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There’s Panic In The Air

A report from Bloomberg. “Cryptocurrencies plummeted so violently that a popular lending platform froze withdrawals to prevent a very modern kind of bank run. It was enough, for some, to resurface scary memories of the global financial crisis more than a decade ago. Christian Hoffmann, a portfolio manager for Thornburg Investment Management, said market liquidity has deteriorated so much that he’s thinking about the dark days of 2008. ‘Liquidity in the market is worse than it was leading up to Lehman,’ said Hoffmann.”

“‘It was quite the day. Like a freight train approaching and you can’t turn anywhere for help,’ said Misra, global head of rates strategy at TD Securities. ‘Today the bond market was present in all ferociousness!'”

The Associated Press. “Analysts say, that the Fed will have to inflict some pain — most likely in the form of higher unemployment — as the price of defeating stubbornly high inflation. ‘They need to accept the fact that you can’t fight inflation without imposing some pain on the markets and the economy,’ said Ethan Harris, head of global economic research at Bank of America. ‘They shouldn’t coddle the markets by kind of implying that there’s no major issue here, we’re going to have a soft landing for the economy. I think it’s too late for that. We have to have a hard landing.'”

From Money Wise. “U.S. mortgage rates moved back up in anticipation of next week’s Federal Reserve meeting, where policymakers are expected to hike the benchmark borrowing rate for the third time this year. ‘The interest-rate picture is not pretty for residential real estate,’ says Washington, D.C. real estate agent Corey Burr. Burr says the real estate market is already seeing shifts in supply and demand. ‘We are also experiencing fewer multiple-bid situations, more price reductions on list prices and a creeping back of the typical house appraisal and financing contingencies that help protect buyers,’ he says. For sellers, ‘it’s important to accept the new reality that the market is trending back to neutral.'”

The Ravalli Republic in Montana. “With national stories of other housing markets being overpriced and interest rates climbing, Hamilton real estate broker Darwin Ernst thinks that some people might be listing their homes now because they want to take advantage of what they believe could be the peak in home prices. ‘There is always action and reaction to the market,’ he said. ‘Historically, when we see interest rates go up, that pushes some people who are considering selling their home off the fence. They want to get them sold before the prices start to come down.'”

From WOWT in Nebraska. “Increased mortgage rates are affecting the housing market by pushing out some homebuyers and reducing the demand. This shift is leading to more inventory and longer listing times before houses sell. ‘The inventory for homes for sale in the month of April has gone up 5.9% from April of last year. And the months of supply of inventory has gone up 14.3% from April of last year,’ according to Tanner Sherman, a realtor in Omaha.”

“Ken Janson is another realtor who is seeing the market shift. ‘Their buying power is what it’s all about. If they had their heart set on a half-a-million-dollar house and now the payment on the half-a-million-dollar house is beyond their income stream, well then maybe they’re at a $400,000 house now. Which is still a fabulous house, but it’s not a half-million-dollar house,’ said Janson.”

The News Tribune in Washington. “According to Michael Robinson, a managing broker at Windermere Professional Partners in Tacoma, the story is in the stats, and what they reveal. Back in January, there were roughly 430 homes on the market in Pierce County. Today, there are roughly 1,400. That increase in available inventory means sellers can no longer afford to get greedy with their asking price.”

“‘It’s still a good time to sell, but sellers need to curb their irrational exuberance when pricing,’ Robinson said. ‘You can still command a really high price, and you can still essentially be in the driver’s seat when it comes to marketing and negotiations. But there’s a limit, because you’re not the only game in town. Now you have some competition, whereas three years ago you didn’t.'”

From Probuilder. “Since 2017, builders started an estimated 190,000 single-family built-to-rent (SFB2R) homes—about 64,000 of those in 2021 and in the first quarter of 2022. But what about the segment’s long-term future when the white-hot hoopla eventually recedes? ‘Capital tends to follow capital, but you don’t have $85 billion in expertise out there behind the capital,” cautions Chris Bley, co-president and chief investment officer for residential investment firm IHP Capital Partners.”

“He adds that SFB2R ‘is still a residential play, but a lot of people don’t understand the ‘build’ part of it.’ In their pursuit of this particular golden goose, he says, ‘some ducklings could get run over,’ meaning investors charging ahead without a builder wingman to guide them.”

From News Tucson in Arizona. “An off-campus student housing complex near the University of Arizona is facing multiple complaints from some of its tenants. They say they feel unsafe and say management is not doing anything about their concerns. The student housing complex in question is called Sol Y Luna – two side-by-side apartment buildings owned by Nelson Partners, a company that owns student housing in more than a dozen states. It is now facing lawsuits from investors and accusations of poor upkeep from tenants nationally and here in Tucson.”

“Nelson Partners is facing foreclosure on multiple properties and lawsuits from investors. In Texas, a judge approved a $50 million settlement to resolve claims of defrauding investors.”

The Rochester Beacon in New York. “A lender’s three-year-long attempt to force a foreclosure on the Hiram Sibley building and two adjacent East End properties is at least temporarily thwarted. The buildings’ owner is trying to reverse a recent Bankruptcy Court ruling ordering that foreclosure be allowed to move ahead. Currently a mixed-use blend of apartments, offices and street-level retail, the distinctive structure has been most familiar to many Rochesterians as home to a series of East End watering holes.”

“The transfers came as Thomas Masaschi’s Rochester umbrella company, DHD Ventures, increasingly fell under legal fire from lenders including US Income Partners, which in 2019 filed a series of lawsuits claiming that DHD had defaulted on some $20 million in loans. Some DHD properties were also falling behind on property tax payments.”

From Global News in Canada. “A Winnipeg real estate agent is confident the local housing market will remain steady, but mortgage and real estate agents alike say Winnipeggers are keeping a watchful eye on rising interest rates. Alberto Carmona told Global News ‘They are concerned because if they were pre-approved at three months ago or two months ago, the rate (was) 2.4, 2.6 per cent,’ he said. ‘If the pre-approval expires now, the bank needs to pre-approve them again with the new interest rate: 3.6. 3.8.'”

“Mortgage agent Beth Thrall says there’s panic in the air. ‘For first-time homebuyers that got into the market in the last two years at the 1.5 line, yes, it’s very scary,’ Thrall said. Mortgage specialist Peter Paley added that staying calm is key. ‘I think the most important thing for anyone to ever do in this kind of situation is not panic and pull out your old Excel spreadsheet into your household budget. See how much money’s coming in and how much money is going out.'”

From CTV News in Canada. “‘We’ve been seeing a shift happening across Windsor-Essex County in the last two months. We have started to see the price decrease,’ Dan Gemus, owner of Dan Gemus Real Estate said. Wendy Sutton listed her LaSalle home two weeks ago and was shocked by the lack of interest. ‘We’ve had no viewings, no phone calls. We had an open house last Sunday and not one person came,’ said Sutton.”

The Globe and Mail. “Magenta Capital Corp., one of Canada’s largest private mortgage lenders, has suspended new loan applications until September, according to an e-mail to its broker clients viewed by The Globe and Mail. It’s an unexpected move for a lender that has grown rapidly during the pandemic’s real estate boom. Because borrowers qualify for less from a bank, they are increasingly seeking out alternative lenders such as mortgage investment corporations, or MICs, which pool investor funds to provide loans and are not subject to the same restrictions as chartered banks.”

“The lender may be taking a break because the mortgage demand exceeds the amount of capital it has available to lend and investors are not chipping in as much new funding to meet the demand. Magenta did not respond to multiple requests for comment.”

From ABC News. “The Reserve Bank Governor has warned Australians they need to be prepared for substantial interest rate rises over the rest of this year, conceding he’s not sure how high they might go. ‘How fast we get to 2.5 per cent, indeed whether we get to 2.5 per cent, is going to be determined by events,’ said Philip Lowe. Under such a scenario, a family with a million-dollar mortgage would likely have to pay more than $1,000 a month extra than they were a few weeks ago.”

“‘At the individual level some people have taken loans that they may not have wanted to take out in retrospect, but the overall picture, which is really very much the focus of the Reserve Bank, is a pretty resilient economy,’ Dr Lowe said. ‘Sometimes my comments get interpreted as me having made a promise, or a very strong statement, that interest rates would stay where they were to 2024. In our own communication, in our own way of thinking, it was very much a conditional statement,’ he said.”

“He added that it was a ‘really good question’ to consider whether the economy had been overstimulated by the RBA and the federal government during the pandemic, and whether that was the reason for the coming rate rises. ‘But perhaps I can take you back to the dark days of the pandemic, back in February and March 2020,’ he reflected. ‘There were credible predictions that tens of thousands of Australians would be dead within a few months, that our hospitals would be overfull, that the unemployment rate would reach 15 per cent, that there’d be deep economic and social scarring in society and there’d be a generation of lost opportunity. We were facing incredibly scary, damaging times. We took out a lot of insurance. I think it was the right thing to do but I accept that others will have a different view. The Reserve Bank is committed to learning from that experience.'”

From Stuff New Zealand. “The country’s largest home loan provider has increased the rate it stress tests home loan applicants to 7.6%. Glen McLeod, director of Edge Mortgages, said by mid-next year, SSRs could hit 9%. He said the higher the hurdle created by SSRs, the fewer people will qualify for large home loans, which would reduce the buyer pool and could reduce house prices. ‘That could draw them (prices) back as vendors can’t get the price they’re hoping for because purchasers can’t afford to buy at that level.'”

The South China Morning Post. “The proportion of plots of land withdrawn in the first round of auctions held over five months between February and June this year in 20 major Chinese cities has increased, with cash-strapped developers reluctant to splash the cash. ‘Many developers are still facing a lot of stress in terms of financing, and from a long-term structural perspective, the high-growth period for housing is probably already over. So demand won’t be strong as before,. Chen Dong, Pictet Wealth Management’s head of Asia macroeconomics research, said.”

“More firms are joining China Evergrande Group and Kaisa Group Holdings on a list of developers failing to repay debt. Sunac, China’s fourth-largest developer by sales, for instance, failed to repay US$29.5 million (S$41 million) in interest on a US-dollar bond and was in default after a 30-day grace period that expired on May 12. It is also in negotiations with its onshore creditors to extend the deadlines for yuan-denominated bond payments.”

“About 60 per cent of China’s top 100 developers have not bought a single piece of land in the first five months of this year, according to data from China Real Estate Information Corporation (CRIC), one of China’s largest real estate brokers.”

From CBS News. “Amid a deepening sell-off in cryptocurrencies, two popular platforms blocked investors from buying and selling the digital assets. Crypto-lending company Celsius late Sunday said it was halting users from making withdrawals, trades and transfers between accounts ‘due to extreme market conditions.’ The company, one of the bigger cryptocurrency lending platforms with roughly 1.7 million customers and more than $11 billion in customer assets, didn’t immediately respond to a request for comment Monday.”

“The shutdown at Celsius sparked anger and frustration on social media, with the company giving no indication in its announcement when it would allow users to access their funds. ‘This is not okay. You’re losing trust with your patrons and NOT ACTING IN THE BEST INTEREST OF YOUR COMMUNITY!’ one person wrote to Celsius in response to their trading halt announcement. ‘This was yet another bank run. You’re not reinventing anything here. They were promoting their services as a better savings account but in the end you’re just another unsecured lender,’ said Cory Klippsten, CEO of Swan Bitcoin, who has been publicly skeptical of Celsius’ business model for years.”

“Lending platforms such as Celsius have come under scrutiny recently because they offer yields that normal markets could not support, and critics have called them effectively Ponzi schemes. It is the second notable collapse in the cryptocurrency universe in less than two months. The stablecoin Terra imploded in early May, erasing tens of billions of dollars in a matter of hours.”

This Post Has 153 Comments
  1. From the video above:

    It’s Officially TIME To Say… | Las Vegas Real Estate Market Update

    ‘Premiered Jun 10, 2022 The June Las Vegas Real Estate Market Update… we’ve heard talks about the crash and the ‘slowdown’ but the question is, how do we get back to reality? and is there a way we can do it WITHOUT popping this ‘housing bubble’? let’s break it down!’

    It’s got some pretty good stats. Opendoor taking an a$$ pounding on one.

    1. how do we get back to reality? and is there a way we can do it WITHOUT popping this ‘housing bubble’?

      Like having your cake and eating it, too?

    2. There was a talking point being circulated by RE shills a few of weeks ago that the market had already priced in the Fed rate hikes and that mortgage rates would stabilize where they were and the RE market would not be significantly affected. The narratives have a short shelf life these days.

  2. The PRC is the template for where the globalists and their Democrat-Bolshevik Quislings want to take us, using “public health” as a pretext for Orwellian surveillance and control measures. Forward!

    China City Accused of Using Covid Health Codes to Stop Protests

    A manufacturing hub in central China is allegedly abusing its Covid control measures to prevent investors who say they have been swindled out of billions of dollars in a suspected financial scam from returning to the city to protest.

    Several people who claim to have been denied access to their money invested via online platforms said their health codes turned red when they scanned in at the main train station of Zhengzhou, the capital of Henan province, meaning they could no longer move about freely. They had carried green health codes when they left their hometowns, said the people, who declined to be identified for fear of reprisals.

    1. Unelected globalist bureaucrats, and the Democrat Party, tried to implement that here.

      The same people who wanted you fired from your job for not getting injected with an experimental mRNA poison that is not a “vaccine.”

      I have never used a QR code to “check in” to anything, and I never will.

      1. Your social credit score has been duly annotated by a Comrade of Proven Worth (D) in our “paused” DHS Ministry of Truth.

    1. Panic is in the air.

      Except that I’m not panicking at all. And neither are you. Only these asz clowns who were gambling in everything are. I’m looking forward to seeing some overconfident “friends” crash and burn. I got tired of hearing about how smart and rich they became.

      1. Every bit of money I have I earned the hard way – through WORK. I’m sick of lazy asz people expecting to retire without lifting a finger. Can’t wait for all of that “passive income” to evaporate.

    1. With real inflation – as opposed to our so-faux, Soviet-style CPI data – running at 18-20%, current US Treasury yields are a joke. What kind of idiot “investor” accepts guaranteed deeply negative yields on monetized debt that’s going to be printed away by the Fed?

  3. “Mortgage agent Beth Thrall says there’s panic in the air. ‘For first-time homebuyers that got into the market in the last two years at the 1.5 line, yes, it’s very scary,’ Thrall said.

    Ya know, I’m trying to summon forth some vicarious panic in solidarity with all those FBs, but as I sit here in my comfy rental, my bets against the Fed’s Ponzi markets rising in value, I’m just not feeling it.

    1. We are in a two-year lease, through year-end 2023, which we signed before inflation became unhinged. Plus I dumped all of my stock market HODLings last fall.

      So watching the Fed’s Ponzi asset markets implode is a spectator sport, so far as I am concerned.

      1. “Plus I dumped all of my stock market HODLings last fall.”

        Getting your cue from Satya Nadella?

      2. Plus I dumped all of my stock market HODLings last fall.

        Unless they’re in a 401k, that could generate a not insignificant amount of taxable income.

  4. ‘It all grew so feverish that major institutional investors started taking the bait, too. In October, the Ontario Teachers’ Pension Plan invested in FTX, another prominent crypto trading hub, and the Caisse de dépot et placement du Québec co-invested in a US$400-million deal that valued Celsius Network, a New Jersey-based cryptocurrency lending platform, at more than US$3-billion. “The way we look at Celsius is that it is the bank of the future,” Alexandre Synnett, executive vice-president and chief technology officer at the Caisse, told The Globe at the time.’

    ‘The crypto sector is known for being volatile, so it would be silly to write the whole thing off. But the recent crash has, in charitable terms, broken many of the promises made to investors. More critically, it has exposed the sector’s lies, the worst of which are detailed below.’

    ‘This unspoken truth was exposed last month when the prices of two crypto assets whose values were tightly interlinked, luna and terraUSD, capitulated. Mike Novogratz, the CEO of crypto trading platform Galaxy Digital Holdings Inc., had been one of luna’s biggest backers. But he didn’t lose it all, because Galaxy had been trading in and out of crypto assets.’

    ‘In a mea culpa to investors, including retail buyers who lost everything, Mr. Novogratz came clean on what the sector should reasonably expect going forward. “At a high level, it’s important to understand that volatility is likely to continue, and the macro situation is going to remain challenging,” he wrote. “There is no cavalry coming to drive a V-shaped recovery. The Fed can’t ‘save’ the market until inflation falls.”

  5. “There’s Panic In The Air”

    It’s Sahara Dust here in Region IV.

    Although as of yet no Camel hair or Desert Fox fur has been detected.

  6. Was it a mistake for the Fed to drink the Modern Monetary Theory koolaide and keep extraordinary accommodations, including a Fed Funds rate of 0% plus longterm bond yield suppression through Quantitative Easing, in place for over a decade?

  7. Note what we got above. Subprime lender in K-da shuts the door. New Zealand spikes the stress test rate. And Australia:

    ‘ ‘How fast we get to 2.5 per cent, indeed whether we get to 2.5 per cent, is going to be determined by events,’ said Philip Lowe. Under such a scenario, a family with a million-dollar mortgage would likely have to pay more than $1,000 a month extra than they were a few weeks ago’

    Is that a lot? Takes the cake:

    ‘He added that it was a ‘really good question’ to consider whether the economy had been overstimulated by the RBA and the federal government during the pandemic, and whether that was the reason for the coming rate rises. ‘But perhaps I can take you back to the dark days of the pandemic, back in February and March 2020,’ he reflected. ‘There were credible predictions that tens of thousands of Australians would be dead within a few months, that our hospitals would be overfull, that the unemployment rate would reach 15 per cent, that there’d be deep economic and social scarring in society and there’d be a generation of lost opportunity. We were facing incredibly scary, damaging times. We took out a lot of insurance. I think it was the right thing to do but I accept that others will have a different view. The Reserve Bank is committed to learning from that experience’

    How did you lose yer shack mate?

    We were facing incredibly scary, damaging times. We took out a lot of insurance.

    Just cuz you sh%t yer bed, all is forgiven Phil? None of those things happened. You trashed yer economy for nothing. Printed insane amounts of money. And I bet yer leaving the bar in a limo right now.

    1. US Already Descending Into Recession: Economist

      As credit gets tighter, a lot of ‘dream’ ventures will prove to be unfeasible and fail

      “I think the cake has been baked from the sentiment perspective where people are now acting on the assumption that a recession is coming. And remember, it’s that action that actually causes a recession to come,” said Peter Atwater, former hedge funder and now lecturer at the College of William & Mary in Virginia, during a recent Wealthion interview.’

      ‘As Atwater sees it, thousands of companies have fudged their earnings with easy cash due to the ultra-low interest rates set by the Federal Reserve. “With free money, the ability to financially engineer your earnings results is unlimited,” he said. Now that rates are going up, such companies will start having trouble rolling over their loans. “It’s sucking the air out of the room,” he said, anticipating that “thousands” of such companies may go under.’

      ‘As credit gets tighter, a lot of “dream” ventures will prove to be unfeasible and fail, he predicted, noting that overconfidence in the market has caused investors “to buy promises of even the most ridiculous things.” “There was so much capital irresponsibly deployed to capture dreams that the volume of equity destruction is going to be massive,” he said.’

      ‘The financial elite is, so far, failing to appreciate the direness of the situation because their lifestyle has become extraordinarily insulated from a commoner’s reality, he surmised, calling it “work from home blindness.” “The financial elite are spending so much time sequestered away from the real world that I think they’ve lost sight of the fact that the folks who are delivering things to them, who live in the real world, have to buy gas,” he said.’

      ‘During previous recessions, some parts of the economy were usually spared major losses and could thus serve as safe havens for investors. Those would include government bonds and businesses serving high-end clientele, such as luxury goods producers. In recent years, big tech companies have also been treated as safe bets. All of those, however, may get pummeled too this time, according to Atwater. “What I don’t think investors quite appreciate is we’re having an unwinding in both fixed income and equity simultaneously here. And there’s not going to be any place to hide in that,” he said.’

      Wa about the swimming neeked? We wanna see neeked swimmers dammit!

      1. “The financial elite are spending so much time sequestered away from the real world that I think they’ve lost sight of the fact that the folks who are delivering things to them, who live in the real world, have to buy gas”

        Sounds about right.

        Remember, this alleged “elite” was never elected to govern anything. They can boast of having “penetrated” into national governments, but they themselves have no legislative or jurisdictional authority over anything.

          1. Their puppets do.

            And they are motivated by brown envelopes, speakers fees, board positions, (after they leave office), etc. It’s how they become multi-millionaires when they leave office.

  8. Even the globalist oligarchs who have been the exclusive beneficiaries of the Fed’s “No Billionaire Left Behind” monetary policies are starting to rack up some serious losses to their Yellen Bux fortunes amassed during 14 years of Fed “emergency measures.”

    World’s 500 richest people including Elon Musk, Mark Zuckerberg and Jeff Bezos have lost $1.4 TRILLION in 2022 amid rocketing interest rates and inflation, report finds

    The world’s 500 wealthiest lost a combined $1.4 trillion this year, it has been revealed – a loss spurred by rocketing interest rates and record inflation.

    The decrease, announced in a Capgemini World Wealth report Tuesday, represents a stark turnaround from gains seen last year, when corporations and billionaires raked in record profits during the pandemic, as millions others lost their livelihoods.

    The report shows that US billionaires alone – such Elon Musk, Jeff Bezos, and Mark Zuckerberg – have seen their fortunes cut by roughly $800 billion.

      1. Pre-plandemic or pre-scamdemic levels.

        There will be no “get out of jail free card” for anyone who participated in this CCP Flu hoax.

        Only nooses…

        1. Another inexplicable case of “died suddenly”:

          And remember, for every “person who matters” who dies of “suddenly”, there are thousands of little people, whose deaths won’t be chronicled in any newspaper. And I fear we are still in the tip of the iceberg phase.

          My in-law almost died of suddenly, and they still haven’t told her why she almost died. Nevermind she was in fair shape and had no family history of cardiac disease. She now has a defibrillator in her chest, has to “take it easy” and has likely lost 10-20 years of lifespan.

      1. Taxing the sh*t out of speculators who are depriving locals of affordable housing isn’t as good as monetary policies that discourage turning housing into a speculative asset bubble, but it’s one of the few means local communities have to defend themselves from the outsider locusts buying up their housing stock and pricing out the people who live there.

        1. Great theory. Now all you have to do is come up with workable definitions of speculators, locals, locusts, etc. If you buy a house somewhere, aren’t you then by definition a local? Or are you supposed to rent for a while before you qualify to buy? Or is no one ever allowed to move anywhere or buy a second house?

          1. Do you live in the house you bought?
            YES –> You’re a local. All good.
            NO –>
            Is the house occupied with a long-term tenant (6 mos or more) most of the year?
            YES –> You’re not a local but you’re OK.
            NO –>
            Is this a vacation house for you or short term rentals?
            — and —
            Did this locality vote itself as a tourist area which allows for second homes and STR?
            YES to both –> You’re not a local but you’re OK.
            OTHERWISE — You’re speculator scum. Pay up.

            This took me 5 minutes, off the top of my head.

          2. This took me 5 minutes

            Five minutes that you will never get back.

            This took me five seconds.

          3. Five minutes that you will never get back.
            This took me five seconds.

            .gov employees aren’t known for efficiency.

          4. Oxide: It’s going to take you a lot longer than 5 minutes to figure out the rest, and get everyone to agree. For example:

            How many people have to be at a property for it to be considered “occupied”? Does the presence of a single person at Mar-a-Lago render the place “occupied”? How long does a person have to spend there? An hour a day? Are you going to send around inspectors to see who’s occupying what for how long?

            And how much more do these alleged speculator scums have to pay and who gets the money? And what are the boundaries of a “locality” and how is it reasonable for 51% of the people there to make up arbitrary discriminatory rules about property rights out of their @$$es?

            It would be much better to follow the long established rules of common law of property ownership, including restrictive covenants as appropriate to govern uses of adjacent properties. No voting or arbitrary discrimination necessary.

            Hi-Z: Neither, and ad hominems are not relevant here.

  9. Interest rates headed up up up!

    “Mortgage demand at 22-year low as interest rates climb”

    Meanwhile housing continues it’s death spiral. Hope you didn’t pay more than $50 a square foot(or $35 a square in the case of a used house).

    Santa Rosa, CA Housing Prices Crater 14% YOY As Californias Fraud Riddled Housing Market Staggers

    1. zerohedge (dot) com/political/watch-now-women-cant-get-sanitary-products-bidens-america

      Big Fat bastard, my daughter can’t find tampons at her local store. It’s time she moves out of my house. She is 24, what bride price will you offer me?

    1. Tier one virtue signal of you juice your electric vehicle with electricity created from burning coal.

      DoublePlusGood virtue signal if you power your electric vehicle with solar panels manufactured by Chinese slave labor.

      Either way, I would be happy to overcharge you for either installation option, we can even set you up on a payment plan!

      1. I recent friend ordered a Tesla Model Y back last December. The delivery date keeps getting pushed out now estimated between August and October. When she texted recently that she might change her mind soon, I suggested that she should noting chip shortages, quality problems and Tesla being a sketchy company.

          1. A few months ago, it was supposed to be July.

            Wouldn’t that be fun if 12 months passed and there is still no car?

            I see that the Model Y goes for about $60K and it’s smallish. Your friend could get a Camry for little more than half that price. It will be roomier, more reliable and will last forever.

            Sure, the Model Y is super fast, but where can you drive it like that?

          2. She and her husband test drove the Ford Mustang Mach-E last month but they’re hesitant about it being the first year of the car. I get that.

          3. She lives in Escondido, works for PUSD and has a 20yo daughter with Down syndrome and all the medical problems that comes with that.

          4. works for PUSD

            It pays to work for the gooberment in Clownifornia. How much is she paid? 200K?

          5. “…and has a 20yo daughter with Down syndrome and all the medical problems that comes with that.”

            I can’t imagine the emotions that come bundled with that situation. Despite the struggles of college tuition, cars, etc., I count my blessings.

          6. How much is she paid? 200K?

            It’s part-time and I’m sure not commensurate with the time and effort she puts in. She’s helping the district build an amazing community of similarly situated parents.

          7. I can’t imagine the emotions that come bundled with that situation.

            Divorce and/or abuse are pretty common.

          8. Given the baggage, Incredible.

            Just goes to show that a high income by itself doesn’t make a man “high value”.

  10. The Aussie sheeple who elected globalist Quislings to rule over them are learning there’s a price to be paid for letting your once-proud country be turned into a WEF looting colony. Letting Enron-style energy pirates take over your power grid means ruthless “wealth extraction” from consumers. Enjoy your blackouts, Aussie cucks.

    Suburbs plunged into darkness as blackouts hit Sydney, with entire east coast under threat of outages

    Millions of homes were told to switch off appliances to conserve electricity as the Australian Energy Market Operator (AEMO) warned of outages.

    1. Those who can afford it, will install solar panels. Everyone else will need to stock up on candles.

      1. Those solar path lights aren’t too expensive. Buy a box of them and stick them in the yard during the day. Enjoy life!

    1. Remind me why we have vaccine mandates when the vaxx doesn’t protect you from catching COVID.

      It would be like catching an STD after using a rubber, and then thanking the company who made it.

  11. Markets
    DOW 30,407.50 -109.24 -0.36%
    S&P 500 3,742.25 -7.38 -0.20%
    NASDAQ 10,798.22 -11.00 -0.10%

    All of Joe Biden’s stock market gains have evaporated

    By Paul R. La Monica, CNN Business
    Updated 10:04 AM ET, Tue June 14, 2022

    New York (CNN Business)
    Joe Biden may not be as obsessed with the stock market as his predecessor was — at least not publicly. But this year’s turmoil on Wall Street has dealt the president a tough blow. The S&P 500 has now lost all of its gains since Biden was inaugurated last year.
    The S&P 500, one of the broadest measures of the US stock market and the economy, is down 2.7% since January 20, 2021. Stocks fell into the red for the Biden era following Monday’s 3.9% market plunge.

    The blue chip index, which includes companies such as tech giants Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN), Elon Musk’s Tesla (TSLA) and Warren Buffett’s Berkshire Hathaway (BRKB) as top members, has plummeted 21% this year alone.

    It’s a stark turnaround for the Biden stock market. The S&P 500 was up nearly 24% from Inauguration Day through the end of last year.

    But the combination of surging oil and gas prices following Russia’s invasion of Ukraine, broader inflation worries resulting from continued supply chain disruptions and fears about aggressive interest rate hikes by the Federal Reserve have sent the market into a tailspin in 2022.

    Many experts are quick to point out that the stock market is not the overall economy. What happens on Wall Street doesn’t always directly impact people on Main Street, especially those who aren’t active investors.

    The economy is going into the toilet. Let’s hope no one flushes it!
    However, consumer confidence and sentiment measures often mirror the ups and downs of the markets. Even if people aren’t investing in stocks, they read about the chaos on Wall Street on their smartphones and see coverage of it on television.
    Many Americans also have exposure to the market through company 401(k) plans and other retirement accounts.

  12. JOHN PAUL YOUNG – Love Is In The Air [Lyrics] [HD] [1080p]

    Panics in the air, everywhere I look around
    Panics in the air, every house in every town
    And I know you borrowed foolish
    And I know you weren’t wise
    But it’s something that you believed in
    And it’s was founded on Realtor Lies

    Oldsmar, FL Housing Prices Crater 15% YOY As Excess, Housing Inventory And Plunging Demand Ravages Gulf Coast Florida

    As a noted economist explained, “The leading cause of personal bankruptcy in the US is the 15 and 30 year mortgage.”

  13. Today it becomes apparent that Hunter Biden’s ex-wife got paid off big time.

    Hunter Biden’s ex-wife Kathleen Buhle speaks out on their marriage, financial woes

    Kathleen Buhle speaks to ABC News’ Amy Robach about her memoir, “If We Break.”

    By Kate Hodgson via via logo
    June 14, 2022, 7:26 AM

    “I saw someone who loved his father, respected his parents, and was, you know, he was proud to be their son,” she said.

    1. “It’s embarrassing to say that I ceded all financial control to my husband, and kept my head buried in the sand,” she said. “I liked the nice things, and I didn’t want to think about the cost at which they were coming.”

      Why do women cede their personal responsibilities, and then live in constant fear of D day and something younger?

      1. Because the fear of D-Day and something younger only kicks in at age 40-45. Plenty time before that to wiggle jiggle and thigh gap your way into the street cred that comes with Nice Things. On the other hand, the fear of being mocked for being single and having cats kicks in at birth.

        Does that answer your question?

  14. Big Fat bastard, how many will die in Arizona or Florida when they can’t afford air conditioning? My grandma will have a heat stroke. Maybe a lot of houses about to come on the market? What did that kid say in sixth sense? I see dead people.

    zerohedge (dot) com/markets/over-twenty-million-households-struggle-pay-energy-bills-it-will-get-worse

    Data from Census Bureau Household Pulse Survey, April 27 to May 9, 2022

    Struggling to Pay Bills 

    According to Mark Wolfe, the executive director of the National Energy Assistance Directors’ Association (NEADA ) many families are facing potential power shutoffs if they cannot pay their overdue home energy bills. 

    1. Sounds like you paid too much for a rapidly depreciating asset…. in this case a house. Don’t feel bad cuz 40 million other suckers did too.

      Bayview, ID Housing Prices Crater 26% YOY Debt-Drenched Borrowers Flood Market With Inventory

      As one national broker explained, “Paying multiples of construction cost (lot, labor, materials and profit) for a rapidly depreciating asset like a 20 year old house is the shortest path to poverty.”

  15. Toronto Condo Prices are on the Brink of Sinking

    ‘Jun 14, 2022 Earlier in April 2022, I noticed a strange phenomenon that I’ve since been tracking. Currently, in June 2022, this phenomenon is trending in the direction that I was afraid things would go. With the City of Toronto opening back up, everyone thought that Toronto Condos would likely be the best performing asset for the rest of the year – Toronto Condo prices may not go up, but it was supposed to depreciate the least out of all other Toronto Real Estate asset classes.’

    ‘However, it seems like now we’re trending in a direction where we’re seeing a lot of Toronto Condo inventory build-up. Needless to say, Toronto Condo prices are on the brink of sinking. This looming Toronto Condo crash is super strange and I will give you my thoughts on why this is happening so rapidly in this week’s episode.’

    14 minutes. Inventory. Discusses why negative cash bleeding are even worser when rates go up.

  16. Who needs CR8Ring crypto when you can HODL dollars and get over a 9% guaranteed rate of return on your dollar HODLings?

  17. Being the frugal person I am, I decided to downgrade my coffee brand. Sh!t has gotten way too expensive. I’m just not paying $12.99 for 12 ounces of Peet’s coffee. So, I decided to buy Raley’s brand french roast in a can. YUCK. DO NOT TRY IT. It’s so bad I can’t even drink it. When I opened it up it didn’t even smell like coffee, it smelled like stale chemicals. I’m thinking of writing them it’s so awful.

    1. 3lb cans of chuck full of nuts 8.99 at costco. On sale frequently for 5.99. The pukes have a 5 can limit so we make 4 trips thru the register when theyre on sale.

  18. Remarks by President Biden on Actions to Lower Gas Prices at the Pump for American Families

    MARCH 31, 2022

    South Court Auditorium
    Eisenhower Executive Office Building

    1:48 P.M. EDT

    I know how much it hurts. As you’ve heard me say before, I grew up in a family, like many of you, where when the price of a gallon of gasoline went up, it was discussed at the kitchen table. Our family budgets, your family budgets to fill a tank — none of it should hinge on whether a dictator declares war.

    Joe Biden was born November 20, 1942.

    He turned 18 November 20, 1942 when gasoline was 31 cents a gallon up from 31 cents a gallon back in 1959.

    They really didn’t have anything to talk about at the Biden dinner table did they.

    Updated May 30, 2022
    Gas Price History

    Updated May 30, 2022

    1962 $0.31

    1. He turned 18 November 20, 1962 when gasoline was 31 cents a gallon up from 31 cents a gallon back in 1959.

      My bad, I now call that having a Biden moment.

  19. Las Vegas Real Estate Market Report May 2022

    Jun 7, 2022 The Las Vegas real estate market report May 2022 contains a great deal of change from previous months. With some areas selling for as much as 28% less than the previous month and yet some segments selling for nearly 40% more than just a year ago. The real estate market for Las Vegas as well as Henderson, North Las Vegas is quite active. With communities like Summerlin, Rhodes Ranch, Mountains Edge, Peccole Ranch, Queensridge and more seeing rapid changes. Rising interest rates allowing less buyers to move up has had a tremendous impact as has the cold slap of reality hitting some sellers.


        1. Might as well crank the AC down to 72-deg F before it’s gone!

          Just imagine all the blackouts if Hoover Dam can’t produce electricity.

  20. Redfin announcing 8% layoffs, Compass announcing 10%. Interesting that they are seeing this after only the initial Fed interest rate increases. What happens in 2023 after several more?

    Real estate firms Redfin and Compass are laying off workers, as mortgage rates rise sharply and home sales drop.

    In filings with the Securities and Exchange Commission, Compass announced a 10% cut to its workforce, and Redfin announced an 8% cut.

    Shares of both companies fell Tuesday. Redfin’s stock touched a new 52-week low.

    Rising rates and overheated home prices, which are now up over 20% from a year ago according to various surveys, have crushed affordability. Home sales have been dropping for several straight months, and the fall is expected to worsen.

    Mortgage demand has fallen to its lowest level in over two decades. Rates have taken off since the start of this year, rising from 3.29% in early January to 6.38% now, according to Mortgage News Daily. Rates shot up more than half a percentage point in just the past three days, as concerns over inflation hit the bond market.

    Brutal comment from Redfin CEO: “We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive. If falling from $97 per share to $8 doesn’t put a company through heck, I don’t know what does.

  21. By staying out of the real estate market my dollar just made 12% in 30 days. Check out this OC listings price history. No more “where’s my 20% over asking?” Guess So Cal is not red hot anymore!

    1. Date Event Price Price/Sq Ft Source
      06/13/2022 Price Changed $899,000 $624 CRMLS
      06/02/2022 Price Changed $939,000 $652 CRMLS
      06/01/2022 Listing removed – – CRMLS
      06/01/2022 Listed $949,000 $659 CRMLS
      05/26/2022 Price Changed $969,000 $673 CRMLS
      05/10/2022 Price Changed $979,000 $680 CRMLS
      05/01/2022 Listed $999,000 $694 CRMLS
      05/31/2006 Sold $635,000 $441

      It’s been listed for 6 weeks. Another Nervous Nellie!

  22. Twofer Tuesday from Andy Ngo.

    “Confirmed: Robert John Stoms (b. 10-28-88, pronouns it/its) was the #Antifa member from Portland who was arrested for violence & drug crimes at the pride event in Coeur d’Alene, Idaho.

    Press has reported extensively on arrests of 31 Patriot Front members but ignored this arrest.”

    “Robert John Stoms (it/its), an #Antifa member in Portland, is a violent extremist who calls for violence against “transphobes” & pregnancy resource centers. When it lived as a man, it was profiled for a report along with its far-left partner Nectar “Noomi” Odabashian.”

    “They’re not sending their best”

  23. Life changes, and so does our Bay Area Real Estate Market!

    Jun 9, 2022 I’m sure you heard about Real Estate market slowing down. How do we know? Here are the facts for you to see the inventory changes yearly AND clearly. Here is what first week of June looked like for the past 7 years. It’s obvious we are going to see a further rise in homes for sale. Message me to help you with your plans. More than ever, correct pricing and preparation especially in this changing market is the key to your success!

    2:20. The only tag is Downtown San Jose.

  24. Sell Your Home NOW While You Still Can!

    Jun 9, 2022 Mortgage interest rates are expected to keep climbing up. The San Francisco Bay Area is seeing home price reductions and even sellers offering buyer incentives. The market is shifting. If you’ve been thinking about selling decision time is here. located in the California San Francisco Bay Area -Livermore Tri-Valley East Bay Area and Silicon Valley.

    9 minutes. The first 3 are worth watching.

  25. Housing Market Update – Q2 2022

    Jun 12, 2022 Todays video on the Housing Market is coming a bit ahead of schedule as we’ve seen a lot of rapid change in the past ninety days. Are we seeing a shift in the housing market?

    Housing is changing quickly in many ways because the market both for housing, but also equities has changed quickly. Inflation is nearly at an all time high, interest rates are surging, housing starts are down, the stock market is down, mortgage applications are way down, new home sales are down. It is all evidence that a shift has begun. What does that mean for home buyers and sellers?

    19 minutes. Estero, Florida. The first 4 are worth watching.

  26. The Financial Times
    Updated 12 minutes ago
    Live news updates: US producer prices rise as inflation pressure mounts
    Jaren Kerr, Mamta Badkar, Alexandra White, Oliver Ralph, Sarah Provan, Leke Oso Alabi, Eva Szalay, Emma Dunkley, Mark Wembridge and William Langley
    12 minutes ago
    Double blow to Europe’s gas supplies sparks price surge
    David Sheppard in London, Derek Brower in New York and Joe Miller in Frankfurt

    Europe’s gas supplies suffered a double blow on Tuesday after a major US liquefied natural gas export terminal said it would be offline for at least three months and Russia said it would cut flows through a key route to Germany.

    Freeport LNG, which accounts for about a fifth of US LNG exports and about 10 per cent of Europe’s imports this year, said on Tuesday that repairs following an explosion at its plant last week could take until the end of the year, with only partial activity set to resume after 90 days. Last week Freeport had indicated the terminal would resume operations in early July.

    At the same time Russia said it would reduce capacity on the Nord Stream 1 pipeline to Germany by about 40 per cent, blaming the reduction on the delayed return of a key piece of technical equipment that Siemens Energy said has been blocked by Canadian sanctions against Moscow.

    The twin threat to European gas imports illustrates the ongoing vulnerability of the continent to supply disruptions as it tries to reduce its reliance on Russian gas following Moscow’s invasion of Ukraine in February.

    Gas prices in Europe have soared in the last year after Russia squeezed supplies ahead of the invasion and as fears of supply disruptions grew, stoking inflation and a cost of living crisis for many countries.

    The EU has tried to avoid directly targeting Russian gas flows with sanctions — which prior to the invasion made up as much as 40 per cent of all of its supplies — even as it has moved to cut its dependence.

    51 minutes ago
    US government debt under pressure on expectations of sharper rate rises
    Naomi Rovnick in London, Kate Duguid in New York and Hudson Lockett in Hong Kong

    US government debt was under pressure on Tuesday as markets bet that the Federal Reserve would raise interest rates by 0.75 percentage points at the conclusion of its two-day policy-setting meeting on Wednesday — the biggest single-meeting increase since 1994.

    The yield on the two-year Treasury note, which moves with interest rate expectations, rose as much as 0.08 percentage points to a 15-year high of 3.44 per cent, reflecting a fall in the debt instrument’s price. By mid-afternoon in New York, it was trading slightly lower at 3.41 per cent.

    The benchmark 10-year Treasury yield, which moves with growth and inflation expectations, rose by as much as 0.11 percentage points to an 11-year high of 3.45 per cent.

    The $23tn US Treasury market is the world’s largest financial market and the bedrock of investment and loan pricing decisions.

    Until Friday, futures markets were betting that the Fed would raise interest rates by 0.5 percentage points in June and July — as indicated by chair Jay Powell at the US central bank’s most recent meeting — to combat inflation that has been running at 40-year highs.

    But analysts began ratcheting up their rate rise forecasts after data last Friday showed the annual pace of US consumer price inflation for May had exceeded expectations to hit 8.6 per cent, as Russia’s invasion of Ukraine pushed up food and fuel costs.

    4 hours ago
    US sovereign debt under pressure on expectations of sharper rate rises
    Naomi Rovnick in London and Hudson Lockett in Hong Kong

    US government debt was under pressure on Tuesday as markets prepared for the Federal Reserve to aggressively raise interest rates to fight inflation.

    The yield on the policy-sensitive two-year Treasury note rose 0.05 percentage points to nearly a 15-year high of 3.42 per cent, reflecting a fall in the debt instrument’s price as markets positioned for the Fed to raise rates by the largest amount in almost 30 years.

    The benchmark 10-year Treasury yield rose 0.07 percentage points to 3.44 per cent, around its highest point since 2011. Bond yields rise as their prices fall.

    The latest shakeout in the $23tn Treasury market, the world’s largest financial market and the bedrock of investment and loan pricing decisions by the world’s biggest banks and pension funds, came as traders positioned for the conclusion of the Fed’s latest monetary policy meeting on Wednesday.

    Markets have now almost fully priced in a 0.75 percentage point rate rise by the Fed at the conclusion of its June policy meeting on Wednesday. Economists at JPMorgan, Goldman Sachs and Barclays all anticipate a 0.75 percentage point rise — which would be the first since 1994.

    Analysts began ratcheting up their rate rise forecasts after data last Friday showed the annual pace of US consumer price inflation for May had exceeded expectations to hit 8.6 per cent, as Russia’s invasion of Ukraine pushed up food and fuel costs.

  27. Obama To Install 2,500 Gallon Commercial-Grade Propane Tank For Martha’s Vineyard Estate
    June 14th 2022

    Former President Barack Obama has made an unusual request to install a massive 2,500 gallon commercial-grade propane tank at his Martha’s Vineyard estate, according to reports.

    The cost of installing the large tank and filling it with gas could reportedly cost up to $75,000.

    Does Obama know something we don’t?

    The report come as a top energy grid operator warns that much of U.S. could face “forced” widespread energy blackouts in the face of high demand as the summer season bears down.

    Biden’s shutdown of domestic energy production in the name of “climate change” has caused oil and natural gas prices to skyrocket over the last year, with gas now at a record-high $5-per-gallon national average.

    Though it’s unlikely the Obamas care about rising natural gas prices given their vast wealth, they still may be effected by rolling blackouts and appear to be preparing accordingly.

    1. Globalists gonna globe.

      Obama was turning tricks in the Chicago bathhouses to fund his cocaine habit before he got into dirty dirty Illinois politics. The capital G Globalists got enough blackmail dirt on him to control the rest of his political career. And Michelle was born Michael. Still wondering what womb birthed those Obama daughters, because Barack and Michael / Michelle were both born male.

      “They’re not sending their best”

      1. Still wondering what womb birthed those Obama daughters

        Martin and Anita Nesbitt. Malia looks like Martin. Sasha looks like Anita.

    2. Sounds like he expects a combination of propane shortages and permanently higher prices going forward.

  28. Zerohedge (dot) com/political/hordes-americans-are-moving-mexico-escape-rapidly-rising-inflation-us

    People are moving to Mexico 🇲🇽 to fight bidens inflation. California will have no more workers. Who will make my Starbucks coffee or cut my lawn?

    Christopher Cross, run like the wind

    1. Bleed the world. Sting, bono, Phil collins, a parody on feed the world

      youtu (dot) be/spQo_HIg-o8

  29. It’s time to negotiate the terms of surrender to Russia.

    The European economy, the U.S. economy, the rest of the world, are tired of your globalist horsesh*t hostage demands. You sure have a big big mouth for someone asking for a lot of other people’s taxpayer dollars, @sshole.

    Zelensky vows to retake Donbass and Crimea (6/13/2022):

    “We will come to all our cities, to all our villages, which do not yet have our flag,” Zelensky boasted in a video address on Monday night, claiming that his army will defeat its Russian opponents in eastern Ukraine and recapture the cities of Mariupol, Kherson and Melitopol from Russian and DPR and LPR forces.

    “And I ask everyone who has such an opportunity to communicate with people in the occupied south…say that there will be liberation,” he continued. “Say it to Gorlovka, Donetsk, Lugansk. Tell them that the Ukrainian army will definitely come.”

    “Of course, we will liberate our Crimea as well. Let every Russian official who has seized precious land in Crimea remember: this is not the land where they will have peace,” he threatened.

    Russia is winning.

    F* Ukraine 🙂

    1. “It’s time to negotiate the terms of surrender to Russia.”

      Does this mean the $43 billion the U.S. tax payer was forced to pay has sufficiently padded the defense contractors pockets with enough of a slush fund left over to allow the descendants of our political ruling class to live like Kings and Queens for many generations to come?

    2. Yeah, Volo is flying too close to the sun, that’s for sure.

      Personally I think he should have negotiated to give up Donbass. Putin is old and sick, and Volo is young and healthy. Volo could have run out the clock now and re-conquered later.

        1. But he has that puffy “moon face” look and so do his hands too especially around his wedding band.

  30. As stocks plunge, financial advisors say not to panic
    by: Daniel Hamburg
    Posted: Jun 14, 2022 / 12:25 AM EDT
    Updated: Jun 14, 2022 / 12:25 AM EDT

    CAMP HILL, Pa. (WHTM) — Wall Street entered a bear market Monday as the S&P 500 sank 3.9%, bringing it more than 20% below the record high it set in January.

    “We want to believe that the stock market only ever climbs. The reality is this is what the stock market does at this point in the economic cycle,” said Anthony Conte, managing partner of Conte Wealth Associates.

    Wall Street is reacting to a report that inflation is getting worse, not better, as the federal reserve is poised to raise rates.

    “We have bear markets with relative frequency. This is not at all uncommon,” Conte said. “Bear markets happen roughly every three and a half years. Bear markets on average last about 9.6 months, so just under 10 months.”

    Financial advisors say not to worry.

    “One of the great investors you know, said that when other people are scared, be greedy and when people are greedy, be scared,” said Jona Green, a financial advisor with Edward Jones.

    There’s always a risk that things could worsen when we see inflation this high. “But if you’re saving into your 401(k) plan, and you’re in your income-earning years, should frankly be cheering when the stock market slides because this is your opportunity to walk into the store, see everything on sale and buy it,” Conte said.

  31. Despite collapsing prices, two properties meeting my criteria (single story) just went pending.

    1. just went pending

      Active listings in my little burg have shot up from 100 in February to over 500.

      It. Has. Begun.

      1. Saw this today on NextDoor:

        Well, it’s happening. Many of my neighbors are selling out and moving to other states. My favorite one, right next door, just called to offer us her couch because she can’t take it with her. I’m working toward the same goal. Colorado is too expensive now. This is crazy, and so sad.

        People are rushing for the exits.

    1. The Financial Times
      Crypto exchanges slash jobs as market turmoil triggers trading downturn
      Sharp slowdown in volumes hits major platforms such as Coinbase and Gemini
      A montage of Coinbase, Gemini and Mercado Bitcoin logos and a stock photo of a person working at their laptop
      Scott Chipolina and Joshua Oliver in London and Madison Darbyshire in New York
      an hour ago

      Major digital asset exchanges are shedding hundreds of workers in an abrupt reversal from the industry’s breakneck expansion as a two-year hot streak gives way to a crypto chill.

      US-listed Coinbase on Tuesday announced plans to lay off nearly a fifth of its workforce, amounting to more than 1,000 people, joining rivals including Gemini, and BlockFi in cutting headcount as this year’s tumble in crypto prices stifles the trading activity that is the industry’s lifeblood.

      “If there isn’t trading volume there is no money . . . it looks like it is going to be tough for quite some time,” said Julian Sawyer, former chief executive of crypto trading venue Bitstamp.

  32. Are central bankers still trying to use intervention in sovereign debt markets to manipulate yields these days?

    1. The Financial Times
      European Central Bank
      ECB calls unscheduled meeting to discuss market turmoil
      Borrowing costs for heavily indebted countries have climbed to eight-year highs
      Flags of the EU outside the headquarters of the ECB
      The ECB rate-setting group’s last meeting less than a week ago disappointed investors with a lack of detail over when or how the central bank would intervene in government bond markets
      Martin Arnold in Frankfurt and Adam Samson in London
      2 hours ago

      The European Central Bank has called an unscheduled meeting of its rate-setters, sparking speculation it could announce measures to tackle surging borrowing costs in weaker eurozone economies.

      The ECB said: “The governing council will have an ad hoc meeting on Wednesday to discuss current market conditions.” The meeting is scheduled to start at 11am CET.

      The move, which comes less than a week after the rate-setting governing council’s last vote, has raised investor expectations that the central bank is preparing to announce a policy instrument to stave-off another debt crisis in the region.

      Italian government bonds rallied in price following news of the planned meeting, reversing some of the recent sell-off that analysts said brought the country’s borrowing costs towards the “danger zone”.

      Gilles Moec, chief economist at Axa, an insurer, said the “stakes are high” for the ECB “now that everyone is dusting off their debt sustainability spreadsheets for Italy, they probably need to go up an extra notch”.

      The 10-year yield on Italian government bonds fell about 0.2 percentage points in choppy early trading on Wednesday to about 3.98 per cent, according to Tradeweb data. It had risen to almost 4.2 per cent in the previous session from just over 1 per cent at the end of 2021.
      Line chart of 10-year government bond yield (%) showing Italian borrowing costs dip slightly from recent highs

      The eurozone central bank disappointed investors last Thursday with a lack of detail over when or how it would intervene in government bond markets to tackle so-called financial fragmentation, which had raised the costs of borrowing for vulnerable southern European countries more than for their northern neighbours.

      Moec said investors would expect the ECB to “at least say they will launch a new instrument” as well as give more detail on how it will use flexibility in reinvesting the proceeds of maturing bonds to tackle fragmentation in eurozone bond markets.

      The gap, or spread, between Italian and German borrowing costs had widened to 2.4 percentage points, double last year’s level and up from about 2 percentage points before last week’s ECB meeting, when rate-setters signalled an end to ultra-loose monetary policy by announcing plans to stop buying more bonds and start raising interest rates.

    2. The Financial Times
      Monetary policy
      Fed begins quantitative tightening on unprecedented scale
      US central bank’s move to reduce $9tn balance sheet comes alongside steep rate rises to tackle persistent inflation
      A montage of the Federal Reserve seal and arrows pointing down
      On Wednesday, the US central bank will stop pumping the proceeds of $15bn of maturing Treasuries back into the $23tn market for US government debt
      Kate Duguid in New York, Colby Smith in Washington, Tommy Stubbington in London yesterday

      The mammoth task of shrinking the Federal Reserve’s $9tn balance sheet has finally begun.

      On Wednesday, the US central bank will stop pumping the proceeds of an initial $15bn of maturing Treasuries back into the $23tn market for US government debt, the first time it has done so since it kicked off its bond-buying programme in the early days of the coronavirus pandemic.

      While the Fed has flagged its plans for so-called quantitative tightening well in advance, investors are not clear what the impact will be of a process that has never been attempted at such scale before. The move could further unsettle a bond market already battered by speculation that the Fed is poised to accelerate the pace of its interest rate rises.

      “The Fed has been a big buyer and a big stabilising influence in the markets for a couple of years,” said Rick Rieder, chief investment officer for fixed income at BlackRock.

      “Losing that, with the uncertainty around inflation and growth, means that volatility in the rates market is going to be high, much higher than we witnessed over the last couple of years,” he added.

      The unease in financial markets challenges the Fed’s assertion that balance sheet reduction will be a dull, predictable endeavour — likened to “watching paint dry” by former chair Janet Yellen the last time the central bank embarked on the exercise in 2017.

      As was the case then, the Fed is allowing bonds to mature and will not reinvest the money, rather than selling them outright — a more aggressive alternative.
      Line chart of $ trillions showing The Fed’s balance sheet has ballooned

      Members of the Federal Open Market Committee in May officially agreed to cap the run-off at an initial pace of $30bn a month for Treasuries and $17.5bn for agency mortgage-backed securities, before ramping up over three months to a maximum pace of $60bn and $35bn, respectively. That translates to as much as $95bn per month.

      When the amount of maturing Treasuries falls below that threshold, the Fed will make up the difference by reducing its holdings of short-dated Treasury bills. Active sales of agency MBS may also eventually be considered.

      That is a far more aggressive plan than the last balance sheet unwind in 2017-19, which began nearly two years after the Fed lifted interest rates for the first time since the global financial crisis. That move ultimately ended in disaster: overnight lending markets seized up, suggesting the Fed had pulled too much money out of the system.

      As the process gets under way this time, it’s unclear exactly where the pain will be, although the Fed now has various emergency facilities in place that may help to stave off a repeat of the 2019 market mayhem.

      Anticipation of higher interest rates — notably after two reports in recent days indicating a growing risk that inflation will become more deeply embedded — has driven yields on Treasury bonds to their highest levels since 2007. The three major US stock indices have fallen into correction territory. Spreads on US corporate bonds are showing higher chances of default.

      Changes to the Fed’s main policy rate are seen as having a more direct impact on financial conditions and economic activity than quantitative tightening, but economists do expect balance sheet run-off to have an effect as well.

      1. CNBC
        10-year Treasury yield tops 3.48%, the highest in 11 years
        Published Tue, Jun 14 2022 3:48 AM EDT
        Updated Tue, Jun 14 2022 6:54 PM EDT
        Samantha Subin
        Sam Meredith

        The 10-year Treasury yield rose to its highest level in more than a decade as investors continued to assess the prospect of the Federal Reserve taking the most aggressive step yet in its fight to lower soaring inflation.

        The yield on the benchmark 10-year Treasury note was last up 11 basis points to 3.483% as it notched a high not seen since April 2011.

        Meanwhile, the 2-year yield jumped nearly 16 basis points to 3.437% and hit its highest level since 2007, while the 30-year Treasury bond was last up 6 basis points to 3.428%. Yields move inversely to prices, and a basis point is equal to 0.01%.

        After ending May at 2.74%, the 10-year yield has rocketed higher this month as hot inflation readings caused investors to dump bonds and ratcheted up their bets for aggressive Fed tightening. The 10-year is also up sharply from where it started 2022 at — 1.51%.

        “The Federal Reserve is still way behind where the market is bringing rates,” said Timothy Lesko of Mariner Wealth Advisors. “Even if the Federal Reserve were to raise by the now expected 75 basis points and a couple of 50 or 75 basis point increases the market is ahead of the Fed pretty significantly.”

  33. Some Connecticut school districts tell state they’ll keep Native American mascots, forgo funding

    Alex Putterman
    June 15, 2022

    While many Connecticut schools have shed Native American mascots in recent years amid changing public opinion and a new state law, several districts say they will continue to use nicknames and logos associated with indigenous groups — even if that means sacrificing state funds to do so.

    Pending an official ruling from the Office of Policy and Management, Derby stands to lose $207,304 in state funding next year, while Killingly will forfeit $94,184 and Bethlehem will miss out on $4,125. Windsor and Woodbridge are not allotted money from the Mashantucket Pequot/Mohegan Fund for the coming year and therefore will not face a financial consequence for keeping their mascots.

    Of 12 school districts the state designated last year as having unacceptable nicknames or mascots, five have since re-branded, three have chosen to maintain their “Warriors” nicknames while eliminating associated Native imagery, and the remaining four have thus far kept their mascots in place.

    Under the new law, districts have until July 1 of this year to replace all Native nicknames and logos, unless granted an extension by OPM.

      1. MASCOT
        Black Knights

        Must be the word “Black”. Remember, canceling doesn’t have to make make se

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