How Do You Pull Money Out If You Just Lost It All?
A report from the New York Post. “Fed officials seemed to oppose taking more aggressive action as recently as last month. Fed Chair Jerome Powell told reporters that half-percentage-point hikes were ‘on the table’ at meetings in June and July — though he said at the time the guidance was contingent on economic conditions. Powell also said last month that the Fed was not ‘actively considering’ a 0.75% increase. ‘The idea that there is some Goldilocks outcome in the cards or soft landing is a mockery,’ said Danielle DiMartino Booth, CEO at Quill Intelligence. ‘Consumer sentiment is at record lows and jobless claims have surged since bottoming in mid-March, leaving little doubt that the US has entered recession.'”
From KSDK in Missouri. “‘Two weeks ago we had two houses that did not sell the first week, and so we’re like, ‘Oh, the sky is falling,’ said Kathy Helbig-Strick, the owner of Experience Realty Partners. ‘It sold in seven days instead of two, but that’s the reality. That was unusual. I went back and looked at how many active listings we had [in the St. Louis metropolitan area] during a week period versus the price reductions that happened,’ said Helbig-Strick. “We had about 450 existing listings and about 230 price reductions in that same week.'”
“This is a hot tip from Helbig-Strick who often works with hedge funds that try to buy 50 homes a month to hold and rent in the St. Louis community. The companies that work with EXP said they’re holding off as they watch the next round of securitization.”
From ABC 15 in Arizona. “Paul Murphy is breathing a huge sigh of relief. He just closed on his newly built home in Surprise two weeks ago. Murphy thinks the recent rate hike from the feds may eventually lower home prices. In fact he says one of his colleagues, already saw it happen with a builder in a new home development. ‘They actually lowered the price by about $75,000, so I think what you’re gonna see now is that in order to get people to keep buying, the builders gonna have to start possibly bringing their prices down some,’ Murphy said.”
From KDVR TV Denver. “Colorado homes could lose some of their value in the coming year. There is no ‘cliff’ for Colorado’s housing market to fall from. Rather, Bret Weinstein, CEO of guide Real Estate said rising interest rates and other factors will bring the market to a plateau. Even if prices fall, he said, home values have risen so much in the last few years that homeowners will still come out ahead. ‘If we say we’re going to, on average, drop 10%, in the next six months – and I think that’s a realistic statement – we went up 21% in the first four months,’ said Weinstein. ‘So, for us to drop 8% to 10% still brings us up to double-digit appreciation.'”
Salt Lake City Weekly in Utah. “What’s going on? I recently held an open house and only two groups came through! I listed a property and only had three showings! Is the real-estate bubble bursting? Don’t wait for a popping sound, but the market is softening somewhat. Prices in many areas around the country have adjusted downward by an average of 5%, and bidding wars are starting to slow as mortgage interest rates have increased to 5% or more. Don’t panic if you’re selling right now. Your property may be on the market for a slightly longer time, or you may need a price adjustment, but you will sell if you’re patient and have a good sales strategy.”
From KPIX in California. “For anyone used to the Bay Area housing market being white hot, the idea of a buyer’s market is unfathomable. Ian and Lauren Finn are ready to sell their 1,500 square foot, three bedroom, three bath home in Martinez and move somewhere bigger – with more room for their kids Jack and Evelyn to run. There’s a slight problem. So far, no buyers.”
“‘We were told by everyone that there would be tons of bidders, that it’d be very competitive and we would immediately sell,’ Ian Finn told KPIX 5. ‘There has not been a single offer since the listing hit the MLS. ‘We launch on May 9th….and nothing. Chirping. Crickets,” said Lauren Finn.”
“According to Wednesday’s East Bay housing report, there are 1,900 homes for sale in the East Bay, up from less than 500 in December ‘We priced it lower than one of the neighbors who had just sold their house and we didn’t get any bids and then we lowered the price by $20,000 and again no one has put in any offers and we had to lower the price for a second time. So, we’re now $40,000 less than we started,’ said Ian.”
“‘Buyers are just more hesitant. How do you pull money out if you just lost it all? How do you get a loan if the rates go up – you qualify for less,’ said Jennifer He of Keller Williams.”
From KTLA in California. “Home sellers are now cutting their asking prices, one of the telltale signs that the red hot real estate market is cooling off. One month ago, homeowners listing their home in Hollywood were asking for $2 million. On Wednesday, the sellers dropped the asking price by $100,000. ‘If you’re selling your house right now, you are already seeing a reduction in the number of showings, and if you’ve been on the market for anything longer than 14 days, you’re reducing your price,’ said Khaled Yatim, a local real estate broker.”
“The selling frenzy of multiple offers, waiving inspections and ‘no contingencies’ appears to be over. A homeowner named Joel told KTLA he can’t find a buyer for his property, and now his adjustable rate mortgage is going up. ‘We’re worried that now our condo is going to sit on the market and we are going to lose two, three months of vacancy and that’s really going to put us behind,’ Joel said.”
From Candy’s Dirt. “Caught up with a few more in-the-know voices, asking Compass’ senior managing director of real estate Bryan Pacholski how yesterday’s lay-offs will affect offices here in North Texas. ‘We are talking about going back to fundamentals: Becky Frey says she has to dust off the open-house signs in her garage, they haven’t been used in months,’ aid Bryan.”
“Victor LundCEO of WAV Group, a real estate consulting firm, says the trim was a smart move on the part of Compass. ‘If you have to catch a falling knife, catch it fast,’ he said. ‘Frankly, every broker should be looking at agents who are not productive and getting rid of them now. Help them find another career.'”
The Canadian Press. “‘Canadians widely expected home prices to keep rising, which pulled in investors and multiple-property buyers, while also causing many households to stretch in fear of missing out,’ said Robert Kavcic, BMO Capital Markets senior economist Robert Kavcic. ‘But, beginning with the (Bank of Canada)’s first nudge in interest rates, those market expectations began crumbling.'”
“When Sara Rowshanbin, a Chestnut Park Real Estate Ltd. broker in the Greater Toronto Area, tells her clients they can request a home inspection, their eyes light up because most buyers had to drop the condition when the market was heated previously. Now about 50 per cent of the bids she helps place have the condition again. However, how sellers are reacting to offers made with the cooling market in mind is ‘all over the place.'”
“‘Some are receiving them with open arms and saying ‘let’s work together on this’ and others are saying ‘is that a typo?’ so you can tell … the market shifted very quickly,’ she said.”
The Globe and Mail. “Canadian home prices and sales dropped in May in a second straight month. Samantha Brookes, the chief executive of brokerage firm Mortgages of Canada, said borrowers are shocked when they see fixed-rate mortgages above 4 per cent and are asking about their options. ‘They’re like, ‘Well, I have a 1.75 per cent right now.’ I’m like, ‘Well, you’re going to have a 4.19 per cent soon,’ she said.”
“Over the past three months, Cambridge’s home price index has fallen 13.5 per cent, while London and the Toronto suburb of Oakville-Milton are down just over 9 per cent. Ms. Brookes said some homeowners who bought during the peak this January and February are contemplating selling. ‘They can’t afford it. So they’re thinking that they need to sell, but they may take a loss,’ she said.”
From Newmarket Today in Canada. “Housing prices in Newmarket, York Region and across the province have declined since a peak in February. Average house prices in Newmarket were approximately $1.44 million in February, compared to $1.19 million in May, according to the Toronto Regional Real Estate Board. Newmarket-based real estate broker Darcy Toombs said the economy and increased interest rates are playing a factor, with buyers waiting longer to buy.'”
“‘It gives me some hope that there may be some affordability that could come back to the market if things start to balance out,’ he said, adding there has been lots of speculation in the market that assumed real estate would always go up. ‘It’s kind of comforting to know there are other market factors that can come in and show us that things can change.'”
“The real estate trend is playing out similarly across the province. Average home prices across the region have gone from approximately $1.59 million in February to $1.37 million in May. Jay Miller, another Newmarket realtor, said sellers are unsure of where they will buy a new home, which is impacting the market. ‘We’re in the midst of flux, and we’re going to see how it plays out. Buyers, already over the next few months, they will be hoping for a significant downward spiral in price.'”
From CBC News in Canada. “When people are deciding whether to borrow or not, said Stephen Williamson, the Stephen A. Jarislowsky chair in central banking at Ontario’s Western University, the important thing is not the nominal rate, but the real rate — in other words, the nominal rate after subtracting inflation. So, if a borrower has a nominal interest rate of 1½ per cent, while inflation sits at 8½ per cent, the ‘real interest rate’ — what the lender is earning from that loan while taking inflation into account — would actually be negative seven per cent. Or as Williamson puts it: ‘Really low.'”
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The top video:
Home Sales Drop 40% In Brampton, Mississauga & Durham Real Estate
The second:
Alarming Mid June Stats. Halton & Peel Home Sellers Please Watch Before Selling.
Jun 14, 2022 Halton and Peel homes are struggling. Please get up to date stats before you sell your house. The market is changing weekly. I cover Milton, Oakville, Burlington, Mississauga and Brampton in this video. See how many listings are getting cancelled and how long they’re taking to sell.
Oh dear….
US May housing starts 1549K vs 1701K expected
https://www.forexlive.com/news/us-may-housing-starts-1549k-vs-1701k-expected-20220616/
‘Buyers, already over the next few months, they will be hoping for a significant downward spiral in price’
That’s the spirit!
Just had a friend lament he was trying to buy in to a 400 home development in suburbs north of LA – 120k income, 40% down and 770-800 score but developer couldn’t qualify him anymore. I told him, “Well then the developer needs to drop the price.”
It’s coming.
Oh – and they’ve only sold 33 out of the 400. He might have dodged a bullet as I told him if the developer can’t sell he may just walk away.
You will own nothing.
Nothing.
‘So, if a borrower has a nominal interest rate of 1½ per cent, while inflation sits at 8½ per cent, the ‘real interest rate’ — what the lender is earning from that loan while taking inflation into account — would actually be negative seven per cent’
Someone besides me finally notices the herd of wildebeests in the living room.
Yes but if Hildebeest shows up in your living room, better run like Ted Kennedy from a car accident ‘cuz you’re about to be Arkancided.
So if CPI inflation is 8.5%, your mortgage is 3.5%, but asset inflation is -10%, and rents are flat or decreasing, is buying still better than renting?
…is buying still better than renting?
Of course it is, just ask your friendly neighborhood used house saleman!
Kinda tough to Always Be Closing when your marks are in a state of Beaker-like apprehension about the bursting housing bubble.
Nervous buyers abandon sinking Australian housing market
https://www.macrobusiness.com.au/2022/06/nervous-buyers-abandon-sinking-australian-housing-market/
CoreLogic has released its final auction results for last weekend, with the nation’s clearance rate plummeting to just 54.8% – the lowest result since late July 2020 during the depths of the pandemic:
Hot tip indeed!
‘This is a hot tip from Helbig-Strick who often works with hedge funds that try to buy 50 homes a month to hold and rent in the St. Louis community. The companies that work with EXP said they’re holding off as they watch the next round of securitization’
I’m greatly looking forward to watching the hedge funds that loaded up on US residential real estate get burned to the ground as affordability to America’s families is restored.
‘if you’ve been on the market for anything longer than 14 days, you’re reducing your price’
But 6 months is balanced?
‘Murphy thinks the recent rate hike from the feds may eventually lower home prices. In fact he says one of his colleagues, already saw it happen with a builder in a new home development. ‘They actually lowered the price by about $75,000, so I think what you’re gonna see now is that in order to get people to keep buying, the builders gonna have to start possibly bringing their prices down some’
This does what to recent buyers? As I said yesterday, these videos are increasingly showing builders are swimmin neeked.
BTW no room for NZ Australia China crater. Too much in the US and K-da.
“Too much in the US ”
USA #1 USA #1 USA#1
‘If we say we’re going to, on average, drop 10%, in the next six months – and I think that’s a realistic statement’
I’m guessing it’s already down that much.
“I’m guessing it’s already down that much.”
11%-23% declines everywhere appear to be the sweet spot… for now.
‘Powell also said last month that the Fed was not ‘actively considering’ a 0.75% increase’
Wrong way Jerry. Are we far off from Mister Magoo?
The globalists and their Democrat-Bolshevik Quislings will be clutching their pearls now that the new boss at CNN seems to be moving to distance the failing network from its previous role as a purveyor of DNC talking points.
New CNN boss Chris Licht’s latest crackdown at network BANS staff from calling Trump’s election fraud claims ‘the big lie’ because it is a Democratic party catchphrase
https://www.dailymail.co.uk/news/article-10921813/New-CNN-boss-latest-crackdown-woke-network-BANS-calling-Trump-election-fraud-claim-big-lie.html
‘Licht said that CNN bureau chief Sam Feist had led a review to determine best practices for use of the Breaking News label, and added new rules to the network’s stylebook, or internal editorial guidelines. ‘It certainly will need tweaks, so we are open to feedback, but this is a great starting point to try to make ‘Breaking News’ mean something BIG is happening,’ said Licht of the new rules.’
‘Both fans and critics of CNN embraced the move in remarks on Twitter, with many journalists tweeting word of the change with the joking label ‘BREAKING NEWS’.
“Fiery but mostly peaceful”
It was a mostly peaceful lunch.
https://twitter.com/MrPotatoheadPHD/status/1536923420746825730?
I cannot for the life of me understand how anyone could stay in any establishment when folks like this are in a group of 5 or more. I would literally get up from my seat and head out the nearest exit as soon as they came in. You are almost certainly guaranteed some freak show or worse a stray bullet. Either the media is making an example out of these incidences or this crap happens ALL THE TIME. Something very wrong with the aberration that ensues during these conflicts. VERY WRONG!
It would suck working in a place like this. Fear factor would be a constant.
Animals.
‘‘We were told by everyone that there would be tons of bidders, that it’d be very competitive and we would immediately sell,’ Ian Finn told KPIX 5. ‘There has not been a single offer since the listing hit the MLS. ‘We launch on May 9th….and nothing. Chirping. Crickets’
They were a lion Lauren.
Get to sawin’ and slashin’ like you’re in a Jamie Lee Curtis movie, greedheads.
OMG has everyone forgotten how to sell? What exactly are we paying 6% to the mafia, errr realtors for?
No interest at all means YOU’RE TOO HIGH. It’s always about price, always. No showings, you’re too high. No inquiries you’re too high. You have to create interest in your property first and then allow the market to give and take and set the price but no interest means you’re so far out of whack that no one cares. And now you’re behind in a falling market. May was way better than now.
Now if you’re getting showings and interest but no offers, well you’re close, you just need the right person. But no showings means YOU’RE TOO HIGH.
Amazing to think realtors have to go to class to NOT learn this.
Hey Donk
Raleigh, NC Housing Prices Crater 18% YOY As Debt Crippled Speculators Panic And Inventory Soars
https://www.movoto.com/nc/27607/market-trends/
Ah but that Denver Realtor said, and I quote;
Bret Weinstein, CEO of guide Real Estate said rising interest rates and other factors will bring the market to a plateau. Even if prices fall, he said, home values have risen so much in the last few years that homeowners will still come out ahead. ‘If we say we’re going to, on average, drop 10%, in the next six months – and I think that’s a realistic statement – we went up 21% in the first four months,’ said Weinstein. ‘So, for us to drop 8% to 10% still brings us up to double-digit appreciation.’”
I loves these comments. In under 1 year this will make for some great laughs
The Brandon regime’s spokeswoman lecturing oil companies about their “patriotic duty” as that same regime views patriots as Enemies of the State as it imposes its alien globalist-authored ideology – that’s rich.
Karine Jean-Pierre tells gas companies it is their ‘patriotic duty’ to increase production and lower profits as she answers questions for just 13 minutes at briefing
https://www.dailymail.co.uk/news/article-10921253/Karine-Jean-Pierre-tells-gas-companies-patriotic-duty-increase-production.html
** “patriotic duty? PATRIOTIC DUTY ?!!?”
these politician scumbags & mouthpieces say anything to justify the ends to their means.
as an average American kid growing up in the U.S., patriotism meant something.
greed & corruption put an end to that illusion.
Portland, OR Housing Prices Crater 27% As Seattle And Vancouver, BC Housing Markets Swirl In A Cauldron Of Mortgage And Appraisal Fraud
https://www.movoto.com/or/97214/market-trends/
As one regional broker explained, “Everyone here is lawyering up because they know what’s coming.”
“‘Two weeks ago we had two houses that did not sell the first week, and so we’re like, ‘Oh, the sky is falling,’ said Kathy Helbig-Strick, the owner of Experience Realty Partners.”
We bought our home in that area in the early 1990s, after the sky had fallen for quite a bit longer than it has thus far. There was an amazing selection of homes on the market to choose from. In retrospect, I’m not sure buying a place in the middle of a terrible recession was a smart move, but I was young, fearless, and foolish.
We’re gonna need a bigger gulag once the FBI starts arresting all those “domestic terrorist” parents voicing opposition to the Comrades of Proven Worth (D) pushing globalist perversity on their children in our NEA indoctrination mills.
‘A drag queen for every school!’: Michigan AG faces wrath of Republicans as she hits out at ‘fake issues’ during civil rights conference speech and muses ‘drag queens make everything better’
https://www.dailymail.co.uk/news/article-10922785/A-drag-queen-school-Michigan-AG-faces-wrath-Republicans.html
Michigan Attorney General Dana Nessel has hit out at those outraged by drag queens hosting educational events for young children, saying that they should be in ‘every school’.
Dana Nessel spoke out on Wednesday against ‘fake issues’ such as drag queens hosting reading and dancing events at schools and libraries that are dividing people, adding that ‘drag queens are fun’ and ‘make everything better.’
This is child sexual abuse right out in the open.
Globalist scum media.
New York Times — The Battle Over Gender Therapy (6/15/2022):
“More teenagers than ever are seeking transitions, but the medical community that treats them is deeply divided about why — and what to do to help them.”
https://archive.ph/U2feL
Remember the libertarian attitude of “what consenting adults do in the privacy of their own bedroom?”
And now look at what this has become, all within the last few years.
There is no such thing as a trans child.
There are only groomer parents, groomer teachers, groomer school psychologists, groomer judges (who will deny custody or visitation to the non groomer parent), and a vast network of groomer doctors and groomer pharmaceutical sales reps.
This is what happens in a dying civilization.
Sanctioned at the highest levels by the globalists, their DNC Quislings, and the DNC’s FBI Chekists.
This is child sexual abuse right out in the open.
I don’t want anything to do with anybody who actually voted for this illegitimate regime. Period.
PB 👀
Is a “softish” landing in the bag?
The Financial Times
Federal Reserve
Fed’s full-tilt inflation fight makes a ‘softish’ landing harder to achieve
Chair Jay Powell sees no choice but to keep tightening even as odds of a recession quickly rise
Federal Reserve chair Jay Powell
Jay Powell, Fed chair, acknowledged on Wednesday that the path to a ‘softish’ landing for the economy has become ‘more challenging’
Colby Smith in Washington yesterday
The already-slim odds of the Federal Reserve bringing down inflation without causing a painful economic downturn took another leg lower on Wednesday as the US central bank embraced what is set to be the most aggressive campaign to tighten monetary policy in decades.
After approving the largest interest rate increase since 1994 — bringing the federal funds rate to a new target range of 1.50 per cent to 1.75 per cent — the Fed signalled the policy rate could rise well above 3 per cent by year-end, reaching a level that chair Jay Powell said was expected to be “modestly restrictive” on economic activity. More rate rises are also expected in 2023.
The drastic measures reflect a heightened sense of panic that has recently enveloped the Fed as it grapples with the worst inflation in four decades and mounting evidence that the problem could get worse before it improves.
At his press conference after the decision, Powell delivered the overarching message that the central bank is “determined” to do what is necessary to address inflation, driving home the message that stifling price pressures are the number one priority even at the cost of slower growth and higher unemployment.
“The worst mistake we can make would be to fail, which is not an option,” he said. “We have to restore price stability . . . it is the bedrock of the economy.”
…
The Financial Times
Updated 27 minutes ago
Live news updates: US weekly jobless claims drop as labour market remains tight
Alexandra White in New York
New applicants for unemployment aid in the US fell from the previous week in a sign that the labour market remains tight.
There were 229,000 initial jobless claims on a seasonally adjusted basis in the week to June 11, according to the US labour department data released on Thursday. That was down from the previous week’s upwardly revised 232,000 claims, but surpassed the median forecast of 215,000 claims in a Reuters poll of economists.
Thursday’s report showed that the pace of new claims rose the most in California, Texas, New York, Illinois and Ohio, based on preliminary figures that were not seasonally adjusted.
“The latest data suggest that some sectors may be experiencing a modest uptick in lay-offs amid rising concerns over inflation, sentiment and the outlook,” said Mahir Rasheed, US economist at Oxford Economics.
The job market has remained hot, and the unemployment rate steadied to 3.6 per cent in May, which is close to its pre-pandemic level.
Technology groups, particularly in the cryptocurrency sector, have reported some lay-offs recently.
Continuing jobless claims, which measure the number of Americans actively receiving unemployment aid, were 1.31mn in the week to June 4, an increase of 3,000 claims from the previous week.
Initial claims have increased in recent weeks but continuing claims have remained near their lowest level in more than 50 years.
“particularly in the cryptocurrency sector”
I hope they went “all in” because as far as I’m concerned, the more suicides, the better.
It’s not like anyone involved in the crypto “sector” has any kind of transferrable skill set. Please kill your selves now, and the pain will end 🙂
I hope they went “all in” because as far as I’m concerned, the more suicides, the better.
Not cool. The stupid & greedy need to learn from their mistakes, and be humbled, but they’ve got a shot a redemption – suicide isn’t something I’d wish on anyone.
Does that mean you no longer want “speculator scum” to die either?
Agreed, especially seeing the effects it has on friends and family, something I know from recent experiences in my own community.
Does that mean you no longer want “speculator scum” to die either?
Obviously that was figuratively speaking. Speculators need to free up housing for people and families to live in.
“It’s not like anyone involved in the crypto “sector” has any kind of transferrable skill set.”
You mean the kind of lazy know nothing broke@ss loser that isn’t going to last a week on the job so near the end of his first day you send him out to the truck to bring back the board stretcher and a box of post holes?
9% unemployment by 2024. That hand has been dealt.
The Financial Times
Markets Briefing Equities
Stocks and bonds slide as UK and Switzerland follow Fed with rate rises
Pound weakens after Bank of England lifts borrowing costs by 0.25 percentage points
Outside the London Stock Exchange
London’s FTSE 100 lost 2.4 per cent on Thursday
Naomi Rovnick and Tommy Stubbington in London
2 hours ago
Stocks and government bond prices dropped on Thursday as Switzerland and the UK joined a global rush to raise interest rates, following a sharp boost to borrowing costs by the US central bank.
Europe’s regional Stoxx 600 share index, which rallied on Wednesday after the European Central Bank promised a new mechanism to support weaker eurozone nations from rising interest rates in the bloc, fell 2.3 per cent. London’s FTSE 100 lost 2.4 per cent.
Futures markets indicated Wall Street’s S&P 500 index would slide 2.1 per cent in early New York dealings. The US stock barometer, which fell into a bear market on Monday, had closed 1.5 per cent higher on Wednesday after the Fed raised its main interest rate by 0.75 percentage points.
…
The Financial Times
Eurozone economy
What crisis? Inflation and EU funds help Italy’s debt to ‘fall like a rock’
Past week has revived memories of more turbulent times, but there are big differences between then and now
A juice kiosk in Naples
A juice kiosk in Naples. Under the stewardship of Mario Draghi, now Italy’s prime minister, the ECB created a playbook for how to tackle the widening gulf in borrowing costs between member states
Martin Arnold in Frankfurt and Amy Kazmin in Rome 4 hours ago
Eurozone economists who have spent the past week dusting off their debt-sustainability models for Italy are feeling a slight sense of déjà vu. “All of a sudden, everyone has to have an opinion on Italian debt yields,” said Gilles Moec, chief economist at French insurer Axa. “It reminds me of 2012.”
In an echo of the eurozone debt crisis that erupted 10 years ago, the European Central Bank said on Wednesday it was again preparing to launch a new bond-buying scheme to contain a sovereign debt sell-off that has hit more vulnerable countries such as Italy much harder than more stable ones such as Germany.
However, there are important differences between now and then — when the ECB slashed interest rates and started buying huge amounts of bonds to tame a debt crisis that threatened to tear the eurozone apart.
Some of these differences make today’s situation more worrying, such as the much higher debt levels of many eurozone countries, driven up by the pandemic and Russia’s invasion of Ukraine.
Italy’s government debt is above 150 per cent of gross domestic product — up from 127 per cent a decade ago — while Greece’s debt has risen even further from 162 per cent of GDP in 2012 to 185 per cent last year.
…
Dow close to erasing all gains since Feb 2020. Plunge protection team will have to be activated today or it looks like there’s another big leg down.
It will work down to the mid teens irrespective of the PPT.
Video: Biden Energy Secretary Tells Americans To Stop Complaining Because BRAZILIANS Have To Pay Same Amount For Gas
by Steve Watson
June 16th 2022, 7:27 am
Shut up and buy an electric car, says former electric car company director and electric car stock millionaire
Another day, another example of Biden officials telling Americans to stop complaining about the spiralling costs of energy because other countries are worse off.
This time Secretary of Energy Jennifer Granholm appeared on CNN and told Americans that they should not be so worried about national average gas prices being over $5 because “If you were in Brazil, you’d be paying the same amount for gas.”
She went on to try to list other countries like Canada and Germany where gas is even more expensive.
Huh?
Even the CNN drone John Berman had an issue with that comment, noting “We’re talking about the United States, though.”
It’s the same talking point over and over again because Biden’s gaggle of ghouls has no solution to the crisis, in fact they admit it’s part of a deliberate ‘transition’.
And don’t forget, inflation is out of control because of nationalism.
Earlier this week, Granholm lauded electric vehicles, another often touted ‘solution’.
Hey, just buy an electric car, they’re only 55 grand.
Granholm also happens to previously have been the director of an electric car company called Proterra. In May, she exercised stock options in the company, pocketing about $1.6 million from the transaction, according to an energy department spokesperson.
Just a coincidence.
Watch:
https://youtu.be/Evw5J3VyswA
If we were in Brazil Biden and Harris would be rotting bodies hanging from lamp posts.
Does it seem like some cryptolosers are getting carried away with their Chicken Little antics?
“Help! The sky is falling!!!”
Market Extra
‘The economy is going to collapse,’ says Wall Street veteran Novogratz. ‘We are going to go into a really fast recession.’
Last Updated: June 16, 2022 at 6:29 a.m. ET
First Published: June 15, 2022 at 5:35 p.m. ET
By Mark DeCambre
Veteran investor and bitcoin bull Michael Novogratz’s economic outlook is not rosy
Referenced Symbols
DJIA -2.20%
SPX -2.51%
COMP -2.77%
BRPHF +12.33%
BTCUSD -2.07%
ETHUSD -5.56%
Veteran investor and bitcoin bull Michael Novogratz doesn’t have a rosy outlook on the economy, which he described as headed for a substantial downturn, with the likelihood of a “fast recession” on the horizon.
“The economy is going to collapse,” Novogratz told MarketWatch. “We are going to go into a really fast recession, and you can see that in lots of ways,” he said, in a Wednesday interview before the Federal Reserve decided to undertake its biggest interest-rate hike in nearly three decades.
“Housing is starting to roll over,” he said. “Inventories have exploded.”
…
https://www.marketwatch.com/story/the-economy-is-going-to-collapse-says-wall-street-veteran-novogratz-we-are-going-to-go-into-a-really-fast-recession-11655328960?mod=home-page
“the bitcoin bull”
Bulls like this one threaten to put bears out of business.
Veteran investor and bitcoin bull Michael Novogratz’s economic outlook is not rosy
This asz clown is extremely angry that Jay Powell just broke it off in his asz.
He’s a wrastler, so I guess well qualified to predict financial Armageddon.
The Wall Sreet Journal
Markets
Mike Novogratz’s Crypto Comeback Faces a Trial by Fire
The Wall Street star became so enamored with cryptocurrencies he had one of them tattooed to his arm. Then the market crashed. ‘I’m arguing the system is gonna hold.’
Mike Novogratz speaks at a Miami bitcoin conference in April.
Photo: Marco Bello/Getty Images
By Gregory Zuckerman and
Justin Baer
June 4, 2022 12:00 am ET
Seven years after heavy losses shuttered his hedge fund, Mike Novogratz was in his SoHo office watching his computer screen flicker prices of cryptocurrencies, his new favorite investments. They were all collapsing.
The former college wrestler who once worked for Goldman Sachs Group Inc. and Fortress Investment Group had reinvented himself as one of Wall Street’s biggest digital-currency proponents, a cult figure for thousands of amateur investors who followed his appearances on television, social media and the conference circuit. His new venture, Galaxy Digital Holdings Ltd. , sells crypto-investment funds, handles trades for other big investors and advises digital-asset companies on acquisitions.
[The Wall Street Journal]
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The New York Times
Opinion
Guest Essay
Yes, Crypto Is Crashing Again. Blockchain Will Survive.
June 16, 2022, 5:00 a.m. ET
By Maria Bustillos
This week, the crypto market plummeted for the second time in a month, in tandem with a sharp drop in global stock markets. The collapse, not the first of its kind, showed again how the violent swings of a largely unregulated market warp the development of a transformative technology. But crypto is just one aspect of the larger blockchain universe. Its skeptics and fans alike must learn to see it as a technological experiment, instead of just a blatant scam or a speculative path to riches.
Why has the market fallen apart in such spectacular fashion?
The first recent crash, when the cryptocurrency market plunged 36 percent in a week in May, offers a clue. The collapse was largely set off by the death spiral of a cryptocurrency system called Terra Luna, made up of the coin Luna and its associated stablecoin, TerraUSD. At its dizzying heights in the spring, it represented roughly 3 percent of the total crypto market. Fear spread throughout the exchanges, and with it came panic selling.
After the second crash this week, the cryptocurrency market is still worth in total nearly $1 trillion (about one-third of last November’s peak). Only a few of the 19,000 cryptocurrencies that have been created since 2009 are now worth billions. Most have failed. The crypto market is wildly volatile not because of cryptocurrency’s underlying technology, but because of the uneasy and often dangerously unstable junction between emerging technologies and regular money. Viewed from the long perspective of market history, this instability isn’t remotely new.
In the late 1990s and early 2000s, internet stocks were a white-knuckle ride, just as crypto is now. Back then, too, hucksterism was rampant, the atmosphere was like a casino, and almost any idea with an “e” in front of it — no matter how reckless or silly — attracted attention from investors and the news media. Seemingly every day, fortunes were spectacularly made and lost.
But even as Napster, Webvan and eToys flamed out, a revolution was taking place. Despite all the shenanigans going on in the casino, real and lasting companies, publications and communities were built and thrived online. The internet survived, more or less.
Terraform Labs, the company behind TerraUSD and Luna, was founded in 2018 by Do Kwon, a computer scientist and entrepreneur in South Korea. Mr. Kwon, now 30, is a notoriously brazen hustler who has made waves for calling his critics “poor” and “cockroaches.” But despite his lack of polish, and the early warnings from developers and analysts about the technical weaknesses of his plans, he succeeded in raising $200 million in venture capital from 2018 to 2021. His company boasted of reaching an elusive goal in crypto, namely, the establishment of a truly “decentralized” stablecoin.
Stablecoins, which serve as a kind of bridge between crypto and ordinary money, have so far required vast amounts of old-fashioned real-world collateral to work, contrary to crypto’s original aim of eliminating reliance on legacy financial systems. Terra Luna was an algorithmic stablecoin system in which “stability” was supposedly guaranteed by mathematical mechanisms and incentives. Like those high-flying early internet stocks, these, too, proved vulnerable when trust failed.
In the 2000s, the alchemists of collateralized debt obligations turned junk securities into AAA gold through the mathematical magic of “bundling.” The arcane mathematics underpinning algorithmic stablecoin systems like Terra Luna gave off the same captivatingly mysterious vibe. But when more and more borrowers defaulted, collateral debt obligations and other exotic derivatives — which Warren Buffett once called “financial weapons of mass destruction” — collapsed, contributing to the 2008 global financial crisis. Echoes of the destructive power of derivatives can be heard in the story of the equally exotic Terra Luna.
Risk like this can go unperceived for only so long. The sad thing is that when risk suddenly becomes manifest, it takes real people’s money and, often, good and promising projects down with it. Or even whole economies: Losses in the 2008 crash were estimated at more than $10 trillion in the United States alone — a sum that dwarfs the most destructive swings in crypto so far.
As Terra Luna’s death spiral accelerated, its supporters, known as “Lunatics,” lurched between terror and hope as Mr. Kwon shoveled more than $1 billion in Bitcoin into the system in an attempt to restore stability. “Deploying more capital — steady lads,” he tweeted.
But ultimately, there wasn’t enough cash coming in to make up for outflow, just as in an ordinary bank run, and this particular experiment in replacing trust with mathematics was at an end. Among the many thousands of failed crypto experiments, Terra Luna stands out as one of the largest, taking with it roughly $60 billion in total market value.
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https://www.nytimes.com/2022/06/16/opinion/crypto-terra-luna-blockchain.html
“calling his critics “poor” and “cockroaches.”
And it’s poor taste to wish suicide upon someone like this?
BTW you’ve been on this blog long enough you should be less sloppy with the copy and paste, i.e. all the junk text you post with these links:
“Mike Novogratz speaks at a Miami bitcoin conference in April.
Photo: Marco Bello/Getty Images”
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IN THE NEWS TODAY
Bitcoin dropped below $20,000 overnight, before trimming some of those losses, as the entire cryptocurrency market endured another day of selling. Bitcoin was trading at levels not seen since December 2020, down about 27% in the last week and down nearly 70% from its November all-time high above $68,000. (CNBC)
…
https://www.cnbc.com/2022/06/16/what-to-watch-today-wall-street-set-to-plunge-as-stocks-post-fed-rate-hike-rally-vanishes.html
The Dow…. it’s cratering big….It just blew a hole thru 29999 mark.🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
The 401k sheep are going to slaughter.
It’s sad…especially for those who bought into the “balanced fund” concept of diversification between stocks and longterm bonds. When both investment categories are getting slaughtered, this kind of diversification is not helpful.
Sad? Uh, nope. More than 80% of stocks are owned by the top 1%. 50% of the US population has zero exposure to the stock market. Not sad.
At least there’s no more mean tweets, right?
“Half of respondents ages 55 and up have spent emergency savings in the past 12 months in response to high inflation, the survey found.
Meanwhile, 47% have visited a food pantry or applied for Supplemental Nutrition Assistance Program, or SNAP, benefits. Moreover, 43% have carried debt on a consumer credit card for more than 90 days.
Among the other common steps survey respondents had taken include applying for assistance with home heating or cooling costs, depleting a retirement or savings account, drawing down more retirement savings than usual or applying for a Medicare Savings Program or Medicare Extra Help for help with medical or prescription drug costs.”
https://www.cnbc.com/2022/06/16/high-inflation-prompts-older-americans-to-tap-savings-take-on-debt.html
“Blockchain Will Survive.”
Why should I care? The important thing is that the greater fools who got rich quick by investing in cryptocurrencies are now getting duly educated in experience’s dear school for fools.
To point out how ludicrous the statement is, imagine that housing crashed by a large percentage off last year’s insanely unaffordable prices. Would it make sense to then note that, “Housing will survive”?
Another day, another dive deeper into Wall Street’s CR8R, with no bailouts or plunge protection measures in sight.
It gets old after a while!
https://www.cnbc.com/2022/06/16/what-to-watch-today-wall-street-set-to-plunge-as-stocks-post-fed-rate-hike-rally-vanishes.html
Not if you’re holding Puts. 🙂
“Lake Mead near Las Vegas has dropped to 28% of its full capacity, while Lake Powell on the Utah-Arizona border is now just 27% full.”
https://www.yahoo.com/news/moment-of-reckoning-federal-official-warns-of-colorado-river-water-supply-cuts-171955277.html
How inflation is impacting San Diego housing market
Jun 16, 2022 Rising interest rates have caused a sharp turnaround in the housing market. Home sales have fallen for six months.
https://www.youtube.com/watch?v=MuGd2j43I4E
3:24
Effect of Inflation on Housing Market
Jun 15, 2022
https://www.youtube.com/watch?v=ZfSdEADwO6A
5:19. Connecticut. “We’re seeing price drops”.
Hot Bay Area housing market may be cooling off amid rising interest rates, more inventory
Jun 15, 2022 For anyone used to the Bay Area housing market being white hot, the idea of a buyer’s market is unfathomable. But with interest rates rising and more homes coming online, a cool-off might be underway.
https://www.youtube.com/watch?v=C9lR8bqZEp0
2:48. This is the video of the chirping crickets/lost everything quotes above.
Amidst all of this crater, one could overlook the question of did you know that the 2020 election was stolen?
The 2020 election was stolen.
Has the Plunge Protection Team been decommissioned?
The Financial Times
Markets Briefing Equities
Wall Street stocks slide as UK and Switzerland follow Fed with rate rises
Eurozone bonds also under pressure and pound swings against dollar
As the Federal Reserve announces a rate change on Wednesday, traders work on the floor at the New York Stock Exchange
Wall Street’s S&P 500 index slid 2.6% in early dealings, a day after the Federal Reserve raised its main interest rate by 0.75 percentage points
Naomi Rovnick and Tommy Stubbington in London an hour ago
Stocks and European government bonds sold off on Thursday as Switzerland and the UK joined a global rush to raise interest rates, following a sharp boost to borrowing costs by the US Federal Reserve.
Wall Street’s S&P 500 index slid 2.6 per cent in early dealings, with the technology-heavy Nasdaq Composite losing 2.9 per cent.
The S&P had closed the previous session 1.5 per cent higher after the Fed raised its main interest rate by 0.75 percentage points, with chair Jay Powell signalling that further rises of this magnitude would be relatively uncommon.
However, in the latest sign of how central banks are stepping up their efforts to tackle scorching inflation, the Fed’s decision was followed on Thursday by the Swiss National Bank raising its policy rate for the first time in 15 years — topping forecasts with a 0.5 percentage point uplift.
“The SNB has for so long been in the ultra-dovish camp,” said Francesco Pesole, a currency strategist at ING. “If even they are hiking, it’s sending a message to markets that central banks are looking at this summer as their last chance to do something about inflation before we hit a global slowdown.”
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It almost seems as though Wall Street is experiencing a slow motion version of 1987’s Black Monday crash. It’s been a long time since I have witnessed anything like that…thirty-five years, if my math is correct.
The Financial Times
Markets Briefing Equities
Wall Street stocks tumble as UK and Switzerland follow Fed with rate rises
Eurozone bonds also under pressure and pound swings against dollar
As the Federal Reserve announces a rate change on Wednesday, traders work on the floor at the New York Stock Exchange
Nearly every stock in the S&P 500 declined on Thursday, with losses pushing the share prices of hundreds of companies in the US down to new 52-week lows
Naomi Rovnick and Tommy Stubbington in London and Eric Platt in New York 52 minutes ago
Wall Street stocks sold off sharply on Thursday as Switzerland and the UK joined a global rush to raise interest rates, following a sharp boost to borrowing costs by the US Federal Reserve as central banks attempt to tame high inflation.
The S&P 500 slid 3.3 per cent, in a move that put the broad gauge on track for a weekly fall of more than 6 per cent — its biggest decline since March 2020. The declines have accelerated in recent days as pessimism about the global economic outlook has spread, with many investors warning central bank action could stamp out the recovery.
In a sign of the darkening outlook, almost every stock in the S&P 500 index declined on Thursday, with losses pushing the share prices of hundreds of companies in the US down to new 52-week lows. The technology-heavy Nasdaq Composite tumbled 4.1 per cent.
…
The Financial Times
Swiss National Bank
Swiss central bank surprises with first interest rate rise since 2007
Franc surges on SNB announcement that benchmark rate would rise to minus 0.25%
Swiss National Bank chair Thomas Jordan leaves after a news conference
Swiss National Bank chair Thomas Jordan leaves after a news conference in Bern on Thursday. The SNB said its benchmark rate would rise by 50 basis points
Sam Jones in Zurich and Tommy Stubbington in London
7 hours ago
Switzerland’s central bank on Thursday raised interest rates for the first time in 15 years, as it became the latest rate-setter to shift away from ultra-loose monetary policy.
The Swiss National Bank said its benchmark rate would rise by 50 basis points from minus 0.75 per cent to minus 0.25 per cent, catching markets off guard. The Swiss franc surged following the surprise decision, gaining 1.7 per cent to trade at 1.02 to the euro, the strongest level in nearly two months.
The move came just hours after the US Federal Reserve announced it would raise rates by 75 basis points, but ahead of a likely rise in rates from the European Central Bank in July.
As a big exporter, Switzerland closely watches the exchange rate with the euro and has, in the past, waited to follow a lead from Frankfurt. But expectations that inflation will remain uncomfortably high in the coming quarters led the central bank to go first.
“The tighter monetary policy is aimed at preventing inflation from spreading more broadly to goods and services in Switzerland. It cannot be ruled out that further increases in the SNB policy rate will be necessary in the foreseeable future,” the bank said in a short statement.
Inflation hit 2.9 per cent in Switzerland in May, its highest level in about 14 years.
The central bank also removed a reference to a “highly valued” franc in its statement, indicating it is backing away from a longstanding policy of trying to curb the currency’s strength.
“If we take the SNB by its word, it now seems as if it would like currency strength, to take the sting out of imported price inflation,” said Melanie Debono of Pantheon Macroeconomics.
The SNB’s shift is the first indication its governors are taking the rising global commodity prices seriously enough to consider reining in their expansive monetary policy. The central bank has aggressively used its balance sheet to try and anchor the entire Swiss economy over the past decade.
…
The bailout already happened. I think people are in for quite a shock this time when they go back to the well for more money and not only are they trapped but there isn’t any political interest in helping them either. Cash is going to be king soon.
Las Vegas, NV Housing Prices Crater 29% YOY As Desperate Sellers Send Inventory Soaring And Prices Plunging Across Southwest States
https://www.movoto.com/nv/89146/market-trends/
As one broke seller lamented, “Whenever I think about how much money I lost on this house I just want to kill myself.”
How to Find a Deal in Sacramento Real Estate Market
Streamed live 14 hours ago How to find a deal in the Sacramento real estate market. The housing market is nuts and most people are sitting on the sidelines waiting for prices to drop. For those brave few who are still looking let me show you how to find homes the right way.
https://www.youtube.com/watch?v=B663FhCcLjg
56 minutes. Talks about how to wade through all the price reductions. Expect “creative financing” as loan guys starve.
Expect “creative financing” as loan guys starve.
During the boom times these guys can make tons of money. But when the spigot is shut off, they are in a world of hurt. Most have no other skills beyond doing menial work.
These desk jockeys couldn’t even last 4 hours out on a job site.
Sacramento is one of the cities that will have long lists of foreclosed inventory that no one wants to buy. There will be lots of ‘fixers’ that you can offer 50% of ask on. That is still a few years away but current rates assure it. This bust is going to be epic. Just keep in mind that the geologic record shows that Sacramento is occasionally under 10 feet of water. Do you feel lucky?
Housing Market Report | June 2022 | Austin, Texas
Jun 14, 2022 Topics:
BUY NOW! Purchase at/below list price with low rates!
Interest rates increase each month
Are we in a bubble?
Double the housing inventory!
https://www.youtube.com/watch?v=yUkK7KgQZmE
6:32. “Yer not going to get 100k over list…doesn’t exist anymore.”
Do you think any of those people who bid 6 figures over ask feel stupid yet or was it predatory loans that made them do it?
I clearly recall seeing folks camping out for a lot release circa 2006. How you think they felt?
Toronto Housing Crash Up To 36% In Some GTA Suburbs Since February 2022
‘Premiered 23 hours ago What the hell is happening with our market right now? How will the July interest rate hike impact the market? Which real estate companies are taking the biggest beating in 2022?’
https://www.youtube.com/watch?v=EHfuwsduxtg
27 minutes.
Guelph home prices June 2022: trends by price bracket
‘Jun 15, 2022 This month for Guelph Today, Guelph Realtors Beth and Ryan Waller discuss Guelph home prices and the trend by price bracket: $1M + – 17 listings for every sale, prices are declining rapidly as buyers retreat. South Guelph seeing most listings in this range. More negotiation and conditions! Use a local Guelph realtor who knows the market!’
https://www.youtube.com/watch?v=zbG5Rtug4K4
2 minutes.
2022 06 15 Ottawa Market Update How Are Buyers and Sellers Affected
Jun 16, 2022 In this episode of CTV Ottawa Morning’s Ask The Expert, local Ottawa real estate broker Colleen Lyle discusses the changes in the market, how it affects buyers and sellers, and answers your questions.
https://www.youtube.com/watch?v=FDU-UBiTBIk
13:31. “Panic.” “Buyers remorse can happen without education.” Voice starts to waver. “I think I paid too much.” “one million is the average right now…Stop breath and think.”
K-dns “either talk about the weather or real estate.”
one million is the average right now
The idea of borrowing a million, even if they are canuck bucks, sends a shiver down my spine. Even at 3% interest, the P&I is $4200. At 6% it’s just shy of $6000.
“The idea of borrowing a million, even if they are canuck bucks, sends a shiver down my spine.”
Agreed. I know I would not sleep well, so I’d never ever consider such a mortgage.
Agreed. I know I would not sleep well, so I’d never ever consider such a mortgage.
I’m too chicken to ever even have a mortgage.
June 2022 Denver Real Estate Market Update With Dane Rickard at RE/MAX Professionals
‘Jun 16, 2022 Welcome to your Stanley Cup Finals 2022 Edition of the Denver Real Estate Market Update. The market has SHIFTED! Of course, inflation, rate hikes, and other things has changed the housing market this summer. Strong demand is still in place, but more inventory is here to stay it would appear!’
https://www.youtube.com/watch?v=if7byxdh1HA
2:04. Mentions panic if doesn’t sell first weekend. Emails from builders saying they have standing inventory.
Portland is the template for the “fundamental transformation” the globalists and their Democrat-Bolshevik Quislings want to impose on every municipality and community in America. Forward!
Portland resembles an ‘open air drug market’ after legalizing hard drugs: Overdose deaths skyrocket by 41% in the Democrat-led city as homeless addicts collapse on sidewalks
https://www.dailymail.co.uk/news/article-10923923/Portland-resembles-open-air-drug-market-legalizing-hard-drugs.html
The streets of Portland resemble an ‘open air drug market’ after state officials’ scheme to decriminalize hard drugs led to a surge in overdose deaths, critics claim.
Law enforcement agents say that the streets of Portland are full of homeless addicts openly buying and selling drugs and that signs of drug addiction are actually increasing statewide, Fox News reported.
Photos show the desperate situation in the Pacific Northwest city, where people can be seen shooting up drugs or passed out in broad daylight.
What are the odds of these street drug addicts ever becoming productive enough to be self-supporting, maybe 1 in 250? These cities spend $millions, but rarely celebrate their success stories.
Portland resembles an ‘open air drug market’ after legalizing hard drugs: Overdose deaths skyrocket by 41% in the Democrat-led city as homeless addicts collapse on sidewalks
I won’t ever be passing through Portland again. Adios.
Biden family values. The fish rots from the head first.
EXCLUSIVE: Florida woman who found Ashley Biden’s diary in ‘halfway house’ is under FBI investigation for SELLING the journal in which president’s daughter recalled ‘showers w/ my dad (probably not appropriate)’ and details of her drug and sex addiction
https://www.dailymail.co.uk/news/article-10896941/Florida-woman-Ashley-Bidens-diary-investigation-selling-it.html
The Biden regime wants us all driving EVs – but how can we when they keep boosting the already-unaffordable prices?
Tesla will HIKE the prices for all its car models by up to $6,000 – with a Model Y now costing $65,990 – as inflation starts to bite and Biden administration insists surging gas prices are a ‘very compelling case’ to by electric cars
https://www.dailymail.co.uk/news/article-10923643/Tesla-charge-cars-United-States-inflation-bites.html
Tesla has significantly increased the prices of its entire car lineup once again – as the US continues to struggle with surging inflation and record gas costs.
The price hikes, seen on the carmaker’s website Wednesday, will see the certain models rise as much $6,000, and will affect each of the company’s four main makes – the Model 3, the Model Y, the Model S, and the Model X.
Good News! Harris to Head New Biden Disinformation Task Force
https://pjmedia.com/news-and-politics/robert-spencer/2022/06/16/good-news-harris-to-head-new-biden-disinformation-task-force-n1605895
The bad news is that the Biden administration’s notorious Disinformation Governance Board, a flagrantly unconstitutional effort to restrict the freedom of speech that was “paused” in May after an avalanche of criticism, is back (although its Orwellian name is still on ice). The good news is that heading up Biden’s handlers’ new foray into authoritarianism is none other than Vice President Kamala Harris. This is good news because Harris has handled the previous jobs she has been given with spectacular ineptitude. If she stays true to form this time, she may end up actually strengthening speech protections, rather than destroying them as she has been tasked to do.
The Brandon regime has a zero-tolerance policy for Border Patrol officers who in the performance of their duties interfere with globalist-demanded open borders or impede Democrat-on-Arrival immigration inflows.
Border Patrol agents fume as DHS prepares to punish officers caught up in ‘whip’ controversy: ‘Bull——’
https://www.foxnews.com/politics/border-patrol-agents-fume-dhs-punish-officers-whip-controversy
Border Patrol agents have been dealing with historic migrant surge crisis for over a year
Precious metals are calling BS on the Fed’s tough talk about tightening.
https://www.kitco.com/market/
Your property may be on the market for a slightly longer time, or you may need a price adjustment, but you will sell if you’re patient and have a good sales strategy.”
Good sales strategy like setting the price correctly and making sure your house isn’t a dump? There, I’m a real estate sales strategy expert.
Oh dear….
Sydney and Melbourne house price falls accelerate
https://www.macrobusiness.com.au/2022/06/sydney-and-melbourne-house-price-falls-accelerate/
CoreLogic’s daily dwelling values index, which measures price growth across the five major capitals, fell by 0.22% in the week ended 16 June. This was the largest weekly decline since July 2020 during the depths of the pandemic:
It seems like Wall Street peops are having a Maalox Moment over recent stock market ructions, but a more circumspect view is that Mr Market is merely adjusting valuations to consider a return to normal market-based interest rates that have existed for centuries of financial market experience.
Thoughts?
Live Updates
Stocks tumble after Fed takes historic action on inflation
By CNN Business
Updated 2:34 p.m. ET, June 16, 2022
56 min ago
The market expects another super-sized Fed rate hike in July
From CNN Business’ Paul R. La Monica
US Federal Reserve Chair Jerome Powell speaks during a news conference at the Federal Reserve Building in Washington, DC, on June 15.
(Olivier Douliery/AFP/Getty Images)
Jerome Powell conceded Wednesday that the Fed’s 75 basis point rate hike was “unusually large” and added that he did “not expect moves of this size to be common.” But the Fed chair also said that “either a 50 or 75 basis point increase seems most likely” at the central bank’s next meeting in July.
Investors are, to use a sports gambling phrase, taking the over.
According to Fed funds futures on the CME, traders are currently pricing in an 85% chance of another 75 basis point rate increase and only 15% odds of a 50 basis point hike. If the Fed again raises rates by 75 basis points, that would bring them to a range of 2.25% to 2.5%.
It’s stunning how quickly the market has gone from expecting the Fed to take a slow and steady approach to fighting inflation to the “it’s all hands on deck and we must put out the fire immediately!” mentality it’s exhibiting now.
Just last week, futures showed a less than 1% chance that rates would rise to the 2.25% to 2.5% level in June. The odds were at 0% a month ago.
So will the Fed really raise rates by three-quarters of a point two meetings in a row? It’s too soon to say. In case you haven’t heard, the Fed is still “data dependent.” (Powell used that phrase three times in Wednesday’s press conference.)
So investors need to keep watching the inflation data. The June consumer price index report will be released on July 13…two weeks before the next Fed rate announcement.
If prices, which soared 8.6% during the 12 months ending in May, continue to accelerate, then another 75 basis point increase seems all but certain. If inflation pressures finally start to cool, Powell may be able to once again take off his hawk costume and act more like a dove again.
…
“If prices, which soared 8.6% during the 12 months ending in May, continue to accelerate,…”
Given that recent inflation has been at double-digit rates on a month-over-month basis, it seems like continued acceleration in the 1-year lookback inflation rate over the near term is baked into the cake.
Just sayin…
PS I also don’t know how you rein in inflation when the policy rate is still at a negative real rate, but I don’t claim to understand central banking.
Real Fed Funds Rate = (Nominal Rate) – Inflation
= (1.5% to 1.75%) – (10%+) < 0
What happens to the federal deficient when interest rates go to 10% ?
More government spending would go to interest rate payments and less to fund government spending on programs we all rely on and take for granted, like military protection, freeway maintenance,û and weather forecasts. Which is why the Fed is working so hard to bring down inflation. A two percent rate of inflation can support low interest rates in perpetuity, but 10+ percent inflation cannot.
BFB, I welcome your comments on not wishing to hurt babies or mothers, i always knew under those fat rolls was a heart of god, I rebuke the comments here calling for death and suicide of our brothers in humanity. That is demonic.
Why do so many here hate bitcoin with a passion while simultaneously rebuking the fed and evil fiat? Bill gates seems to be the devil, on the side of evil fiat.
Speaking at a climate change event hosted by TechCrunch, Gates said he would rather invest in a company where they made products, adding that he held no position in NFTs or cryptocurrencies. “I’m not involved in that. I’m not long or short in any of those things,” Gates said, suggesting that he was suspicious of assets designed to avoid taxation or government rules.’
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Gates said in reference to the Bored Ape Yacht Club, a flagship NFT project.’
https://www.msn.com/en-in/money/markets/bill-gates-says-nfts-based-on-greater-fool-theory-backs-investment-in-tangible-assets/ar-AAYwXdr
Support the illegal fiat currency (constitution never authorized paper money) of the military industrial complex, that kills millions of humans for profit monthly, that through inflation and deflation robs homes from families, taxes you to death literally, etc etc
Or choose bitcoin that while not perfect for sure, seems to be more moral money free from the evils of USA fiat petrodollar tyrants
“and was arrested after a brief foot chase.”
I am very disappointed there is no video of the brief foot chase.
Naked woman assaults CPD officer, steals his squad car and runs him over-police say
Jun 15, 2022
https://youtu.be/h7QCz8gRqtw
Shock Video: ‘Naked Woman’ Runs Over Chicago Cop With His Own Patrol Car
by Dan Lyman
June 16th 2022, 11:47 am
An officer responding to reports of shots fired discovered a woman lying in the street in a state of partial undress.
Whitley Temple, 34, was “naked, intoxicated and threatening to hit people” when the officer approached to check on her condition, according to an arrest report reviewed by the Chicago Sun-Times.
A video purportedly shot at the scene appears to show the officer approach the woman as she behaves erratically in the middle of an intersection.
Suddenly, she can be seen jumping into the driver’s seat of the patrol car while the cop tries to pull her out.
“Get out of the f**king car,” the officer can be heard yelling repeatedly.
The SUV then lurches in reverse and the officer is knocked to the pavement and dragged for several feet.
After the police vehicle slams backwards into another car, the suspect speeds off with the driver door still hanging open.
“Temple drove the squad car to a gas station, where she struck a vehicle, briefly ran into the station and then took off again, driving the squad car more than 95 mph on the Eisenhower Expressway,” the Sun-Times reports, citing Assistant State Attorney James Murphy’
“She allegedly weaved in and out of traffic until she got off at Sacramento Boulevard at a high rate of speed, striking several more vehicles as she continued to drive, before she crashed in the 2000 block of West Harrison Street and was arrested after a brief foot chase.”
Temple now reportedly faces an array of charges including felony counts of attempted first-degree murder, aggravated battery to a peace officer, resisting or obstructing a peace officer, vehicular hijacking, and possession of a stolen law enforcement vehicle.
The injured officer, 47, received six stitches for a gash in his head but was released from hospital on the same day.
Are You Frustrated by Our Market Shift?
‘Jun 16, 2022 Are you frustrated with our shifting market? Just a few months ago, you could expect to sell your home within days for way over the asking price, but that isn’t the case anymore. It looks like our market is finally returning to pre-pandemic levels, but that isn’t necessarily a bad thing. Today I want to share why sellers can still take advantage of record-high appreciation.’
https://www.youtube.com/watch?v=H4KG93nfj54
3:16. Phoenix. Interesting bubble psychology.
Orlando’s Major Housing Market Shift
Jun 13, 2022
https://www.youtube.com/watch?v=msp9POojSgk
10 minutes. At 2:40 says price decreases went from around 300 60 days ago to 3,344. At 6:15 – 5 pages of DR Horton MLS listings. And he says they aren’t the only builder doing this.
Florida Woman Under FBI Investigation For Selling Ashley Biden’s Diary in Which Joe’s Daughter Recalls ‘Showers w/my Dad’ (6/16/2022):
“The diary is authentic and the FBI previously raided Project Veritas for possible ‘theft’ of the journal belonging to Biden’s daughter.
Aimee Harris, 39, found Ashley Biden’s diary at a halfway house in Palm Beach in 2020 and sold it to Project Veritas for $40,000.
In a January 2019 entry, Ashley Biden recalled how she used to shower with her father, Joe Biden, and suggested it may have contributed to a sex addiction.
“I have always been boy crazy,’ Ashley wrote. ‘Hyper-sexualized @ a young age … I remember somewhat being sexualized with [a family member]; I remember having sex with friends @ a young age; showers w/ my dad (probably not appropriate).’ she wrote in a January 2019 entry, according to the Daily Mail.[
Not only did Joe Biden shower with his young daughter, according to Ashley Biden’s diary entries, he has publicly fondled children for years.
Biden is on video touching and sniffing other people’s children and the media refuses to report on it to this day.”
https://www.thegatewaypundit.com/2022/06/florida-woman-fbi-investigation-selling-ashley-bidens-diary-joes-daughter-recalls-showers-w-dad/
Groomers gonna groom.
And gropers gonna grope.
Sounds like a Democrat Party thing.
“They’re not sending their best”
If you search on YouTube for the phrase “Biden groping compilation” this is the 9th search result (12m15s):
Biden touching girls compilation (RAW CSPAN FOOTAGE)
https://www.youtube.com/watch?v=V4PLSPvJ9BY
“They’re not sending their best”
we knew this would happen……….Because what people are blaming on mental health are really deeper issues of violent misogyny and white supremacy
https://www.dailywire.com/news/aoc-suggests-checking-juvenile-criminal-records-to-be-able-to-buy-a-gun-could-be-racist
This is a K=dn round table stream. It’s mania gold.
‘Across the country All Star Canadian Realtor LIVE STREAM – How are we going to get out of this mess’
https://www.youtube.com/watch?v=nXst7cTYA8c
Serious fooking going on.
MoneyWatch
Stock market’s fall has wiped out $3 trillion in retirement savings this year
moneywatch
By Irina Ivanova
June 16, 2022 / 7:54 AM / MoneyWatch
The U.S. stock market rout that has put U.S. equities in a bear market isn’t just reducing the net worth of billionaires like Elon Musk and Jeff Bezos. It’s also taking a toll on Americans’ retirement savings, wiping out trillions of dollars in value.
The selloff has erased nearly $3 trillion from U.S. retirement accounts, according to Alicia Munnell, director of the Center for Retirement Research at Boston College. By her calculations, 401(k) plan participants have lost about $1.4 trillion from their accounts since the end of 2021. People with IRAs — most of which are 401(k) rollovers — have lost $2 trillion this year.
This year’s stock slump is the most severe market downturn since March of 2020, when COVID-19 erupted in the U.S. Historically, 401(k) investments take about two years after a market decline of this size to regain their previous value.
…
https://www.cbsnews.com/news/stocks-drop-retirement-savings-401k-ira-3-trillion-2022/
Just wait till home equity losses get added to the tally. Lots of negative wealth effects are currently in play.
The poor HODLers…the poor, poor HODLers…
The Financial Times
Cryptocurrencies
Crypto hedge fund Three Arrows fails to meet lender margin calls
BlockFi was among a clutch of firms that liquidated the Singapore-based group’s positions
A montage of a bitcoin and the Three Arrows logo
Kadhim Shubber and Joshua Oliver in London 6 hours ago
Three Arrows Capital failed to meet demands from lenders to stump up extra funds after its digital currency bets turned sour, tipping the prominent crypto hedge fund into a crisis that comes as a credit crunch grips the industry.
The group’s failure to meet margin calls this past weekend makes the group the latest victim of an acute fall in the prices of many tokens such as bitcoin and ether that is rippling across the market. Singapore-based Three Arrows is among the biggest and most active players in the crypto industry with investments across lending and trading platforms.
Lenders have sharply tightened up how much credit is on offer following tremors over the past month. Celsius, a major crypto financial services company, blocked withdrawals last week, while a pair of major tokens collapsed in May.
US-based crypto lender BlockFi was among the groups that liquidated at least some of Three Arrows’s positions, meaning it reduced its exposure by taking collateral the fund had put down to back its borrowing, according to people familiar with the matter.
Three Arrows, which made a “strategic” investment in BlockFi in 2020 that it exited the following year, had borrowed bitcoin from the lender, the people said, but had been unable to meet a margin call. One of the people said the liquidation had occurred by mutual consent.
“We are in the process of communicating with relevant parties and fully committed to working this out,” said Su Zhu, Three Arrows co-founder, on Twitter on Wednesday, without specifically identifying any counterparty. The company did not respond to a request for comment.
…
Leverage + Crypto = CR8R
The real journalists speak as though a bottom already is in place. Perhaps they forgot that in the 2007 – 2009 financial crisis, stocks dropped more-or-less nonstop from September 2008 through March 2009, a seven month period of CR8R with a total decline on the headline Wall Street indexes of around 50%.
I believe the bout of uncontrollable inflation in the 1970s had a similar 50% stock market decline, though I don’t recall the timing.
There is no crisis…. in falling…. housing…. prices.
Sacramento, CA Housing Prices Crater 26% YOY As Northern California Housing Demand Collapses On Soaring Inventory
https://www.movoto.com/ca/95864/market-trends
Chinese Banks Freeze Billions In Deposits: Officials Use Health QR Code To Bar Protestors | ZeroHedge
https://www.zerohedge.com/political/chinese-banks-freeze-billions-deposits-officials-use-health-qr-code-bar-protestors
(some snips)
Chinese local banks are freezing deposits. Protestors cannot go near banks as their health app for COVID-19 turns red. Authorities provided no explanation…
As The Epoch Times’ Dorothy Li reports, several depositors told The Epoch Times on June 14 that the health code on their COVID-19 app turned red as soon as they scanned venue barcodes at Zhengzhou, the provincial capital city of central China’s Henan Province.
A red health code – indicating a potential COVID-19 patient – means the carrier is barred access to all public places from public toilets to shops to train stations, and faced mandatory quarantine in centralized isolation centers.
They are among tens of thousands of bank depositors who have fought to recover their savings for more than two months. The crisis started in April when at least four lenders in Henan froze cash withdrawals, citing internal system upgrades. But customers said neither these banks nor officials have since offered any information on why or how long, prompting angry protests outside the office of the banking regulator in Zhengzhou in May.
An estimated 1 million customers were reportedly affected, which has left many residents’ life savings at stake and patients unable to pay for regular medical care.
Depositors have been cut off for at least 39.7 billion yuan ($5.91 billion), according to Sanlian LifeWeek, a state-run magazine.
Aggrieved depositors across the country planned another protest in Zhengzhou on June 13 to demand an answer, though previous gatherings were met with silence from local authorities and violence from plain-clothes police.
…
Their plan, however, was thwarted again as their health code turned red at the city’s train stations or highway entrance.
A red code indicates the highest level of risk, meaning the person tests positive, has been close to a COVID-19 patient, or has visited high COVID-risk areas in the past 14 days. Residents with red code face two weeks of centralized isolation.
…
“They [officials] are like robbers,” said a third bank customer who was stopped by police at Zhengzhou train station on June 12 and required to leave.
“We’re all legal depositors … Why couldn’t we even have an explanation?”
…
“It’s so scary,” one user commented.
“If the health code is abused … it could be putting digital handcuffs on us. Everyone will become a prisoner from now on and could be stopped anywhere, anytime.”
There’s a lot of freezing to prevent withdrawals in play nowadays.
The Ledgercryptocurrency
Is the Celsius freeze a Lehman Brothers moment for crypto?
By Oliver Knight and CoinDesk
June 16, 2022 11:55 AM PDT
– Celsius Network, an interest-earning yield platform, has frozen withdrawals after using a myriad of failed decentralized finance (DeFi) strategies.
– It suffered a series of severe losses including over 38,000 ETH in a blunder related to Stakehound, followed by a $22 million loss in connection with the Badger DAO hack.
– Customers now fear they will never be able to access funds that are locked on Celsius.
– Already reeling from last month’s Luna collapse, the cryptocurrency market has shed $180 billion off its market cap in the wake of Celsius’ announcement, and major exchanges have announced job cuts.
If the collapse of Luna was cryptocurrency’s Bear Stearns moment, Celsius Network threatens to become the industry’s Lehman Brothers: the failure that exacerbates a market crisis.
…
https://fortune.com/2022/06/16/lehman-brothers-crypto-crash-celsius-luna-bear-stearns-recession/
It also seems like comparisons of recent financial developments to the Lehman Brothers collapse in 2008 are. increasingly prevalent.
One of these comparisons will eventually prove accurate, at which point all hell will break loose.
Markets
Equity Markets
Sharemarket
Echoes of Lehman Bros blowup as markets plunge
Ye Xie, Isabelle Lee, Amelia Pollard and Peyton Forte
Jun 14, 2022 – 11.41am
A trader reacts to the plunging markets on the floor at the New York Stock Exchange on Monday. AP
Quincy Krosby could not wait for Monday’s trading session to be over.
“I was glued to the screen,” LPL Financial’s chief equity strategist said in an interview.
It was just one of those days with losses so gigantic that solely looking at stocks was not enough. Her eyes strayed to bonds, to credit default swaps and elsewhere as she tried to figure out how bad things were and might get.
What she saw was ugly. Even by the standards of this volatile year, Monday’s wild ride throughout financial markets stands out. Two-year US Treasury yields surged 29 basis points as bond prices tanked. The yield jumped 54 basis points since Thursday night, the biggest two-day increase since 2008, a sign of just how rapidly traders are adjusting where they think the Federal Reserve will take interest rates.
All but five stocks in the S&P 500 tumbled, and the benchmark posted a more than 20 per cent loss since its January peak, thus crossing into a bear market.
Cryptocurrencies plummeted so violently that a popular lending platform froze withdrawals to prevent a very modern kind of bank run. Over in old-school currencies, the US Dollar Index roared to the highest level in almost two decades as investors sought safety.
Scary memories
It was enough, for some, to resurface scary memories of the global financial crisis more than a decade ago. Christian Hoffman, 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 Mr Hoffman, who worked at the firm that imploded back then, triggering the worst financial crisis since the Great Depression. It is the kind of problem that can exacerbate losses in a big way. “That creates even more risk, because if the market doesn’t have liquidity, it can gap down very quickly.”
…
https://www.afr.com/markets/equity-markets/echos-of-lehman-bros-blowup-as-markets-plunge-20220614-p5atk2
Markets
Is Evergrande Actually China’s Lehman Brother’s Moment?
Earl Carr
Contributor
Founder & CEO, CJPA Global Advisors; NYU Adjunct Instructor, SPS
…
In 2008, Lehman Brothers Holdings Inc. officially filed for bankruptcy, led by risky investments, wild speculation, and a belief that the real estate market couldn’t decline. This singular event catalyzed the Great Recession that was responsible for an estimated $10 Trillion in lost economic output. The global economy eventually recovered but many people’s houses and retirement savings were gone forever. Since December 6th, 2021, the China Evergrande Group has been in technical default. Many fear that this could lead to the collapse of the Chinese Real estate market and wipe out billions in generational wealth. These similarities have led people to label this as China’s Lehman Brothers collapse, …
https://www.forbes.com/sites/earlcarr/2022/05/27/is-evergrande-actually-chinas-lehman-brothers-moment/?sh=15b7c1b26c79
the money game June 13, 2022
Crypto Is Crashing. It Deserves to.
By Kevin T. Dugan
If you’re anything but a die-hard observer of the crypto markets, all the crashes, frauds, Ponzi schemes and criminal indictments that have plagued the market during the past six months have been something of a blur. Crypto is volatile, but it lives at the margins of the financial world. In the U.S., at least, traditional markets and the broader economy have never really integrated with digital currencies, and most people don’t use bitcoin or dogecoin or ethereum on a day-to-day basis, like the dollar. When bad news happens, it can feel like hearing about a coup in a country you’re only vaguely aware of. Bad for somebody, sure, but does it affect me? So when bitcoin started to crash over the weekend, then continued to fall below $23,000, its lowest point in 18 months, it might have seemed like just another point of red on the downward continuum, another “crypto winter” that, its advocates will tell you, is part of a natural cycle that strengthens and purifies the market. And maybe it is. But the crash this weekend looks like more than just a reset after things got too hot — there are signs that the system could be breaking and that the money propping it all up was less solid than it seemed.
…something feels different now: The fear is pervasive, the uncertainty is obvious, and the doubt is smart. And while there are plenty of threats from outsiders — like regulators threatening to rein in fraud, and countries like China shutting down the markets — the problems driving the recent declines appear to be largely self-inflicted. A lot of big players (Celsius and Saylor being just two, in addition to the recently imploded Luna project) seem to have put themselves in a dangerous position and made commitments they may not be able to keep. In aggregate, it amounts to a recipe for a classic financial panic, the kind of thing that led to the crash of Lehman Brothers in 2008.
…
https://nymag.com/intelligencer/2022/06/crypto-is-crashing-it-deserves-to.html
I’d like to propose the financial markets version of Godwin’s Law:
“If any succession of financial meltdowns continues long enough, someone will almost certainly compare one of the meltdowns to Lehman Brothers.”
Did the biggest jump in US mortgage rates since 1987 derail your home purchase plans?
Btw, 1987 was the year I entered the full-time US workforce. I had a good job and good credit rating, no debt or dependents, and was well qualified to buy a home. But I thought interest rates were too high, so instead of borrowing a large sum of money at a high interest rate to finance a home purchase, I invested what I had saved up to finance a down payment in long-term Treasurys yielding over 8 percent.
Five years later, the economy was in a recession, and lots of homes were up for sale at all price points. Interest rates, including Treasury yields, had dropped considerably. I sold my Treasurys for a nice capital gain and used the proceeds to finance the down payment on my first home purchase.
If I were starting out now, I would employ a similar strategy, parking savings into long-term Treasury bonds later this year, when the Fed completes its tightening campaign. Five years from now is when I would target making a home purchase, after the mania is a fading memory.
Young people who follow my advice will become wealthy. Ignore it at your peril.
The Fed plans to ‘reset’ the housing market—raising the likelihood of falling home prices
By Lance Lambert
June 16, 2022 2:52 PM PDT
It’s not just about how expensive housing became—it’s how fast it got there. It only took 24 months for U.S. home prices to soar a staggering 37%. For comparison, the biggest two-year spike leading into the 2008 housing crash was 29%.
Heading into this spring, the Federal Reserve decided it had seen enough. The central bank quickly raised interest rates, which saw the average 30-year fixed mortgage rate climb to 6%—up from 3.2% at the start of the year. Those higher rates, which have priced out many home shoppers, ultimately ended the pandemic housing boom. Now we’re in a sharp slowdown, with the Mortgage Bankers Association reporting on Wednesday that mortgage applications are down 16% on a year-over-year basis.
As this shift occurred, we heard very little from the Fed. Well, that was until chair Jerome Powell addressed reporters on Wednesday.
Here’s what Powell had to say: “We saw [home] prices moving up very very strongly for the last couple of years. So that changes now. And rates have moved up. We are well aware that mortgage rates have moved up a lot. And you are seeing a changing housing market. We are watching it to see what will happen. How much will it really affect residential investment? Not really sure. How much will it affect housing prices? Not really sure. Obviously, we are watching that quite carefully…It’s a very tight market. So prices might keep going up for a while, even in a world where rates are up. So it’s a complicated situation and we watch it very carefully. I’d say if you are a homebuyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again.”
…
https://fortune.com/2022/06/16/housing-market-reset-federal-reserve-could-see-home-prices-fall/
and mortgage rates are low again
He lost me here.
The Financial Times
US economy
US home mortgage rates jump by the most since 1987
30-year loan reaches 5.78%, reflecting tighter monetary policy and inflation expectations
Single-family homes in an aerial photograph taken over San Diego, California
‘Higher mortgage rates will lead to moderation from the blistering pace of housing activity,’ said Sam Khater, Freddie Mac’s chief economist
Alexandra White in New York yesterday
US mortgage rates have surged by the most in 35 years as inflation soars and interest rates rise, threatening to leave many first-time homebuyers on the sidelines.
The average interest rate on a 30-year fixed rate mortgage jumped by more than half a percentage point to 5.78 per cent, the highest level since November 2008, according to mortgage provider Freddie Mac.
The weekly increase was the sharpest since 1987. The rate was 3.2 per cent at the start of the year, while a year ago, before the Federal Reserve embarked on an aggressive campaign to raise interest rates, the 30-year fixed rate mortgage averaged 2.93 per cent.
The rapid acceleration has threatened to cool a strong housing market, as Americans — many working from home during the coronavirus pandemic — took advantage of lower mortgage rates to buy housing, in the process driving prices to record highs.
But the recent rise in mortgage rates has threatened affordability for new homebuyers, slowing housing demand.
“The average homebuyer today now faces higher mortgage repayments as a share of their income than last seen at the peak of the mid-2000s boom,” said Matthew Pointon, senior property economist at Capital Economics. “With cautious lenders not set to loosen mortgage lending standards, that will shut many potential buyers out of the market. Indeed, the first-time buyer share has recently dropped to 13-year lows.”
Homebuyers stunned by the rapid climb in mortgage rates can look to the Federal Reserve’s efforts to tame US inflation that reached a fresh 40-year high last month, as well as rising inflation expectations, which suggest Americans are becoming more concerned about the outlook and their finances. The Fed on Wednesday raised its benchmark rate by 0.75 percentage points, the largest increase since 1994.
“These higher rates are the result of a shift in expectations about inflation and the course of monetary policy,” said Sam Khater, Freddie Mac’s chief economist. “Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”
Moderation is already starting to show up in the data: the rate of US new home construction fell in May to the slowest pace since April 2021.
US housing starts fell 14.4 per cent month on month to an annualised pace of 1.5mn, according to the commerce department. Building permits, considered a leading indicator of the housing market, fell 7 per cent from the previous month to an annualised pace of 1.69mn.
Sentiment among homebuilders declined for the sixth consecutive month in June, as inflation and higher mortgage rates weakened demand for new homes.
Sellers have also started to take note, with Redfin on Thursday reporting that the number of for sale homes with price drops reached a record
22.4 per cent in the four weeks that ended June 12.
The recent jump in mortgage rates was calculated before the Federal Reserve’s rate-setting meeting this week. Fed officials have signalled the policy rate could rise well above 3 per cent by year end.
“Mortgage rates tend to get priced off the 10-year [Treasury note] yield for fixed-rate mortgages,” said Joshua Shapiro, chief US economist at MFR. “Mortgage rates will probably rise further, but I think we’ve seen the bulk of the increase.”
…
The Financial Times
Markets Briefing Markets
Stocks suffer steepest weekly fall since onset of pandemic
FTSE All-World index declines 5.6% for the week as rising interest rates threaten outlook
Traders work on the floor at the New York Stock Exchange
Central banks’ aggressive action against inflation has increased the risk of recession
Harriet Clarfelt in London, Kate Duguid and Nicholas Megaw in New York and Hudson Lockett in Hong Kong 6 hours ago
US stocks have suffered their heaviest weekly fall since the outbreak of the coronavirus pandemic, after investors were spooked by a series of interest rate increases by big central banks and the threat of an ensuing economic slowdown.
The S&P 500 index ended the week 5.8 per cent lower, its worst weekly performance since March 2020. An 0.2 per cent uptick on Friday did little to offset damage done in earlier trading sessions.
The FTSE All-World index, a measure of emerging and developed markets, also dropped by the most since March 2020, down 5.6 per cent for the week.
The share declines are a sign of an increasingly gloomy global market outlook, as the Bank of England and the Swiss National Bank followed the Federal Reserve in raising interest rates this week in attempts to tackle soaring inflation.
“The more aggressive line by central banks adds to headwinds for both economic growth and equities,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “The risks of a recession are rising, while achieving a soft landing for the US economy appears increasingly challenging.”
…
Can someone who understands please explain the urge to snap up every home that ever comes on the market? Is this based on the theory that real estate always goes up?