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Investors Are Starting To Count Their Losses

A report from Mediafeed. “One longstanding guideline for property investors that has been the subject of countless articles is ‘the 1 percent rule in real estate.’ The 1 percent rule is a formula that says the monthly rental should equal at least 1 percent of the total cost of an investment property to return a positive cash flow. As an example, the median home price for a single-family home in Austin in 2019 was $335,095. For that price, an investor would have to charge about $3,350 in rent to meet the 1 percent rule. But the median rent at that moment was about $1,550, so the investor following the 1 percent rule would have looked elsewhere.”

“The median home price in the Texas capital, as of September 2021, was a whopping $536,000, so that hypothetical investor would have missed out on a 60 percent appreciation. Even factoring in two years in which the investor accepted the median $1,150 in rent rather than the $3,350 required to pass the test, that’s a loss of $52,800, against a home appreciation of $200,905. ‘People are paying a premium for future value in markets like Charlotte or Atlanta,’ says Thomas Stepp, Mynd Management’s director of investment services.”

From Washington Monthly. “Loudoun County, Virginia, outside Washington, D.C., is notable for possibly being the McMansion headquarters of America—at least insofar as it has managed to sustain itself over time. When the 2008 crash descended on America, other developments across the country were abandoned like Machu Picchu, their pools filling with algae and mosquito larvae, or turning into crime-ridden hellholes like Victorville, California.”

“The country is now emerging from another deep recession, albeit with a twist. Thanks to the dubious economic ‘innovations’ that have structurally changed the economy, income inequality has accelerated, and one sees it in the booming real estate market. The modus operandi is always the same: Take a totally usable older house that is the same style and size as neighboring dwellings, though perhaps needing a rehab, and knock it flat, along with every mature tree on the property—there will be no room for them, owing to the enormous footprint of the planned structure. Then construct a particle-board chateau that has at least 75 percent more square footage than the neighbors, complete with a quarter-acre driveway for the obligatory Range Rover.”

“One by one, relatively affordable houses—and I emphasize relatively, in today’s market—are being systematically erased and substituted with houses costing twice as much. All of this is rationalized by the fact that land prices in cities and inner suburbs are considered too high to economically justify building smaller houses on the same lots. This is correct as far as it goes, but it is a symptom of a larger problem. Land prices are high because FIRE interests (finance, insurance, and real estate) want them that way as they ceaselessly work to pump up demand.”

From Fox Business. “‘It’s not so easy to raise interest rates to fight inflation when public and private data is high, when the stock market is high, when housing prices are high, when the economy is still weak,’ Harvard University professor Kenneth Rogoff explained. He also pointed out that the Fed hasn’t ‘tried to raise interest rates to stop inflation really for almost 30 years now. It’s not clear how it’s going to work,’ he added.”

From Yahoo Finance. “BMO senior economist Robert Kavcic says 2021 was the year Canadian real estate ‘became unhinged.’ He expects the Bank of Canada will act in 2022. ‘Expectations and investor appetite took over Canadian housing in 2021. We know it, and policymakers now know it too,’ said Kavcic.”

The Daily Telegraph. “Rich Dad Poor Dad author Robert Kiyosaki has warned an economic crash worse than the 2008 recession is coming and Australia’s negative gearing policies are a form of ‘Marxism.’ ‘2008 was the first big crash and a bigger crash is coming,’ he said, explaining that, like in 2008, world governments were printing too much money.”

“Mr Kiyosaki has dabbled in Australian real estate, including purchases in Sydney and Brisbane, and said he took issue with some local government policies around taxes. This included negative gearing. ‘My concern is that … with negative gearing it’s monetising debt and property values are overinflated … it’s not real. It’s got to make economic sense.'”

From Radio New Zealand. “The housing market appears to be hitting the pause button after a period of rapid growth. Kiwibank senior economist Jeremy Couchman said ‘cracks are certainly appearing’ in the market after nearly two years of record growth. ‘The dynamics of the market have certainly changed in the last few months. The number of new property listings is trending higher. And as the market fails to absorb new listings the total available supply for sale has begun rising off record low levels.'”

“Couchman ruled out a major housing market correction, instead forecasting the market would consolidate. ‘Looking at the past 30 years, meaningful corrections typically occur when credit conditions tighten rapidly and we have an unemployment rate rising fast. We certainly have tightening credit conditions and rising mortgage rates. Yet we see the labour market as a source of strength for households, not weakness.'”

“ASB Bank said the latest REINZ report ‘effectively confirmed’ the housing boom was over. Senior economist Mike Jones said the data validated forecasts of a sharp pull-back in housing demand in response to higher interest rates and tighter lending standards.”

From Bloomberg. “Investors who injected about US$20 billion into China Evergrande Group’s main operating unit five years ago are starting to count their losses amid the company’s slide into default and restructuring. Shenzhen Investment, an investment arm of the government of the south China city that is home to Evergrande’s headquarters, said in a stock exchange filing on Friday night that it likely fell into the red last year after recording a fair value loss of about HK$6 billion (US$770 million) on its holdings in Hengda Real Estate, the developer’s unit, ‘mainly due to the considerable drop in the share price of China Evergrande Group.'”

From Reuters. “China’s biggest homebuilder by sales, Country Garden, scooped up $10 million of its own bonds on Monday as the country’s ongoing property crisis sent them sprawling again. Last week was the worst on record for Country Garden’s bonds and fresh falls of up to 17 points on Monday left most of its international market debt at 25-35% below its face value.”

“Analysts cited reports that it had dropped plans to raise $300 million last week after debt market investors had shown insufficient appetite. ‘It just seems to be the fear factor playing out,’ said Seaport Global analyst Himanshu Porwal. ‘People are just marking things down as much as they can.'”

This Post Has 106 Comments
  1. ‘People are just marking things down as much as they can’

    Are we there yet?

    The Washington article is pretty interesting.

    1. “… land prices in cities and inner suburbs are considered too high to economically justify building smaller houses on the same lots. … Land prices are high because FIRE interests (finance, insurance, and real estate) want them that way as they ceaselessly work to pump up demand.”

      The author got a couple things wrong. Land prices are high, especially in Fairfax County, because white-collar industries came to Fairfax and Loudon counties, especially post 9/11. Lots of banking, finance, lobbyist HQ, defense contractors, IT and servers/data storage, and all the legal and management infrastructure that goes with. These are hi-power industries with hi-power salaries to match. So yeah, I guess it’s the FIRE industries, but it’s the highly-paid workers in those industries who are driving up the prices.

      The tear-down frenzy applies more to Fairfax County than to Loudon. Fairfax built their inner suburbs the old-fashioned way, on quarter acre lots with nice trees. But an executive wants a short commute, his wife loves to “entertain,” and his kids want Beemers on their sweet 16. None will tolerate that Cold War SFH with a single-lane driveway (😮🙄). Bring on the particle board chateaus! On the other hand, Loudon is so far out there’s nothing to tear down except cornstalks. Those McMs are new.

        1. I re-read the article. It sounds like a McMansion rant circa 2007, lamenting the McMansion. Oh, they’re ugly! They’re environmentally unfriendly! No working class families can afford them! Why can’t they just rehab the old house?

          Well, the answer is obvious. Business execs and pretend riche will have no part of a 1960s split-level, granite countertops or not. Entertain in a blue collar house? Sacre bleu!

          1. Well, there’s this: one of the common refrains about mcmansions last decade was the bigger the shack, the bigger the payoff they sold it.

          2. Agree, Ben. Resale value was a big reason behind all the teardowns in Fairfax county and the new builds in Loudon County. And it wasn’t limited to the pretend riche. I remember all those dock workers who drove until they qualified because the house was going to take care of their retirement.

        1. I have found Movoto to be very inaccurate. Compare there figures with, Redfin and Zillow. Fairfax has not plummeted 24%!

          1. I’ve been residential broker/agent for 23 years in NoVa. Prices have been slowly falling since last summer or early fall. It’s undeniable at this point. I say slowly but prices are 15 to 20 percent lower. Not sure if that’s truly slow.

      1. I live in a McMansion infill suburb in the Midwest. 50-75’ wide lots with a FAR ratio of .45. Developers can’t tear down trees and 3 car garages are banned no matter how big the lot and the attached garage must be set back 5’ from the front of the house. It’s still about seven figures for new construction infill McMansion. The ranch teardown was half obsolete with a small garage, janky hvac, romex wiring and little insulation. The land is expensive because the schools are good with close to zero free lunch kids, sidewalks on every street and a school with older lifer teachers who haven’t yet succumbed to woke. There’s a premium for this lifestyle and my community isn’t just letting anybody in. The McMansion house is just the style because it’s big and easier to live in. The developer are mostly Eastern European and that’s likely where the janky faux Europeans style comes from.

          1. ALWAYS research the % of free lunch kids at your neighborhood schools. That’s one of the best measurements this is for most but not all schools, urban magnets excluded. The two high schools in my area are just down the block from each other but have vastly different testing scores. One is half or more free lunch and it’s test scores are much much lower than the other that is only 3 or 4% free
            Lunch kids.

          2. A number of those free lunch kids also have lice, and the schools appear to be unable to impose strict measures on baby mamas to deal with the infestation. Good thing the desks are farther apart these days.

    2. This was pretty good, and accurate no doubt:

      “But if one earns one’s daily bread lobbying to increase the allowable amount of rodent hair in breakfast cereal, being detested by the neighbors might not be unduly troubling.”

      1. **”Please ignore those posts.
        He does it as a lark. 🙂 ”

        oh so NOWWWW you tell us . . . after all these years of following his advice I made a small fortune . . .
        starting with a large one!

          1. The lost a ton of money if they kept cash in the mattress, which was eaten by inflation. Or if they paid rent for 30 years and had nothing at the end of it.

          2. The[y] lost a ton of money

            The ideas of the gambler and wealth through debt devote are not at all my solution to the puzzle of government theft by currency debasement. You have your chips down, and a marker to back them up, May your projections extend to infinity and good luck.

            I haven’t “lost a ton”, haha. I am one of the lucky ones, because I don’t need much and have more than that and it is mine without debt.

            I got a nice check today from the art gallery. They are a little upset with me because I spent a significant amount of time fishing, and helping friends and visiting my family. I suppose I lost some money there alright, but not to my thinking.

    1. ‘a loss of $52,800, against a home appreciation of $200,905’

      This is actually funny. So Tom, if the previous person overpaid, what did this last hypothetical buyer do?

  2. Today is Tuesday, January 18th and Joe Biden is not the legitimately elected president of the United States, because the 2020 election was stolen.

    Can you name one thing, anything, that has improved in the United States, since this fraud was illegitimately installed into office a year ago?

  3. ‘It’s not so easy to raise interest rates to fight inflation when public and private data is high, when the stock market is high, when housing prices are high, when the economy is still weak’

    Again, the central bank used to say they didn’t control long term rates, just the overnight stuff. Behold, the moral hazard of idiot central bankers. It’s stupidity – unprecedented!

    ‘He also pointed out that the Fed hasn’t ‘tried to raise interest rates to stop inflation really for almost 30 years now. It’s not clear how it’s going to work’

    It’ll be fine Ken. Just put yer head between yer knees and kiss yer a$$ goodbye!

  4. Dems Hide HR1 In NASA Bill To Sneak Through Radical ‘Election Takeover’ Policies Ahead of Midterms

    by Jamie White
    January 17th 2022, 5:32 pm

    Rep. Kat Cammack (R-Fla.) sounded the alarm on Monday after voting against the NASA bill, warning that the disguised election reform bill will now head to the Senate for a final vote.

    “They took an old NASA bill and gutted it, and then tucked all of this egregious language into the NASA bill. It has nothing to do with NASA. We’re not giving voting rights to Martians. That tells you that they’re trying to hide something.”

    Cammack then explained that within the bill is a “mechanism to strip states rights to enforce voter ID laws.”

    “So that means you would not be required to show a voter ID to register to vote, or to actually vote,” she added.

    1. Fox news published an interview with Sen. Marsha Blackburn, where Sen. Blackburn said the Dems would employ “legislative trickery” to get those voting provisions through Congress. Fox News, in all their journalistic acumen, never asked the Senator for an example of legislative trickery.

      I had guessed that the Dem trickery was to hide this as a poison pill in a must-pass bill, such as the continuing resolution budget bill due in February. But they’re hiding it in a little NASA bill, where every member of the Congressional staff is sure to see it in advance and tip off their Congresscritter. I don’t think this will get far.

  5. ‘like in 2008, world governments were printing too much money’

    Check. Except it’s multiples of 2008.

    ‘My concern is that … with negative gearing it’s monetising debt and property values are overinflated … it’s not real. It’s got to make economic sense’

    I’m kinda agnostic on this fellow. But he does say things the REIC avoids like a 15 foot python.

    1. I’d love to see one quote from that clown back in 2005 or 2006 that talked about a bubble. IIRC he was blindsided by the real estate crash. I know he “guaranteed” an epic stock market crash would occur in 2016, and then again specifically in October 2021. 0 for 2 there. He also said Bitcoin is going to $1 million but he prefers gold and silver. So that means gold is going to $50,000. Ok.

      My former boss used to quote from Kiyosaki religiously back around 2004-05. Based on Kiyosaki’s teachings, he bought up a bunch of houses in Perris, CA (bumf___ Egypt) where the rents didn’t come close to covering PITI (like the other article you highlighted today), and that was with pretty significant down payments. Surprise surprise he lost everything, including the will to live unfortunately. He was not the only one who worshipped at the Kiyosaki altar and got wiped out.

      1. He’s still making the rounds of the financial yootoobs. Same schtick different day. The only interesting thing he said was that he had bought pallets and pallets of ammo and he was gradually selling it at a profit. I don’t have the exact video but it was on Kitco News.

  6. Gateway Pundit — Boston Cops Threaten, Harrass THE WRONG WOMAN Over Vax Card: ‘We Don’t Enforce Mandates, We Protect Rights’ (1/17/2022):

    “Imagine on Martin Luther King Day, brother, discriminating against other black people,” a woman recording the exchange laments. “You turn your back on your own people. You’re a Nazi.”

    As the officers continue to awkwardly surveil the women, they maintain they are doing their job.

    “That’s the problem! So, we’re the Nazis!” one of the women snaps back. “You decide what part of history you want to be on.“

    “They did the same shit to Rosa Parks, so, we’ll park our butts right on the bus,” another woman proclaims.

    “This is the second time today we have been denied service and had the police called on us because we won’t show our papers,” one of the women explained, adding, “Happy Martin Luther King Day.”

    1. I’m getting the sense these indoor vaccines mandates might be the trigger that makes the black community vote Republican in 2020 out of spite so they can get their life back and eat at a dang restaurant. Dems are way overplaying their hand this time. Blacks just want their life back.

  7. by Paul Joseph Watson
    January 18th 2022, 7:14 am

    Troops to battle against fictional ‘Pineland resistance movement’.

    “Called Robin Sage, the exercise serves as a final test for Special Forces Qualification Course training and it places candidates in a politically unstable country known as Pineland,” reports the Charlotte Observer.

    “These military members act as realistic opposing forces and guerrilla freedom fighters, also known as Pineland resistance movement,” said the the U.S. Army John F. Kennedy Special Warfare Center.

    Earlier this month, the Justice Department created a new “specialized unit focused on domestic terrorism” in response to an “elevated” threat from violent extremists in the United States.

    ABC News

    NEW: Citing “elevated threat from domestic violent extremists,” DOJ official announces creation of new domestic terrorism unit “to augment our existing approach.”

    1. January 6th is a JOKE.

      On this morning’s C-SPAN Washington Journal call in program, the opening segment asked Democrats only to call in, and some of them were complaining about people saying “Democrat Party” and not saying “Democratic Party.”

      Let’s make a distinction. Democratic Party = FDR, JFK, Social Security, Medicare.

      Democrat Party = open borders, trannies raping kids, highest inflation in 40 years, empty shelves, mass formation hysteria, and a prison society of unscientific medical tyranny.

      P.S. Let’s Go Brandon!

  8. Doctor’s license suspended after treating COVID with Ivermectin

    Snejana Farberov For – Yesterday 3:34 PM

    A medical board in Maine has suspended the license of an MIT-educated doctor and ordered a psychiatric evaluation after she was accused of treating some of her patients with Ivermectin and Hydroxychloroquine and spreading misinformation about COVID-19.

    The medical board has received at least two complaints that Nass was spreading misinformation about the virus on her blog and on Twitter.

      1. bet people will leave 90% of their stuff for the next owner or bank foreclosure most people dont have Ethan Allen Broyhill, or fancy imported woods from the Congo

    1. funded by nearly doubling the state’s already-high taxes

      Funny how expensive free healthcare is. We’ll soon be hearing stories about Californians leaving the state to get around the inevitable healthcare rationing that will come.

      And even after California’s healthcare system descends into utter disarray, the MSM will raise it as an example of what other states should do.

      1. Yup, illegals welcome. The disaster is already baked into the cake. I predict that healthcare in California will become such a clusterf**k that wealthier Californians and those who have Medicare will cross the state line to have procedures done.

      1. Who is this courageous single taxpayer?

        I’m sure that the legislation will specify that employers have to chip in and pay some of the taxes, which means that a lot of small businesses will fold.

        I do wonder if this is a tactic to get people to leave the state. Of course, it won’t be the free loaders who leave.

    2. “…funded by nearly doubling the state’s already-high taxes.”

      Gavin Newsom will bolshevize California given the opportunity, and don’t think for a moment that he isn’t eyeing the presidency.

    3. funded by nearly doubling the state’s already-high taxes.

      How much you want to bet they’re going to finagle most of this money from some federal “human infrastructure” spending bill?

      1. The infrastructure spending bill is a one-shot deal. The state will need steady funding to support single-payer health care.

  9. Thank you everyone for the condolences on my daughter’s loss of her baby. Maybe better than vaccine induced birth defects. Strange about my bad batch of vaccine. I got jabbed very late. May of 2020. I resisted for a long time. Had to give in or not get to be around other daughter’s new baby. By the time I was jabbed pretty much all seniors and people with comorbidities had been jabbed. My group was people in their 30’s, 40’s and younger. So they got the bad batch I did. Wonder what the plan was?

    1. It’s terrible to hear about your loss and I express my sincere sympathy to daughter and her family. RIP little one

  10. I got this from about a new auction shack in Doney Park near Flagstaff.

    3,762 Sq. Ft.

    E Neptune Dr
    Flagstaff, AZ 86004

    I couldn’t track down the exact address. But came across this new build:

    4 bd 2 ba 2,223 sqft
    9191 E Neptune Dr, Flagstaff, AZ 86004
    $826,400 Sold on 08/27/21

    These prices are completely insane. Doney Park is a sh$thole, a long way from jobs and groceries. It snows like the world is ending. I worked dozens of foreclosures out there last decade. Prices were not near this high in 2007, which was about when the wheels came off in the Flagstaff area.

    1. The house looks like it was designed by an 8th grader. It’s clear they are minimizing materials for maximum profit.

  11. “When the 2008 crash descended on America, other developments across the country were abandoned like Machu Picchu, their pools filling with algae and mosquito larvae, or turning into crime-ridden hellholes like Victorville, California.”

    Victorville was always a crime-ridden hellhole, but people overlooked that when prices were going up exponentially. To the detriment of their personal finances.

    1. but people overlooked that when prices were going up exponentially

      Funny, how putting gas into the car’s tank or burning coal to generate electricity is “unsustainable”, but shanty prices increasing 10%+ year after year is sustainable, and when it stops we get to hear from the “experts” that “no one could have seen it coming”.

      1. I remember watching the financial shows back in 2004-05 and Jim Rogers was the only guy I heard who was sounding the alarms. I think eventually they stopped inviting him on to their shows. The rest of the “experts” were liars or fools a la Cramer who guided their devotees right into the crash. And many of them are still on the TV today. Funny how that works.

        1. And many of them are still on the TV today.

          I still can’t believe that Cramer wasn’t tarred, feathered and run out of town.

      2. “…when it stops we get to hear from the “experts” that “no one could have seen it coming…”

        Remember in the 1980’s it was ‘acid rain’ and ‘killer bees’.

        Apparently all of humanity was going to be wiped out by the year 2000. Guess that didn’t happen.

  12. “As an example, the median home price for a single-family home in Austin in 2019 was $335,095. For that price, an investor would have to charge about $3,350 in rent to meet the 1 percent rule.”

    LOL! We pay a little less than that to rent a 4br house in San Diego, which the Zestimate tells me is approaching $1.2 million.

    And the rent Zestimate is almost $4K. Apparently Zillow has a little trouble with getting its estimates right, though…

    1. In case the point of my example iisn’t clear, the 1% rule says our monthly should be $12,000, not just slightly north of $3,000. Or conversely, the home should sell for below $400,000, by quite a bit.

      Try not to get stucco.

      1. I recall in the early days of HBB, we said that a house price was supposed to be 120x monthly rent. I think later it was modified to 200x rent because of the low interest rates.

        At 120x rent, your million-dollar house should rent for $8300/month.
        At 200x rent, your million-dollar house should rent for $5000/month.
        (I’m using $1 M because zestimates are always too high.)

  13. Tuesday Live: NY Gov Pushes Vaccine ID While Claiming Voter ID Racist

    The American Journal
    January 18th 2022, 8:47 am

    1. NY Gov Pushes Vaccine ID

      Still waiting for them to wave the white flags.

      Just look at New Zealand. They’ve been under lockdown more often than not these past two years, and Arden is allegedly their most popular PM in history.

      1. You need to stop bringing that defeatists attitude here.

        This is the United States. This is not some cuck country like New Zealand or Canada. And BTW New York is a cuck state only because it is dominated by cuck New York City.

        Consider ourselves fortunate to live out here in Real America, and not on the cuck coasts.

        1. Consider ourselves fortunate to live out here in Real America, and not on the cuck coasts.

          I escaped from Clownifornia 27 years ago. It was already unbearable living there when I left, I can’t imagine what it’s like now. I keep in touch with friends who lack the gumption to sell their overpriced shanty and leave, but who are more than happy to tell me how much more horrible it is now.

          You’ll have to forgive me for not sharing your boundless optimism. The story for the past 50 years (if not longer) has been one: The Left gains ground and the Right loses ground. And it’s happening now faster than ever. For Pete’s sake, they stole the election and got it away with it. Where was the “leaderless opposition”? It was busy getting arrested at the Capitol building after “Glowies” were able to con them into storming it.

    2. It’s always sunny in the free country of Florida where we check ID for voters and don’t give a fook about your personal health choices.

  14. Some Colorado Covid Fear Porn from 9News:

    Doctors in Colorado say the current state of hospitals is nothing like they have seen before. The state’s chapter of the American College of Emergency Physicians (ACEP) sent a letter last week to Gov. Jared Polis’ office asking for help.

    According to Colorado ACEP, a nursing shortage is impacting patient care because there isn’t enough staff to handle the number of patients coming in.

    Dhaliwal said hospitals have enough beds, but there aren’t enough nurses to staff those beds. Because of that, there are often no inpatient beds available when patients arrive in the emergency departments, according to the letter.

    Gee, this couldn’t have something to do with firing all the unjabbed staff, could it?

    They created the problem, and yet it’s our fault. It’s not like hospitals didn’t work with 100% unjabbed staff in 2020.

  15. An opinion worth consideration (IMHO) …

    Rogan 2024 – by Quoth the Raven – QTR’s Fringe Finance

    (snip snip snip)

    “Even if Joe doesn’t wind up running, both parties could learn a lot from what makes him successful.”

    “I recently predicted that the mainstream media was ‘losing the fight of its life’ and would be forced into one of its largest pivots of all time on Covid, partially thanks to Joe Rogan, and I defended and argued those points in an hour-long follow up interview with former Fox newswoman Ivory Hecker about a week ago.

    “In the hours after my original post was published, outlets like Zero Hedge and Revolver News linked to the story and widespread discussion about how Joe Rogan was forcing a change in the media broke out.

    “As Rogan became a hot topic, people who blindly carry the narrative for the mainstream media and the global elite all of a sudden felt like they had to push back on this discussion head-on.

    “This is why last week, we saw widespread coverage of 270 ‘experts’ and ‘doctors’ who wrote an open letter to Spotify referring to Rogan as a ‘menace to public health’ who spreads ‘false and societally harmful’ Covid-19 claims.”

    Go to the article to read the rest.

    1. I haven’t streamed as much Joe Rogan as I used to since he moved to Spotify, but yes, he is shifting the #Narrative. Real Journalists BTFO and globalists GFY.

    1. “Of all those arrests, however, UP has not been contacted for any court proceedings,” the letter stated.

      Union Pacific has announced their trains will no longer enter LA County. How long until they refuse to enter California altogether? You want your stuff? Come to the Nevada state line to get it.

      I was surprised to learn that UP actually transports consumer goods. Whenever I see a freight train in my neck of the woods, it’s usually loaded with lumber or coal.

        1. And since California is regulating the sh!t out of semis, we have yet more supply chain headaches.

          1. And since California is regulating the sh!t out of semis, we have yet more supply chain headaches.

            True, but this is good, I think.

            Companies, and the supply chain, will route around this nonsense. There will be short-term pain and inconvenience, but in the long term we’ll have a better functioning system that bypasses all the BS in California. Other ports will pick up the slack, and other mechanisms for transporting goods via ground will be worked out.

          1. A snip from the above article:

            “Union Pacific expanded its hours at a near-dock rail facility by the Port of Los Angeles to align with the port’s goal to move to 24/7 operations, Kristen South, a spokesperson for the railroad, confirmed Tuesday.
            The railroad’s Intermodal Container Transfer Facility, known as ICTF, began operating on a full 24/7 schedule as of Sunday. Previously, the facility was open ‘148 of 168 hours per week,’ South said. ‘We’ve opened those remaining 20 hours to support our customers and provide them every opportunity to move freight in and out of the terminal.’
            “The news comes less than a week after the Port of Los Angeles announced a goal to operate on a 24/7 schedule. In a statement on LinkedIn, the port said collaboration with Union Pacific had contributed to rail wait times reducing by more than half in the last 30 days.”

            IMO there is no way that Union Pacific is going to decide to not enter L.A. County. No way.

          2. no way that Union Pacific is going to decide to not enter L.A. County

            Maybe they just won’t stop in LA County once they are underway from the port. The cars can be sorted at other yards.

          3. There are several YT documentaries that explain the movement of freight containers from China on ships to U.S. ports and inland by rail to transfer yards and on trucks with container trailers to around the country. It’s a complicated and vast logistical network. It’s truly amazing, but I’d never desire to be employed in transportation.

      1. “refuse to enter California altogether”

        Businesses and individuals, I recommend this.

        California is a $h*thole.

      2. But Guerrero also said FedEx, UPS and other Union Pacific partners are considering moving operations away from Los Angeles County.

        And Union Pacific, he added, may do the same — unless the DA’s office reconsiders his diversion policies.

        “Like our customers, UP is now contemplating serious changes to our operating plans to avoid Los Angeles County,” he wrote to Gascon. “We do not take this effort lightly, particularly during the supply chain crisis, as this drastic change to our operations will create significant impacts and strains throughout the local, state, and national supply chain systems.

        Union Pacific has a new huge Intermodal Yard in Downtown LA next door to the LAC/USC County Medical Center. Rail lines leading to and from this yard are the ones (I think) that are being attacked. That’s because the trains frequently stop and move very slowly on their way to the yard. The train tracks go right by the USC Medical Center campus and they frequently stop and block one of the main roads into the campus.

  16. The Covid-19 pandemic is far from over, the World Health Organization chief said Tuesday, cautioning against a narrative that the fast-spreading Omicron variant is risk-free.

    “This pandemic is nowhere near over,” Tedros Adhanom Ghebreyesus told reporters from the WHO’s headquarters in Geneva.

    Once again, they aren’t waving any white flags or getting ready to sound the all clear.

    Health experts warn that allowing Covid to spread unabated in some places dramatically increases the chance of new, more dangerous variants emerging.

    They aren’t done with us. And if the “new variant” has to be made in a lab, it will be.

  17. “Cleveland Browns defensive tackle Malik McDowell was arrested in Deerfield Beach, Fla., on Monday after police say he walked naked into a children’s learning center and violently attacked a deputy.”

    Yet more vibrancy! Is this a LMAO or WTF moment?

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