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If Property Prices Stop Growing, We Won’t Buy

A report from Reuters. “The stock of housing under construction increased 1.3% to a rate of 1,426 million units last month, the highest since February 1974.”

From Market Watch. “Zillow’s unexpected announcement this week that it’s putting a temporary stop to its home-buying activities raised many analysts’ eyebrows. And some argue that more concerning trends could be on the way. Independent real-estate analyst Mike DelPrete found that Zillow, Offerpad and Opendoor were all paying well above the value of homes to purchase them in 2021, whereas back in 2019 they typically purchased properties at a discount. ‘Is it possible that Zillow is seeing something in their data…that maybe on the margin makes them a little bit nervous about holding inventory right now?’ said Tom White, an internet research analyst.”

From Bloomberg. “It’s not just regular working people buying homes; many homebuyers are actually professional investors and speculators. In August 2021, The Wall Street Journal reported that private equity firms like BlackRock, Inc. were buying up residential properties by the neighborhood and even well-above market prices. Additionally, REITs like Invitation Homes Inc and American Homes 4 Rent are in the homebuying space. Real estate platform firms like Zillow and Opendoor Technologies Inc are in the house-flipping business too. And then you must account for the many individual real estate investors out there who inspire the various house-flipping shows on home and garden channels.”

“This means it’s difficult to know how much of the housing market demand is from ‘real homebuyers’ and how much is from investors. It’s also difficult to find a similar time in history for comparison to determine if the current investing and building trends are sustainable.”

Fox 10 Phoenix in Arizona. “There has been a bit of a jolt to the real estate market, as Zillow announced it is halting its home buying program, called Zillow Offers, in Phoenix and other cities. ‘Zillow’s inventory has grown 1,000% since last year in Phoenix. Just in Phoenix,’ said Tina Tamboer, a Senior Analyst with The Cromford Report. ‘When they purchase a home, they have to sell it right away,’ said Tamboer. ‘Sometimes, you have to wait for that inventory to dissipate.'”

The Boston Globe. “The Greater Boston Association of Realtors, which tracks activity in 64 cities and towns in Eastern Massachusetts. It said the typical single-family home sold for $750,000 in September, a record for the month and up 10 percent from September 2020, but down 4 percent from August and the lowest median price in six months. That plateau comes as sales volume slows, particularly for single-family homes, which fell 13 percent from the same time last year, even as listings trended upward at the start of the traditionally busier fall season.”

“‘There’s definitely a more relaxed feel, and slower pace to this fall’s market,’ said GBAR’s president, Dino Confalone. ‘We are seeing less urgency among buyers, especially where inventory levels have improved steadily since the end of August. Others seem to be pumping the brakes so as not to overextend themselves financially.'”

The Watauga Democrat in North Carolina. “High Country MLS President Shy Fecteau said that ‘while inventory levels may be lower compared to this time last year, the good news for buyers is that there are plenty of new listings coming on the market every week.'”

The Dallas Morning News in Texas. “Like many other experts in the real estate industry, Najat Murillo with Fathom Realty is seeing that the Dallas-area housing market may be showing signs of slowing in this hot sellers’ market. ‘Many homes are still receiving multiple offers, but not quite as many as we’ve seen in the last several months,’ she said. ‘Buyers are growing tired of the bidding wars and some can no longer afford the increased prices,’ she said.”

From Eastsider LA in California. “Here are some examples, followed by a breakdown by neighborhood, of recent price cuts on homes, condos, apartments and other Eastside properties. How Low Will They Go? $25k slice on Silver Lake condo; $100k chop on Montecito Heights 4-bedroom; $86k cut on Los Feliz Traditional.”

The Sacramento Bee in California. “‘We are of course seeing some seasonal slowing, which is a good thing because we don’t want a repeat of the market last year when prices basically kept rising throughout the fall. That sort of growth is not sustainable,’ said Ryan Lundquist, a certified residential appraiser and housing market analyst. ‘In short, we are starting to see the typical signs we’d expect for this time of year with prices softening, it’s taking slightly longer to sell, and there aren’t as many bidding wars.'”

“In 2019, little more than half of all homes for sale in the Sacramento region sold at listing price. Now, only 26% of homes are selling at list price; the vast majority are selling for 5 to 10% over asking price. Price per square foot also dropped from $330 to $320 between August and September.”

The Geogian Straight in Canada. “The biggest penthouse in downtown Vancouver has a new owner, finally. The two-level apartment at the Emeral West condo tower sold after 85 days on the market following its last listing. The five-bedroom and nine-bath luxury digs went for $9,250,000. Tracking by real-estate site Zealty.ca shows that 3101-717 Jervis Street was marketed for a way higher price more than three years ago.”

“The 9,186-square-foot penthouse was listed on August 7, 2018 for $20.5 million. The property did not sell, and the listing expired on January 2, 2019 with a lower price of $17,888,000. A new listing was made on January 28, 2019, and the price was reduced to $16.5 million. The listing expired on July 1 during the same year. The penthouse returned to the market on May 19, 2021, with a lower price of $14 million. The listing was terminated on July 20.”

“On the same day, the property was listed again, this time with an even lower price of $11,999,900. Zealty tracking indicates that the condo sold on October 13 for $9,250,000, which is 22.9 percent less than the last list price. Compared to its previous price of $20.5 million, the sold price was nearly 55 percent lower.”

The West Australian. “While property prices are largely reported to be on the rise throughout Perth and wider Western Australia, REIWA data for the 2021 financial year has revealed not all suburbs have been so lucky. Star performers over the 12-month period included Ascot and Henley Brook, where the median price leapt more than 40 per cent and 50 per cent respectively, while on the opposite end of the spectrum, Herne Hill (-28.8 per cent) and Forrestdale (-28.3 per cent) saw the biggest median price drops. Peppermint Grove was another well-established inner-city suburb that saw a decrease in price (10 per cent).”

Two reports from Bloomberg on China. “New-home prices fell in September for the first time since April 2015 data showed Wednesday. Sinic Holdings Group Co. became the latest developer to default, while Kaisa Group Holdings Ltd. cancelled meetings with some investors this week.”

“‘Now the priority is to prevent a state of panic,’ said Yan Yuejin, research director at Shanghai-based E-house China Research and Development Institute. ‘The home market has clearly entered a downward cycle.’ About three-quarters of cities saw second-hand home values fall from a month earlier. A price war is set to intensify in the coming months as landlords in wait-and-see mode surrender to the cooling trend, Yan said.”

“The drop in confidence has affected people like Carl, a property investment consultant in eastern Hangzhou. He says the number of prospective clients tumbled around 90% last month from the second quarter. ‘Business is so light,’ Carl said, asking not to give his full name while talking about government policy. One customer ‘became less and less interested each time we called him, and later on he wouldn’t even pick up our calls.'”

“Any recovery will be difficult until home values resume rising. ‘If property prices stop growing, we won’t buy,’ said Jack, a tech worker in Shenzhen who didn’t want to be identified by his surname for fear of reprisals from his company. ‘Right now, I’ll sit and watch.'”

The Vision Times. “Many Chinese provinces are witnessing a decline in housing prices, something that has happened for the first time in six years. Out of the 31 provincial-level divisions, 16 recorded a fall in housing prices in August. This includes cities that are directly administered by the central government. Prices are at their lowest since March 2015, according to official data.”

“However, official figures may not reflect the reality of the situation. In an attempt to quickly get their hands on cash, real estate developers are in a rush to dispose of assets and are offering steep discounts. Developers like China Evergrande are selling properties for half the original price.”

“The decline in property prices could also be a trend that is here to stay. Logan Wright, director of China market research at the Rhodium Group, said that the Chinese property market is ‘fundamentally imbalanced’ due to ‘too much housing’ and ‘too little demand among owner-occupiers.’ He believes that household formation rates peaked between 2013 and 2015; that’s when China’s working population started declining.”

“However, developers continued pumping out more projects. In 2019, developers started construction of 18 to 19 million units. When finished, there might not be enough people to buy these apartments; prices could drop even more.”

Related Posts

Homebuilders Are Driving The Decline In Prices

https://www.youtube.com/watch?v=v84MJhgqqko https://www.youtube.com/watch?v=Cw1drsM5KNI https://www.youtube.com/watch?v=DN-tUXAhNvw https://www.youtube.com/watch?v=T-KulROwUC0 https://www.youtube.com/watch?v=KnZBTPRbSYM https://www.youtube.com/watch?v=VCPT-F3V_rU

Sell Or Bust

https://www.youtube.com/watch?v=an1kfEeUzCc https://www.youtube.com/watch?v=PjmD6hXeCG4 https://www.youtube.com/watch?v=AclLxPokYjk

This Post Has 99 Comments

  2. ‘If property prices stop growing, we won’t buy’

    Jack here just put his finger on why all bubble pop.

      1. ‘One customer ‘became less and less interested each time we called him, and later on he wouldn’t even pick up our calls’

        Carl (a common name in China I’m sure), you just have to borrow yer buddies phone and he won’t see it’s you calling – again.

    2. “Large airlines are federal contractors…”

      Most airline routes are subsidized by the federal government, so indirectly they are able to force their will upon them. Same goes for college students receiving federal grants, etc., so unless you are completely independent it’s their way or the highway.

  4. And some argue that more concerning trends could be on the way.

    Seeing housing bubbles burst and speculators getting schlonged doesn’t concern me in the least.

  5. “It’s not just regular working people buying homes; many homebuyers are actually professional investors and speculators.

    Die, speculator scum.

  6. ‘The stock of housing under construction increased 1.3% to a rate of 1,426 million units last month, the highest since February 1974’

    We recently saw 1.5 million used shacks come on the market in 17 weeks. The wheels are coming off this baloney quick.

    ‘It’s not just regular working people buying homes; many homebuyers are actually professional investors and speculators. In August 2021, The Wall Street Journal reported that private equity firms like BlackRock, Inc. were buying up residential properties by the neighborhood and even well-above market prices. Additionally, REITs like Invitation Homes Inc and American Homes 4 Rent are in the homebuying space. Real estate platform firms like Zillow and Opendoor Technologies Inc are in the house-flipping business too. And then you must account for the many individual real estate investors out there who inspire the various house-flipping shows on home and garden channels’

    ‘This means it’s difficult to know how much of the housing market demand is from ‘real homebuyers’ and how much is from investors’

    Like comedians, everybody’s a flipper. What happens when buyer who are purposefully overpaying turn into sellers?

    ‘Gnomes’ satirizes the common complaint that large corporations lack consciences and drive seemingly wholesome smaller independent companies out of business. ..The episode is also known for the nonsensical business plan that the gnomes of the title devise (whose three steps consist of “Collect underpants”, “?”, “Profit”), which later became a common meme used to mock poorly-thought-out business and political strategies’

    https://en.wikipedia.org/wiki/Gnomes_(South_Park)

      1. So much private equity has been investing in SFR’s since 2013ish. There’s a lot of room between Blackrock and individual investors that this article doesn’t mention. I came across two firms recently here in North Texas. They have each accumulated 100’s of sfr’s over the past 7-8 years and have no intention to liquidate. Any correction will simply be a buying opportunity for them.

        One of the outfits is working with a local school district to get youngsters involved in the trades, plumbing, HVAC, etc. using their inventory as training grounds.

        1. “…etc. using their inventory as training grounds….”

          Surely someone’s spreadsheet lit up when they saw free labor.

          (Probably illegal, but that’s a whole other discussion)

          What could possibly go wrong with such a business model?

          1. Ha! Yes, I was suspicious as well but they are pretty above board. Actually hire their own master licensed tradesman @ six figures plus salary to work with high school kids in the Career and Technical Education program in conjunction with school districts. Kids then move into apprenticeship positions upon graduation.

            Sure, the equity fund gets work done on their properties, but they are also footing the bill for the instructor/licensed tradesman and other costs.

            Some people still possess altruistic intent.

  7. ‘Now the priority is to prevent a state of panic’

    You know Yan, I’m just not feeling the panic. I’m sympathetic of course (cough). But I have to admit it seems kinda funny to me.

    ‘A price war is set to intensify in the coming months as landlords in wait-and-see mode surrender to the cooling trend’

    Sounds like a good time to panic.

    1. Sounds like a good time to panic.
      Isn’t the saying something to the effect: “He who panics first panics best.”

  8. ‘Zillow’s inventory has grown 1,000% since last year in Phoenix. Just in Phoenix’

    Tina might want to dust off that resume.

    ‘When they purchase a home, they have to sell it right away…sometimes, you have to wait for that inventory to dissipate’

    If you mean evaporate, that shouldn’t be a problem in Phoenix. Do those old 50’s shacks evaporate Tina?

  9. ‘a good thing because we don’t want a repeat of the market last year when prices basically kept rising throughout the fall. That sort of growth is not sustainable’

    Ryan also points out a problem with bubbles. It can’t continue indefinitely. But if it stops, going up, why borrow? These shack hoarders are borrowing too. That’s why they and the idiots lending to them are fooked.

    1. Ryan also points out a problem with bubbles. It can’t continue indefinitely.

      Has anybody noticed the e-tulips bubble going on right now? Just WOW.

    1. Cuckerberg and Jack Douchey should be publicly executed at the same time – stripped naked and publicly flogged and ridiculed before being drawn and quartered.

  11. “The stock of housing under construction increased 1.3% to a rate of 1,426 million units last month, the highest since February 1974.”

    And meanwhile the population shrinks. What’s up with that?

    1. October 12, 2021
      U.S. household growth over last decade was the lowest ever recorded
      By Richard Fry, Jeffrey S. Passel and D’Vera Cohn

      Growth in the number of U.S. households during the 2010s slowed to its lowest pace in history, according to a Pew Research Center analysis of newly released 2020 census data.
      [A line graph showing that the 2010s had the slowest percentage growth in households in at least 160 years]

      The 2020 census counted 126.8 million occupied households, representing 9% growth over the 116.7 million households counted in the 2010 census. That single-digit growth was more anemic than the prior record low percentage growth of households (11%) during the previous decade, as shown in the 2010 census. The decennial census has counted the number of U.S. households on a consistent basis dating back to 1850.

      From 2010 to 2020, the number of households increased by 10.1 million – fewer than in any decade from 1950 to 2010. For example, in the 1970s, when the adult population was much smaller, the U.S. added 16.9 million households.

      The subpar growth in households over the last decade matters because household formation has implications for the broader economy. It can impact the demand for housing and stimulate both single family and multifamily construction.
      …

      3. “…The subpar growth in households over the last decade matters because household formation has implications for the broader economy…”

        Very interesting observation.

        I have often wondered if there is a chart that plots existing home sq ft / person.

        My parents / grandparents lived a good middle class life in small homes, not todays mega-mansions.

        The REIConplex will have you believe that now you need to live in a 4000 ft/sq monster.

        2. My wife and two siblings have been well served in our 1550-sqft 3/2 spec house that was paid-off before they started college.

      4. They are flying their replacements in under the cover of darkness – filthy dirty 3rd world eaters with no skills who don’t even speak the language.

  12. This is the part where the globalists and their Democrat-Bolshevik Quislings call those who prudently prepare for the soaring inflation and supply chain breakdowns yet to come under this malevolent, incompetent sh*t-show of an administration “hoarders” and “threats to national security.”

    ‘People Are Hoarding’: Food Shortages Are The Next Supply-Chain Crunch

    https://finance.yahoo.com/news/people-hoarding-food-shortages-next-120000053.html

    (Bloomberg) — In Denver, public-school children are facing shortages of milk. In Chicago, a local market is running short of canned goods and boxed items.

    But there’s plenty of food. There just isn’t always enough processing and transportation capacity to meet rising demand as the economy revs up.

    2. It’s all super lazy journalism. 60 minutes, a browser pointed at Zillow with the “zillow-owned” checkbox checked, and an Excel spreadsheet with 25 zipcodes at random, and anyone can see Zillow is bleeding on absolutely everything and this “pause” is a lie.

      In fact, point me to a SINGLE LISTING in the US that is above their purchase price…

    3. I’m sure Zillow’s CEO and all the executives exercised all their options when the stock hit $200. Now they’re short and are trying to drive it down to $20.

      1. “Back in February, Zillow’s stock was trading at an all-time high of $212. On Monday, it finished the day perilously close to its 52-week low, closing at $85.46. The fairly steady eight-month decline comes despite a red-hot U.S. housing market. And that’s making some investors nervous.”

        Looks like you nailed it. And to fool the outsiders, Zillow kept buying.

    4. The music stopped. Zillow is best equipped to see first signs of bubble popping. Look through their owned listings and many were bought between July and September. Most had a significant rate reduction last Friday across the board. Many an additional 5% discount. Every one of them at a loss. Some $10,000 below purchase price to others that are as much as $100,000 plus below Zillow’s purchase price. Someone picked up the phone and screamed “get out the house now!”

      1. I see that one of them was bought for $1,012,000 in mid August. Went through clean up, new paint, floors, stove. Went back on market at $1,027,000 Sept 6. Followed by 4.6% price cut Sept 17 and another 4.1% cut Oct 1. Yours now for $940,000. Didn’t have any issue getting this dog fixed up, due to supply issues and labor. So why the discount. Somebody in Zillow land be lyin’ about why they’re no longer buying. Anyone holding stock going into earnings will be taking a hatchet to their portfolio.

  15. “ From Market Watch. “Zillow’s unexpected announcement this week that it’s putting a temporary stop to its home-buying activities raised many analysts’ eyebrows. ”

    Nobody could have seen it coming.

  16. “This means it’s difficult to know how much of the housing market demand is from ‘real homebuyers’ and how much is from investors. It’s also difficult to find a similar time in history for comparison to determine if the current investing and building trends are sustainable.”

    eBuyers = dumb, debt-funded gamblers

  17. Burglary on one of our jobsites last night. The tweaker got over $1,000 of tools from one of the framers. Nothing of mine missing. This is Jefferson County in the northwest Denver suburbs.

    This is the “fundamental transformation” that you were promised.

    3. Theyre getting creative in Boston. Back in the spring they burned a hole in the end of a conex and emptied it. I set them up so the camera was pointed at the barn doors not thinking they’d actually hot torch a hole on the other end.

  18. “Housing is for living, not for speculation.”

    What a great slogan! Which American politicians are in agreement with this simple wisdom on the purpose of housing?

  19. ” … which is a good thing … see typical signs .. .
    said Ryan Lundquist, a certified residential appraiser and housing market analyst”

    good ‘ol Ryan; whistling past the penthouse

    1. Saw him on YT last night, setting up the conversation like they all do. Despite the context of values popping up 20% in the past year, anyone who now predicts a decline, let alone a decline in excess of a “correction” of, you know, 3%, is the craziest person in the world.

      1. I’ve been in apartments for a long time now, so that coupled with mostly bad memories from the 10 years I was a loan owner I often experience a physical revulsion when I do browse listings. The ludicrous prices are part of it, but not all. Maybe not even most. Depressing is right.

      2. “The bottom one is hideously depressing.”

        It could be a prop for an Arthur Miller tragedy, “The Blue Pill.”

    2. Homes out west always seem like dungeons to me. Small windows, vast expanses of dry wall, dark rooms, little natural light. I get it is the desert and always hot but it’s like living in a basement. No thank you.

  22. You have not asked one question about Donald Trump being a racist, his part in the January 6 insurrection or what flavor ice-cream I like. You need to ask better questions, this interview is over!

    Terry McAuliffe abruptly ends interview, tells local Virginia reporter, ‘You should’ve asked better questions’

    By Joseph A. Wulfsohn | Fox News
    Published 15 hours ago

    Democratic gubernatorial candidate Terry McAuliffe cut his interview short with a local Virginia TV station and scolded the reporter for not asking “better questions.”

    During the interview with McAuliffe, Minock began by pressing him on his controversial remarks at last month’s gubernatorial debate where he said, “I don’t think parents should be telling schools what they should teach.”

    “So are you saying parents shouldn’t have a voice in their kids’ education?” Minock asked.

    https://www.foxnews.com/media/terry-mcauliffe-abruptly-ends-interview

    1. Terry McAuliffe abruptly ends interview, tells local Virginia reporter, ‘You should’ve asked better questions’

      By Joseph A. Wulfsohn | Fox News
      Published 15 hours ago

      “Sure, parents should have a voice. And parents do have a voice,” McAuliffe responded, before pointing to his record as governor of eliminating standards of learning exams parents had complained about, listing campaign promises on improving education in Virginia and attempting to tie Youngkin to former President Trump an

      “So did you misspeak during that debate?” Minock followed.

      “No!” McAuliffe quickly responded. “I was talking about what we need to do, bringing people together. We have the state boards, we have the board of education and we have the local school boards who are all involved in this process. But the issue is how do we deliver a world class education.”

      Minock asked McAuliffe if his administration would “issue mandates” telling schools what and how they should teach, to which McAuliffe punted to the state board to decide before attacking Youngkin for using a “racist dog whistle” responding to the Republican’s call to ban critical race theory.

      “He’s talking about issues that don’t even exist in Virginia and we’ve got to move past that,” McAuliffe said.

      Minock then inquired whether McAuliffe agreed with the memo from the Biden DOJ suggesting future involvement in cases between parents and school boards. McAuliffe dismissed concerns, saying the DOJ will “make their own decisions.”

      The reporter moved on to grill McAuliffe’s record on crime and how much he would invest in public safety. Shortly after, a McAuliffe staffer can be heard interrupting off-screen attempting to wrap up the interview.

      Minock went on to ask the Democrat about his support for vaccine mandates for state employees as well as for children in schools.

      “All right, Nick. We are already over time,” the McAuliffe aide told the reporter.

      “All right, we are over. That’s it. That’s it,” McAuliffe said as he stood up from the chair and began walking off camera. “Hey, I gave you extra time. C’mon man.”

      “You should have asked better questions early on. You should have asked questions your viewers care about,” McAuliffe added.

      “Well, we did,” Minock responded.

  23. $625,000 4 bd 3ba 2,621 sqft
    608 Country Club Dr, Kingman, AZ 86401

    https://www.zillow.com/homedetails/608-Country-Club-Dr-Kingman-AZ-86401/64952493_zpid/

    10/19/2021 Price change $625,000 (-10.1%) $238/sqft
    9/4/2021 Price change $695,000 (-9.7%) $265/sqft
    7/31/2021 Price change $770,000 (-4.9%) $294/sqft
    7/17/2021 Price change $810,000 (-1.8%) $309/sqft
    6/27/2021 Listed for sale $825,000 (+1550%) $315/sqft
    11/1/2002 Sold $50,000 $19/sqft

    Ge·ron·i·mo
    /jəˈränəˌmō/

    exclamation
    – used to express exhilaration, especially when leaping from a great height or moving at a high speed.

  25. “Developers like China Evergrande are selling properties for half the original price”

    Wow! Half off on a property that will never get build. Where do I sign?

    1. The Financial Times
      Evergrande Real Estate Group
      Evergrande’s plan to sell property services division collapses
      Chinese real estate developer applies for trading in its shares to resume days before a key debt deadline
      The company logo on the headquarters of China Evergrande Group in Shenzhen, China
      The escalating crisis has led Evergrande to miss a series of interest payments to international bondholders
      © REUTERS
      Thomas Hale 4 hours ago

      Chinese real estate developer Evergrande said a potential sale of its property services unit had collapsed, deepening the pressure on the group that has just days to avoid an official default on its debt.

      A deal to sell 50.1 per cent of Evergrande Property Services Group to fellow developer Hopson Development Holdings for HK$20bn ($2.6bn) had been terminated last week, the group said in filings late on Wednesday.

      Evergrande, the world’s most indebted property developer with more than $300bn in liabilities, has been engulfed in a liquidity crisis that has prompted global concern over the deteriorating health of China’s vast real estate sector.

      Shares in the group and its property services unit, which is also listed in Hong Kong, have been halted for much of October since Evergrande disclosed the possible sale of the division. It has applied for trading in its shares to resume on Thursday, it added in the filings.

      The escalating crisis has led Evergrande to miss a series of interest payments to international bondholders. The initial missed payment on September 23 triggered a 30-day grace period, which ends this weekend, before a formal default is declared. Evergrande has rushed to sell assets but many expect it to require one of the largest restructurings in Chinese corporate history.

      In one of two filings on Wednesday, Evergrande said that other than a sale of a stake in a regional bank in China, “there has been no material progress on sale of assets of the group”.

      The developer also broke its silence on the missed interest payments, stating that grace periods had “not yet expired”. Its silence, along with the suspension in trading of its shares, has led to criticism of the protections afforded shareholders on Hong Kong’s stock exchange.

      Advisers to bondholders earlier in the month said on a call that they had received no “meaningful engagement” from the company since reaching out to it in mid-September, and expressed concerns over the mooted sale of the services unit as well as the bank stake.
      …

      1. Reading between the lines of this story, it seems like someone on Wall Street is getting stiffed. But it’s hard to squeeze blood from a rock.

      2. “…many expect it to require one of the largest restructurings in Chinese corporate history.”

        Who would fund this, and how?
        Issuance of Chinese high yield bonds, perhaps?

        At any rate, there’s no cause for concern. It’s turtles all the way down.

        1. The Financial Times
          Evergrande Real Estate Group
          Evergrande shares tumble after sale of services unit collapses
          Chinese developer resumes trading after 2-week suspension as debt repayment deadline looms
          The Vertex residential project developed by China Evergrande in the Cheung Sha Wan area of Hong Kong
          Shares in Evergrande and its property services subsidiary were frozen for a fortnight pending a possible deal, which the developer revealed on Wednesday had fallen through
          © Lam Yik/Bloomberg
          Hudson Lockett and Thomas Hale in Hong Kong 2 hours ago

          Shares in China Evergrande fell sharply as the company’s stock resumed trading on Thursday after the Chinese real estate developer disclosed that a plan to sell its property services division had collapsed.

          Evergrande’s Hong Kong-listed stock fell as much as 13.6 per cent after the end of the two-week suspension while shares of affiliate, Evergrande Property Services, which were also frozen during the same period, dropped as much as 10.2 per cent.

          Evergrande had halted trading in its shares and those of its property services unit on October 4. Evergrande Property Services advised in an exchange filing at the time that it was expecting a “possible general offer” for its shares.

          During the share suspension, Evergrande, the world’s most indebted property developer, did not comment on the outlook for the transaction, or on five missed payments to international bondholders totalling $275m.

          The developer broke its silence late on Wednesday, revealing that a deal to sell 50.1 per cent of the property services division to Hopson Development Holdings for HK$20bn ($2.6bn) had been terminated last week.

          The company’s shares pared early losses to be down about 7.5 per cent in morning trading on Thursday. Its stock price has dropped more than 80 per cent this year, representing a loss of more than $190bn in market capitalisation.

          Evergrande, which faces liabilities of more than $300bn, has struggled to deal with a liquidity crisis that has spurred concerns over the health of China’s real estate industry.

          The disclosure and request to resume trading came on the same day that the Financial Times revealed Evergrande’s stock suspension had helped push the value of Hong Kong-listed stocks under a trading halt to a record high of more than $61bn, raising investor concerns about corporate governance on the exchange.

          Evergrande also addressed its string of missed payments, the first of which on September 23 triggered a 30-day grace period that expires on Saturday.

          Evergrande said on Wednesday that the grace period had “not yet expired” and that other than the sale of a stake in a regional Chinese lender, “there has been no material progress on the sale of assets of the group”.
          …

  28. Suspect Who Raped Woman On Train While Passengers Filmed Was Homeless Illegal Immigrant Feds Failed To Deport

    By Kelen McBreen | INFOWARS.COM Wednesday, October 20, 2021

    Police say the illegal immigrant pestered the lady for 30 minutes before ripping her pants off and molesting her for up to six minutes while at least 10 bystanders did nothing.

    The train made 27 stops in the time Ngoy assaulted the woman, and Upper Darby Police Superintendent Timothy Bernhardt said those who recorded the rape and didn’t interfere could face criminal charges.

    After being arrested and charged for the sexual assault, police revealed Ngoy had been through “multiple arrests and two misdemeanor convictions, one for controlled substances and one for sexual abuse.”

    Transit Police responded to the call within three minutes and arrested Ngoy.

    The attacker is currently being held at the Delaware County Prison with bail set at $180,000, according to court records.

    Ngoy came to the U.S. legally in 2012 on a student visa that expired in 2015 when he stopped going to school.

    In 2017, Ngoy was sentenced to 120 days in prison and nine months of probation after pleading guilty to misdemeanor sexual abuse.

    In January of 2018, the sexual predator was put in immigration detention, but in March of 2019, an immigration judge issued a “withholding of removal” after ruling his misdemeanor sex offense was not a “serious crime” worth deportation.

    https://www.newswars.com/suspect-who-raped-woman-on-train-while-passengers-filmed-was-homeless-illegal-immigrant-feds-failed-to-deport/

  29. I double-dog dare you to try to make this mandatory, globalist Quislings.

    White House releases plans to vaccinate 28 million kids aged 5-11 against Covid using smaller needles: Children could be fully vaccinated with double Pfizer shot before Christmas

    https://www.dailymail.co.uk/health/article-10111693/White-House-details-plans-vaccinate-28M-children-age-5-11.html

    The White House released its plans on Wednesday for vaccinating 28 million children between ages five and 11 against COVID-19.

    In the next few weeks, the U.S. Food and Drug Administration (FDA) is expected to decide whether or not to authorize Pfizer-BioNTech’s vaccine in younger kids in the next few weeks, meaning children could be fully vaccinated by Christmas.

    1. It’s going beyond #ClownWorld here now.

      Happy *19 MONTH* Anniversary of “Fifteen days to flatten the curve”

      Are you even listening, slave? peasant? Put your mask on, and go serve wine to the “sophisticated” guests at King Obama’s *SUPERSREADER* birthday party. These people want all of you dead. Your existence is an inconvenience to them.

      It’s the Progressive Way.

      2. I’ve had COVID but I have to have a negative COVID test to attend a meeting next week as a volunteer. Do I get to call the person who asks for my papers a good Brownshirt and ask s/he how the “following orders” excuse faired at the Nuremburg Trials?

        In other news, our school district just created an Equity Advisory Committee.

        1. In the rare event someone demand to take my temperature or ask if I’ve been vaccinated, I tell them “I have gonorrea, sphyllis and HIV do you think I’ll be ok?”

          It stops them dead in their track to the point of being speechless.

  30. It’s mind-boggling that anyone would put a registered Democrat in a national security position requiring a security clearance, much less when they or their spouse manifest an incurable mental illness like Trump Derangement Syndrome (TDS).

    Nuclear engineer and wife plead not guilty to trying to sell Navy secrets to a foreign government: Trash bag of shredded documents, thousands of dollars in cash, latex gloves and a ‘go-bag’ were found at their home, FBI agent reveals in court

    https://www.dailymail.co.uk/news/article-10113239/Cash-shredded-documents-couples-home-spy-case.html

    The FBI found a trash bag of shredded documents, thousands of dollars in cash, latex gloves and a ‘go-bag’ when they searched the home of a Maryland couple accused of trying to sell information about nuclear-powered submarines to a foreign country, an agent testified on Wednesday.

    Jonathan Toebbe, a Navy nuclear engineer, and his wife, Diana, were arrested this month on espionage charges. The couple pleaded not guilty in federal court in West Virginia.

  32. Does it seem like the Evergrande implosion is playing out similarly to how the Lehman Brothers collapse did in 2008, but with more limited international financial impacts?

    1. The Financial Times
      Opinion Lex
      Evergrande: failed asset sales bring formal default closer
      A deeper property slowdown could help margins of other sectors hit by surging raw material prices
      Signage on the China Evergrande Centre in Hong Kong
      Chinese property developer Evergrande has been trying to sell a majority stake in its property management division
      © AFP via Getty Images
      24 minutes ago

      You know things are bad when a company resorts to fire sales but even rock bottom prices do not attract buyers. Evergrande, the world’s most-indebted property developer, is running out of time. The grace period on its first batch of unpaid offshore bonds ends this week. A formal default would hurt the property sector and help some others.

      The Chinese property developer has been trying to sell a majority stake in its property management division. The expected proceeds of $2.6bn are badly needed. Missed debt payments are piling up.

      But the sale of shares in Evergrande Property Services has fallen through. Government officials brokering the deal were unable to calm buyer nerves. Evergrande is also reported to have failed to find a purchaser for its Hong Kong headquarters.

      Shares in the group fell 13 per cent to HK$2.58 ($0.33) on Thursday as trading resumed after a three-week halt.

      Contracted property sales for the month to Wednesday dropped 97 per cent. Shares in an electric car unit are down 90 per cent this year. Evergrande is inching towards a formal default.
      …

      1. It seems like a cascading wave of defaults in the Chinese housing sector, accompanied by a cessation of wasteful construction activities to build millions of empty, unused, highrise investment housing units, could help reduce the cost of construction materials for the rest of the world. Housing could once again become affordable for people who just need a place to live instead of a Ponzi asset.

        I foresee a win-win eventually emerging from the rubble of the Chinese housing bubble collapse.

      2. “Contracted property sales for the month to Wednesday dropped 97 per cent.”

        It died in the arse.

      3. “The expected proceeds of $2.6bn are badly needed.”

        That seems like a drop in the bucket for a $300 billion company. You can’t treat a gunshot wound with a bandage.

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