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The Deals From The Era Of Frenzy Continue To Result In Astronomical Losses

A report from Yahoo Finance. “Personal finance expert Suze Orman thinks the housing market holds promise for U.S. consumers even though she says ‘the tables have turned a little.’ ‘You’re not going to see a house go on the market, again, in my opinion, and get 30 offers over the asking price,’ Orman said. ‘I think now maybe you’ll see three, four offers — maybe you have to lower your asking price a little bit.'”

The Review Journal. “Following a prolonged hot streak, Las Vegas’ housing market is hitting the brakes. Sales are down, available inventory is up, and more sellers are slashing their prices amid a sharp jump in mortgage rates that have pushed up buyers’ borrowing costs. Builders logged 767 net home sales — new purchase contracts minus cancellations — in Southern Nevada in May, down 16 percent from April during the typically busy spring buying season, according to Las Vegas-based Home Builders Research. The monthly sales tally in May was the lowest of the year, the firm reported.”

“‘A sharp pullback in sales is the latest evidence that waning home affordability is forcing the housing market to pump the brakes,’ said Nicole Bachaud, economist at Zillow. A key question for Las Vegas is where home values will head. Following the buying binge of the past year-plus, plenty of people are likely wondering what their house will be worth a year or two from now. Your guess is as good as mine.”

The Coeur d’Alene Press in Idaho. “It might be because of the interest rates. It might be because of the inventory. It might even be because of ‘Top Gun: Maverick.’ OK, home prices in North Idaho have nothing to do with a smash-hit Tom Cruise blockbuster. The other things, however, factor into the area’s recent rush on price reductions. As noted in our fall miniseries, ‘Price-cut-a-palooza,’ a price reduction rarely means something is “wrong” with a property. In some cases, the home may have been priced just a bit high to begin with, which some agents do on purpose to gauge market interest. Any one of the listings mentioned here could be a viable ‘forever home’ for the right buyer (only now with a lower price than a couple weeks ago!).”

“This week, we examine midtown Coeur d’Alene, south of Interstate 90 on both sides of Government Way, and inching toward downtown. This includes a few options near the Ponderosa Springs Golf Course. Close to the course (but closer to 15th Street are three price drops in more of the starter home category. One is an updated duplex with both units for sale together at just under $600,000, down $26,000. There’s also two single family homes in the area, each with two bedrooms and around 1,000-1,100 square feet. One dropped $25,000 to $325,000 last week, while the other older home, now with some recently added updates, comes to $395,000 after a $30,000 price cut last week.”

“We could keep listing new price cuts, but for now we’ll close on a pocket of price drops in midtown just off Fourth Street and near Interstate 90 access. The smallest home, a two-bedroom with 900 square feet, dropped $15K to $350,000. Two more homes in the neighborhood, each three bedrooms and around 1,700 square feet, dropped $15K to $410,000 and $10K to $440,000, respectively. Finally, a charming three-bedroom, 1,800-square-foot home recently dropped nearly $50,000 to $520,000.”

The Gilbert Sun News in Arizona. “The race to balance is well underway in the Valley with many homeowners asking what might happen to the equity that they’ve built up in their home. Meanwhile, buyers are pleasantly surprised by the increase in inventory and the potential to negotiate and we find both parties trying to establish their footing as seller’s hang on to the fact that there still are not enough houses for everyone who wants one.”

“We’ve watched closely as inventory has risen over the last two months due in part to buyer demand falling and in part due to new listings coming to the market at an increasingly rapid pace and have seen declining sales volume, increased number of price reductions, listing cancellations and expirations, increased days inventory, and the flattening of active list price dollar per square foot.”

“Here in Gilbert, we’re seeing about three times the inventory we saw last quarter and about 30% more inventory than we saw two years ago.”

The Mountain Democrat. “The country is headed into a recession, according to a recent survey of 49 economists by Financial Times, and the California Association of Realtors is actively promoting a seminar for agents titled, ‘How to survive the coming real estate market crash.'”

The Globe and Mail. “An obscure feature of variable-rate mortgages may push up the monthly payments for an increasing number of borrowers. It’s called the ‘trigger rate’ – the interest rate level that, when surpassed, causes a mortgage holder’s monthly payments to change. The trigger rate has been largely ignored for decades, because the last time Canadians had to deal with fast-rising rates was the late 1970s. But that is changing. ‘This trigger rate, once reached, causes the bank to do a check-in with the client to advise adjustments need to be made to the payments to keep it on track,’ said Frances Hinojosa, co-founder of mortgage brokerage Tribe Financial Group. ‘This could be a variation of either a lump-sum payment or adjustments to their mortgage payment.'”

“In today’s rising interest-rate environment, less and less is going to principal. Because the monthly payment remains the same, the lender will lengthen the time it takes to repay the loan. When the amortization exceeds the maximum period, or if the monthly payment amount does not cover the interest, then the lender must increase the monthly amount.”

“Big Canadian lenders, including Royal Bank and Toronto-Dominion Bank, say they are working on strategies with their borrowers. TD spokesperson Mohammed Nakhooda said the bank ensures that their variable-rate borrowers are ‘paying down principal no matter where rates go.'”

From CTV News. “Real estate prices have already started to soften amid an aggressive interest rate tightening cycle being taken by the Bank of Canada. Urbanation President Shaun Hildebrand said that Toronto has been in the midst of a ‘condo boom’ for some time, so overall supply should remain strong with about 87,000 units currently under construction and 33,000 more in the pre-construction stage.”

“But he warned that there will be some ‘collateral damage’ due to the fact that ‘costs are rising very quickly at a time that prices are starting to soften.’ In that case he said that buyers will be entitled to have their deposits returned to them under Ontario law, but not necessarily with appreciation. ‘Unfortunately, it could be years between when that deposit is paid and when they actually get their money back and in the interim prices could have escalated quite a bit and they are not usually able to get that appreciation from that deposit, which in some cases shoves the purchasers out of the market,’ he said.”

From Bisnow London. “The years between 2013 and 2017 in the global commercial real estate market were, in large part, defined by the waves of capital pouring into the world’s gateway cities from China. When Chinese  real estate firms placed billions in huge bets on trophy office assets and luxury residential developments in London, New York, Los Angeles and San Francisco, it wasn’t just a big deal for real estate. Like many of the deals signed in that era, ABP’s investment has gone sour. The first 700K SF phase of that scheme has been built and lies empty. ABP’s lender foreclosed on a £98M loan and put the 21 empty offices into receivership.”

“It is just one of myriad examples of big purchase and development schemes undertaken by Chinese firms between 2013 and 2017 that have hit the rocks recently. Lenders have foreclosed on loans and taken back some projects, while other Chinese firms have sold assets at a loss or seen big developments go billions of dollars over budget.”

“More than five years after those controls were put in place, as new deals have largely dried up, the deals from the era of frenzy continue to plague the developers who made them, resulting in astronomical losses. A canary in the coal mine was the 2019 sale by conglomerate HNA of two London office assets for well below the price it paid just a few years earlier. Those sales both closed before the pandemic, when the London office market was still healthy and robust.”

“Chinese developer Oceanwide earlier this year lost control of a site where it planned a supertall luxury residential tower in lower Manhattan following a debt default. Lenders also took over the company’s stalled, semi-complete project in the heart of San Francisco. The Oceanwide Center was supposed to be the city’s second-tallest skyscraper, but it currently sits as an abandoned construction site.”

“There are many other examples, and in many ways this is a story that real estate in the UK and U.S. has seen before; overseas investors going big into a market and getting their fingers burned is a regular part of the real estate cycle. ‘There are a lot of reasons that explain why these investors are the first to get toasted when the cycle moves the other way,’ said Colin Lau, the founder of Hong Kong-based Bei Capital.”

From ABC News in Australia. “Sarah Ibrahim is worried about what will happen when her fixed rate ends in January. Ms Ibrahim and her partner took on a home loan of more than $1.5 million in Sydney, with a deposit of 10 per cent. They are among almost 40 per cent of Australians with mortgages who have locked in ultra-low fixed rates and will roll off them as soon as next year, and potentially face a world of financial pain. ‘We fixed the majority of our mortgage for two years, and we assumed that in the next few years, they wouldn’t really go up much,’ Ms Ibrahim told ABC News.”

“She and her husband had been saving for a deposit for years and finally broke into the Sydney property market at the end of 2019. ‘It took us years of going to auctions, it took us years of going to inspections, and years of savings, and a lot of bulk shopping and buying second-hand clothes and not buying certain things. Sacrifices were made,’ she said.”

“Ms Ibrahim says she relied on repeated statements from the Reserve Bank that interest rates would not go up until 2024. But now the RBA has stated that the cash rate will lift to 2.5 per cent and possibly more, until it can get inflation down within its target band of 2 to 3 per cent.”

“For Ms Ibrahim and her family that means a rise of almost $20,000 a year on their mortgage repayments. ‘That has been really anxiety-inducing — to think that interest rates will go up by that much and that we would have to try to weather such a large increase at a time when there [are] obviously other upward pressures in relation to the cost of living,’ Ms Ibrahim said. ‘It’s been really stressful thinking about that and thinking about how we’re going to manage such a loan.'”

“Financial counsellors are worried that with more people coming off fixed rates and variable rates heading above 5 per cent, more people will default on their home loans. Financial Counselling Australia chief executive Fiona Guthrie said ‘a lot of people have borrowed to the hilt’ and she is shocked banks have been letting people borrow six or more times their incomes with very low deposits.”

“Ms Guthrie said they are already seeing signs of people in financial stress and that is set to worsen under higher interest rates. ‘We’ve also got [the cost of] petrol going up, the cost of food going up, the cost of electricity [rising], so all of those factors are playing into what could be quite serious financial problems for a group of people in our community,’ she said. ‘People are going to have to tighten their belts, and sometimes quite substantially. And we are particularly worried that for some people, it might be enough to tip them over the edge so that they can’t pay their mortgage.'”

This Post Has 204 Comments
    1. Having a close friend that lives there and would love to buy a home, I really wish prices were following in Burlingame. But prices are up from last year, and shockingly even up from last month. I know this are made up posts and quotes, but you would think by now, you could provide some real examples.

  1. Housing Crash What to do when the Real Estate Market is Failing
    Jun 25, 2022

    In this approximately 8 minute video, which is indicated to be out of North Carolina, the guys says something about having to “sell that a$$ on the street” at 4:45. I’m sure I have no idea what that means, but just a warning in case it’s something naughty!

    A comment: ‘Thumbs up but its about many things not builders. “Back on market listings” that combined with the new listings make the inventory grow faster. The market is changing and dropping housing prices will lower inflation. It means MSM can burst the housing bubble at any day just telling the truth. A good example of back on market number relevance is: 350-400 closing within 24 hrs, 200 back on market and 600 new listing. It means that particular market inventory grow 400 listings daily. Last time we had market numbers like this was over 14 years ago and the outcome of that was….Good luck with your channel.’

    1. From the NC video at 2:04 mark.
      “they will be selling at “CrackHead’ prices.”
      Magic, just magic, I love it!!

    2. At first I thought he meant that the “a$$ on the street” was some run-down house that you would have to sell for a discount. But nope, I’m pretty sure that he’s saying “Don’t buy a house now. The market’s gonna fall, and you could lose your job, and you might have to pimp/ho to pay the mortgage.”

  2. ‘The years between 2013 and 2017 in the global commercial real estate market were, in large part, defined by the waves of capital pouring into the world’s gateway cities from China’

    Oh that? Remember when Larry used to say “Chinese investors bidding up every shack and airbox in the US?” It’s just one era of frenzy that is still falling apart.

    1. I remember the rainy February weekend about a decade ago when I found myself as half of the moving team helping me single mom and her kids who lived next door to me relocate after a Chinese specuvestor paid $50K above recent comps for the rental home next door from us.

      He moved in with his young family. There were often loud arguments and profanity outside within earshot of our kids. And he smoked like a chimney, also outdoors, giving us the pleasure of enjoying his second hand smoke.

      Then a couple of years later, they mysteriously vanished into the night as quickly as they showed up.

  3. ‘Las Vegas’ housing market is hitting the brakes. Sales are down, available inventory is up, and more sellers are slashing their prices’

    No!

  4. ‘the California Association of Realtors is actively promoting a seminar for agents titled, ‘How to survive the coming real estate market crash.’

    1. Which is all about how to lie your a$$ off and spin the fact that there is no housing bubble. The one that gets me is what I’m hearing lately from these clowns in a last ditch effort to milk what’s left of the FOMO, and that’s the line that says you really have to buy now because rising rates will officially price you out forever. Of course, the informed among laugh their butts off over this, but it amazes me that there are idiots that will still buy it. For those folks I say go for it because a lot of pain is the only way these idiots are gonna learn.

      1. People who buy the rising rates bullshit include those who never opened up a college finance textbook. They generally say on page 2 or so that rising interest rates are associated with falling asset prices. When Mr Banker claims more rent on the money he loans out, there is less left over to pay flippers for HODLing a house for mine months before selling.

        What could be simpler to understand?

      2. They don’t learn even then. They never do. For at least 50% of the population it’s beyond them, they believe whatever they are told.

      3. “…you really have to buy now because rising rates will officially price you out forever.“

        – Always be closing.
        – Math is hard, esp. since common core and other dumbing-down curricula. Higher rates = lower prices. Simple relationship.
        – Also, inventory is rising due to: a) specuvestors mass rush for the exits (since appreciation is dead), and b) builders actually believed the “shortage” narrative. Another misallocation of capital. Hasn’t been this bad since housing bubble 1.0, which everyone’s forgotten about. Reminder coming soon to an MSA near you.

    1. Just gonna repost this from a couple days ago:

      FYI, here is the full WEF article which inspired/accompanied the “you will own nothing” video:

      https://www.forbes.com/sites/worldeconomicforum/2016/11/10/shopping-i-cant-really-remember-what-that-is-or-how-differently-well-live-in-2030/?sh=16083c871735

      I won’t spoil the article for you — it will take only a couple minutes to read. Fun fun. After this article was published, the author had to write a preface stating that the article was just one potential vision of the future, not an actual goal of the WEF. Heh, no one believes her.

      1. “…Funny how some things seem never seem to lose their excitement: walking, biking, cooking, drawing and growing plants….”

        She forgot to mention that all her conversations with her plants will be reported to a central plant authority. Keep those family secrets, secret!

        “…My living room is used for business meetings when I am not there….”

        Sorry, I left my panties between the couch cushions… I’ll be more careful next time.

        “…Once in a while, I will choose to cook for myself. It is easy – the necessary kitchen equipment is delivered at my door within minutes….”

        Our neighborhood is so full of edible bugs! That’s how I spent my morning today. [catching bugs] The recipes are endless. (Going to ask one of those good looking guys who was using my living room for a business meeting to stay over and stir my pot for me).

      2. I read a little its a completely stupid vision of a future that will never work. Better to watch ‘Brazil” the movie by Terry Gilliam if you want a view of this kind of future.

  5. Are you bracing yourself for further stock market turmoil?

    And for housing to drop off the cliff?

    1. The Financial Times
      Hedge funds
      Hedge funds braced for further stock market turmoil
      Caution intensifies despite already steep losses in 2022
      Ray Dalio, founder of Bridgewater Associates
      Bridgewater Associates, founded by billionaire Ray Dalio, pictured, has been positioning for a sell-off in US Treasuries, US equities, and corporate bonds on both sides of the Atlantic
      Laurence Fletcher in London yesterday

      US hedge funds are running their most cautious bets on stock prices in more than a decade, in a sign that many managers believe market declines may yet have further to run.

      By the middle of this month, US funds had cut their net exposure — the difference between bets on rising prices and bets on falling prices — to around their lowest level since at least 2010, according to a Morgan Stanley note sent to clients. Funds in Europe and Asia, meanwhile, cut their bets to around the lowest level of the past year.

      The caution comes as a number of top managers appear to be taking bearish positions in their portfolios, even though the S&P 500 has already dropped 18 per cent this year and the Stoxx 600 has lost more than 15 per cent.

      US-based Bridgewater Associates, founded by billionaire Ray Dalio, has recently taken 27 short positions above the 0.5 per cent disclosure threshold in European stocks, according to data group Breakout Point. Those bets are worth around €9.8bn in total. The $151bn-in-assets group has already been positioning for a sell-off in US Treasuries, US equities, and corporate bonds on both sides of the Atlantic.

      And BlackRock star manager Alister Hibbert, one of the sector’s strongest performers, recently moved his portfolio so that bets on falling prices outweigh bets on rising prices.

      The negative sentiment comes during a very tough year for equity hedge funds, many of which have been hit by a sharp sell-off in their holdings in fast-growing technology stocks, while also finding they have been holding insufficient short positions — bets on falling prices.

      US long-short equity funds are down 14.1 per cent on average this year, while European funds have lost 8.3 per cent, according to Morgan Stanley. The first five months of this year mark the worst start to a calendar year for equity long-short funds on record, according to data group HFR.

      Equity hedge funds have been “shelled” this year, “so when you are losing money every day you need to get out of harm’s way and live to play another day”, said Tiger Williams, founder of outsourced trading company Williams Trading.

      1. And just in case anyone’s new here, please understand the terminology: it’s only “turmoil” when prices are falling. It’s never “turmoil” when prices are skyrocketing day by day.

        1. Exactly what I thought as I read that!

          The funny thing is that financially sophisticated hedge fund managers should know how to make money when stocks go down. The puzzling thing is that apparently, nobody saw the bear approach. Don’t these people realize that bears come out of hibernation in the spring time?

          1. “The puzzling thing is that apparently, nobody saw the bear approach.”

            Why bother with analysts when the fed has yer back?

        2. Any thoughts on why Bitcoin is CR8Ring again, on the heels of the most massive CR8R event in the history of imaginary money?

    2. US housing market price correction to hit ‘coast to coast,’ economist warns
      By Thomas Barrabi
      June 24, 2022 12:30pm Updated
      10 Markets Where Home Prices Could Plummet by 20%

      The scorching pandemic-era US housing market is on the verge of a “coast to coast” price correction as the Federal Reserve hikes interest rates, a prominent economist warned this week.

      Mark Zandi, chief economist at Moody’s Analytics, said his firm expects home prices to sink in key competitive markets that are the most “juiced” or overvalued. The projected price drops coincide with a massive surge in mortgage loan rates that have sapped the buying power of prospective homeowners.

      https://nypost.com/2022/06/24/us-housing-market-price-correction-to-hit-coast-to-coast-moodys-economist-warns/

      1. they always talk from both sides of their mouth.

        The same day on CNBC (on video) Zandi said that he does not see overall prices across the US drop, that price cuts rarely have to do with the actual property.

        These analysts are just politicians – you cant trust them.

        1. These analysts are just politicians – you cant trust them.
          As a former analyst I can attest to hearing from higher ups:
          I don’t like this forecast/proforma, change it so we make XXY. Corporate says we need to come in at XXY

        2. “they always talk from both sides of their mouth.”

          Of course. That way they are always right. Except for Chris Thornberg.

      2. The scorching pandemic-era US housing market

        This should never, ever be the case. A “scorching housing market” in the face of mass job losses and an economic shutdown? It just goes to show how awful the FED and .gov are.

        1. Why do shack loans have some of the lowest consumer interest rates? Because historically it is a very stable market. Can anyone say it has been stable since CCP virus? No. Shouldn’t much higher rates apply to a volatile consumer asset? If yer gonna swing 20-40% in a year, it’s insane to lend at even 10%.

          1. If yer gonna swing 20-40% in a year, it’s insane to lend at even 10%.

            Right. And the speculators are still buying because with “official CPI” at almost 9% (would be close to 20% with the old calculation of the 70s), they figure even if they overpay they’re still going to come out ahead of raging inflation. The fed funds rate is 1.5%. Never in history has it been so divorced from CPI. These people are criminals.

          2. Not only that…..they’re all subprime.

            Not a wise idea to take a stake on a rapidly depreciating asset like a house then double down on those losses by financing for decades.

            Alameda, CA Housing Prices Crater 21% YOY As Inventory Soars Triple Digits On Plunging Prices And Rental Rates Across Bay Area

            https://www.movoto.com/alameda-ca/market-trends/

            As a noted economist stated, “A house is a rapidly depreciating asset that empties your wallet every day it owns you.”

    3. JP Morgan reportedly laying off hundreds in mortgage business
      By Reuters
      June 22, 2022 1:43pm Updated

      JP Morgan Chase is laying off hundreds of employees in its home-lending business and reassigning hundreds more this week, Bloomberg News reported Wednesday, citing people familiar with the matter.

      More than 1,000 employees will be affected, the report said, and about half of them will be moved to different divisions with the bank.

      “Our staffing decision this week was a result of cyclical changes in the mortgage market,” a spokesperson for the bank said.

      https://nypost.com/2022/06/22/jp-morgan-reportedly-laying-off-hundreds-in-mortgage-business/

    4. For readers who live or have lived in Tornado Alley:

      Does this feel like the calm before the storm?

      1. It feels like summer of 2008. Things are fine, people are working, houses are going up, some people are worried but everyone is going to the lake. Then one day (like late aug if i remember correctly). it just stopped DEAD. It went from 99 mph to dead stop in days.

        It feels like we’re still going 99mph on the surface but underneath things are stopping. Someone somewhere is swimming naked and is TBTF but is going to fail because none of the geniuses understand a rising rate environment and it’s all going to come to a halt.

        2001 had the same feel. Was going good, sure slowing down but good and then BAM all the little companies going under then BAM the towers came down and that was it. All the jobs were gone from the ads the very next day, nobody was interviewing, etc. And housing stopped.

        1. It feels like summer of 2008. Things are fine, people are working, houses are going up, some people are worried but everyone is going to the lake.

          You must mean summer of 2006, because in 2008 the wheels had already come completely off.

          1. I have to go with summer 2008. Yes, we at HBB had been speculating long before that. But we didn’t get the first hard data that something was wrong until August 2007, when banks had the Alt-A crisis. The banks were able to paper that over before the normies could look up “Alt-A.” But in the big picture, for another year after that, life was mostly in stable stasis. Housing didn’t really start dropping until early 2008, and not by much. People really *were* blindsided in summer 2008.

          2. I have to go with summer 2008. Yes, we at HBB had been speculating long before that. But we didn’t get the first hard data that something was wrong until August 2007, when banks had the Alt-A crisis.

            That’s not true. Many housing markets had already experienced price drops of over $100k by 2008.

          3. Not where I lived. (Denver) It was going great guns although anyone with a brain could see it coming and then in late summer 08 it just dead stopped.

          4. Bear Stearns collapse in March 2008 was the first car of the roller coaster reaching the top of the hill.

            Six months later: Lehman Brothers.

  6. “For Ms Ibrahim and her family that means a rise of almost $20,000 a year on their mortgage repayments.”

    The vig hurts sometimes Sarah.

    1. She should sell now and save what they can and cut their losses. Instead, I guarantee they will hold on until literally everything is gone and the house is completely underwater. You have to know when to fold.

  7. Housing.

    Image file re-post from the last thread:

    https://ibb.co/r48WdNK

    This photo was taken at about 11:30am yesterday on the main commercial strip of Englewood, about seven blocks south of the Denver City / County line.

    In 2019, the Colorado state legislature decriminalized fentanyl.

    My neighborhood wasn’t like this three years ago. But because of Orange Man Bad and Vote Blue No Matter Who, it is now legal to be a junkie nodding out in a doorway in the middle of the day.

    “They’re not sending their best”

    1. An out of state relative told me that some Dumver refugees moved in next door. He said, per their words, that “living in Denver has become unbearable”

      1. Arapahoe County gives me a shred of hope, not being Denver.

        We need a District Attorney who will address the crime and quality of life issues, and get these junkies and tweakers out of here.

  8. get 30 offers over the asking price,’ Orman said. ‘I think now maybe you’ll see three, four offers —
    I am so sick of hearing “you will only get 3 or 4 offer. WTF If they are getting 3-4 offers why are 20-50% of them lowering the price. The lack of common sense/logic to these statements amaze me.

    1. +1. Suze isn’t as brilliant as she thinks she is, but she’s better than to say stupid things like that.

      In related news, the grandma-finally-died house on my block just showed another price cut, for a total cut of 10% from original asking. My tiny violin weeps for the sweat equity guy in the sexi-truk who needed 9 months to rehab the thing. He should have rehabbed it in 2 months and sold it last fall.

    2. WTF If they are getting 3-4 offers why are 20-50% of them lowering the price.

      Because the offers are all low balls?

  9. From ABC News in Australia. “Sarah Ibrahim is worried about what will happen when her fixed rate ends in January.”

    “Financial Counselling Australia chief executive Fiona Guthrie said ‘a lot of people have borrowed to the hilt’ and she is shocked banks have been letting people borrow six or more times their incomes with very low deposits.”

    “she is shocked banks have been letting people borrow six or or more times their incomes with very low deposits.”

    – Shocked! Shocked I tell you!

    – To quote the blogmeister: “That’s some sound lending there.”

    – DTI, LTV, 20% down, ‘skin in the game” matters. The banks know this, and yet made the loans anyway. Maybe because they sold off the loans to some bag- holder like in the U.S.? Maximum moral hazard courtesy of the central banks. No appraisal fraud either, I’m sure…. Could we be heading for a period of global jingle mail?

    1. “…she is shocked banks have been letting people borrow six or more times their incomes with very low deposits.”

      LOL!

      1. The bank always wins. You pay the vig, the bank gets its money. You default, the bank gets the property. It’s heads they win, tails you sleep on someone’s sofa for the next 3 years.

    2. Financial Counselling Australia chief executive Fiona Guthrie said ‘a lot of people have borrowed to the hilt’

      Ms Ibrahim and her “partner” borrowed $1.5M Aus pesos.

      $1.5M

      And now that their rates are rising to a mere 2.5%, they are panicking. Just wait until it’s 5%

    3. “she is shocked banks have been letting people borrow six or or more times their incomes with very low deposits.”

      Housing is more insane relative to incomes than any time in history, which *by definition* makes these loans subprime, whatever label they put on it to hide the smell this time.

  10. The Fed leadership either ignored or forgot the warning Alan Greenspan tried to offer them back in 2006 on his way out:

    “History has not dealt kindly with the aftermath of protracted periods of low risk premiums.”

    As a result, they get to relearn a much older lesson, from Benjamin Franklin:

    “Experience keeps a dear school, but fools will learn in no other.”

    1. MoneyWise
      Robert Kiyosaki says that hot inflation will ‘wipe out 50% of the US population’ — here’s what he means by that and how to protect yourself
      Jing Pan
      Sun, June 26, 2022 at 6:00 AM·3 min

      With price levels continuing to spike, the Fed is no longer using the word ‘transitory’ to describe inflation.

      U.S. consumer prices jumped 8.6% in May from a year ago, marking the fastest increase since December 1981. That could give the Fed more reason to continue raising interest rates — something that’s already casting a giant shadow over the stock market.

      It’s a vicious cycle criticized by many investing veterans. And Rich Dad, Poor Dad author Robert Kiyosaki is one of the latest experts to sound the alarm.

      “When inflation goes up, we’re going to wipe out 50% of the U.S. population,” he told Stansberry Research earlier this year.

      Let’s take a closer look at what Kiyosaki means by that.

      https://finance.yahoo.com/news/robert-kiyosaki-says-hot-inflation-130000247.html

      1. ‘Consumer crunched

        Kiyosaki isn’t exactly pleased with the current state of the U.S. economy.

        “America has stopped producing products, we produce bubbles,” he says, adding that we now have bubbles in the real estate market, the stock market, and the bond market.

        The author also criticizes President Joe Biden’s decision to halt the Keystone XL oil pipeline, which he believes is a major reason energy prices are so high.

        And that does not bode well for the average Joe.

        “The average American doesn’t have 1,000 bucks,” Kiyosaki says. A recent Bankrate survey showed that most Americans do not have enough money set aside to cover an unexpected $1,000 expense.

        It also spells trouble for those who want to enjoy their golden years. When the bubbles burst, Kiyosaki says, the stock market will crash. So those relying on their 401(k) plans “are toast.”

        “We don’t have a retirement, our pensions are bust.”’

        1. and everything what Kiyosaki said about ‘bubbles’ was said at the last bust -(in 2008) and ten years later the Boom went higher than ever before –

          So please what are the Visionaries of the housing bubble blog predicting? -Will the collapse this time be even more devastating as in 2008 and how long will the Bear rule?

      2. Robert Kiyosaki says that hot inflation will ‘wipe out 50% of the US population’

        What I’m getting a kick out of is all the cashed up Wall St. speculators who are still BTFD and saying that the FED is going to pivot and just let inflation rip, that it’s their only choice.

        This could not be further from the truth. In fact, such a decision would lead to a faster demise of the USA. The FED’s ballz are in an inflation vise, and they know it. They’re squirming, but they can’t let the US dollar fail or they’re done.

  11. BusinessEconomyNews
    Bay Area consumer prices skyrocket and remain at 21-year highs
    Food, meat, poultry, fish, cereal, gasoline, monthly utility bills are shoving prices higher in region
    Customers shop at the meat counter in Cielo Supermarket in Antioch, March 2021. Consumer prices in the Bay Area skyrocketed last month and reached an annual pace that was the highest in more than two decades, a grim new government report revealed on Wednesday.
    (Jane Tyska/Bay Area News Group)
    By George Avalos | Bay Area News Group
    PUBLISHED: May 11, 2022 at 8:01 a.m. | UPDATED: May 11, 2022 at 4:45 p.m.

    Consumer prices in the Bay Area skyrocketed in April, but fell just shy of the 21-year high they reached earlier this year, a grim new government report revealed Wedneseday.

    The Bay Area inflation rate jumped at an annual pace of 5% in April, the U.S. Bureau of Labor Statistics reported Wednesday. The yearly increase in consumer prices last month was only slightly lower than the 5.2% annual rise the government reported for the Bay Area in February, the federal agency reported.

    The increases posted so far this year were the highest since mid-2001, according to this news organization’s analysis of government reports stretching back to 1990, and shoppers in the already pricey Bay Area are feeling the strain.

    Costs for food such as meat, poultry, fish, cereal and dairy products, along with massive increases in gasoline prices and sharp jumps in monthly PG&E utility bills, coalesced to shove the region’s annual inflation rate up significantly this year.

    “This has been hard on me,” said Elizabeth Leong, a San Jose resident who was getting gasoline on Wednesday in her hometown. “I’m a senior citizen on a fixed income, so the high prices are really affecting me.”

    Nationwide, the annual inflation rate reached 8.3% in April, a pace that remained near a 40-year high, the government reported. Like the Bay Area, the nation’s April figures represented a slight dip in what has otherwise been a torrid run-up in inflation.

    Consumers and borrowers now face a double whammy of soaring prices and rising interest rates.

    The Federal Reserve last week raised interest rates by a hefty half-percentage point. Frequent interest rate increases loom because The Fed is alarmed that inflation could morph into a runaway spiral.

    Officials with the Central Bank are betting that a steady diet of increases in interest rates will help to choke off the surge in consumer prices. But those rate hikes also might throttle economic activity and job growth. Soaring mortgage interest rates have already pushed monthly costs up for home buyers in recent months, after reaching record lows last year.

    “For a while, the prices were creeping up, but now costs have really gone up,” said Victor Ramirez, a San Jose resident who was shopping at a Safeway in the Bay Area’s largest city on Wednesday. “Meat, produce, milk, eggs, gasoline — they’re all really expensive.”

    One of the major reasons for the difference in the overall inflation rate between the Bay Area at 5% and the United States at 8.3% is that Bay Area consumer prices were already at a very elevated level compared with the rest of the nation prior to the current period of soaring inflation. As a result, the percentage increases in the Bay Area tend to not be as high as the increases nationwide.

    Items such as gasoline and housing were already significantly more expensive in the Bay Area than the same categories nationwide, a Bureau of Labor Statistics economist said Wednesday.

    Among the key items that contributed to the fast-rising inflation in the Bay Area as of April, measured by the increase in consumer prices for the year-long period that ended in April:

    — Regular unleaded gasoline, up 43.5%

    — Natural gas piped into the home — a component of PG&E’s monthly bills — up 23.4%

    — Used vehicles and trucks, up 22.3%

    — Meat, poultry, fish and eggs, up 19.3%

    — Electricity service — another major component of the PG&E monthly bill — up 18.2%

    — Cereal and bakery products, up 15.1%

    — Food consumed at home, up 13.9%

    — Dairy products, up 12%

    — Food, all categories, up 10.2%

    Among the items with single-digit increases compared to the same time last year: fruits and vegetables, up 6.8%; food consumed away from home, up 6%; medical care, up 3.2%; apparel, up 3.1%.

    Christopher Thornberg, an economist and founding partner with Beacon Economics, warned in a post this week on the company’s site that the Federal Reserve’s attempts to rein in inflation might not be adequate.

    Too much money has been pumped into circulation, according to Thornberg, causing the money supply to balloon. Even worse, he said, the Fed’s efforts to increase short-term interest rates won’t go far enough and the Fed’s other tightening efforts might arrive too late.

    The upshot: The nation could be headed for its most dire economic scenario since the 1970s, when a jobs slump and sky-high interest rates menaced the economy simultaneously, a rare but devastating phenomenon called stagflation.

    https://www.mercurynews.com/2022/05/11/bay-area-consumer-price-skyrocket-april-21-year-high-inflation-economy/

    1. So now I guess housing prices in the Bay Area are too high.

      What happened to my home equity wealth gains?

    2. I’m a senior citizen on a fixed income

      Senior citizens in the US are never on fixed incomes. They get Social Security, which goes up every year via COLA adjustments (5.9% in 2022 alone).

      1. I agree.

        But what seniors mean is that they can’t work overtime to get more $$$, since they are unemployed and probably too old to work, hence they are on “fixed incomes”. Of course anyone who is salaried is also on a “fixed income”, and we don’t get COLAs.

        1. If they truly can’t work, they should probably be on disability. My hunch is that a lot of seniors actually could be working, but are strongly discouraged from doing so by the SS earned income offset.

          1. I don’t think you can be on SS and SSDI at the same time. My understanding is that SSDI ends at age 62, and you are transitioned to plain old Social Security.

          2. I meant disabled people should have disability income instead of SS, not in addition. For people who have the ability to work, it makes no sense for the government to be giving them tons of free money, with annual increases, especially if they have substantial other assets and income.

          3. tons of free money

            Free? I have almost $400K in SS contributions. I expect to get some of that back.

      2. For high income seniors, Social Security represents a small share of retirement income. Hence the Cost of Living Allowance in their Social Security pension will not be sufficient to maintain living standards when the real value of the dollar is dropping by half in seven or less years, particularly if their 60/40 fund just got flushed down the toilet.

        1. Fine, but my point is these a lot of retirees are actually quite well off compared to the working generations. They may say things like, I’m a senior living on a fixed income, and expect us to visualize some poor old lady living in a tiny apartment eating cat food, when in reality they have a paid-off house and other assets, and get $3K/month from SS, with annual COLA increases, and like you said their SS may only be a small fraction of their income. That qualifies as wealthy by pretty much any standard.

    3. Lots of prices were up well over 10%.

      How does that square up with official inflation below 10%?

  12. Stop Panicking About the Market, Start Preparing to Pivot

    https://www.youtube.com/watch?v=s1-6g8pEO9s

    With everything happening in the market, there’s a thick air of uncertainty, uneasiness and even pre-2008 panic among agents. The truth is, it’s too soon to tell what’s going to happen, and freaking out about it won’t get us in the mindset required to survive if the market does indeed hit a down-shift.

    Remember: where there’s panic, there’s rash decisions and knee jerk reactions, not rational preparation.

    00:00 – intro
    05:36 – the origins of Kevin and Fred
    11:28 – why agents are panicking about the market and what we should be doing instead
    22:43 – the value-first approach to sales
    32:33 – how to make a business partnership work
    40:28 – why we would have bought more real estate if we could do it differently
    48:40 – why we shouldn’t be so focused on GCI
    52:16 – the question more agents should be asking themselves about their businesses

    This is Scottsdale AZ and it’s over an hour. I only watched the agents panic section.

    I should explain: some of these videos are targeted at the public, some at other agents. I think this one is the latter. “Turning to survival.”

    1. why agents are panicking about the market

      That’s easy. No more commission checks! The McMansion mortgage and the Lexus lease won’t pay for themselves.

  13. We talked about barndominiums and about arched cabins. Let’s talk about shipping containers, putting two side by side and connecting them.

    People are telling me that would be less expensive than doing one of the other pre-fab options.

    I have enough level ground to put them on that I wouldn’t have to do much grading, and I would have a gentle downslope below the location with a good 3-4 acres to install septic.

    1. I’ve read somewhere that shipping containers aren’t as economic as originally advertised. Look into it. If you want to save $$ just go for a smaller barndominium.

  14. ORANGE COUNTY
    The WHOLE COUNTY just dropped…

    Jun 27, 2022

    Orange County is not immune to the massive interest rate hikes that our buyers have seen. Homes are starting to sit on the market and price reductions have come back into play as sellers attempt to get their home sold quickly in a decreasing buyer pool. Inflation doesn’t help our demand issue either, with buyers now facing tough decisions regarding every day commodities. If you have been looking to sell, cue my broken record, now is the time to do it before things get worse!

    https://www.youtube.com/watch?v=mLZ0E3IIRS4

    10:22.

  15. Sellers…. The market has changed

    Jun 26, 2022

    https://www.youtube.com/watch?v=Nk3LtLkJ4SE

    This is not 2021 or 2020 or even early 2022
    interest rates has gone up dramatically since the beginning of the year and that has a major impact on what buyers can afford

    because it’s obviously drives their payment higher and we are seeing a big difference in buyers demand in our listings so in our all real estate companies across the country.

    Hello This is Rima Rafeh with the Rafeh group at eXp Realty
    and today I want to talk to you about the difference in the market,

    We are not talking about 2007, 2008 scenario or housing crash or anything like that.

    What we are experiencing today is the market is shifting down a gear
    another one or two as we get into mid summer like it normally does in the summer

    but this year it’s going to be more because of interest rates going up so much in the spring months,

    Back in January and February every home that was put on the market across the country had at least dozens of people interested here in Los Angeles County we had hundreds of people interested and dozens of offers on our listings..

    Well that has backed off dramatically
    and that is because of the increased interest rate
    and it’s also because of how much prices have gone up.

    So when you are listing your home you need to be aware of those things,
    I want you to be aware of that because here’s what happens when we are in transition of the market

    Anytime the market transitions or slows down a bit we saw this in the fall of 2018, We saw it in the fall of 2014

    anytime that happens there are sellers that don’t adjust with it and they end up with their home not selling
    than they get angry at their Realtor and honestly here’s the truth about Real Estate

    Realtors get more credit than when we deserve when homes sells fast
    and we get more blame than we deserve when homes don’t sell

    so be aware of that when you price your home don’t over stretch
    because you will end up making a price adjustments and you will not have as much action on your home.

    When you have more action on your home and when you have more people interested ,you can dictate more of the terms
    when you have only one person interested is a lot harder to do that

    so just be aware of this market change as you get your home on the market
    as you work with your Realtor

    and hopefully would be us here at the Rafeh group but no matter who you are working with
    just be aware of those things because you don’t want to shoot yourself in the foot as you are getting your home sold.

    4:38. I think this is Los Angeles.

    1. Yep – LA suburbs – they’re based out of Santa Clarita. Interesting she used a $850k house as an example. Friend of mine just paid that for a 40 year old tract home in Santa Clarita.

  16. Rockwall County Housing Market Update

    Jun 27, 2022 Happy Monday! A few days late but a very similar story as we are seeing across the other counties in North Texas. Inventory numbers are rising, while price decreases are also on the rise! Unlike Dallas County, these decreases are spread across new build and existing homes. Some may call this a “cooling” or “correction”, and time may prove both of these things to be true.

    My opinion is it’s a combination of a few factors:
    1. Increase interest rates are making buyers more selective on where and how to offer. Less total offers on properties, possibly lower offer, and maybe more buyer-friendly contingencies. Still seeing a lot of multiple offers but not the 10+ we were seeing just a few months back.
    2. Increase cost of living. Simple facts are everyday items and services are costing more. With a larger cash allocation going towards that, buyers may be less likely to throw a ton of money at a deal.
    3. Increased inventory. In conversations with homeowners, many are now slating this as the “true” top of the market and they are wanting to take advantage. This doesn’t mean you should expect new listings to go from 80 to 1000 in any particular area but there will be more options. More options mean offers are spread out and there is less scarcity mindset by buyers.

    We’re still expecting prices to increase, at a slower pace, and days on market to stay relatively low.

    https://www.youtube.com/watch?v=JrD1xYZLt8I

    2:47.

  17. https://www.zerohedge.com/personal-finance/dallas-fed-tumbles-two-year-low-hope-crashes

    Dallas Fed Plunges As Respondents Unleash Unprecedented Slamdown Of “Disastrous” Biden Administration

    this Dallas Fed respondent’s comment on the Biden admin seems to sum how many in America feel today:

    “We’ll all be lucky to have a job with two more years of this disaster.”

    “You can’t ignore the economic fundamentals leading to a likely recession, and the administration [in Washington] is either stubborn or as paralyzed as a deer in headlights”

    “Government overspending and transfer programs have inflated the money supply while resulting in unchecked corruption and waste. We will be paying that bill for generations, and what a colossal waste of resources and missed opportunity.”

    Worse still, ‘hope’ is evaporating rapidly as six-months ahead activity expectations crashed to near COVID-lockdown lows…aside from the COVID lockdown, ‘hope’ hasn’t been this weak since Lehman…

    1. Even the relatively (using the word loosely) fit girl next to her is all tatted up.

      Didya notice that the whole “what is a woman” question went right out the window at about 10:00 AM last Friday? Now it’s all about women.

        1. You keep using that word phrase. I do not think it means what you think it means.

          They don’t need to send their best. Their second string is getting the job done handily while the best sit around reaping the benefits.

  18. Dallas Fed Plunges As Respondents Unleash Unprecedented Slamdown Of “Disastrous” Biden Administration | ZeroHedge
    https://www.zerohedge.com/personal-finance/dallas-fed-tumbles-two-year-low-hope-crashes

    (snip)

    “We’ll all be lucky to have a job with two more years of this disaster.”

    “You can’t ignore the economic fundamentals leading to a likely recession, and the administration [in Washington] is either stubborn or as paralyzed as a deer in headlights”

    “Government overspending and transfer programs have inflated the money supply while resulting in unchecked corruption and waste. We will be paying that bill for generations, and what a colossal waste of resources and missed opportunity.”

    Worse still, ‘hope’ is evaporating rapidly as six-months ahead activity expectations crashed to near COVID-lockdown lows…aside from the COVID lockdown, ‘hope’ hasn’t been this weak since Lehman…

    1. “Dallas Fed Plunges As Respondents Unleash Unprecedented Slamdown Of “Disastrous” Biden Administration”

      http://www.sca.isr.umich.edu/
      Final Results for June 2022
      Surveys of Consumers Director Joanne Hsu
      [June 24, 2022]

      The final June reading confirmed the early-June decline in consumer sentiment, settling 0.2 Index points below the preliminary reading and 14.4% below May for the lowest reading on record. Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines. About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009. Inflation continued to be of paramount concern to consumers; 47% of consumers blamed inflation for eroding their living standards, just one point shy of the all-time high last reached during the Great Recession.

      June 2022 | May 2022 | June 2021 | MoM Change | YoY Change
      Index of Consumer Sentiment
      50.0 58.4 85.5 -14.4% -41.5%
      Current Economic Conditions
      53.8 63.3 88.6 -15.0% -39.3%
      Index of Consumer Expectations
      47.5 55.2 83.5 -13.9% -43.1%

      – YoY smooths out the data vs. MoM, but even MoM decline was terrible.

      – The data suggests that we’re already in a recession. The Fed is tightening into a slowdown. Wile E. Coyote, Super Genius. With high inflation, what else can they do? The Fed is trapped. Painted themselves into a corner. Inflation is “transitory,” though, so not to worry. A dilemma of their own making. Morton’s fork. How’s that MMT workin’ out for ya?

      Honey badger Fed don’t care. Unelected and unaccountable. They can’t be fired, can’t be voted out. Congress may have some comeuppance in the mid-terms though, and if things don’t improve, I envision torches and pitchforks, with maybe some guillotines as well…

      – “Everything is awesome!” Let’s go Brandon!

    1. Bonds
      U.S. Treasury yields start the week higher as traders assess rate hikes, recession risk
      Published Mon, Jun 27 2022 3:26 AM EDT
      Updated 6 Min Ago
      Tanaya Macheel
      Matt Clinch

      U.S. Treasury yields were higher to start the week as market players assessed the prospect of central banks implementing more interest rate hikes to curb soaring inflation.

      The yield on the benchmark 10-year Treasury note was trading higher by 6 basis points at 3.185%. Meanwhile, the yield on the 30-year Treasury bond also rose around 6 basis points to 3.319%. Yields move inversely to prices.

      https://www.cnbc.com/2022/06/27/us-treasury-yields-traders-assess-rate-hikes-recession-risk.html

      1. Who the hell is buying a 30 year bond yielding 3.3% when “official” inflation is almost 9%?????

  19. Eddy Arnold – Make the World Go Away

    https://youtu.be/lq0Ri9e6SY0

    Make my debt go away
    And get it off my shoulders
    Theres nothing left but Crater Rage
    Please make my Debt go away.

    Do you remember when you loved me
    Before the Realtor took me astray
    If you do, then forgive me
    And make my debt go away.

    Make my debt go away
    And get it off my shoulders
    Theres nothing left but Crater Rage
    Please make my debt go away.

    Culver, OR Housing Prices Crater 24% YOY As Insolvent Oregon Sellers Stamp Their Feet With Rage

    https://www.movoto.com/culver-or/market-trends/

  20. “It might be because of the interest rates. It might be because of the inventory.”

    That’s a distinction without a difference.

    “It might even be because of ‘Top Gun: Maverick.’ OK, home prices in North Idaho have nothing to do with a smash-hit Tom Cruise blockbuster. The other things, however, factor into the area’s recent rush on price reductions.”

    Movie stars seem to know more about price cuts than the average Joe.

    “As noted in our fall miniseries, ‘Price-cut-a-palooza,’ a price reduction rarely means something is “wrong” with a property. In some cases, the home may have been priced just a bit high to begin with, which some agents do on purpose to gauge market interest.”

    It’s also possible that they are clueless about how much demand gets hammered with a doubling of mortgage rates. It gets hammered alot!

    “Any one of the listings mentioned here could be a viable ‘forever home’ for the right buyer (only now with a lower price than a couple weeks ago!).”

    And without a lower price than a couple of weeks ago, it could become a ‘forever home’ for the seller.

  21. SCHOOL PRAYER

    I’ve seen liberals react to this kind of news before.

    https://youtu.be/bSxuXQCEC7M

    Supreme Court rules First Amendment protects public school coach’s post-game prayers

    The case involved high school football coach Joe Kennedy praying at the 50-yard line.

    By Devin Dwyer
    Monday, June 27, 2022 1:00PM

    WASHINGTON — The Supreme Court on Monday ruled that the First Amendment protects a public school coach’s right to pray near students.

    The case focusing on separation of church and state involved a high school football coach praying post-game at the 50-yard line, joined by his players.

    https://abc7news.com/high-school-football-coach-prayer-supreme-court-decision-joe-kennedy-first-amendment/11998307/

    1. Also, another High Court Ruling that Court struck down a case where they discriminated against Religious Schools on denying them Public tax funds , just because they were a religious school.

      Right to religion, is in the Constitution.
      With Joe Biden being openly hostile to Christians, practically implying they are domestic terrorists ,because they tend to vote Republican , this is a good ruling in support of Constitution.

      The case that the Coach got fired for praying after games with students, was another good case for a little bit of religious freedom .

      In terms of the One World Order Insurrection, they are trying to destroy religion , because they are the new Gods of trans humanism and technology and humans will have no free will.
      You have to be a environmental freak, based on the doctrine of Climate Change , and sustainable earth, as the new religion, with depopulation/genocide being the new pathway.

    1. I”m sure it’s not arson. No, settle your mind, that could never be arson. Or insurance fraud. It’s just another of those instances of spontaneous combustion

    2. Amazing how the general contractor always manages to get a sub on the job site soldering pipes with an open flame or making grinding sparks on a dry windy day. 🙂

  22. Where is the German from the last thread? The one who posted that being required to wear masks from October to Easter every year, forever, is a good thing?

    I was on a large project a few years ago, and we had a Siemens technician come all the way from Germany to work on the building’s switch gear.

    Everyone who had to work around him commented later on how bad he smelled.

    And now that Zelensky needs $7 billion a months, all those krauts will be showering even less 🤮

    “They’re not sending their best”

    1. Wasn’t there an attack on a Gay Pride parade in Germany by men of “southern origin”?

      Southern origin?

      Were they from Argentina or New Zealand?

      They were Muslim immigrants. But you can’t say that in Germany, because it’s a hate crime.

      1. ‘But you can’t say that in Germany’,

        Yes you can –
        but as I already explained – in Germany – not only the Media but also the people try to be… let’s say – ‘a lot more civil’ – even with ‘others’ they don’t like – as much as the ‘deplorable’ obviously dislikes other Americans – he constantly calls all kind of names here?

        And I – as a German just don’t see any sense in calling ‘others’ all the names or words the deplorable likes to use.

        And isn’t that… excusable?

    2. @
      ‘Where is the German from the last thread?’

      Here I am –
      and I didn’t post anything about ‘being required to wear masks from October to Easter every year, forever, is a good thing’?

      As I know that I’m at the Housing Bubble Blog – I really try to be on topic –
      but on the other hand – as I don’t want to be impolite – and if Ben will allow it – I’m also willing to discuss any issues of body hygiene – especially since it is currently pretty hot here on the Bodensee – and there are a lot
      of people who actually don’t smell as good as I would like them to smell.

      So what would you like me to do about it?

      1. “currently pretty hot here on the Bodensee ”

        I googled “the Bodensee”.

        What I came up with is what looks a lot like the town in Band of Brothers where they found the concentration camp the people who lived there denied knowing anything about.

        Your grandparents?

        Bodensee Lake in Germany,

        https://www.thousandwonders.net/Bodensee

          1. ‘Were they in the SS’?

            No – and as a member of the German Piece Movement let me ask you the question:
            What’s about this… this… ?-
            shall we call it ‘special interest’ of Americans asking a German
            if his grandparents were in the SS – while I never would dare to ask an American if his Great Grandparents were Slave Dealers or how many Indians they killed?

    3. how bad he smelled

      Hypochlorous spray (e.g., SkinSmart) helps with that. It kills the bacteria that feeds on sweat and causes body odor.

      1. @
        ‘Hypochlorous spray (e.g., SkinSmart) helps with that. It kills the bacteria that feeds on sweat and causes body odor’.

        Now see –
        that is/was a very helpful hint – even if has absolutely nothing to do with the burst of the housing bubble.

        1. Tell you what …

          Why don’t you start your own housing bubble blog, and you can censor it to your heart’s content?

          1. ‘Why don’t you start your own housing bubble blog, and you can censor it to your heart’s content?’

            But I don’t want to ‘censor’ anything and I’m just here for advice as I NEVER could start a housing bubble blog.

          2. “In Colorado
            June 27, 2022 at 12:14 pm

            Tell you what …”

            I’m not asking this poster to leave. But I will note that being European and living in Europe, they don’t have much relevant to add to the discussion about the United States.

            We can discuss specific neighborhoods in the metro Denver area, with a level of focus down to even exact intersections, with a level of local knowledge that this individual will never know.

            This isn’t Facebook, this isn’t Twitter, this isn’t Reddit. Our blog owner, who like, owns this blog, will decide the type of content he wants posted here.

            We are citizens, not slaves, Hans. So keep wearing the mask half of the year for the rest of your life, like a good cuck 🙂

          3. they don’t have much relevant to add to the discussion about the United States.

            Half of what Ben posts is from outside the US. I see nothing wrong with reading a new perspective. You don’t have to agree with that perspective.

            Meanwhile, I take a shower every day and that seems to keep the odor down. 😗

          4. keep the odor down

            Teenage boys, particularly athletes, can be quite stinky. And for outdoorsy types, showers aren’t always available.

        1. I have found that simply showering every day and wearing deodorant – not anti-perspirant – is enough for me to smell just fine, even when I work up a sweat. I think some people just have a personal hygiene problem.

          1. A few years ago I flew to Frankfort. A German dude was seated next to me and he reeked. Lucky for me the flight wasn’t full and he moved to another seat.

    4. Where is the German from the last thread? The one who posted that being required to wear masks from October to Easter every year, forever, is a good thing?

      Monday’s Covid numbers:

      US: 52,403 cases. 80 deaths.

      Germany: 142,309 cases. 113 deaths. With 1/5 of the US population. Adjusted for population, 700,000 cases, 565 deaths

    1. Jeebus, that is nutso price. I lived and worked in San Marcos and New Braunfels from 1991 to around 1996. Neither town had started growing yet. You could have had yer pick of old shacks just like this in both towns fer 20-30k. It probably never had duct work put in thus the window AC. Weather is nice down there, summer a little sweaty. That’s the thing with old shacks. Do the update or put in mini-splits. The electrical is ancient. It’s tough to contemplate updating one and yer stuck with the floor plan.

      1. Jeebus, that is nutso price. I lived and worked in San Marcos and New Braunfels from 1991 to around 1996. Neither town had started growing yet. You could have had yer pick of old shacks just like this in both towns fer 20-30k.

        Right? I remember towns all over the west coast – even coastal Oregon – where you could find sub $100k houses for days.

  23. Here’s a doozy from the Colorado Sun: Electric school buses.

    It’s hardly a simple request for administrators like Albert Samora, executive director of transportation for Denver Public Schools. A new electric school bus can cost about $400,000 — at least three times the price of a diesel school bus.

    “Now the question is, ‘how do we get the funding?’” Samora said.

    So, Colorado school districts are already operating on tight budgets, so what do they want to do? The want to buy $400K school buses, instead of $130K buses.

    Maybe they should wait until electric buses are more affordable?

    Now one might ask, how is this housing related? Quite simple, really. School districts are funded via property taxes.

    1. Don’t apologize because of Hans. We will talk about whatever we want to talk about.

      And on the subject of property taxes paid to the City / County of Denver, I’m going to start sharing more Reddit threads and thread screenshots about Denver residents calling the Denver Police to report a crime and being put on hold for hours, or getting no response at all.

      Arapahoe County here just barely south of Denver proper, but close enough to get sucked into the orbit of planet sh*thole, because Denver is a sh*thole.

      “They’re not sending their best”

      1. Don’t apologize because of Hans.

        I was being sarcastic. I would never apologize to Gunther.

    1. Interesting he brings up copper. I noticed that 2 months ago aluminum was 75c/lb at the local recycle place. Last week it was 60c/lb.

  24. A New Study Finds More Than Half Of Frisco Homes Are Not Lived In By Full-Time Residents

    Jun 21, 2022 Frisco has known it’s in the middle of a housing crisis, but until a recent housing report it did not know just how dire a crisis it was. The report from the town found around 20% of homes in town are licensed for short-term housing, where as 45% of homes in the town limits are considered vacant second homes.

    https://www.youtube.com/watch?v=v4-zxlIE_uw

    2:15.

    1. A New Study Finds More Than Half Of Frisco Homes Are Not Lived In By Full-Time Residents

      My gawd it’s like a bunch of speculators bought up all the houses or something.

      1. They have a Burn Loot Murder mural on Main Street, that’s the only thing that matters.

        Have fun waiting 45 minutes to get a latte.

        1. I once made the mistake of stopping at the McDonald’s in Frisco. That had to be the slowest Mickey D’s I’ve ever seen. And that was in the good old days.

          1. I once made the mistake of stopping at the McDonald’s in Frisco.

            No, your mistake was BEING in San Francisco. I refuse to visit that city now. It’s a shame because 35 years ago it was a nice town to visit. I feel sorry for the SS Jeremiah O’Brien, the WW II Liberty Ship. I’ve visited the museum ship many times over the years and went on one of their cruises around San Francisco Bay. It’s one of the last surviving Liberty Ships that still operates. Without those ships and the Merchant Marines and Navy gunners that operated the ships, America could not have won the War.

            Now that S.F. has turned into a sewer, I’m sure that a lot of the supporters of the O’Brien just aren’t visiting the old ship. I wish they could move to some better harbor, but the costs are probably too much.

          2. Where in the hell is Frisco, Colorado?

            It’s a mountain/resort town. It’s the topic of the youtube video that Ben linked 5 posts up.

  25. URGENT San Diego Housing Market Update – MUST WATCH NOW!

    Jun 23, 2022

    https://www.youtube.com/watch?v=YBThhVMBpMk

    This is an hour video and I’m not watching it all, but: shift at 5:30 to 6:30. Doubled at 7:21. Boise at 15:45. FOMO fer sellers at 16:45. And price drops from 17:45 to 20:20.

    Hey Union Tribune, scoop that.

  26. Drake finally sells Hidden Hills ‘YOLO’ mansion for $12million which is nearly $3million BELOW asking price… after selling two neighboring properties

    https://www.dailymail.co.uk/tvshowbiz/article-10958527/Drake-sells-Hidden-Hills-YOLO-mansion-12million-nearly-3million-asking-price.html

    Drake is finally offloading his enormous mansion in Hidden Hills, California known as the ‘Yolo mansion’ but it comes nearly $3million under his original asking price.

    The 35-year-old hitmaker sold the property in the celeb-filled area for $12million despite originally asking for $14.8illion in a deal which closed on Friday according to TMZ.

  27. ‘all of those factors are playing into what could be quite serious financial problems’

    Every thing was great, and then… I think I’ve seen this before.

  28. ‘Unfortunately, it could be years between when that deposit is paid and when they actually get their money back and in the interim prices could have escalated quite a bit and they are not usually able to get that appreciation from that deposit, which in some cases shoves the purchasers out of the market’

    How did ya lose yer airbox, eh?

    I counted my chickens before they hatched.

  29. This is what the Southern Poverty Law Center, sometimes also known as the Defamation League, promotes:

    Historic West Virginia Catholic Church Completely Burned to the Ground in Suspected Arson Attack (6/27/2022):

    This isn’t Facebook, this isn’t Twitter, this isn’t Reddit, so yes, we are going to give full credit for this one the Southern Poverty Law Center.

    “Pro-abortion extremists called for violence and vandalism against churches in response to the Supreme Court’s decision to overturn Roe v. Wade.

    The St. Colman Catholic Church, better known as the “The Little Catholic Church on Irish Mountain,” was built in 1878 and was declared an official historic site in 1984.

    “On 6/26/2022 units from Beaver VFD were alerted to a structure fire at the Saint Colman Catholic Church on Irish Mountain Road in Shady Spring, WV,” the Beaver Volunteer Fire Department said in a Facebook post. “Upon arrival we found the structure was already burned to the ground and smoldering. At this time the fire is considered suspicious in nature and is being investigated as arson.”

    Who did this? Antifa and Burn Loot Murder.

    Who encouraged them to do this? The Southern Poverty Law Center.

    Who paid for this? George Soros.

    Who votes for this? Democrat Party.

    https://www.thegatewaypundit.com/2022/06/historic-west-virginia-catholic-church-completely-burned-ground-suspected-arson-attack/

    “They’re not sending their best.

  30. It’s been a few days since anyone posted that the 2020 election was stolen.

    Joe Biden is an Insurrectionist, because he wasn’t lawfully elected. He is a senile pedophile stroke victim barely kept alive, so that the real globalists who ran the Obama regime can finish the “controlled demolition” of the United States economy and transfer all assets to the control of unelected globalist bureaucrats.

    “This sucker could go down” — George W. Bush, 2008

    1. How come the US is suddenly sending billions to Ukraine shortly after Hunter Biden was in Ukraine talking about “…and 10% for the big guy…?”

      1. Because Joe Brandon, the Democrats and the MSM are corrupt to the core. The housing bubble has been caused by the corruption that exists across all first world nations, NWO types, Germans named “Hans” and Merkel, and every single business and financial institution that got rich off of China. The FBI is now operating like the KGB. We’ve got lawlessness that is worse than was found in the Wild Wild West.

        1. …caused by the corruption that exists across all first world nations, NWO types, Germans named “Hans” and Merkel,-

          BUT Germany didn’t have a Housing Bubble in 2008 – and that’s why Merkel did so well 12 years ago – and now again there won’t be the devastating collapse of Housing Prices in Germany as in the US.
          Even as the Germany Real Estate Market in the last years also got attacked by greedy speculators BUT with rules and regulations Germany makes it very difficult for such ‘types’ to ruin their economy – and Germany protects its people far better against these ‘types’ as the US.
          And perhaps the US should try that one day? – as don’t you think that the Crazy American real Estate Games are ruining far too many people?

          1. There are far more pressing problems in the USA and World than RE Bubbles. Bubbles are a symptom of a disease, not the disease itself. And Germany is infected with a far more serious disease than America at this time. In fact, the entire continent of Europe is a very sick old man.

            Who cares about real estate bubbles. At the end of the day, even “poor” Americans live in luxury compared to most of the people in the world. Even poor middle class renters in expensive American cities (like L.A.) have a far higher standard of living compared to middle class Japanese people.

            The main problem with America is excess affluence and that’s not something that’s easily fixed. On top of that, America pays far more for our defense budget than any other country in the World. We give more foreign aid than any other country in the World. We shifted our economy from being the world’s largest producer and shipped our production overseas to places like China. And the American economy fueled China’s rise in the World just like we provided the money that turned Germany and Japan into economic giants.

            What America needs to do now is put our needs first. Or as Orange Man Bad says, “Make America Great Again.” How to do that? Bring back our manufacturing and start leveling tariffs on imports just like the Japanese, Chinese and EU does to our products.

            And bring home our troops. We have no reason for belonging to NATO. The EU has more than enough economic wealth to defend itself. And besides, who’s the only adversary for NATO? A pathetic country called Russia.

            Just let this current bubble pop–it’s effect will be far less in America than it’s going to have on foreign economies around the World. And when the World economy slides into a severe recession, or a real shooting war breaks out in Europe, Germany will find out just how powerful and wealthy they are. When Orange Man Bad becomes President again in 2024, you can wave “By-By” to all of those M1A2 tanks, F-35s, B-52s, B1s, B2s and Aircraft Carrier battle groups. No more American bombers flying 20 hour missions from Whiteman AFB.

            So I could care less about this present bubble. I own my home, I have saved for my retirement and I’ll survive. Besides, I don’t spend hardly any money. And all of my friends and relatives are in far better economic shape than me. Americans even if they end up being lowly renters will survive. These are far easier times than what my grandparents and parents faced before WW II.

          2. BUT Germany didn’t have a Housing Bubble in 2008 – and that’s why Merkel did so well 12 years ago – and now again there won’t be the devastating collapse of Housing Prices in Germany as in the US.

            But Germany can’t even provide enough energy to heat its homes, and the energy costs are so high that you’re driving your economy into the ground. Why? Because Germans have fallen for the greatest scam of all time, namely “Globull Warming”.

            Let’s just pretend for a bit that Globull Warming is real. What’s going to destroy Western Civilization faster? Destroying our reliable and cheap energy sector and ending up with not enough energy to fuel our factories and keep the lights on, or the “effects” of a couple of degrees that actually nobody has even measured yet?

            What are the effects of Globull Warming? Everything I see on the news is just WEATHER. No Pacific Islands have disappeared. Obama’s TWO beach homes are still standing.

            What are the effects of this insane rush to “renewable energy”? Just look at Germany, talk about a laughable joke of a idiocy. Australia, it’s even worse. And New Zealand, which if the entire country was swallowed by the ocean, wouldn’t make even a micro-dent in the World’s CO2 level.

            It’s all a conspiracy by the Russians and Chinese, in other words, the Communists! Globull Warming is a very efficient way for the Chinese to make billions and at the same time, destroy the economies of their Western rivals. And Russia just makes money hand over fist by selling MORE gas and oil! And India keeps building cheap coal fired plants just like Africa.

            Just how dumb and naive are environmentalists in the West? Actually they’re just useful idiots. The Commies never gave up their war to destroy America and Western Europe.

            So turn up those thermostats this winter! Today it was 104 degrees F outside of my house. I had the A/C running full blast and was a comfortable 72 degrees inside. And during the winter, I keep my house at 72 degrees, too! There’s plenty of energy to sustain my tiny little home and the rest of the houses in America.

            Here’s a suggestion, buy stock in wool producers because you guys are going to need a lot more sweaters this coming winter.

          3. ‘Who cares about real estate bubbles’.

            Not only the commenters of a blog about Housing Bubbles –
            but also everybody whose life gets destroyed by criminal and greedy speculators – as ‘housing’ – ‘homes’ – ‘shelter’ are one of the utmost important pressing problem for EVERYBODY in this world.
            (and not only for ‘the homeless’)

          4. Not only the commenters of a blog about Housing Bubbles –
            but also everybody whose life gets destroyed by criminal and greedy speculators – as ‘housing’ – ‘homes’ – ‘shelter’ are one of the utmost important pressing problem for EVERYBODY in this world.

            Don’t you see the FAR LARGER problems facing the countries that are experiencing housing “bubbles”? The current housing bubble is only destroying people who were/are greedy. These are the same people that go out and buy F-350 Ford Trucks and fully loaded Chevy Suburbans and they cry when it cost $200 to fill their tanks!

            In the old days, if you defaulted on your home mortgage you were wiped out. Back in the eighties (I think), I read a story about the housing crash that the Antelope Valley north of L.A. was experiencing. The L.A. County Sheriffs went to evict a couple. They found the couple huddled under a blanket in their empty home. They had sold everything and they had no utilities. The Sheriff told them that they had to leave and the story ended with the couple walking down the street with nothing except the clothes on their backs.

            Back in the old days people would do anything to not default because that meant you lost your down payment–raising enough for the down was one of the primary reasons why people couldn’t buy homes. And I’m talking about $5 to $10,000. Back in the late eighties it was impossible for me to save $5000 given my low paying at the County Health Department. Unless you had parents that could loan you the money, many, many people couldn’t raise or save enough for a down.

            So if you lost your home you were finished. It’s not like today with people walking away from their houses laughing all the way to the bank. So don’t give me any sob stories about greedy criminals and the downtrodden masses going homeless. That’s just B.S.

          5. ‘Why? Because Germans have fallen for the greatest scam of all time, namely “Globull Warming”.

            No –
            as (some) Germans have fallen for the greatest scam of a War Criminal who pretented that he was a peaceful friend of Europe.

  31. Remember, Zelensky isn’t a Christian, and if you support him, neither are you (go back to Reddit).

    Russia Today:

    “Ukrainian President Volodymyr Zelensky has insisted that the conflict between Russia and Ukraine must be finished by the end of the year. Speaking to G7 leaders on Monday, Zelensky also called for tougher sanctions against Moscow, according to Reuters, which cited two EU diplomats.”

    Russia Today because the New York Times and the Washington Post and the UK Guardian are all globalist scum media. Say it louder for the people in the back? GLOBALIST SCUM MEDIA.

    “Speaking to the leaders of Britain, Canada, France, Germany, Italy, Japan, and the US via video link, Zelensky reportedly stated that Ukrainian troops would have a much harder time fighting against Russian forces once the harsh winter conditions take hold, urging the G7 to do their utmost to end the conflict by the end of the year, while asking for anti-aircraft defense systems, as well as security guarantees.”

    Hey Hans, hey stinkyboy, living in the country with all the migrant / refugee rapes and sexual assaults…

    We will be taking 20 minute showers and cozy and warm next winter, and you are going to starve and freeze to death.

    “The US reportedly plans to deliver a new batch of advanced weaponry to Kiev, and G7 leaders have also apparently agreed to maintain the economic pressure on Russia amid the ongoing offensive in Ukraine.”

    https://www.rt.com/news/557928-zelensky-g7-summit-address/

    Globalists gonna globe.

    1. Russia is winning.

      “Liberating” Germany in WWII was a mistake, we should have stopped with liberating France and the rest of civilized Europe, and let the Russians take Germany.

      Hans, you are only a chess piece on a chess game board, you are not a “player” in this game.

      Regards,
      Management

      1. Ukraine Claims Russia Bombed Shopping Mall 3 Days After Russia Warned Of Western False Flag Ops

        by Jamie White
        June 27th 2022, 1:57 pm

        The strike, which Ukraine says has so far resulted in 2 dead and 20 injured, apparently took place just three days after Russia’s Ministry of Defense warned that Ukrainian forces were coordinating with Western media to stage a false flag to blame on Russia.

        Ukraine will soon unleash “another cynical provocation with deaths amongst civilian population to accuse the Russian Armed Forces of launching indiscriminate attacks against civilian facilities,” the Russian MOD wrote on Telegram last Thursday.

        “We warn the so-called civilised West in advance that the above mentioned and other provocations by the Ukrainian authorities about the ‘atrocities of the Russians’ are soon to be widely circulated through the Western media and in various resources of the Internet.”

        The Russian MOD also highlighted its policy of avoiding civilian casualties, evidenced by their slow advancements during the initial stages of its military operation in Ukraine, as well as numerous reports of facilitating humanitarian evacuation corridors in cities like Mariupol, Kharkiv, Severodonetskaya, Kyiv, and others over the last 90 days.

        Jake Morphonios 🔴 Blackstone Intelligence
        @morphonios
        ·
        Follow
        Multiple people from #Mariupol said that Azov Nazis held civilians as human shields in the local theater. When the Russian advance forced them to retreat, they blew up the theater to frame Russian forces. This plan was published 3 days in advance by an Azov deserter.

        8:28AM Mar 17, 2022

        https://www.infowars.com/posts/ukraine-claims-russia-bombed-shopping-mall-3-days-after-russia-warned-of-western-false-flag-ops/

        1. ‘infowars’?

          – and why in this World is Putin Propaganda repeated on US Media
          word for word?
          Isn’t it troubling enough that it gets repeated in Germany to such a degree that even some of the utmost peaceful Germans are falling for it?

          But why in the United States and even on a blog which in 2008 used to be such a visionary – sane and down to earth ‘American Institution’?

          1. ‘infowars’?

            Yes infowars.

            The same place I heard some guy named Alex say Trump would be winning the election by a landslide election day night, they would stop counting and the next day they will have found enough votes for Joe Biden to be declared the winner. He said it 3 weeks before the election.

            Of course the same site claimed Hunter Biden’s laptop was actually left at a repair shop by Hunter Biden which Joe Biden claimed was “Russian disinformation” in a Presidential Debate and backed up by, I don’t know how many members of the intelligence community and the MSM that you evidently hold in such high esteem.

      2. “Liberating” Germany in WWII was a mistake, we should have stopped with liberating France and the rest of civilized Europe, and let the Russians take Germany’.

        – and then have those Russians even built some ‘Wall’ –
        that those Germans couldn’t flee to civilised Europe?

        But that would have been an idea only a ‘Deplorable’ would come up with?

        Right?

        1. “…and let the Russians take Germany.”

          The entire German territory would not be easily defensible for Russia. Imperial over-reach and corruption eventually become too costly to maintain. Besides, the Americans knew that Europe could not be rebuilt without Germany’s experienced industry.

    2. and about:
      ‘Hey Hans, hey stinkyboy, living in the country with all the migrant / refugee rapes and sexual assaults…

      We will be taking 20 minute showers and cozy and warm next winter, and you are going to starve and freeze to death’.

      at least we now how somebody who calls himself ‘Deplorable’ joke about some stinkboy (German) Hans and not anymore about ‘his (American) Joes.

      1. – and we looked at some of the interviews we did in 2010 with the commenters of this blog –
        stunned –
        about the ‘deja vue’ and how everything which was said –
        ‘then’ – could be said now – with the exception of the ‘silly political of topic nonsense’.

        But on the other hand silly jokes like: ‘hey stinkyboy’ could provide a sometimes even entertaining juxtaposition to the sober words of 2010?

        So what y’all think?
        Should we recut the interviews of 2010 and juxtapose them with the 2022 words of the ‘Deplorable’?

    3. ‘Russia Today’:

      and that’s what no ‘Hans’ ever would understand: Why would an American – and the ‘Deplorable’ is an ‘American’ quote ‘Russia Today’ –
      as it is the Germans who currently get accused to be far to friendly with Russia – and everybody knows that ‘Russia Today’ would love to totally WIN against the US – as some ‘Hanses’ – as they consider the US a corrupt and crazy country.

      But I just came back from California – and as I might have some… objections I never would insult any Americans the way ‘Russia Today’ or the ‘Deplorable’ of this blog does.

      PEACE!

  32. Santa Clara, CA Housing Prices Crater 24% YOY As Bay Area Seethes In A Pot Of Mortgage Defaults, Soaring Inventory And Plunging Rental Rates

    https://www.movoto.com/ca/95054/market-trends/

    As one Bay area broker explained, “Our internal forecast is falling prices to a level not seen since the 1990’s.”

  33. Need advice. I’m approaching retirement. If interest rates continue to rise and prices fall, is it worth taking money out of 401k to buy a property cash? I know there’ll be a tax hit, but at least no mortgage.

    1. Can you claim a business purpose for a home? (My plan, on the outside chance we buy the CR8R…)

  34. Could anyone who knows please comment on what purpose a “winding-up petition” serves?

    1. The Financial Times
      52 minutes ago 18:42
      China Evergrande vows to ‘vigorously’ oppose winding-up petition
      William Langley in Hong Kong
      China Evergrande Group’s Life in Venice real estate and tourism development in Qidong, Jiangsu province

      China Evergrande, the world’s most indebted property developer, said that it would “vigorously” oppose a winding-up petition filed by one of its creditors on Tuesday, the latest sign of investor pressure on the group since it was formally declared in default in December.

      The petition was filed with Hong Kong’s High Court by Top Shine Global, an investment holding group, and is related to an obligation worth HK$862.5mn (US$109.9mn), Evergrande said.

      Evergrande said that it did not expect the petition to affect its restructuring plan or timetable, which it plans to release by the end of next month.

      Investors have closely watched for signs of progress in Evergrande’s drawn out default and restructuring process, with international groups making various plays to recover their debts, including seizing property and threatening legal action.

      The winding-up petition, the first such petition disclosed by Evergrande, is the latest sign of pressure from the company’s creditors.

      The company added that, if the petition were successful, any disposition of property, transfer in shares or changes in the status of members of the company made after when the petition was presented on Friday last week would be void.

    2. The Gazette
      Published by Authority | Est 1665

      How does the winding up petition process work?

      What happens when your company is issued with a winding up petition? Keith Steven offers a timeline of events.

      What is a winding up petition?

      A winding up petition (WUP) is a legal action taken by a creditor or creditors against a company that owes them money (although others can also petition).

      If the company owes £750 or more, the creditor can issue a petition in court. The petition will have a hearing date endorsed on it and then must be served at the registered office of the company. It will then be advertised in The Gazette, after a period.

      If the order is made, the creditor can seek to appoint an insolvency practitioner as liquidator.

      This is an expensive option for creditors, and is considered to be a last resort, so it is only used when all other approaches to retrieve the debt have failed. The courts do not look on it as a debt recovery process, rather that the company can’t pay its debts and should be wound up so that liquidation (a collective process) can be used to collect in the company’s assets and distribute them amongst creditors pari passu, after secured creditors and costs.

      WUPs are advertised in The Gazette as public notices. They are very serious legal actions and can lead to the company’s bank accounts being frozen. Once the WUP is public knowledge, suppliers and lenders may want to cease supply, further exacerbating the company’s problems. The petition can’t be publicised before the Insolvency Rules allow.

      https://www.thegazette.co.uk/all-notices/content/101087

      1. Will a Chinese government bailout be necessary to save Evergrande from insolvency?

        1. Observer
          China’s Evergrande Group Has Officially Defaulted on US Debt With No Bailout in Sight
          The prospect of a Beijing bailout looks increasingly unlikely after China’s central bank’s latest comment.
          By Sissi Cao • 12/09/21 12:21pm
          A photo taken on December 6, 2021 shows the Evergrande Mingdu Residential area under Evergrande Real Estate in Huai ‘an city, Jiangsu Province, China. Zhao Qirui / Costfoto/Future Publishing via Getty Images

          After teetering on the brink of collapse for months, Chinese real estate giant Evergrande Group has officially defaulted on its dollar bonds, New York-based Fitch Ratings declared on Thursday.

          Fitch has placed Evergrande in its “restricted default” category after the property developer failed to make an $82 million interest payment to bondholders due on Monday. The RD designation means Evergrande has formally defaulted but has not yet ceased operations or entered any type of bankruptcy filing.

          https://observer.com/2021/12/china-evergrande-default-dollar-bond-fitch-ratings-beijing-bailout/

    3. June 27, 2022 8:23 PM PDTLast Updated 3 min ago
      China Evergrande says winding-up lawsuit won’t impact restructuring
      By Clare Jim
      and Sameer Manekar
      2 minute read
      Evergrande Center in Shanghai
      The Evergrande Center of China Evergrande Group is seen amid other buildings in Shanghai, China, September 24, 2021. REUTERS/Aly Song

      Hong Kong, June 28 (Reuters) – China Evergrande Group (3333.HK), the world’s most indebted property developer, on Tuesday said it will “vigorously” oppose a winding-up lawsuit filed against it, and that the petition will not impact its restructuring plan or timetable.

      https://www.reuters.com/world/china/china-evergrande-faces-winding-up-lawsuit-110-mln-deal-obligation-2022-06-28/

  35. What’s wrong with this blog–I constantly get the “Can’t Connect” error screen, or it takes a minute or so to load. I’m not finding this issue with other websites.

      1. Yes on JoshuaTree running on the latest version Opera. But I’m also having the same problems with Firefox. It has only recently begun behaving like this. No problems on the rest of the internet.

  36. Ok, if you don’t understand how the One World Order has been brainwashing and socially engineering a One World Order takeover , than you don’t understand what the plan is.
    Nobody is going to like what the end game plan is
    because its basically slavery, genocide and depopulation, and a small group of Rich Entities forcing their self serving agenda on the world.
    That demented pervert Biden in the White House is the criminally installed puppet to advance the agenda of the One World Order Globalists.

    Joe Biden just tried to turn a bunch of power over to the Corrupt WHO, by amendments giving them power over sovereign states.
    You can thank African Nations and India rejecting the Biden amendments, which at least put a delay on the power grab.
    As I see it , one way the Globalists have planned to take over is increasing the power of the UN , in terms of Medical Tyranny, that would supersede any constitutional protections of any sovereign Countries , including the United States.
    The intent is to use contrived Pandemics to control the world, by medical emergencies, and so called Climate Change emergencies to take over .
    It looks like One World Order is trying to get a Civil War going over the abortion issue, as well as another round of lock downs, etc from a new Panademic they are planning.
    Also, food and fuel is being used as a means to destroy current systems and use those means to take control over the populations.
    They are getting so obvious now.

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