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Some People Are Feeling A Little Remorse For Buying When Things Were Super Crazy

A report from Bloomberg. “Zillow’s market cap approached $US50 billion, making CEO Rich Barton’s stake worth more than $US1 billion. In late August 2021, he boasted to investors that customers’ biggest complaint with Zillow Offers was it was too good to be true. In September, the company issued $US700 million worth of home-flipping bonds, signalling a long-term commitment to the business.”

“Although he once viewed iBuyers as market makers, he came to feel as though he was borrowing huge sums to make risky bets. ‘We were doing something that was clearly a potential ‘Long-Term Capital Management’ kind of thing,’ he says, invoking the hedge fund that crashed spectacularly in 1998. ‘After the new shit came to light,’ Barton says.”

“The task of breaking the news to employees was left to Arik Prawer, the executive Zillow hired to oversee the home-flipping operation. ‘Don’t cry because it’s over,’ Prawer said, quoting a line commonly attributed to Dr Seuss. ‘Smile because it happened.’ This was, for many, tough to swallow. Barton had spent the previous three years hyping iBuying, saying his company was revolutionising a broken housing market with a service that was as appealing as ‘free beer at a college party.’ Now it was, what? Kombucha?”

From Politico. “‘It’s going to do damage to the housing market for sure,’ Mark Zandi, chief economist at Moody’s Analytics, said of rising rates. ‘There’s a lot of downside risk here; when you’re in a world of flat to falling prices, you are vulnerable and things could go off the rails. When prices start falling, things can take on a life of their own.'”

The Real Deal. “A luxury condo project overlooking the Hudson is headed to auction in the latest example of a Chinese developer facing distress in the U.S. amid tighter oversight back home. Lender Parkview Financial has initiated a UCC foreclosure sale for the equity interests in a 282-unit development in Weehawken, New Jersey, planned by the American affiliate of Beijing-based Hongkun Group.”

“But Hongkun’s plan ran into trouble around the time Chinese regulators began cracking down on excessive borrowing and poor liquidity ratios of the country’s real estate developers. Megadevelopers such as Oceanwide Holdings have been forced to sell or abandon real estate projects in the U.S. in order to comply with new debt controls. China’s property market has also weakened, harming developers’ revenues.”

The Olympian in Washington. “The number of Thurston County homes that sold in April was down 12 percent from the same month a year ago, a sign that the market is reacting to some new economic pressures. ‘The reality of it is it’s slowing down,’ said Van Dorm Realty’s Torie Robinson. ‘It’s not as chaotic as it was and inventory is growing.'”

From WNEP in Pennsylvania. “Justin Weber says he’s never seen anything like it before. Weber owns Mountain to Valley Home Inspections  based in Mountain Top. The service he provides is one many homebuyers are doing without these days. ‘It’s really going to be putting people in a bad position. I think in a couple of years, when they find out, you know, what’s really in their house.”

“Weber worries we’re going to see a lot of buyers’ remorse in the coming months, even years. ‘We’re already starting to see some of that, you know, with articles that are coming out, and new stories of people that have waived the inspections that are kind of going in blind, and then they’re getting hit with these really large bills. Hopefully, it’ll break loose soon, but as for right now, that’s kind of the market that we’re in.'”

The Toronto Star in Canada. “Harry Sarvaiya knows how recent homebuyers are feeling now that prices are dropping. Tired of waiting for a break in Toronto’s hot pandemic market, the real estate broker bought a four-bedroom bungalow in March, near Martin Grove Road and Westhumber Boulevard in Rexdale for $1,285,000.”

“Now, the realtor of 12 years is looking enviously at the declining market as he approaches his June closing. Other bungalows in the area are now going for $1.1 million. ‘I still think if I waited, I would have got (a house) a little bit cheaper and I would have more choice,’ said Sarvaiya of Re/Max West Realty Inc.”

“He’s not alone. As Toronto’s scorching real estate market has finally hit s cool-down, buyers who bought at the peak are sharing their woes on social media, while real estate agents and mortgage brokers report a growing number of stories of remorse. Some who bid high in the heated market are now wondering if they jumped the gun. Others who are nearing closing day are facing mortgage shortfalls as their home values drop, leaving them scrambling to scrape together funds. “

“‘Bigger and better houses are selling in the same price where we ended up buying a townhouse and sacrificed … our dream house dreams,’ said one first-time buyer on social media. Another who bought a house for $1.3 million saw bigger homes sell in the same neighbourhood for $1.1 million. ‘I’m feeling stressed and wanted to get out of this deal though I have no option left other than forfeit my deposit,’ the buyer wrote in a post shared by a realtor.”

“‘It’s kind of scary,’ said Shay Asnani, a realtor with Right at Home Realty. ‘Some people are feeling a little remorse for buying when things were super crazy. ‘”

A press release. “A Toronto-based property management company operating across Ontario and Europe, Royal York Property Management, has announced up to a $500 per month supplement for ‘struggling landlords’. Founder Nathan Levinson stated that the offer was aimed at alleviating the stress of property investors amidst a worsening economic environment. Mr. Levinson said, ‘It has been a very difficult time for most landlords. Property owners are concerned that the interest rates will significantly increase within the next 18 months. This will cause an inevitable drop in the real estate market, with many owners unable to make their mortgage payments.'”

Domain News in Australia. “Historically, changes to the cash rate had taken multiple months to have an effect, AMP Capital chief economist Dr Shane Oliver said, but the lag has narrowed as very high prices and debt-to-income ratios made the market more sensitive to interest rate changes. ‘Traditionally, it takes a while for higher interest rates to hit because they’re usually offsetting good news with higher employment and rising wages,’ Oliver said, adding there had been an eight-month lag between the first rate hike back in 2009 and weaker prices. ‘The complication this time around is that fixed [mortgage] rates played a much bigger than normal role in driving the boom in first place.'”

“Record-low fixed mortgage rates had been a key driver of the boom, Oliver said, making up a far greater share of lending than usually seen. But they had bottomed out last year and climbed rapidly since, reducing borrowing power ahead of any official cash rate hike. ‘The key impetus behind the boom in property has now reversed,’ he said. ‘New buyers are ending up with far less capacity to pay than a year ago, and that’s even though we’ve only seen one move by the RBA. I think the impact will show up a lot faster [as a result].'”

“Sydney sales agent Matthew Hayson said buyers were looking more intently for what they perceived as value, and had become more fearful of overpaying as forecasts for rising interest rates and falling property prices made headlines. He felt expectations for multiple rate hikes were already taking a toll, and would have a material impact on the market when they eventuated. ‘That frothy 10 to 15 per cent growth that came on top of prices in the last 18 months … I think that is going to evaporate quite quickly, that it will go in the next six months.'”

From Voxy in New Zealand. “The latest QV House Price Index shows the housing market is under increasing pressure from rising interest rates. Loan affordability constraints are limiting buyers, and those who are in the market are spoilt for choice as listing levels far outstrip demand. QV General Manager David Nagel commented: ‘It’s no surprise that the largest declines are occurring in locations that experience the strongest growth over the past couple of years. These markets were the first to become overheated and that makes them more susceptible to a value correction as rising interest rates, tightening credit and affordability concerns start to kick in.'”

“‘Falling attendances at open homes and declining auction clearance rates have been well publicised, demonstrating a swing in the balance of power between vendors and purchasers. Developers are feeling the pinch, especially in Wellington and Auckland, with off-plan sales quotas not being met, compounding the impacts of materials and labour shortages,’ Mr Nagel said.”

“‘A big part of the three month value reductions occurred in late March and April so we expect to see a gradual escalation of value declines in the coming months as vendors wanting to sell their properties are forced to meet the market. This is a trend that’s likely to spread across all of New Zealand as listings continue to outstrip demand in the majority of New Zealand towns,’ he said.”

“Local QV registered valuer Hugh Robson commented: ‘With rising inflation and rising mortgage rates, the latest statistics indicate a 2-3% decline in sale prices. The volume of sales for April was also down, which is a significant indicator that buyers are no longer prepared to pay the high asking prices that were being achieved in 2021 and early 2022.The ‘fear of missing out’ (FOMO) has diminished significantly. Vendors need to accept the market has now shifted in favour of the buyer if they want to secure a sale.'”

“QV property consultant Derek Turnwald said Tauranga’s peaking property market was old news for increasing numbers of sellers. ‘There are more and more properties coming to market as owners who have held off until now realise that the market has reached its peak. Listing periods are also extending as supply increases and demand decreases,’ he said. ‘Demand for housing of all values has declined and is now generally subdued. It is a buyers’ market now, with agents also experiencing noticeably less interest from Auckland buyers.'”

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This Post Has 126 Comments

    1. If the “Holmes on Homes” show is any indication, most houses in K-da are infested with mold and have janky wiring and plumbing.

      1. The Love It or List It show on HGTV showed a lot of janky houses. I would have torn down about 1/3 them.
        For another third, only the high prices make a reno worthwhile, or those houses would have been tear-downs too. Problem is that many of the houses were semi-detached duplexes.

        1. only the high prices make a reno worthwhile

          House porn TV.

          Actually, only a really low price would make a renovation worthwhile. Of course, I think differently.

          1. You’re right, of course. Only a low buy price and a high sell price make a reno worthwhile.

            I meant that 1/3 of the houses on those Toronto shows should just have been torn down based on the crumbling structure itself. Another 1/3 need so much work that it’s financially better just to let the house fall in and sell for land value.

            That’s why those flipper shows ONLY worked in bubble areas like Orange County or GTA or Vancouver (or possibly areas with really cheap buy prices, like Chip and Joanna in Waco). HGTV tried a flipper show in Nashville, which never really caught on. Well sure, that’s because they were making only $20-30K profit on a house. Tarek and Christina were making triple that.

    2. SoUtah.

      Really nice weather here lately so I’m out doing some long neglected yard work. The Neighbor, a real-estate agent, was out on their patio talking to someone on her phone. The conversation is on speaker so I can hear both sides of the discussion and I discover that it is between the agent and some real estate office person who she works thru.

      Evidently the rise in interest rates caused a couple of buyers to back out of purchases on properties that my neighbor had previously set up. The office person said that the new, higher rates made the monthly payment too high for the buyers so they were walking away from the sales.

      That was a couple of weeks ago. A few days ago (like I said long neglected so I’m still outside two weeks later still trying to clean up my yard) the same conversation happened again with yet another buyer walking.

      The office person was obviously upset/angry and stated that this is now a regular event with most of the agents within their real estate group. The second conversation ended with the office person commenting “this just has to be temporary, right?”.

      “God, I hope so”, was the reply from my neighbor.

      With a wry, knowing smile I stealthily moved on to my next weed patch.

      SFR inventory in Washington County is up, as of April year over year, almost 30%.

      1. “God, I hope so”, was the reply from my neighbor.

        The SUVs, the boat, the motorcycle and the shack aren’t going to pay for themselves.

      2. “this just has to be temporary, right?” “God, I hope so”

        Their myopic and distorted perspective.

  3. ‘Demand for housing of all values has declined and is now generally subdued. It is a buyers’ market now, with agents also experiencing noticeably less interest from Auckland buyers.’”

    ‘No MOAR shrimps for the barbie’

    1. If yer interested in NZ shacks, this is a very detailed report. Every BFE get a mention.

    2. REIConplex wordsmithing:

      “…escalation of value declines..”

      “…listings continue to outstrip demand…”

      “…off-plan sales quotas not being met…”

      For the benefit of those who speak English, translation: Your F’cked

  4. ‘Don’t cry because it’s over,’ Prawer said, quoting a line commonly attributed to Dr Seuss. ‘Smile because it happened’

    It is pretty funny to watch billion$ “evaporate” as the article mentions, Arik

    1. ‘Smile because it happened’

      I’m looking forward to doing just that in case America somehow manages to achieve its long sought, though highly elusive, affordable housing goals over the next few years.

      1. That is probably what Carvana told the 2500 employees they just laid off in Phoenix too. They claim it is 12% of their workforce which means they still have over 10k employees. I’m trying to figure out what they all do. Any ideas?

        I’m sure it’s just a small adjustment to synergize competencies or something. They’ll be fine, right?

        1. “That is probably what Carvana told the 2500 employees they just laid off in Phoenix too.”

          Great news as I’ve been itching for a turbo-charged hot hatch.

          1. Drove a 2022 wrx and a 2019 gti last weekend. Gti faaaaaarrrrr superior. Tried to drive a civic si, none around and they have a $7k over msrp markup. Price tag on thr gti? $24k. I laughed and walked. Sales guy called today to tell me someone else is coming tk buy the gti tomorrow. I told him to send my regards to the new loanowner.

        2. I’m trying to figure out what they all do. Any ideas?

          Many have esoteric titles and don’t really do anything useful. Eventually, once complete insolvency has been reached, they will shut down. And will do so with little warning.

          Reminds me of a former local car dealer wannabe mogul. He owned several new car dealerships under the “Iron Mountain” name. His dealerships shut down with no warning and he filed for bankruptcy. People who had vehicles in the shop in various stages of disassembly had to wait weeks to get them back, undrivable, and had to pay to have them towed to another shop.

          1. There is a Carvana “car dispenser” building right on the 405 freeway near Westminster Ave. in Westminster. (Orange County, Ca)

            Odd piece of architecture.

            Maybe could be repurposed into a combination coffee shop / bungee jump / homeless shelter with a view or something along those lines.

            Stock isn’t exactly a winner either:

            https://finviz.com/quote.ashx?t=CVNA&ty=c&ta=1&p=d

            Just amazing how people come up with ways to waste money.

        3. Sure they’ll be fine. They can drive their overpriced used cars for LYFT. Oh, wait.

  5. “‘It’s kind of scary,’ said Shay Asnani, a realtor with Right at Home Realty. ‘Some people are feeling a little remorse for buying when things were super crazy. ‘”
    You mean that 800 sq ft shi.tbox you bought in the ice chest of Toronto may not be worth 2 mill Loonies? Ehhhh

  6. ‘ buyers who bought at the peak are sharing their woes on social media, while real estate agents and mortgage brokers report a growing number of stories of remorse. Some who bid high in the heated market are now wondering if they jumped the gun. Others who are nearing closing day are facing mortgage shortfalls as their home values drop, leaving them scrambling to scrape together funds’

    That’s quite a little sh$t storm you got on yer hands K-da. Wa happened to shortages, pent up penguin demand and that rock solid K-da lending standards? Doesn’t really matter when yer getting yer a$$es kicked, does it?

      1. “Choose Paint colors”
        This assumes they have room on the credit card to buy the paint!

    2. Best part: K-da is our nearest neighbor, just to the north, and shit storms are highly contagious.

      1. Overall, population density in Canada in 2021 is 3.92 people per km2 or 10.2 people per square mile. This makes Canada the 10th least densely populated country in the world.

        1. Same thing for the Antipodes down in Oz. These gigantic countries with vast areas populated by nothing but penguins or ‘roos have some of the worst housing bubbles.

          1. From Google:

            ‘Government figures from 2016 show there were almost 45 million kangaroos, nearly double the human population of Australia’

        2. Canada the 10th least densely populated

          With almost all of them huddled in the 50 mile strip along the US border, it’s still mostly undeveloped land.

          2. “…50 mile strip along the US border…”

            Indeed. It is interesting how the forest goes from dense to sparse heading north as the permafrost takes over.

        3. I hear their bear and moose population densities are relatively high compared to other countries.

  8. Does it seem like crypto is sitting inside a toilet bowl, and somebody with a bad case of diarrhea just came in to take a massive dump, and has his hand on the flusher?

    That’s how it seems to me, too.

    1. Just did a quick Google to determine the number of cryptocurrencies now in existence:

      -> 18,000 cryptocurrencies

      So as of today we have 18,000 limited supplies of nothing.

      At what point do we have a limited supply of nothing for every man, women and child on the planet?

      1. Thank you for keeping up with Tether. I didn’t understand all the machinations, but I’m happy that it’s finally starting to crack.

  9. last days … or just realtors and others (like parents) influencing folks to make bad decisions.

    Mortgage applications to purchase a home rose 5% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand was still 8% lower than the same week one year ago, but that annual drop is now shrinking.

    The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.53% from 5.36%, with points rising to 0.73 from 0.63 (including the origination fee) for loans with a 20% down payment. The rate on a 5-year ARM was 4.47%.

    “Despite a slow start to this year’s spring home buying season, prospective buyers are showing some resiliency to higher rates. Purchase activity has now increased for two straight weeks,” said Joel Kan, an MBA economist, in a release. “More borrowers continue to utilize ARMs to combat higher rates. The share of ARMs increased to 11% of overall loans and to 19% by dollar volume.”

          1. $200k in materials and labor right there. What’s 30 year old material and labor worth…. maybe $35 a square foot?

        2. That’s promising. I predict that if you are patient, and have your wealth parked in assets uncorrelated with housing, you will be able to find a deal that works for you in Poway within the next couple of years.

          1. The 20 years of equity from the Encinitas house have been parked since it closed in September 2020. I’ve got my eye on a house up the hill. I’m waiting for the owner/widower/realtor to realize his 5.5 years into $900K of mortgages and $17K+/yr in property taxes for a 3850sf house with a pool is too much for an 84yo. I’ve been binging on garden design tips so we can plant ASAP.

          2. He paid $1,164,000 for it in 7/2002. By my calculations, his mortgages and property taxes are roughly $5,600/month. The landscaper that I’ve seen is at least another $150/month.

          3. The landscaper that I’ve seen is at least another $150/month.

            You are going to pull the trigger too soon.

          4. Too soon? If we wait long enough we’ll all be dead. Red has the money and her son needs a property. She needs to go for it. Life isn’t all about nickels and dimes.

            Just tread carefully. Telling an 84-year-old that he is no longer a spring chicken and can’t handle his property could backfire hugely.

          5. Telling an 84-year-old

            That would be a stupid negotiating tactic. I’m not telling him anything. I spoke with him pre-COVID about selling and he threw out 2x market value. I gather information and use it as necessary.

            Any yes, our son needs a property now more than ever. 2022 has been really tough.

  10. 40.billion.for.a.foreign.country.
    that’s Billion with a capitol “B”

    had to be increased from 33B so all that matter get their beaks wet & no resistance.

    7 deadly sins rule the world. history repeats.

    I wonder if any meaningful recorded evidence will survive, besides all those free AOL DVD’s !?
    will future historians wonder who “Pam from Card Services” was . . . ?!
    better yet, “Falling Prices in Boca Raton!” will puzzle people for generations.

      1. There have been numerous sightings of you in the greater Denver area, riding around in your truck wearing a KN-95 mask and your “Slava Ukraine” ball cap.

    3. This is what happens when you ignore those calls to renew your warranty. Why didn’t you renew??

    4. all those free AOL DVD’s !?

      I used all of them for long range target practice long, long ago.

    5. Listen to Peter Zeihan. This is about nuke prevention.

      If Putin wins Ukraine, then he will move on to try to conquer the next buffer state. And the next buffer states are NATO members, which would activate Europe and US to get involved directly. Based on what we’ve seen, NATO would wipe out the Russian ground military in a week. Then all Putin would have left are nukes and he’s desperate and nuts enough to use them. This war has to stay in Ukraine, by proxy if necessary.

      To me that’s worth $40 billion of toilet paper.

      1. If Putin wins Ukraine, then he will move on to try to conquer the next buffer state.

        You are swallowing the Globalist propaganda completely.

        2. Agreed. The true goal of the globalists is to depose Putin and have the rainbow flag flying over the Kremlin.

    2. Biden delivers remarks

      Most incoherent President in history? Most corrupt? Most stupid? Most racist? Most nasty?

      Yeah, all of those things.

    1. I got busy earlier today, so I’m a bit late posting our daily reminder that the 2020 election was stolen.

      If you want to read misinformation, go read the New York Times and the Washington Post.

      Here on the HBB, we discuss that the 2020 election was, in fact, stolen.

    2. “obviously organized at a very high level”

      That’s the same thing the NYT “journalist” who wrote “The Big Lie” article for the NYT after the election said when he was spilling his guts to the Project Veritas chick in hopes of getting some.

  13. ‘It’s going to do damage to the housing market for sure,’ ?????
    I guess to the REIC the only good housing market is an unaffordable housing market. I say that lower house prices are good :), so the RE market is improving.

  14. “‘Bigger and better houses are selling in the same price where we ended up buying a townhouse and sacrificed … our dream house dreams,’ said one first-time buyer on social media. Another who bought a house for $1.3 million saw bigger homes sell in the same neighbourhood for $1.1 million. ‘I’m feeling stressed and wanted to get out of this deal though I have no option left other than forfeit my deposit,’ the buyer wrote in a post shared by a realtor.”

    It was still cheaper than renting!

    -NAR

  16. Just had to get up on that housing ladder, did ya?

    Residents tell of ‘nightmare’ and vent frustration at developer Avant Homes after estate with properties worth up to £600,000 is left in an unfinished and ‘treacherous’ state YEARS after they moved in

    https://www.dailymail.co.uk/news/article-10805725/Residents-vent-frustration-housing-developer-Avant-Homes-unfinished-estate.html

    Homeowners who have spent years living on a unfinished estate where houses are being sold for up to £600,000 have criticised their housebuilder.

    The Martin’s Reach estate in Wollaton, Nottinghamshire, was given planning permission in 2019 and all homes were completed two years later.

    Pavements, footpaths, allotments and the children’s play area on the estate are allegedly in a ‘treacherous’ state. Houses on the the Martin’s Reach estate range can be priced anywhere from £240,000 to around £600,000.

    1. John McCain wannabe war pig.

      Note that Lindsey does not have any sons to go serve in the phony war in Ukraine, because Lindsey has never been with a woman.

      “They’re not sending their best”

    1. I have an old Monopoly box in the hallway closet. I’d like to peg the Monopoly dollars in the box to real dollars.

      1. Monopoly was created to teach us three important lessons as children so that we would know when we got to be adults but the lessons somehow go unlearned even though they are so obvious.

        1) The majority of players will lose everything.
        2) Even the winner loses at the end because there is no one left to trade with.
        3) If the bank runs out of money it was originally written into the rules to look around for scrap paper to make more. This is the only lesson everyone accepts.

        1. 4) the game goes on a lot longer than it should, to the point where players make up their own rules.

  19. “Now, the realtor of 12 years is looking enviously at the declining market as he approaches his June closing. Other bungalows in the area are now going for $1.1 million. ‘I still think if I waited, I would have got (a house) a little bit cheaper and I would have more choice,’ said Sarvaiya of Re/Max West Realty Inc.”

    B…b…but the REIC assures me realtors are experts in local area housing markets. So how could Sarviya not see this bust coming?

  21. “Wish you wouldn’t post these meaningless stats across social media. You’re giving false hope.”
    🤣🤣🤣

    Cluck Cluck

  22. Eat a bag of d*cks, Nina.

    Biden Disinformation Czar Demands Power To Edit Other People’s Tweets

    https://summit.news/2022/05/11/biden-disinformation-czar-demands-power-to-edit-other-peoples-tweets/

    In a newly released video clip, Biden disinformation czar Nina Jankowicz demands that “trustworthy verified people” like her be given the power to edit other people’s tweets, making Twitter more like Wikipedia.

    Yes, really.

    Asserting that she was “eligible for it because I’m verified,” Jankowicz then bemoaned the fact there are people on Twitter with different opinions to her who also have the blue tick but “shouldn’t be verified” because they’re “not trustworthy.”

  23. Another day, another plunge deeper into the CR8R, ever nearer the Earth’s core on each plunge…

  24. Are persistent unexpectedly high inflation readings a clear indication that we are economically f__ked at a societal level?

    I thought so.

    1. The Financial Times
      US Inflation
      US inflation stays at 40-year high, defying expectations of bigger drop
      CPI increase of 8.3% in April includes rise in core inflation and prompts fall in equities
      A customer shops for apples at a store in Salt Lake City, Utah
      Economists broadly expect the pace of consumer price growth to moderate further from these levels as the immediate effects of the war in Ukraine abate
      © Bloomberg
      Colby Smith in Washington
      2 hours ago

      US consumer prices rose at an annual pace of 8.3 per cent last month, more than economists’ expectations and staying at a four-decade high, underscoring the urgency of the Federal Reserve’s push to stamp out inflation.

      Although the consumer price index moderated for the first time in eight months — it was a step down from the 8.5 per cent increase recorded in March — it was slightly higher than economists’ expectations of an 8.1 per cent rise. An underlying gauge of inflation also rose more than expected, highlighting stresses on households and the challenge for the Biden administration.

      The data initially jolted the $22tn market for US government bonds. The two-year Treasury yield, which is most sensitive to the outlook for monetary policy, jumped roughly 0.12 percentage points to 2.73 per cent, before dropping back down to 2.64 per cent. The yield on the benchmark 10-year note was back below 3 per cent.

      US stocks retreated, led by a sell-off in tech, with the Nasdaq Composite ending the day down 3.2 per cent and the S&P 500 shedding 1.6 per cent.

      “This is not the surprise either the bond market or the Fed wanted,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management.
      …

    2. The Financial Times
      EU economy
      Christine Lagarde sends clear signal that ECB will raise rates in July
      Economists think first increase in more than decade is ‘done deal’
      ECB president Christine Lagarde pictured in Frankfurt in March
      Christine Lagarde says she expects the bank to stop expanding its balance sheet through bond purchases ‘early in the third quarter’ and to then raise rates ‘some time’ after that © Alex Kraus/Bloomberg
      Martin Arnold in Frankfurt
      7 hours ago

      Christine Lagarde signalled that she would support raising the European Central Bank’s main interest rate in July, leading economists to declare that the first increase for more than a decade is almost certain to go ahead.

      The ECB president said in a speech in Slovenia on Wednesday that she expected the bank to stop expanding its balance sheet through bond purchases “early in the third quarter” and to then raise rates “some time” after that, which “could mean a period of only a few weeks”.

      Lagarde added that “actions that demonstrate our commitment to price stability” would be critical in ensuring businesses’ and households’ expectations of future inflation did not rise further and test the central bank’s credibility. Eurozone inflation hit a record 7.5 per cent in April — almost four times the central bank’s target of 2 per cent.
      …

    3. The Financial Times
      Corporate bonds
      European corporate bonds hit by steepest sell-off in at least 20 years
      Pressure mounts as traders crank up bets of ECB raising rates to curb inflation
      The European Central Bank skyscraper headquarters building in Frankfurt, Germany
      Most of the damage has stemmed from expectations that the European Central Bank will follow the US Federal Reserve in raising interest rates as it grapples with surging inflation
      © Alex Kraus/Bloomberg
      Ian Johnston in London yesterday

      European corporate debt has been hit by its heaviest pullback on record as fears over persistently high inflation and the threat of a recession send traders dashing out of the market.

      Bonds issued by highly rated companies in the eurozone have lost investors more than 10 per cent since the peak nine months ago, marking by far the biggest decline since at least 2000 for an asset class typically expected to deliver much steadier returns than stock markets, according to an Ice Data Services index.

      Most of the damage has stemmed from expectations that the European Central Bank will follow the US Federal Reserve in raising interest rates as it grapples with surging inflation. On Wednesday, ECB chief Christine Lagarde signalled she would support raising rates in July.

      That prospect has hit bonds of all stripes. But the so-called spread offered by corporate bonds — the extra yield they offer relative to government debt — has also begun to widen, indicating that investors are worried about a looming economic slowdown that could weigh on companies’ ability to service their debt.

      The sell-off has been driven by “inflation being stickier than expected”, which has fuelled expectations of central bank tightening, said Vivek Bommi, head of European fixed income at AllianceBernstein. “In September, the word used with inflation was ‘transitory’ and I don’t believe anyone uses that word any more.”
      …

  25. Another Arkancide brought to you by the Clinton Murder Machine (5/11/2022):

    “The Middleton family did not reply to requests for comment.

    Middleton had for decades run an air conditioning business in Little Rock but in the 1990s he was a special advisor to Clinton and finance director on his Presidential campaign.

    During that time Middleton admitted Epstein to the Clinton White House on seven of the at least 17 times the late pedophile visited.

    Middleton also flew on Epstein’s plane and appears to have acted as a conduit between the two men.”

    https://www.thegatewaypundit.com/2022/05/bill-clintons-special-advisor-jeffrey-epstein-handler-flew-lolita-express-dies-59/

    “They’re not sending their best”

    2. “The major efficacy of a mask is that it causes alarm”

      That’s in Japan, stateside the major efficacy of a mask is it’s ability to conceal the identity of BLM and Antifa rioters, department and jewelry store looters along with January 6 door and window smashing paid thugs dressed up as Trump supporters.

  28. How many days of 3% daily drops would it take for the NASDAQ to lose 50% of its value?

    1. The Financial Times
      Markets Briefing
      US Treasury bonds
      Nasdaq Composite slides 3.2% as stock sell-off gathers pace
      Tech-heavy index down nearly 30% from record as inflation bolsters likelihood of aggressive Fed interest rate rises
      Bear and bull statues outside the Frankfurt Stock Exchange
      European shares were up on Wednesday after a volatile week © Alex Kraus/Bloomberg
      Naomi Rovnick in London and Nicholas Megaw in New York
      8 hours ago

      US stocks resumed their slide on Wednesday after unexpectedly hot “core” inflation data raised expectations for aggressive policy tightening, pushing the tech-heavy Nasdaq Composite down nearly 30 per cent from its record high.

      Growth stocks that are seen as particularly sensitive to rising rates led the declines, with the Nasdaq falling 3.2 per cent. The blue-chip S&P 500, which had rallied as much as 1.2 per cent earlier in the trading session, ended the day 1.6 per cent lower.

      Consumer prices in the world’s largest economy rose at an annual rate of 8.3 per cent in April, down from 8.5 per cent in March but remaining at a historically elevated level. The figure surpassed economists’ expectations for a cool-down to 8.1 per cent. The month-on-month change in core inflation — which excludes food and energy prices and is closely watched by economists — also exceeded forecasts at 0.6 per cent.

      Rising costs of new cars, food, airline fares and housing were the biggest drivers of the increase in consumer prices, the US labour department said.

      “The report should be of concern for the Fed given price gains in the core segment appear to be spreading,” TD Securities said in a note to clients.
      …

    3. Yahoo Finance
      Stock market news live updates: Stocks futures edge lower as investors continue to mull April inflation report
      Alexandra Semenova
      Thu, May 12, 2022, 3:31 AM·5 min read

      U.S. stock futures declined in pre-market trading Thursday following another down day in markets as investors digested inflation data that showed price levels remained elevated in April.

      Futures tied to the S&P 500 slipped 0.6% after the index settled at 3,935.18, or its lowest level since March 2021. The S&P 500 is down more than 17% in the first 90 trading days of 2022, marking its second worst start to a year, according to data from Compound Capital Advisors. Contracts on the Dow Jones Industrial Average ticked down 0.5% after a decline of 300 points, or just over 1% in the previous session, and Nasdaq Futures fell nearly 1%.
      …
      https://finance.yahoo.com/news/stock-market-news-live-updates-may-12-2022-223519270.html

    4. would it take for the NASDAQ to lose 50%

      It seems to have lost 20% since April Fools Day. That should give a clue.

  30. “Marjorie Taylor Greene said last night: “$40 billion for Ukraine, but there’s no baby formula for American mothers and babies… Stop funding regime change and money laundering scams.” Here’s how Jamie Raskin responded on behalf of House Democrats, now a 100% war-crazed party”

    https://twitter.com/mtracey/status/1524374540620644352

    Russian disinformation.

    This POS is a traitor to the United States.

    “Even “progressive” Democrats have no ability or willingness to defend their war-escalating policy on the merits, so they reflexively scream “appeasement” and “disinformation” — rhetoric they would’ve undoubtedly associated with hardcore right-wing pro-war troglodytes in the past”

    “Raskin in particular was heralded as an incredibly savvy, “progressive” Constitutional Law professor when he was first elected in 2016 — now he’s fulminating on the floor of the House that anyone who opposes open-ended US military escalation is a despicable “isolationist”

    The punishment for treason is DEATH 🙂

  31. Colorado Springs, CO Housing Prices Crater 12% YOY As Excess Inventory And Mortgage Defaults Blanket Central Colorado

    https://www.movoto.com/co/80904/market-trends/

    As one desperate Denver area seller lamented, “I shouldn’t have ever bought this house. It’s riddled with defects…. and so is the mortgage contract.”

  32. Today is Thursday, May 12th and Joe Biden is not the legitimately elected president of the United States.

    The 2020 election was stolen.

  33. Beyond meat is crashing
    https://finance.yahoo.com/quote/BYND

    Last week i got a sample bottle of ju.st egg…. so we tried it yesterday, scrambled like eggs tasted close enough until the side effects kicked in…………lets just say we both had a healthy amount of aromatic discharge and lysol became our best friend,

      1. Isn’t this the same as McDonald’s folded egg?

        I believe that Mickey D’s still uses real eggs, though that could change.

        The PTB truly are hell bent on making us all become vegans. And they are patient. They will keep tying to get us to eat this slop, and will no doubt find a way to make real eggs, and real food in general, a pricey luxury.

        As for the free sample of fake eggs, I would have laughed and refused it, while I grabbed a carton of real eggs.

        From their website:

        We make eggs from plants because they’re packed with clean, sustainable protein and, honestly, because they taste really good.

        Nah, you make them because the WEF is subsidizing you while they brainwash kids into believing they have to eat this cr@p to “save the world”.

          1. Why fight nature?

            I don’t think there is very much about them that is “natural”.

            And that name brand is extremely misleading. “Ju.st Eggs”? more like “Anything But Eggs”

  34. Why fight nature?

    I don’t think there is very much about them that is “natural”.

    And that name brand is extremely misleading. “Ju.st Eggs”? more like “Anything But Eggs”

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