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A Massive Amount Of Credit Has Been Loaned To Borrowers With Questionable Ability To Repay

A weekend topic starting with the New York Times. “The last time such home price growth occurred was in the years leading up to the housing crash. But even at the height of the bubble in 2006, only about 40% of metro areas experienced greater than 10% annual home price growth. In the past year, 80% of metros have seen such spikes. And one-quarter of all metro areas have had prices rise by more than 20%.”

The Standard Examiner. “After an ultra-hot housing market in 2021, Northern Wasatch homebuyers and sellers can expect another robust real estate year in 2022, according to Jim Wood, Ivory-Boyer senior fellow at the University of Utah’s Kem C. Gardner Policy Institute. ‘Low interest rates have really brought a lot of people into the market,’ Wood said. ‘Who would have thought we’d have had historic increases in housing prices during a pandemic? To be sure that’s a paradox, and that’s exactly what happened.'”

From Havasu News in Arizona. “What led, in part, to the Great Recession was too many people being shoe-horned into mortgages they could not afford. Real estate representatives say they can get you into a house, stretching their abilities like pre-2008, leading us to wonder if we’re knocking on the burst bubble of 13 or so years ago. As we came out of the Great Recession, the quote was ‘the housing market may never again look like it did five years ago..’ Actually, it is looking more and more like pre-recession than ever before. And that’s not necessarily a good thing.”

The Ukiah Daily Journal in California. “To purchase a home, most folks get a conventional loan, either a conforming loan that stays under the limit set by federal guarantors Fannie Mae and Freddie Mac, or a jumbo loan that goes over that limit and costs a little more as a result. Until Nov. 1, 2021, the Mendocino County loan limit for conforming loans was $548,250. However, the limit just skyrocketed to $647,200 based on the sale prices of owner-occupied, single-family homes in our area.”

“What does this mean? It means more people may be able to buy homes in the $700,000 to $800,000 range. Before Nov. 1, borrowers with a 20 percent down payment were capped at $685,000 (making the loan amount $548,250). With the new loan limit, borrowers with a 20 percent down payment can now purchase a home for $809,000. Be warned: just because you can do something doesn’t mean you should.”

“The new loan limits are based on rising home prices, not rising income. So the question becomes: how much income do you need to qualify for this bigger loan? If you are an absolutely perfect borrower with no blemishes on your record, no debt of any kind, and solid, verifiable household income, you could conceivably qualify for a debt-to income ratio of 49 percent. If the loan amount is the new loan limit of $647,200 and the interest rate is, say, 4 percent (which is arbitrary, since I am not allowed to quote current rates), your monthly loan payment would be $3,089. On top of that, you’d pay approximately $810 per month in property taxes and about $200 per month for homeowners insurance, with a total of principal, interest, tax, and insurance (PITI) payment of $4,100 per month.”

“If you use these numbers and you are a perfect borrower buying a house in perfect condition, you could qualify for this home with a household income of $8,400 per month or just over $100,000 per year. Could you do this? Yes. Do I recommend it? No. Not many people are going to be happy spending half of their income on a house payment, especially when you consider that home ownership comes with more expenses than just the monthly PITI.”

“This is why I like to see people keep their loan payment to a maximum of 35 percent of their income. If you were going to max out at the conforming loan limit with $4,100 payment, I’d say your monthly household income should be at least $11,500 per month or something in the neighborhood of $140,000 per year.”

From CTV News. “TD senior economist Sri Thanabalasingam wrote in a note that buyers in some markets appear to believe price growth will continue unabated, which the Bank of Canada has warned poses an economic risk. Next week, the Bank of Canada has a scheduled rate announcement. Economists expect the bank to raise its key policy rate — which influences interest rates on mortgages and loans and can cool demand — or signal an increase is coming in March.”

“‘Regardless of the decision next week, it’s clear that we will soon be saying au revoir to rock-bottom interest rates,’ Thanabalasingam wrote. There are concerns that rising rates could strain households that have taken on large mortgages. Romy Bowers, president of the Canada Mortgage and Housing Corp. noted that Canadians owe $1.72 for every dollar of disposable income.”

From Daiji World. “Nomura estimates indicate that China’s developers owe $19.8 billion in dollar-denominated offshore debt in the first three months of 2022, the Guardian said. ‘That is almost twice as much as the $10.2bn they were faced with in the final quarter of 2021 — a burden that caused default at Evergrande and the threat of default at several other developers such as Kaisa,’ the news organization said, adding that by the second quarter of 2022, ‘they must find another $18.5bn.'”

From Fox Business. “During an interview real estate expert J. Scott Schell predicted a commercial real estate ‘bloodbath’ due to disruptions in the industry. ‘What we’re dealing with is a lot of pent-up forces that are all coming into play right now. The Central Business District Office has been devastated by stay-at-home pandemic restrictions. You know, all of the disruptions that we’ve seen there has caused all of those assets to really be in non-covenant compliance. Same thing with Class A retail that didn’t get absorbed in the last cycle. And then certainly all of your hospitality has been devastated throughout this pandemic and over the course of last couple of years that in and of itself is going to cause massive defaults.'”

“‘The good news is, is that there’s opportunities for these things to turn around for investors. But the bad news is that through the Troubled Asset Deferral Program, which is part of the CARES Act, nobody has reported on these for 18 months. We have 18 months of defaults that are all going to start hitting now. That happened, that program terminated as of January 1, 2022, and they’ve got 60 days to report it.'”

“‘So by the second quarter of this year, those things are going to start to come out and banks are going to have to deal with that. So that’s going to be a huge crisis in and of itself. And then obviously, we know that the banks, when they start to take on defaulted assets, they’re not really in a position to make loans. And so, so many of those assets that did stabilize but have now been hurt are going to be hamstrung by their balance sheets because 3 years of historic operating statements won’t really be there to support new debt with values plummeting. There’s going to be a lot of blood in the streets.'”

Two reports from Bloomberg. “‘The Federal Reserve has moved from being patient to panicking on inflation in a record period of time,’ Diane Swonk, chief economist at Grant Thornton LLP, said in a survey response. ‘This is the first time that the Fed has chased instead of pre-empted inflation since the 1980s.'”

“The last time the Fed undertook quantitative tightening, from 2017 to 2019, it chose to shrink its balance sheet by simply not replacing Treasuries and mortgage bonds as they matured. The upcoming bout of QT ‘is more about scraping the paint off the wall,’ Credit Suisse Group AG strategist Zoltan Pozsar wrote in a note to clients Friday. ‘The fresco painted during the first two years of the pandemic is out of date. Inflation is a problem and so are financial excesses.'”

From The Hill. “Over the past two years, both the Federal Reserve and the European Central Bank have created the mother of all global asset price and credit market bubbles. They have done so by a combined $10 trillion in bond purchases, which have kept interest rates on safe government bonds at ultra-low levels and have forced investors to stretch for yield in ever riskier markets. Whereas in 2006 the bubbles were largely confined to the U.S. housing and credit markets, today they are to be found in practically every corner of the world asset and credit markets.”

“A massive amount of credit has been loaned at very low interest rates to borrowers with questionable ability to repay. A particularly troubling instance of gross credit misallocation is that characterizing the emerging market economies, which now account for around half of the world economy. Over the past 18 months, these economies have been upended by the pandemic, and they have become more indebted than ever before. Yet they have continued to have easy access to the international capital market.”

“A key and present danger to the U.S. and world economies is that the global asset price and credit market bubbles are premised on the assumption that today’s ultra-low interest rates will last forever. It also must be of concern that once U.S. interest rates start rising, the emerging markets will experience a large reversal in capital flows that could once again expose them to a series of debt crises.”

This Post Has 138 Comments
  1. ‘The new loan limits are based on rising home prices, not rising income’

    Good mornin’ subprime!

    1. Or in the proper perspective, “rising home prices are based on new loan limits.”…….. with a dash of appraisal fraud fertilizer to get things going.

      Appraisal fraud or remodeled loan limits….. which came first?

      Brandon, FL Housing Prices Crater 22% YOY As Tampa Area Mortgage And Appraisal Fraud Spirals Out Of Control

      https://www.movoto.com/brandon-fl/market-trends/

  2. ‘buyers in some markets appear to believe price growth will continue unabated’

    Wa?

    ‘A massive amount of credit has been loaned at very low interest rates to borrowers with questionable ability to repay’

    If you don’t believe this, ask the gringos who bought Chinese junk bonds.

  3. ‘I’d say your monthly household income should be at least $11,500 per month or something in the neighborhood of $140,000 per year’

    How many people up there have this? Oh and BTW, CRE is gonna crater.

    ‘through the Troubled Asset Deferral Program, which is part of the CARES Act, nobody has reported on these for 18 months. We have 18 months of defaults that are all going to start hitting now. That happened, that program terminated as of January 1, 2022, and they’ve got 60 days to report it’

    ‘So by the second quarter of this year, those things are going to start to come out and banks are going to have to deal with that. So that’s going to be a huge crisis in and of itself. And then obviously, we know that the banks, when they start to take on defaulted assets, they’re not really in a position to make loans’

    Typical guberment involvement: let’s just not talk about it! OK, now you gotta deal with it. And here come the rickety emerging markets with their never ending ‘crises.’

    1. $140K income isn’t impossible if you have two college educated wage-earners at $70K each. But both of them probably have student loan debt, so good luck buying the $650K shack.

  4. ‘even at the height of the bubble in 2006, only about 40% of metro areas experienced greater than 10% annual home price growth. In the past year, 80% of metros have seen such spikes. And one-quarter of all metro areas have had prices rise by more than 20%’

    This is an odd article. There’s a ‘whacha gonna do?’ aspect to it. At the same time it’s also a ‘ut-oh deep doo-doo ahead.’ Things were out of hand before the CCP virus:

    March 26, 2020

    “As America heads into a deep recession, the $11 trillion residential-mortgage market is in crisis. Investors who buy home loans packaged into bonds are dumping even those with federal backing because of panic that millions might not make their payments. Yet one risky sector had started to show cracks long before the coronavirus pandemic sparked the worst financial meltdown in 12 years: the federal government’s largest affordable-housing program, whose lenient terms are geared toward marginal borrowers.”

    “As real estate prices soared in recent years, working-class adults everywhere have increasingly relied on mortgages backed by the Federal Housing Administration — and U.S. taxpayers. Since 2007, the FHA’s portfolio has tripled in value to more than $1.2 trillion, almost 11% of the market. While private lenders make these loans, they are packaged into Ginnie Mae bonds, common in mutual funds and pensions.”

    “Before Covid-19 started roiling China, a November FHA report found that 27% of borrowers last year spent more than half their incomes on debt, a level it describes as ‘unprecedented.’ The share of FHA loans souring in their first six months has doubled over the last three years to almost 1%.”

    “Not long ago, Alex Castillo drove his shiny black Infiniti SUV through an office park north of the San Antonio airport, along a busy seven-mile stretch of highway that loan officers call ‘Mortgage Row’ because of its abundance of small independent mortgage companies that dominate FHA lending. Castillo, who has the words ‘The Dream Starts Here’ stitched into his jacket, works for Pennsylvania-based American Residential Lending. Oddly, amid the pandemic, his business is booming. His customers locked in FHA mortgages after interest rates plunged this month — adding to federally backed mortgage debt.”

    “‘If the government tells me you’re good enough to get a loan, I have to trust and believe in the government,’ Castillo said. ‘Then we just hope and pray that the client doesn’t get foreclosed on.’”

    “In downtown San Antonio, scores of investors stood on a parched lawn beside the city’s historic granite-and-red-sandstone courthouse. It was the first Tuesday of February, the day of the foreclosure auction. Matt Badders, a San Antonio lawyer who represents lenders, auctioned off two houses. The failed mortgages remind him of the run-up to the financial crisis 12 years ago, when lending to customers with spotty credit nearly brought down the world’s financial system. ‘We’re almost back to 2007, when mortgage originators are waking people up on park benches, saying sign here,’ Badders said.”

    “At the auction, the crowd bid on 338 homes, a third with FHA mortgages, according to Roddy’s Foreclosure Listing Service. One house had dual master bedrooms, a game room and granite kitchen counters. It sold for $202,000 — $52,000 less than the homeowner borrowed only two years ago. The taxpayer-backed FHA insurance fund will take a loss.”

    “Dave Stevens, FHA commissioner under President Barack Obama and former chief executive officer of the Mortgage Bankers Association, said a recession will expose hidden risks in home lending. ‘This should be an alarm bell to policymakers,’ Stevens said. ‘Sometimes you get blinded by a good economy and suddenly look at it and see a bubble of defaults coming.’”

    “The federal government has decided it doesn’t want to pursue — and has asked a judge to dismiss — a lawsuit against Utah-based Academy Mortgage Corp. The judge refused. The suit claims the company’s staff would repeatedly feed information into an automated federal underwriting system, manipulating it until the computer gave the green light. ‘Decline is a curse word,’ Plaintiff Gwen Thrower, a former underwriter, quoted a manager as saying. ‘We don’t use it.’”

    http://housingbubble.blog/?p=3070

    1. A few years ago when mortgage rates approached 5% the RE market started crapping itself like it just feasted on street tacos in TJ.

      The average 30 year mortgage rate in 2021 was about 3%. My guess is the new upper limit for mortgage rates is about 3.75-4%…if we get there the carnage will be everywhere.

    2. Hmm, let’s see…

      Insanely over-priced homes compared to family incomes.
      Check.
      Over-leveraged borrowers.
      Check.

      Don’t worry sheeple…”it’s different this time” (cough!!).

    3. Hmm, let’s see…

      Insanely over-priced homes compared to family incomes.
      Check.
      Over-leveraged borrowers.
      Check.
      Personal/family debt levels at all-time-high.
      Check

      Don’t worry sheeple…”it’s different this time” (cough!!).

  5. can now purchase a home for $809,000. Be warned: just because you can do something doesn’t mean you should.”
    Yeah, that warning will be completely ignored by Americans!
    Just ask the 42.5% of Americans whom are obese or the 73.6% of Americans whom are overweight if they want another piece of cake after being told to lose weight by their Doctor,

    1. told to lose weight by their Doctor

      That would be fat shaming. Now if there were a pill for it . . .

          1. It’s not what you put into your mouth, it’s what you don’t.

            PBS has an affiliated channel called “Create”. It seems that 80% of the shows are cooking shows.

            Alton Brown, the host of the show “Good Eats” one day came clean on how he stays thin. His secret? He doesn’t eat the kinds of foods he cooks on his show. When he did, he was borderline obese.

          2. A fairly simple concept

            Which would work just fine if the “resting metabolic rate” term in the calories-out part of the equation were constant. Except that it’s not. It varies widely depending on what you eat, and when. How much you eat is important, but secondary. Not so simple.

    1. Every person in that room needs their neck in a noose.

      The only good globalist is a dead globalist ☠

    2. Russia or Al Qaeda or whoever could do the world a solid by setting off a tactical nuke in Davos during the WEF.

    1. ‘Four prominent scientists who played key roles in shaping the public narrative around the origin of COVID-19 received substantial increases in grant money from the National Institute of Allergy and Infectious Diseases (NIAID), headed by Dr. Anthony Fauci, in the subsequent two years, a review of funding data by The Epoch Times has found.’

      ‘Three of these scientists—Kristian Andersen, Robert Garry, and Michael Farzan—were advisers to a teleconference organized by Fauci held on Feb. 1, 2020, in response to increasing public questions about the origin of the virus. The scientists were also instrumental in the publication of Proximal Origin, a highly influential paper that promoted a natural origins theory for SARS-CoV-2, the virus that causes COVID-19, and has been frequently cited by the government and media.’

      ‘Emails released under Freedom of Information Act requests, showed that the scientists had told the senior members of Fauci’s teleconference that they were 60 to 80 percent sure that COVID-19 had come out of a lab. Notably, despite their private concerns about the origin of the virus, the first draft of Proximal Origin was completed on the same day as the teleconference. Andersen and Garry were co-authors of Proximal Origin and Farzan was acknowledged in the Nature version of Proximal Origin for his participatory discussions in the article’s creation.’

      ‘Additionally, Fauci’s NIAID provided a substantial increase in funding to EcoHealth’s Peter Daszak, through whom NIAID had funded controversial gain-of-function coronavirus research at the Wuhan Institute of Virology in China. Andersen, who had privately told Fauci on Jan. 31, 2020, that the virus “looked engineered,” but later helped spearhead Fauci’s efforts to promote a natural origins narrative, received a total of $7.4 million in funding in 2020 as compared to $4.5 million in grant proceeds in 2019. Andersen’s total grant funding increased to nearly $9 million in 2021.’

      ‘Garry, who told the senior members of Fauci’s teleconference group that he “really can’t think of a plausible natural scenario where you get from the bat virus” to SARS-CoV-2, received $7 million in NIAID grants in 2020 as compared to $5.7 million in 2019. Garry also received $6.6 million in grants in 2021. The new CREID grant (co-awarded with Andersen) accounted for approximately $1.9 million of his 2020 grant proceeds and $1.8 million of his grant proceeds in 2021.’

      ‘During the Feb. 1, 2020, teleconference, Garry cited the remarkable sequences of mutations that would have to occur for SARS-CoV-2 to arise naturally, telling the group, “I just can’t figure out how this gets accomplished in nature.” However, Garry noted that a lab-created virus would easily explain the virus data he was seeing, telling Fauci’s group that “in the lab, it would be easy to generate the perfect 12 base insert that you wanted.”

      ‘Notably, Garry recently admitted in written correspondence with The Intercept that he had been advised not to discuss a lab leak in the Proximal Origin paper, stating, “The major feedback we got from the Feb 1 teleconference was: 1. Don’t try to write a paper at all—it’s unnecessary or 2. If you do write it, don’t mention a lab origin as that will just add fuel to the conspiracists.”

      ‘Garry—along with Andersen—must have heeded that directive because on Feb. 1, 2020, the same day as Fauci’s teleconference, both men had helped to complete the first draft of Proximal Origin promoting the idea that the virus had originated in nature. That paper became the media’s and the public health establishment’s go-to evidence for a natural origin for the virus.’

      https://www.theepochtimes.com/scientists-who-were-instrumental-to-covid-19-natural-origins-narrative-received-over-50-million-in-niaid-funding-in-2020-2021_4220769.html

        1. “I just can’t figure out how this gets accomplished in nature”

          The first person who said a natural occurrence was impossible got smeared relentlessly. More than a lie, this is a lab created bio-weapon. And now we got guberments basically repeating what the nazis did with forced medical ‘experiments.’ Another bio weapon. There is going to be an accounting for this because we have to. This can never be allowed to happen again and the only way there is trials for crimes against humanity.

          1. I’ve seen a purported 46-page December 6, 2021 filing with the International Criminal Court but can’t verify its authenticity. Dr. Mike Yeadon is listed as one of the applicants.

          2. repeating what the nazis did

            Our government imported Nazis with Operation Paperclip. Australia has their fare share as well. Should we really be that surprised that we’re seeing history repeat?!

        2. COVID and it’s alleged “vaccines” that are not vaccines are an intentionally inflicted genocide.

          Klaus Schwab, Bill Gates, Anthony Fauci, you will be found guilty and you will be executed ☠

          1. COVID and it’s alleged “vaccines” that are not vaccines are an intentionally inflicted genocide.

            I’ve been studying the molecular and pathophysiological aspects of this dual-use (virus and vaccine) bio-weapon the last few days. The research that created it is beyond gain-of-function. It’s a molecular WMD. The former implies recklessness, the latter premeditation. The HIV inserts, the furin cleavage site, the microRNAs, the LNPs. There are so many pathways for destruction as shown in Dr. Peter Cullough’s latest preprint publication (previously posted with abstract).

          2. pathophysiological

            Then there’s the psychopathology. The coordinated psyops and government abuse have been the most damaging part of this whole ****show.

          3. Klaus Schwab, Bill Gates, Anthony Fauci, you will be found guilty and you will be executed ☠

            A guy can dream, but nah, everything’s rigged. Schwab and Gates are running the show. It’s going to take assassinations.

    1. Are your risk assets cratering with the Fed’s punchbowl removal efforts?
      yea they are and as I said earlier here it feels like the spring of 2000.
      Problem is: What the F4ck to do about it. I started reducing about 2 weeks ago but did I reduce enough? how much more, if any? Will the Fed bring back a stronger/bigger punchbowl?
      I guess that is what makes it interesting and, obviously, each person’s situation is different.

        1. And they identified climate change as the greatest risk of all. Soon they will be demanding that your energy usage be rationed. And I wouldn’t be surprised if any solar power one might have would be deducted from the ration, because “we’re all in this together”.

      1. As you said the Fed is the one variable that cannot be accounted for- we all know where this should end up but who knows what a bunch of socialists do to try to prevent catastrophe. If you’re debt free with cash and assets waiting on the sidelines, AND you wait long enough for at least one of the bubbles to completely burst, you should do fine. At least that’s my plan.

        1. My plan as well, although my patience and sanity are wearing thin. My autistic son needs a yard and pool. Moving to another rental isn’t an option. We’d pay a lot more for a lot less.

          1. During the last bubble I waited things out from 2005 till 2010. It was very difficult, we were bursting at the seams in our starter home and we put up with a fair amount of grief from “friends” and family who were buying second homes, moving up, adding on, etc. But in hindsight I wish I had waited another year or two. Believe me I know it’s hard, but those kinds of decisions can and will affect the rest of one’s financial life.

          2. those kinds of decisions can and will affect the rest of one’s financial life

            Oh, I know! My husband’s lucky to have me as a wife in this respect. I sold my mom’s house in Encinitas back in September 2020 so we’d have a large cushion. I don’t expect to time the bottom. I really like the neighborhood where we’ve been living the last 8.5 years. Sales are few and far between, largely because they work well for aging in place. I might dive in if the house and price are comfortable. We’ll be here at least another 10 years.

          3. So I guess moving out CA isn’t an option. Not sure what the family situation is, but it seems you guys would do much better in Florida, Georgia, South Carolina, or parts of Texas.

    2. The Financial Times
      Markets Briefing Markets
      Global stock markets record worst week in more than a year
      Concerns over ‘contagion’ grow as Netflix shares plunge after warning on subscriber growth
      A woman browses the Netflix homepage on a laptop
      Netflix on Thursday warned subscriber growth would slow substantially
      © Bloomberg
      Naomi Rovnick, George Steer and Harriet Clarfelt in London and Nicholas Megaw and Eric Platt in New York yesterday

      Global equities suffered their biggest declines in more than a year as heavy losses in Netflix shares accentuated a sell-off in tech stocks that spilled into other sectors.

      Investors have raced out of speculative corners of the market as the Federal Reserve moves to tighten financial conditions. Share declines have been particularly extreme in the US, where many of last year’s high-flying tech companies are listed.

      The tech-heavy Nasdaq Composite index fell 7.6 per cent this week, its biggest slide since the coronavirus pandemic rocked US financial markets in March 2020.

      1. Wouldn’t it be ironic if it turned out that the only reason housing and stocks went up during the pandemic was the Fed’s Quantitative Easing risk asset stimulus measures?

        1. the only reason

          Appreciate Mania. The Fed doesn’t actually cause people to do extremely stupid stuff, it only enables it. Until it doesn’t.

          1. By raising mortgage rates, taking away the punchbowl reduces how much the how-much-a-month crowd can “afford” to pay for a debt-funded house purchase.

  6. Thank God Trump-appointed judges have been able to serve as counterweights to corrupt, incompetent Democrat-Bolshevik judicial officials, while blocking Biden regime overreach and tyranny.

    Trump-appointed Texas judge blocks Biden’s vaccine mandate for federal workers stopping the government from enforcing the rule

    https://www.dailymail.co.uk/news/article-10428227/Trump-appointed-Texas-judge-blocks-Bidens-vaccine-mandate-federal-workers.html

    A U.S. judge in Texas issued a nationwide injunction on Friday barring the federal government from enforcing President Joe Biden’s requirement that federal workers without qualifying medical or religious exemptions be vaccinated for COVID-19.

    Judge Jeffrey Brown, who was appointed to the United States District Court for the Southern District of Texas by then-President Donald Trump, ruled that opponents of Biden’s vaccination mandate for federal employees were likely to succeed at trial and blocked the government from enforcing the requirement.

  7. “Nomura estimates indicate that China’s developers owe $19.8 billion in dollar-denominated offshore debt in the first three months of 2022, the Guardian said.

    Color that money gone, round-eye bagholders. These Chinese will take care of their own first, and stiffing the gringos won’t bother them in the least.

    1. I think the term China uses for lazy western and mostly white bag holders is baizuo bc its not just Americans who bought up this offshore debt.

  8. “‘The Federal Reserve has moved from being patient to panicking on inflation in a record period of time,’ Diane Swonk, chief economist at Grant Thornton LLP, said in a survey response. ‘This is the first time that the Fed has chased instead of pre-empted inflation since the 1980s.’”

    So far all the Fed has done is jawbone about a future tightening and rolling debt off its balance sheet. Remember Yellen the Felon’s “Lucy and the Football” routine during her misbegotten tenure as Fed Chair? These Keynesian fraudsters have yet to show that they’re serious about combating the inflation that they & the Biden regime created with their Zimbabwe-like money printing & drunken sailor spending.

    1. Markets are raising rates. What’s the yield on the junk bonds that are trading at pennies on the peso?

      1. “Markets are raising rates.”

        Indeed. Friday, January 21, 2022, the average 30-year fixed-mortgage rate is 3.67%, up 16 basis points from a week ago.

      1. Some things just don’t square. High heels on an M&M’s candy is wrong, but the filthiest hardcore raunch on OnlyFans is just fine. Have these people ever looked up “hypocrisy?”

    1. I don’t look at where it is now or how far it has fallen, I look at how much further it has to fall – all the way to zero, where it belongs.

    1. Once you go black you won’t go back.

      Reps probe illicit harvest, export of 7,200 male organs, other human parts to China
      https://www.vanguardngr.com/2021/04/reps-probe-illicit-harvest-export-of-7200-male-organs-other-human-parts-to-china/

      (snip snip)

      “Piqued by reports of a seized cargo ship that sailed from Nigeria with 7,200 refrigerated male organs found in 36 boxes labelled as plantain at Shanghai port, known as Red Market in China, the House of Representatives yesterday resolved to probe the circumstances of the development.

      “Noting that the Chinese General Administration of Customs had alerted that an increasingly large number of armed groups in Africa use organs harvested in unsanitary conditions to finance their nefarious activities, the House underscored a need to curb the menace.”

      (snip)

      “Presenting the motion, Kwewum said: ‘About two weeks ago, acting on the information provided by an anonymous source, Chinese authorities seized a cargo ship that sailed from Nigeria with 7,200 refrigerated penises which were found in 36 boxes labelled as plantain on the ship that harboured at the Shanghai port, called Red Market’.

      “’The Chinese General Administration of Customs had alerted that an increasingly large number of armed groups in Africa use organs which are harvested in unsanitary conditions to finance their nefarious activities.”

    1. The criminal element knows that with fellow criminals (D) controlling City Hall, diversity-hire police chiefs and cops that are often corrupt and unqualified, and Soros-installed DAs subverting the criminal justice system from within, they have a green light to loot trains and other supply-chain conveyances. This is only getting started. Every D voter owns this.

      1. They own it and love it. You’re not understanding that destruction is the point. This was no bait and switch by a lax prosecutor. The people knew exactly what they were voting for and many welcome the destruction. They’re destroying the capitalist cisgenered heteropatriachy to usher In something news. It’s sounds crazy but that’s actually
        The world these people want to live in. I know because I unfortunately live among them like a pagan lived among Christians in 300 ad.

    2. “… the railroad doesn’t do enough to ensure its trains are adequately locked and protected.”

      The looters are not looting the trains, they are looting the containers that are carried on the trains. The railroad has nothing to do with ensuring that the containers are adequately locked and protected.

      1. Amazon is getting hit hard by this. Amazon, you’ll recall, is owned by the globalist oligarch Jeff Bezos, who also owns the Washington Post, a globalist media flagship. Mr. Bezos, as a major bankroller of the Democrat-Bolsheviks, is fine with vibrants cavorting in your city or town, but doesn’t appreciate anything that detracts from his financial bottom line. Will be interesting to see how he orders his Democrat minions to deal with this.

      2. The railroad has nothing to do with ensuring that the containers are adequately locked and protected.

        Home Depot has every tool you need to break into these containers in less than 30 seconds. The vibrants will just walk out with them. What is needed is the rule of law where thieves aren’t running wild in the first place.

  9. The globalists and their Quislings intend to use Australia & New Zealand as templates for what they have planned for the western world, but now some of the former sheep & lemmings are starting to get red-pilled & push back.

    Double-Jabbed Australian Woman Goes Nuclear Over Mandatory Third Shot – It’s Not Just Anti-Vaxxers Now [VIDEO]

    https://www.lifezette.com/2022/01/double-jabbed-australian-woman-goes-nuclear-over-mandatory-third-shot-its-not-just-anti-vaxxers-now-video/?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated

    1. but now some of the former sheep & lemmings are starting to get red-pilled & push back

      According to some “polls”, New Zealand’s Jacinda “Jab them all” Arden is the island nation’s most popular Prime Minister ever.

      They’re gonna need a lot more red pills there.

      1. Um, yeah…and the globalist media assured us that Biden, “the most popular president ever,” won the election with 81 million votes.

        1. Fortunately, Brandon was unable to lock us all down last year. And let there be no doubt, he wanted to do that.

    2. Today WTOP radio quoted CDC that vaccines and jabs are the cause of the precipitous decrease in cases of Omicron. So, how does that explain South Africa’s precipitous decrease in cases of Omicron? South Africa is 25% vaccinated, and it’s doubtful they’re boosted.

      What’s going to happen next fall? Will Omicron return? Will Biden force Fedgovs to get an Omicron-specific booster in anticipation of Omicron returning, or will he wait until cases actually rise? What if cases rise but hospitalizations don’t? Are they still going to force boosters?

    3. Double-Jabbed Australian Woman Goes Nuclear Over Mandatory Third Shot – It’s Not Just Anti-Vaxxers Now

      I said this months ago. There are only so many shots that people will willingly take.

      1. Yeah, I’m getting to be the same way. We were told two-and-done. Now Rochelle is “pivoting” to three-and-done. Then you have that clown in Europe who said we might get immune-fatigue if we all got 3-4 shots every year. He needn’t worry. Nobody is going to show up every four months for a cold virus vaccine.

      1. I don’t know, but I would hate to think about our “woke” military going up against non-woke adversaries.

      2. That a war is always a good distraction from all the mistakes you made? Unless, of course, nukes start to fly.

          1. I’m more worried about what the Brandon regime will do, as opposed to a crank Russian legislator.

          2. worried about what the Brandon regime
            Sure, always. Not worried, just joking because the way things are going here in NV I didn’t think it could get any worse 🤯

          1. You really think Biden is going to convince anyone that Ukraine is a SAVE THE COUNTRY war??!? What’s he going to say? That we have to fight Putin over there so we don’t have to fight him here?

          2. Ukraine is currently too corrupt to be accepted into NATO membership according to John Mearsheimer, professor of Political Science at the University of Chicago. Not sure why the neo-cons are henpecking Vladimir Putin.

          3. That we have to fight Putin over there so we don’t have to fight him here?

            This is Brandon we’re talking about. Nothing is off the table. At this point I’m hoping his cowardice outweighs his hubris.

          4. according to John Mearsheimer, professor of Political Science at the University of Chicago.

            I don’t trust anyone from Chicago. Period.

  10. An opinion …

    “The Cult of Speculation Is a Cult of Doom”
    http://charleshughsmith.blogspot.com/2022/01/the-cult-of-speculation-is-cult-of-doom.html

    (snip)

    “For the vast majority of the world’s population, speculating and winning is their only chance to escape debt-serfdom or wage-slavery.”

    “The global Cult of Speculation is a Cult of Doom because all speculative bubbles pop, generally in a way that continues to give punters buying the dip hope that the downturn is now over and huge gains await those who back up the truck and buy, buy, buy.

    “The key dynamic in speculative frenzies is the self-reinforcing feedback of everyone else being confident the bottom is in to so buy now: the first blip higher convinces skittish bulls that the bottom is indeed in and so buying encourages more buying which then stampedes the herd into a euphoric confidence that this is it, the herd is running, the rally is unstoppable.

    “This works again and again, increasing the bulls’ confidence, until one time the herd thunders off a cliff. All speculative frenzies eventually pop because the euphoria has detached from real-world fundamentals and entered an unstable orbit of magical thinking–the Fed is all-powerful, etc.

    “As with all cults, skeptics and doubters are vilified and scorned: this isn’t a speculative frenzy doomed to crash, it’s rock-solid because don’t fight the Fed, strong earnings, new paradigm, etc. Those outside the cult look on in wonder at the strange rituals and extreme behaviors. Wise outsiders avoid any contact with the unstable, skittish herd.

    “We’re now in the confounding stage where buying the dip isn’t working 100% of the time, and so the cult is losing adherents even as the faithful double-down and demand evidence of fealty. Surely the Fed gods will affirm the cult’s most revered articles of faith. But false gods eventually fail, even the Fed.

    “Once the false gods fail, the once-crowded temple of the cult is abandoned and left to the jungle. Visitors marvel: here great fortunes were made and lost, and now there’s nothing left but rubble.”

    1. For the vast majority of the world’s population, speculating and winning is their only chance to escape debt-serfdom or wage-slavery.

      As bad as it is in the US, it’s far worse in other countries. I have relatives with STEM degrees in Mexico who earn less than burger flippers in my little burg. And Mexico is supposed to be one of the better 3rd world countries,. Now imagine what it must be like in El Salvador or Nicaragua.

  11. Little Red Lyin’ Hood better be ginning up more bogus reasons for why the supply chain is about to get even more chaotic. Most Mexican’s that have gotten the jab have done so with Russia’s Sputnik-V vaccine – which the U.S. doesn’t recognize as a legit vaccination. Get ready for #BareShelvesBiden to trend big-time.

    US to close borders to unvaccinated Canadian, Mexican truckers on Saturday

    https://www.freightwaves.com/news/us-to-close-borders-to-unvaccinated-canadian-mexican-truckers-on-saturday

    Mandate moving ahead as planned despite pushback from industry

    The U.S. will close its borders to unvaccinated and partially vaccinated Canadian and Mexican truck drivers on Saturday, the Department of Homeland Security said on Thursday.

    “These updated travel requirements reflect the Biden-Harris Administration’s commitment to protecting public health while safely facilitating the cross-border trade and travel that is critical to our economy,” Secretary Alejandro Mayorkas said in a statement. 

      1. We stocked up on meat last week. Our freezer hasn’t been this full since we stocked up for the two weeks to flatten the curve.

      2. The communists stole the election and destruction is the point. It’s for your own good. It’s difficult to accept our own leaders would do this to us, but they hate us. They don’t care and have no fear of you.

  12. Perhaps Mexico values work and production instead of pretend and make-work jobs like here in the US.

  13. What Newsom meant to say was “Youth for Biden.”

    FACE PALM: Newsom Apologizes For Using Word ‘Gangs’

    https://pjmedia.com/news-and-politics/matt-margolis/2022/01/22/face-palm-newsom-apologizes-for-using-word-gangs-n1551805

    On Thursday, California Governor Gavin Newsom made the horrible mistake of calling criminals stealing packages off Union Pacific freight trains “gang” members during a press conference.

    “This is not one-off. This is organized theft,” Newsom said. “These are organized gangs of people that are coming out.”

    The horror! The horror! What lack of tact!

    Naturally, Newsom quickly realized the faux pas and apologized for his offensive language.

    “Forgive me for saying ‘gangs,’ that’s not a pejorative,” he said. “They’re organized groups of folks that move from site to site.”

      1. Ask emperor valens how well the hoards of barbarians migrating into his state worked out for the empire.

  14. The globalists and their Democrat-Bolshevik Quislings are escalating their jihad against “racist” SFH, as part of their effort to force the population into densely-packed multi-family apartment buildings where they can be more closely surveilled and controlled, as well as reaping the bountiful blessings of enforced multiculturalism and diversity. Forward, Soviet!

    War on Single Family Homes Continues in San Francisco as Advocacy Group Sues to Demand Multi-Unit Housing

    https://www.breitbart.com/politics/2022/01/22/war-on-single-family-homes-continues-in-san-francisco-as-advocacy-group-sues-to-demand-multi-unit-housing/

  15. Instant karma: Senior executive with “woke” company Deloitte gets shoved onto subway tracks after Deloitte gave money to a non-profit that ensures the homeless mentally ill can hang out at the subway station.

    Deloitte gave $50,000 to nonprofit that wants to keep homeless on subways less than a year before firm’s exec was fatally shoved onto subway tracks by ex-con

    https://www.dailymail.co.uk/news/article-10430333/Michelle-Gos-employer-Deloitte-donated-50-000-nonprofit-sued-against-MTA-homeless-policy.html

    Deloitte, the employer of a woman killed by a deranged vagrant who pushed her in front of an oncoming train in Times Square Station last week, helped fund a non-profit that sued the MTA last year for laws barring people from staying in a subway station for more than an hour, arguing that it ‘excluded’ the homeless.

    Michelle Alyssa Go, 40, a senior manager at consulting conglomerate Deloitte from the Upper West Side, died after she was shoved off the platform at West 42nd Street and Broadway at around 9:40am last Saturday, January 15.

    1. I usually associate “executive” with being a VP or maybe a director. “Managers” are just the hired help. Few ever get promoted into “the club”.

      I read that the killer approached another woman first, but she had the situational awareness to see him and moved to safety. Ms. Go wasn’t so fortunate.

      1. Probably didn’t move because she thought it would be racist to avoid the crazed dark skinned smelly homeless guy acting like he was gonna push people on to the tracks. Can’t appear racist to others! Better to be pushed onto the tracks!

        1. FWIW, I believe that the woman who moved away to afety was white.

          Anyway, I expect subway riders and especially Asians who live in big metros are growing eyes on the back of their heads.

  16. “The last time such home price growth occurred was in the years leading up to the housing crash.”

    It is not “price growth”, you dumbazz. It is housing price inflation. PRICE INFLATION!!

    1. Why even suggest law enforcement agents are behind inciting violent protests?

      Makes no sense…

    2. The khaki pants, the matching shields, the total Fed-surrection vibe of it all, they’re not fooling anybody.

      Glowies gonna glow.

    1. Markets
      Nasdaq tumbles 2% Friday, notches worst week since 2020 and falls deeper into correction territory
      Published Thu, Jan 20 2022 6:08 PM ESTUpdated Fri, Jan 21 2022 4:54 PM EST
      Maggie Fitzgerald
      Pippa Stevens

      U.S. stocks tumbled on Friday, closing out a losing week and continuing a rough start to 2022. The Nasdaq Composite was hit the hardest with Friday’s selling sending the tech-heavy index to its worst week since 2020.

      The Nasdaq Composite declined 2.7% to 13,768.92 on Friday. The Dow Jones Industrial Average fell 450.02 points to 34,265.37. The S&P 500 slid 1.9% to 4,397.94.

      The Nasdaq posted a 7.6% loss for the week, its worst since October 2020, and now sits more than 14% below its November record close. Both the Dow and S&P 500 closed out their third straight week of losses and their worst weeks since 2020. The S&P 500 is off more than 8% from its record close.

    2. Mad Money
      Jim Cramer says the stock market is getting closer to forming a bottom
      Published Thu, Jan 20 2022 7:31 PM EST
      Kevin Stankiewicz
      WATCH LIVE
      Key Points
      — CNBC’s Jim Cramer said Thursday he believes the stock market is getting closer to an investable bottom after a challenging start to the new year.
      — However, the “Mad Money” host said the market’s steep turnaround late in Thursday’s session “inspired a lot of terror.”
      — That signals the market “still has some work to do” before reaching a trough, Cramer said.

      1. “Jim Cramer says”

        MACRO
        09/12/18 11:14 AM EDT

        On March 11, 2008, Mad Money host Jim Cramer (who believe it or not is still on CNBC) told a viewer who wrote into his show, “Bear Stearns was fine!” right before the stock absolutely collapsed. The stock was trading at $62 per share. Just 5 days later, the firm was mercy folded into JPMorgan Chase (read: bailed out) at $2 per share.

        Cramer: Peter writes, “Should I be worried about Bear Stearns in terms of liquidity and get my money out of there?”

        No! No! No!

        Bear Stearns is fine. Do not take your money out. If there’s one takeaway, Bear Stearns is not in trouble. I mean, if anything, they’re more likely to be taken over. Don’t move your money from Bear. That’s just being silly. Don’t be silly.

        https://youtu.be/V9EbPxTm5_s

  17. Excellent, but long (2:11:34) video. Not a surprise to anyone who’s had more than routine experience with the health care system these days. Mostly discussion of Covid and corruption, how everyone gets orders from the top, how you’ll be fired if you question those orders, Remdesivir, ventilators, etc. from the nurses’ perspective and experiences.

    Five Frontline Nurses Speak Out About What Is Really Going On In Hospitals [VIDEO]
    By Red Voice Media・January 22, 2022
    https://www.redvoicemedia.com/video/2022/01/five-frontline-nurses-speak-out-about-what-is-really-going-on-in-hospitals-video/

    1. how you’ll be fired if you question those orders

      When my doc told me that no one had been killed by the jab, I figured someone was holding a gun to his head.

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