-removes-glaciers-will-be-gone-by-2020-signs/

    9:20 AM · Sep 8, 2021

    Tony Heller
    @Tony__Heller
    Arctic sea ice melt this summer was the lowest in fifteen years and Antarctic sea ice extent is well above average. Yet the fraudsters at @NASA and @NOAA continue to claim this summer was the hottest on record.

    https://twitter.com/Tony__Heller/status/1435593879265239043?s=20

      1. Remember… As a noted economist stated so eloquently, “Nothing accelerates the economy and creates jobs like falling prices to dramatically lower and more affordable levels. Nothing.”

        He’s right.

        Cape Coral, FL Housing Prices Crater 23% As Retirement And Vacation Property Prices Drop Like A Rock

        https://www.movoto.com/cape-coral-fl/market-trends/

  26. I need to find a new GP. Today, during my annual wellness visit, my doctor told me with a straight face that the covid vax has killed no one.

    I know he’s not an idiot, and it’s probably the big healthcare provider he works for who has instructed him to spew that nonsense, or lose his job. I expect it’s only a matter of time before they refuse to see me.

    1. It’s getting about that time some of these “we won’t treat the unvaxxed” folks meet a sticky end in a dark alley. Violence always works, ask the Leftists.

      1. Bluetards love violence:

        “Jimmy Kimmel referenced a statement from Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, in which he said hospitals have begun to run out of intensive care unit beds and will soon be forced to make “tough choices.”

        “That choice doesn’t seem so tough to me,” Kimmel said. “Vaccinated person having a heart attack? Yes, come right in. We’ll take care of you. Unvaccinated guy who gobbled horse goo? Rest in peace, wheezy.”

        The left would love to kill as many people as they can who do not agree with them. These people are an intolerant, evil group.

        1. With the dept for 35 years and As head of department of infectious diseases why was Fauci not prepared for the pandemic? That was his duty, preparation, supplies really and ready for distribution. He has never been called out on it.

          And tactical patience, those voluntary vaxxed lefties, per Gates, should be dead in about three years.
          Their useful idiot civilian army will be fallen and the deplorables ‘n veteran snipers will remain.

        2. The left would love to kill as many people as they can

          Yup.

          And I’m not buying the cr@p about hospitals being overwhelmed with patients. Don’t forget about the lie about Ivermectin overdoses. The propangandists have refused to retract their tweets. That speaks volumes.

          I don’t know of anyone who is sick, much less hospitalized. Not saying they don’t exist, but their numbers are clearly being exaggerated. But if my doctor tells me I should inject that poison into me, then it’s time to find a new doctor.

          1. Hubby’s sister, who used to be a nurse, told him today that his newly acquired immunity is only good for 6 months. SMDH.

  27. Pete “infrastructure” Buttigieg is starting a family!
    https://www.independent.co.uk/voices/pete-buttigieg-chasten-adopt-baby-twins-abortion-b1915927.html
    “In case you missed the happy announcement, the Transportation Secretary and his husband have become the proud papas of adorable twins. Announcing the news over the holiday weekend, the couple said that they are “delighted to welcome Penelope Rose and Joseph August Buttigieg to our family,” with Joseph being named for the Secretary’s late father.”

    Yup, Pete’s “the bottom.”

  28. Does anyone have any idea about what lies in store for firms that leveraged up like crazy to invest in residential real estate?

    I do.

    1. The Financial Times
      Evergrande Real Estate Group Ltd
      Evergrande liquidity crisis: why the property developer faces risk of default
      China’s most indebted real estate company struggles to escape vicious cycle as cash crunch mounts
      A banner promoting the Emerald Bay residential project outside the China Evergrande Centre in Hong Kong
      Evergrande’s debt toll has raised concerns of a default that would reverberate through China’s highly leveraged property sector
      Thomas Hale and Hudson Lockett in Hong Kong yesterday

      Investors are confronting the growing possibility that Evergrande will default, a debacle that could cascade across global markets and has exposed the perilous state of China’s vast property sector.

      The world’s most indebted property developer said last week it could fail to make good on its financial obligations, exacerbating a panic among investors, dealing a severe blow to its bonds and triggering trading suspensions in Shenzhen and Shanghai.

      Fitch on Wednesday became the latest group to issue a warning, slashing Evergrande’s foreign currency credit rating from triple C plus to double C and saying that a default of some kind “appears probable”. This week, Moody’s downgraded the company for the third time in as many months, saying creditors had “weak recovery prospects” in the event of a default.

      The liquidity crisis has left some of Evergrande’s bonds trading at less than 30 cents on the dollar — a highly distressed level — and highlighted fears over the heavily leveraged real estate sector, which makes up more than 28 per cent of China’s economy.

      Why could Evergrande default?

      Evergrande develops real estate projects and then sells the flats to customers who typically pay in advance before completion. It has 778 projects under way in 223 cities.

      Evergrande payments to suppliers often rely on the issuance of commercial bills, a type of short-term IOU.

      Last week, the company said its liquidity issues, including delayed payments to suppliers and construction fees, meant projects were being suspended. It is rushing to sell assets to generate cash but some companies have refused to accept Evergrande’s commercial paper. S&P has suggested that the developer might be paying suppliers through transfers of its properties instead of cash.

      Evergrande is exposed to a vicious cycle in which it does not have enough cash to complete its projects and generate further proceeds from sales, which fell 26 per cent in August from the same time a year earlier despite heavy discounts.

      The company needs that cash not only to service, but also reduce, its vast debts. New rules imposed by Beijing about a year ago that forced big Chinese developers to reduce their borrowing are one of the main reasons pressure has mounted on Evergrande in the past year.

      “We do expect a default scenario for Evergrande, unless there is an unexpected positive development for the company such as asset sales,” said Matthew Chow at S&P.
      …

      2. “Any man’s debt diminishes me, for I am involved in mankind. And therefore never send to know for whom the debt tolls; it tolls for thee.”

    2. 1996 = the year The Housing Bubble started to really take flight. Interesting coincidence that Evergrande was born that year!

      1. July 27, 2021 4:00 PM PDT
        Last Updated a month ago
        China
        Explainer: How China Evergrande’s debt woes pose a systemic risk
        By Clare Jim
        5 minute read
        An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip

        HONG KONG, July 27 (Reuters) – The financial troubles of China’s most indebted property developer, China Evergrande Group (3333.HK), have raised fresh concerns about credit defaults in the country’s highly-leveraged real estate sector and wider contagion.

        The developer has not defaulted on interest payments but worries persist over its financial health as Beijing steps up curbs on the sector to contain bubble risks. Evergrande’s shares have lost 65% since last September, when sources told Reuters it had asked the government for support to avoid a cash crunch.

        S&P cut its ratings on Evergrande by two notches to B- from B+ on Monday, further weakening its funding access and raising doubts over its ability to reduce debt.

        WHO IS EVERGRANDE?

        Founded in 1996 by Chairman Hui Ka Yan in the southern city of Guangzhou, Evergrande accelerated its growth in the past decade to become China’s second-largest property developer with $110 billion in sales last year.

        The company listed in Hong Kong in 2009, giving it more access to the capital and debt market to grow its asset size to $355 billion today. It has more than 1,300 developments across the nation, many in lower-tier cities.

        With national sales growth slowing in recent years, Evergrande has also been branching into businesses unrelated to real estate, such as electric cars, football, insurance and bottled water.

        HOW DID CONCERNS ARISE OVER DEBT PILE?

        Investors became worried after a leaked letter in September showed Evergrande had pleaded for government support to approve a now-dropped backdoor listing plan, warning it faced a cash crunch.

        Concerns intensified after Evergrande admitted in June it did not pay some commercial paper on time, and news last week a Chinese court froze a $20 million bank deposit held by the firm on the request of Guangfa Bank.

        Evergrande’s fast expansion over the years has been fuelled by debt. It has been aggressively raising loans to support its land buying spree, and selling apartments quickly despite low margins so as to start the cycle again.

        The firm said its interest-bearing debt was at 570 billion yuan ($88.2 billion) at the end of June, down from a peak of 835.5 billion yuan a year earlier as it stepped up deleveraging efforts.
        …

  29. Does it seem like Chinese authorities are hitting parts of their own economy that don’t meet official approval with a proverbial wrecking ball?

    1. Tech / Big Tech
      exclusive | China said to suspend approval for new online games, heating up Beijing’s campaign against gaming addiction
      – Sources said the decision to freeze new video game licences is in line with Beijing’s decision to reduce gaming addiction in minors
      – It is unclear how long this suspension of game approvals will last, but no new titles were licensed in August
      Topic | Video gaming
      Josh Ye
      Published: 3:29pm, 9 Sep, 2021
      Updated: 7:13pm, 9 Sep, 2021

      https://www.scmp.com/tech/big-tech/article/3148128/china-said-suspend-approval-new-online-games-heating-beijings?module=perpetual_scroll&pgtype=article&campaign=3148128

  30. Eddy Arnold – Make the World Go Away

    https://youtu.be/lq0Ri9e6SY0

    Make my debt go away
    And get it off my shoulders
    Theres nothing left but Crater Rage
    Please make my Debt go away.

    Do you remember when you loved me
    Before the Realtor took me astray
    If you do, then forgive me
    And make my debt go away.

    Make my debt go away
    And get it off my shoulders
    Theres nothing left but Crater Rage
    Please make my debt go away.

    Ossining, NY Housing Prices Crater 25% YOY As Fear, Uncertainty And Doubt Settle Across New York And New England

    https://www.movoto.com/ossining-ny/market-trends/

  31. Report: College Textbook Says People Who Oppose Lockdowns Caused COVID Deaths

    by Steve Watson
    September 9th 2021, 6:53 am

    A textbook assigned as required reading at a North Carolina community college is loaded with assertions that anyone opposing lockdowns and masking is directly to blame for COVID deaths and the spread of the virus.

    Campus Reform obtained a copy of the document, which states that the severe restrictions imposed by the Biden government “saved tens of thousands of lives” and that Americans who flout them should be held responsible, despite scientific research that has found lockdowns will actually cause millions of excess deaths.

    A passage in the book reads “Most Americans responded to the pandemic by limiting their social contact, covering their faces when going out, and washing their hands thoroughly after they did,” adding “yet lives were lost because some Americans held beliefs that were at odds with the facts.”

    The book, written by Harvard professor Thomas E. Patterson, is titled “We the People: An Introduction to American Government,” and the specific passage appears in a chapter on ‘critical thinking and detecting misinformation’.

    https://www.infowars.com/

    1. I thought it should of reached the news in US that 10 million in Brazil came out in protest to the Globlist Communist take over tyranny.

      Anything that doesn’t fit the narrative isn’t reported, or its lied about or downplayed.

      These Globlist have a way of taking the heat off themselves, but the protesters in Brazil had signs that were directly targeting the Globlist as the enemy. 10 million people protesting is a lot for the fake censored news to ignore.

  32. Ok, so as a unvaccinated person, currently I’m denied the right to engage in a lot of commerce. The word is out that Hospitals and Drs are going to deny medical treatment unless your vaccinated.
    In Australia your on strict lockdown if your not vaccinated.
    United Airlines is punishing employees that have vaccines religious exemptions, by putting them on unpaid leave.
    The One World Order of Globlist Monopolies with their weapon of Medical Tyranny of unsafe shots with questionable ingredients in them , is being forced over a small risk flu.
    This is not public health.
    It should be obvious by now that this is a take over by Private Parties Monopolies and Money Cartels with Governments in collusion with this takeover.
    Even more I am getting suspicious that the vaccines are a depopulation agenda. With this cover up of the adverse reactions and deaths caused by the shots, and all the breakthrough cases of illness in the vaccinated, they march forward with the shot in every arm agenda.
    Wake up humans, the enemy is striking and they don’t care how many people die or get injured.
    They don’t care if you lose your job, they don’t care if your injured, they don’t care if you can’t breathe by wearing a mask, they don’t care if they compromise your immune system and create flu mutations so you have to take booster after booster. They don’t care if they destroy small business, or inject low risk children .
    Big Pharmacy has already looted the tax payers of 35 billion for these shots as well as the government paid for bribery of Hospitals.
    But ,Plizer has raised the price of booster shots that they plan to have many per year. That could mean over a trillion looted yearly .
    So ,not only are they inflicting vaccine damage, they are looting the tax coffers of the people to do it, because gov is in on the scheme.
    Make the victim pay for their own damage, while Big Pharmacy has no liability.
    Just unbelievable and based on a new. type of warfare using Medical Fraud as a weapon of mass destruction.
    Take them serious when nuts like Klaus Schwab say you wi!l have nothing and like it. The Great Reset agenda is a plan to enslave humanity under a dictorship where people are slaves that are totally controlled.
    The fact that their plans are so outrageous and murderous just shows what psychopaths they are.
    Unreal, really sinister.

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