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The Crumbling Totems Of Hubris, Greed And Folly Will Become Scars On The Once-Joyful Hills

A report from News for Jax in Florida. “Jonathan Daugherty, a realtor in St. Johns County, said housing fallout is leading to better deals. The future homeowner can no longer afford the home, and in some cases, the buyer is losing their down payment, too. ‘Through no fault of the builder and no fault of the buyer, the transaction can’t happen,’ Daugherty said.”

“But the house still needs to be sold. The banks want the money they gave builders in advance to construct the home. The home goes back on the market in hopes of being sold at a lower price to a new buyer. Daugherty said a home that was originally $500,000 is now selling near $475,000, creating an opportunity to for a new homeowner — if they can afford the higher interest rates.”

The Coeur d’Alene Press in Idaho. “There are far more homes on the market compared to a year ago. Active residential listings as of Oct. 5 totaled 1,014, nearly double the 544 Oct. 13, 2021. The days of homes receiving multiple offers over listing price are gone. Lindsay Allen, president of the Coeur d’Alene Regional Realtors, said the local real estate market ‘is on the leading edge of the market cool down. Most of the cities that saw a big boom during COVID are seeing the cool down first. Cd’A has been on this trajectory for a few months now.’ She said price reductions, cancellations and terminated transactions are up.”

“But Allen said, ‘Homes that are priced aggressively and are well-maintained are still selling in a traditionally small amount of time. Sellers and agents must be really careful to not overprice things now or you’ll be chasing the market.’ She expects housing prices will continue to decline. ‘We can’t have high rates and high prices,’ Allen said.”

NBC New York. “Home prices in the Big Apple remain some of the highest in the country, but new figures on the state of the market show a shift in the city’s priciest neighborhoods, including one that saw a drop in sale prices by nearly 50 percent. Tucked away below Prospect Park, Brooklyn’s Fiske Terrace might be unfamiliar to even some living in the city, but the enclave boasts some of the highest average home prices in the city. In the span of just one year, the neighborhood sank in median price from $1.65 million to $905,000.”

The Modesto Bee. “The California Association of Realtors reports the median sale price (meaning half the homes sold for more and half for less) at $445,000 for single-family homes in the Modesto area this September. That is down from $460,000 in August. In San Joaquin County, September’s median home sale price was $515,000, a drop of some $45,000 from the pandemic high point of $560,000 in May this year, or about an 8% decrease in prices. In Merced County, September’s median home sale price was $377,000, a dip of some $37,250 from their pandemic high point of $414,250 in May of this year, or about a 9% decrease.”

“Across California, the statewide median selling price for a single-family home was $821,680 in September, down from this year’s peak median statewide sale price of $900,170 from this May.”

The Reporter Herald in Colorado. “University Flats, a 262-bed student-housing complex at 1758 Sixth Ave., has been ordered by a Weld County District Court judge into receivership after lawsuits against the property owner that alleged loan defaults and mechanics liens. In an order dated Oct. 24, Judge Shannon Lyons ordered that Nelson Partners LLC, the owners of the property through the affiliate Greeley Land LLC, turn the complex over to a receiver “to protect the value of the Real Property and to market and sell the Real Property to satisfy the claims of creditors with respect to the Real Property.”

“In her order, Lyons wrote that while University Flats is about 90% leased, Nelson had failed to make payments to any of its creditors for the property.”

From WSYX in Ohio. “Two Columbus towers plagued with problems could be taken out of the hands of current owners. This comes as current tenants claim they’re being subjected to intimidation for speaking out against what they call unsafe and unlivable conditions on the property.  In a new foreclosure complaint filed against current owners last week, lender Lument Commercial Mortgage Trust shared a link to the Problem Solvers’ investigation. The suit states, ‘This ownership group has not only screwed over the residents who live in (the former) Sawyer Towers, they’re also not paying their mortgage,’ City Attorney Zach Klein told Problem Solvers.”

From Bisnow. “Residential investment subtracted 1.37 percentage points from GDP growth, the largest drag since 2007. ‘Residential investment declined for the sixth straight quarter, and by the most since the second quarter of 2020, and was attributed to residential construction and broker commissions,’ Mortgage Bankers Association Chief Economist Joel Kan said. The biggest current issue for the industry in the near term is the cost and availability of debt, said MSCI Chief Economist-Real Assets Jim Costello. ‘Take away 60% of the capital stack and you are going to have a bad day,’ Costello said. ‘It isn’t that bad yet, but everyone I talk with is concerned about financing.'”

Bisnow Boston on Massachusetts. “Higher interest rates and economic volatility are leading to a slowdown in new construction projects in Greater Boston, developers say. ‘The hope is that these headwinds can at least reduce the pricing on the new acquisition side and land side, and I know some people who have overleveraged in their portfolios and got rid of some things,’ said Richard Taylor, managing partner at Nubian Square Development. ‘You might be able to pick up some things that otherwise were not available.'”

“Samuels & Associates President Joel Sklar said Boston has had one of the hottest markets for development in the past 10 years. Sklar said construction and land costs have made it harder for site selection and development even though the market has seen a lot of activity. ‘It’s been a challenge to get to green lights on deals because of the cost,’ Sklar said. ‘If someone handed me a project that was ready to go and I had to close on it, I don’t think that’s happening.'”

“Brian Salyards, executive director at PGIM Real Estate Finance, said lenders have become more conservative as costs have risen. ‘It’s getting more and more challenging to get conviction behind some of those deals that are trying to get done,’ Salyards said. ‘Next year, we are gonna do a lot of fishing and golfing.'”

The Baltimore Fishbowl in Maryland. “Developers have shelved plans to build a four-story addition to the Harbor Hill Apartments in Federal Hill, citing ‘market conditions’ as the reason for not moving ahead. Owners of the apartment building at 301 Warren Ave. notified residents that they won’t be proceeding as previously scheduled with work on an expansion that would have been constructed on a parking lot they own. It’s a potential sign that south Baltimore’s hot rental housing market, which has seen hundreds of apartments created in recent years, may be cooling off.”

“In recent months, rising interest rates and supply chain disruptions have prompted some developers to rethink construction plans. Analysts have also raised questions about the potential glut of market-rate apartments in Baltimore and asked where all the renters are coming from. At the same time, other developers are announcing plans to build still more apartments in south Baltimore.”

Hawaii Real Estate Dreams. “The dramatic news in Kona sales for September is the extreme drop-off in cash closings. Only 31% compared to 49% last month and that was low against previous months that had been running in the 50’s. Cash is a trailing indicator of a market that is losing confidence. In the first quarter, we did not have one sale between $900k and a million. We did have 15 sales between $1 million and $1.2 million. In the third quarter things had changed. We had 15 sales in the $900K to $1 million range, and only 8 sales in the $1 million to $1.2 million range… so a significant shift to back under a million, at least in houses of this caliber.”

“House sales for the year are at 188 total compared to 315 this time last year, a 42% drop! Condos are down in sales by 32%.”

From Bloomberg. “Real estate lender Romspen Investment Corp. has cut back on its dealmaking in Canada after rising interest rates caused a spike in non-performing loans. The firm, backed by New York-based TIG Advisors, is acting ‘defensively’ to match the current economic environment in the country, Romspen Managing Partner Derek Jenkin said in an interview. ‘We’re being very selective in what we finance at this time in Canada.'”

“Romspen is one of Canada’s largest specialty managers of private mortgage funds, providing pre-development, construction and other loans for commercial and residential projects. As of June 30, the assets of its flagship Romspen Mortgage Investment Fund were divided almost evenly between Canadian and US loans. Almost all of its loans have terms of two years or less, but the number of borrowers that stopped making interest payments spiked in recent months. Non-performing loans are in the ‘ballpark’ of 40%, Jenkin said, above the fund’s typical range of 20% to 25%.”

“Financial stress for developers has forced Romspen to limit the cash investors can pull from the flagship fund. ‘The fund has honored over C$700 million of redemptions over the past 18 months,’ the firm told unitholders in a letter. To preserve liquidity, the firm created a ‘runoff pool’ for investors who want to get their money out; Romspen will funnel cash to that vehicle as loans are repaid or properties are sold. It’s a similar approach to the one it adopted during the early months of the pandemic and the 2008 financial crisis.”

“Real estate deals will take many months longer to close, creating a ‘ripple effect’ for developers and lenders, Jenkin said. Romspen’s borrowers have sought to increase their loan amounts up to the negotiated ceiling so they can continue their projects, he said.”

The Globe and Mail. “It seemed inevitable. The fifty basis point rate hike by the Bank of Canada might have surprised those who expected a larger increase. Still, it has a lot of people perplexed. Some are even angry. What hasn’t been talked about as much, however, is what impact the unco-ordinated and simultaneous rate hikes by central banks around the world could have on global financial and currency markets. In a tightly knit global financial system, what might be the impact of all of these central banks slamming on their monetary brakes at the same time? Could there be a negative feedback loop at work, with well-intended monetary policy actions having unintended impacts on a larger scale?”

“Financial crises, like the mortgage-induced one in 2008, are unpredictable. If we were able to predict them, they wouldn’t happen. Looking back on it, all of the ingredients of a crisis were present: an over-leveraged market, reckless lending and questionable practices within the shadow banking system. And when the trigger was pulled, the entire global economy was flung into panic. In the wake of every financial crisis, the refrain rings out: we should have seen this coming!”

The Jamaica Observer. “In the last decade Government policies of easy money, reduced taxes, lax regulations and a relentless drive to transfer public funds to private developers have caused house prices, which bear no real relationship to the decline in the rest of the economy, to rise to heights never before reached — in effect creating a bubble. And as household debt skyrocketed, financial sector profits exploded and economic growth remained anaemic, fortune-seekers, margin-gatherers and sundry other hustlers and scofflaws joined in the mad rush for gold. Like sharks in a feeding frenzy, they came to the feast armed with earthmovers, backhoes and front-end loaders. Pristine beauty was soon replaced with garish monstrosities of concrete and steel.”

“This increased exposure, which places the financial system at enormous risk, is reflective of the greater appetite of obligatory brood parasites for the type of lending which crowds out investment in the real economy, stifles growth, imposes a drag on socio-economic development, and foments social unrest. Almost all the metrics used by the BOJ — level of household indebtedness, loan quality and the capacity of households to service debt — show that at its current level and cost, household debt is unsustainable. Interestingly, both the IMF and the central bank tell us that public debt is sustainable.”

“But now as inflation becomes unhinged, money tightens, the buying power of borrowers collapses, the economy descends into a state of stagflation and anomie takes hold in the society, house prices have begun to fall. The excesses and iniquities of the real estate/industrial complex are being exposed, investors are melting away, and promises are turning to dust. Speculators are fleeing to safety and yield-seekers have flown north.”

“There is a lot of room in the building but neither bed nor breakfast is being had. Scores of luxury apartments and townhouses lie empty, the product of venal politicians overdosed on market ideology and seduced by the siren songs of property developers — even when investors have started to realise that they have bought into a mirage, and that their overpriced Khrushchyovkas have brought them little satisfaction and even less income.”

“Soon, pretty soon, it will be made clear to many, as prices plunge, that their equity is negative; few will be willing and able to buy; and the crumbling totems of hubris, greed and folly will become scars on the once-joyful hills. Financial distress will set in, confidence will be shattered, and a bailout demanded.”

“In its 2020 financial stability report the BOJ published the results of its ’empirical assessment of a housing price bubble’ which, according to it, may be said to exist when ‘excessive public expectations of future price increases cause prices to be temporarily elevated’: or when ‘housing prices grow faster than the fundamentals [of the economy] can explain.’ While concluding that there was no evidence of a bubble in housing market prices ‘at that time,’ the bank issued a warning that, ‘given the deterioration in macroeconomic conditions, prices in the housing market expected to soften in the near term.’ This ‘softening,’ the bank noted, was consistent with the statistical evidence of a fall-off in prices in Kingston and St Andrew due to the novel coronavirus pandemic.”

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This Post Has 128 Comments

    1. And now we’re hearing the 2022 (and even 2024) elections will have been stolen, because the wrong people might win. How quickly we have fallen from the most secure and legitimate election evar!

  2. ‘a home that was originally $500,000 is now selling near $475,000’

    ‘What is the average household income in St. Johns County Florida?
    $83,803’

  3. ‘If someone handed me a project that was ready to go and I had to close on it, I don’t think that’s happening’

    They can’t give it away.

  4. ‘In her order, Lyons wrote that while University Flats is about 90% leased, Nelson had failed to make payments to any of its creditors for the property’

    Recession proof!

    1. Not stupidity proof and not population proof. The Zoomers are finishing college by now and the next generation — “Alpha”, I think, Millenials’ kids — are still little. Not many kids entering college in the next 5-6 years.

      1. Over the past 30 years the peak in births in the US was 2006, 2007 and 2008. I.e. kids that will be headed to college over the next 3-5 years.

  5. ‘Almost all of its loans have terms of two years or less, but the number of borrowers that stopped making interest payments spiked in recent months. Non-performing loans are in the ‘ballpark’ of 40%, Jenkin said, above the fund’s typical range of 20% to 25%’

    More sound lending!

    ‘Across California, the statewide median selling price for a single-family home was $821,680 in September, down from this year’s peak median statewide sale price of $900,170 from this May’

    The state has more crater than the central valley.

    1. Twitter

      “A super power utility…”

      It’s just another very expensive thing that nobody really needs.

      1. “Twitter is not a normal company. Twitter is a playground for precisely these types of intel operations to influence the political process surreptitiously.”

    1. “It is a conflict of interests for real estate proponents to be default data sources”

      Lol, this after the legacy media has been the real estate mafia’s mouthpiece for decades.

    2. “I’m so convinced of serious shenanigans & intentional wrongdoing that I 100% believe Redfin Estimates & Zestimates should be investigated.”

      You don’t say!

    3. I find the concept of expecting the FedGov to be our last line of defense against lies and deception quite amusing.

        1. With the prevalence of empty skulls(which is why there are so many empty pockets) and the preponderance of people with rocks in their head, you’re asking too much.

      2. the concept of expecting the FedGov to be our last line of defense against lies and deception

        I understand that in New Zealand that is the official party line. In fact, they claim to be the sole source of truth.

      1. It is faked, unfortunately. There was a single heckler, but someone added the FJB chants. Venue was a Gretchen Whitmer rally in Detroit – hardcore Democrat-Bolshevik country – so the entire audience minus one heckler was comprised of Democrat multigenerational dependency voters.

    3. “Obama loses the crowd as they start chanting “F*ck Joe Biden”

      Funny, well done but not true.

      It was one dude in a sea of Obama drooling liberals who was escorted out while the chosen one babbled about Paul Pelosi being attacked by a right wing extremist in his underwear? at 2:30am? who lived in a school bus in Berkley with an LBTQ Flag and BLM sign in the yard where it’s parked in front of his nudist ex-wife lives house.

      See Obama’s response when heckler interrupts his speech

      https://youtu.be/zuNXn3PEOzg

    2. “Alison Christine Fauci has worked at Twitter for 7 years”

      Although I have never seen a picture of her I have to assume a modeling career was not an option.

    1. Bitcoin mining companies such as Core often take on debt to remain competitive in a business with heavy capital expenditures in the form of mining equipment, facilities, and electricity costs.

      Shutting those machines off would cut millions in revenue Celsius has been using to pay for its bankruptcy proceedings, a cash flow report from Celsius’ legal counsel shows.

      Live by the sword, die by the sword. Eat it, Mashinsky.

    2. running 10,885 bitcoin mining machines

      This energy-wasting fraud scheme should have been shut down by world governments back when it was funding all of the Silk Road online drug and debauchery.

  13. In the span of just one year, the neighborhood sank in median price from $1.65 million to $905,000.”

    But…but tanking skybox prices mean tanking property taxes. How are the Democrat-Bolsheviks at City Hall going to fund their patronage & graft networks?

  14. What your property taxes are not paying for.

    New York Times — An ‘Army’ of Volunteer Sleuths Are Out Hunting for Your Stolen Car (10/29/2022):

    “For much of the past year, Mr. Crawford, 38, has led a growing network of volunteer sleuths who scour Portland’s streets, alleys and forests, racing against time in hopes of finding stolen vehicles before they end up shredded for parts.

    There is no shortage of work to be done. Vehicle thefts in Portland are on track to reach well over 10,000 this year, more than triple the number the city recorded a decade ago, part of a nationwide trend that accelerated during the coronavirus pandemic. In Portland, the brazenness of the crimes, inattention from the police and desperation of residents who suddenly find themselves missing one of their most valuable possessions have led many to take matters into their own hands.

    “It would be cool if the city could do this and I didn’t have to,” Mr. Crawford said.

    https://archive.ph/kjUoa

    1. Related article.

      Epoch Times — Percentage of Americans Who Say Local Crime Is Up Hits 50-Year-High (10/28/2022):

      “The percentage of Americans who think local crime is getting worse hit the highest level in five decades, according to a Gallup poll released on Oct. 28.

      A record 56 percent of respondents said they believe there is more crime locally now that there was a year ago.

      Nearly four in five (78 percent) said crime increased nationwide since last year, a 33-year-high, according to Gallup, which has conducted the survey every year since 1972.

      There are significant variations in the results by partisan affiliation, with 73 percent of respondents who identified as Republicans maintaining they believe local crime has increased, with 51 percent of independents and 42 percent of Democrats in agreement.

      The same partisan spread is evident in beliefs regarding national crime. More than 95 percent of Republicans—the highest percentage of any group recorded in the annual surveys—said crime is increasing nationwide. Nearly 75 percent of independents and 61 percent of Democrats agreed.”

      https://www.theepochtimes.com/percentage-of-americans-who-say-local-crime-is-up-hits-50-year-high_4827505.html?utm_source=partner&utm_campaign=ZeroHedge&src_src=partner&src_cmp=ZeroHedge

      Who are the 39% of Democrats that do not agree? See also: Reddit.

      “They’re not sending their best”

      1. A Republican is a Democrat who’s been mugged. I think we’re going to see a lot of that 9 days from now.

        1. That might apply to you and RINOs and NYC voters during Giuliani’s era. Others of us stand by our convictions.

  15. “House sales for the year are at 188 total compared to 315 this time last year, a 42% drop! Condos are down in sales by 32%.”

    Is that a lot?

  17. Burning stupidity …

    “Meet a 30-year-old with $110,000 in student debt who chose her job in hopes of public-service loan forgiveness — but her balance just keeps growing”

    https://www.yahoo.com/news/meet-30-old-110-000-123000305.html

    (a humorous snip …)

    “I never miss a payment, always on time, and yet my balances never go down,” Laine told Insider. “I don’t understand how people can’t see that there is something wrong with that picture.”

    1. “I never miss a payment, always on time, and yet my balances never go down,”

      So, she’s has a 90K job and can’t figure out why she’s falling behind?

      “I was paying $300 until the pandemic hit. I was paying $300 a month, I think, for three to four years, and my balances never went down,” she said. “They always went up.”

      Gee, could that be because you need to pay about $1200 a month to pay it off on 10 years?

    2. I don’t understand how people can’t see that there is something wrong with that picture.

      Yes Kjerstin, if you want the debt to go down you have to pay more than the interest, not less.

  19. Never forget? More importantly, never forgive. NEVER.

    American Greatness — Never Forget the COVID Fanatics (10/29/2022):

    “As things have returned to normal—even masks have become passé—it’s easy to forget the state of the nation only last summer. This was when jobs were threatened and lost over vaccine status, when blue state governors were threatening to return to lockdowns, and when parents were cajoled into giving children COVID vaccines, even though children faced minimal risk.

    Similar to the recent Dark Biden speech about “MAGA Republicans,” last summer the Delaware Democrat called those who choose not to get vaccinated evil people, who were chiefly to blame for the continuation of COVID. He described the delta wave as a “pandemic of the unvaccinated,” even though there had already been millions of breakthrough infections by that time. Biden warned us imperiously, “We’ve been patient, but our patience is wearing thin. And your refusal has cost all of us.”

    At the time, there were even voices calling for depriving the unvaccinated of all healthcare, a policy never imagined for other diseases tied to lifestyle risks, such as AIDS, lung cancer, or cirrhosis of the liver. Every unvaccinated case in the hospital was trotted out as a dire warning to the pig-headed vaccine skeptics. Simultaneously, so many of the vaccinated said, in Pavlovian fashion, that they got COVID, but it would be much worse without the vaccine. The narratives sounded like hostage videos.”

    Never forgive. NEVER.

    “It is easy to suppress the memory and the images of the last two years. We should make efforts not to allow any of it to go down the memoryhole. What happened in our country and around the world was damaging and horrendous. Lockdowns, social distancing, mask mandates, experimental vaccine mandates, persistent fearmongering, school closures, prohibitions on wedding and funerals, isolating old people from loved ones and one another, massive economic and psychological harm, and a generally heavy-handed, know-it-all approach by the managerial class have collectively imposed real trauma on the country.

    We have the receipts. We should not let the perpetrators off easily.”

    https://amgreatness.com/2022/10/29/never-forget-the-covid-fanatics/

    Rope? Why yes, rope.

    The Day Of The Rope is coming…

  22. What kind of pathetic loser wants to pay good money to hang out in creepy globalist oligarch Mark Zuckerberg’s Orwellian Metaverse where they can be surveilled, spied on, and their personal data monetized by Meta “partners”?

    How Mark Zuckerberg pumped $36 BILLION into his failing Metaverse – and lost $30 billion of it: Facebook boss has lost $88bn of his $125bn fortune since 2021

    https://www.dailymail.co.uk/news/article-11369273/How-Mark-Zuckerberg-pumped-36-BILLION-failing-Metaverse-lost-30-billion-it.html

      1. If people could actually upload themselves into a computer (it isn’t possible) they would do so in the hope of becoming immortal.

    1. Stocks crashed 50% in the 2008 crisis. Here’s how bad Jamie Dimon, Nouriel Roubini, Michael Burry, and other top commentators see it getting in the next recession.
      Jennifer Sor
      Oct 29, 2022, 5:30 AM
      – A slew of factors weighing on the global economy has sparked comparisons to 2008, with dire predictions for stocks.
      – Credit Suisse briefly shook markets on fears of collapse, spiking anxiety over another Lehman Brothers moment.
      – Here’s how bad a the next downturn could hit the stock market, according to five top experts.
      …
      https://markets.businessinsider.com/news/stocks/stock-market-outlook-crash-recession-2008-crisis-jamie-dimon-burry-2022-10

    2. Are you planning to follow the advice of the stopped clock bottom callers and HODL until the stock market turns the corner, or cut your losses now and forego the rest of the ride to the bottom of the CR8R?

      1. Investing
        Biggest Stock Market Crashes in US History
        7 minute read October 28, 2022
        Written by Brian Baker
        Edited by Brian Beers

        Investors have plenty of things to worry about these days, as the Federal Reserve raises interest rates to combat high inflation, potentially risking sending the economy into a recession. But October may also remind investors of another risk: stock market crashes. The two worst stock market crashes in U.S. history came in October, so while severe declines of that nature are quite rare, market participants may have crashes on their minds amid the recent market turmoil.

        Stocks can rise or fall on any given day, so declines aren’t uncommon. But stock market crashes are different because of the steep decline in prices over a short period of time. Arguably, the most significant stock market crash in U.S. history came in October 1929. The market had reached an all-time high in September, but on Oct. 24, stocks began to fall. The following Monday and Tuesday, which became known as Black Tuesday, the Dow Jones Industrial Average lost nearly 25 percent of its value, helping to usher in the Great Depression.

        The other major October crash was even more sudden and occurred on Oct. 19, 1987, which became known as Black Monday. Investors were concerned over the U.S. trade deficit and tensions in the Middle East, but computerized trading played a major role in the crash, which saw the Dow fall by about 22 percent, the largest ever percentage drop in a single day.

        Here’s what else you should know about major stock market crashes and some tips for how to protect your portfolio.

        Key stock market crash statistics
        – The largest single-day percentage declines for the S&P 500 and Dow Jones Industrial Average both occurred on Oct. 19, 1987 with the S&P 500 falling by 20.5 percent and the Dow falling by 22.6 percent.
        – Two of the four largest percentage declines for the Dow occurred on consecutive days — Oct. 28 and 29 in 1929. The market fell roughly 25 percent over those two days.
        – The Dow reached an all-time high in September 1929 before the crash and did not return to its pre-crash high until 25 years later in November 1954.
        – From its peak in September 1929, the Dow fell 89 percent, bottoming in the summer of 1932 at 41.22, the lowest closing level of the 20th century.
        – The six largest single-day point declines for the Dow all occurred in the first six months of 2020 as investors grappled with the impact of the COVID-19 pandemic.
        – The largest single-day point decline for the Dow occurred on March 16, 2020 when the index fell 2,997 points, or 12.9 percent.
        – The largest single-day point decline for the S&P 500 also occurred on March 16, 2020, falling 324.9 points, or about 12 percent.

        Black Tuesday: Oct. 29, 1929

        The stock market rose steadily throughout the 1920s, reaching an all-time high in September 1929, more than six times its level in August 1921. The economist Irving Fisher notoriously declared that stocks had reached a “permanently high plateau.” The market didn’t take long to correct him.

        The selling began on Thursday Oct. 24, but the crash really picked up steam the following Monday and Tuesday, when the Dow fell by 13 and 12 percent, respectively. By mid-November, the Dow was nearly half the level of its September high, crushing the fortunes of investors and speculators alike.

        The market continued to fall over the next few years as the economic difficulties of the Great Depression set in. The market finally bottomed in July 1932 with the Dow closing at 41.22, down 89 percent from its pre-crash high. It wouldn’t regain its September 1929 heights until November 1954.
        …
        https://www.bankrate.com/investing/biggest-stock-market-crashes-in-us-history/#crashing

    3. Economy
      Published October 28, 2022 2:51pm EDT
      Fed expected to aggressively hike rates to 5%, triggering global recession: survey
      Fed likely to hike interest rates by 75 basis points at next week’s meeting, survey shows
      By Megan Henney FOXBusiness
      Is the Fed doing enough to bring down inflation?

      Federal Reserve officials are expected to maintain their hawkish stance at next week’s policy-setting meeting where they are likely to approve another super-sized interest rate hike, paving the way for borrowing costs to climb above 5% by March 2023, according to a survey of Bloomberg economists.

      The survey found that most respondents expect the Fed to raise rates by 75 basis points for a fourth straight meeting. The Federal Open Market Committee will announce their decision following a two-day meeting on Tuesday and Wednesday. A basis point is one hundredth of one percent.

      The U.S. central bank will then approve a 50 basis point increase in December, followed by 25 basis point increases at the following two meetings in February and March, participants predicted. The rapid tightening of policy is likely to trigger a U.S and global recession, according to the survey.

      “Inflation pressures remain intense and the Fed is set to hike by 75 basis points in November,” James Knightley, chief international economist at ING Groep, said in a survey response. “We are currently forecasting a more muted 50 basis-point hike in December given a weakening economic and market backdrop.”
      …
      https://www.foxbusiness.com/economy/fed-expected-aggresively-hike-rate-triggering-global-recession-survey

        1. It kind of dawns on you at some point that they are the main driver of asset price movements. You may as well toss your finance textbook that explains fundamental determinants of asset prices into the trash can.

      2. The Financial Times
        4 minutes ago 03:14
        Eurozone inflation hits record high of 10.7%
        Martin Arnold in London

        Eurozone inflation surged to a record high of 10.7 per cent in October, keeping the pressure on the European Central Bank to continue raising interest rates despite slowing growth in the bloc in the three months to September.

        The increase in consumer prices in the eurozone accelerated from 9.9 per cent in September, which was the highest in the 23-year history of the euro. It also outstripped the 9.8 per cent expected by economists polled by Reuters.

        This was the 12th consecutive month that inflation has set a record high in the eurozone, taking it to more than five times the ECB’s 2 per cent target.

        Eurostat, the European Commission’s statistics arm, said energy prices rose 41.9 per cent in October, up from 40.7 per cent the previous month. Prices of food, alcohol and tobacco rose 13.1 per cent, up from 11.8 per cent in September.

        The closely tracked measure of core inflation, which excludes more volatile energy and food prices to give economists a clearer idea of underlying price pressures, rose 5 per cent, up from 4.8 per cent in September.
        …

        1. It takes less than 7 years for the currency to lose half its real value at that rate of inflation.

    4. The Financial Times
      AJ Bell
      Investing is ‘a tough sell’ for young people since pandemic, says new AJ Bell chief
      Cost of living crisis and rocky markets have curbed explosion of interest recorded during lockdowns
      AJ Bell last year announced a bid to target younger investors with a new app, Dodl
      Joshua Oliver October 29 2022

      Investing has become a “tough sell” for younger generations grappling with the cost of living crisis, bringing to an end the coronavirus-era boom in young people jumping into the markets, according to the new head of one of the UK largest investment providers.

      Michael Summersgill, who this month succeeded founder Andy Bell as chief executive of AJ Bell, said the squeeze on incomes from inflation and plunging markets this year have contributed to a significant slowdown in customer growth, especially among younger cohorts.

      The FTSE 250 group last year announced a bid to target investors in their 20s and 30s with a zero-trading-fee investment app, called Dodl, capitalising on a global surge in client growth for do-it-yourself investment providers as people put their enforced lockdown savings to work in booming markets.

      The 38-year-old chief executive acknowledged that the move to win young investors came too late, with Dodl launching this April into the teeth of a brutal sell-off, which has wiped 10 per cent off the average AJ Bell customer portfolio so far this year.

      “Maybe if we had made some . . . decisions more quickly four years ago we would have launched into that boom period, and that would have been lovely. But no, we launched it after. It’s still a great product, but it is now a tough sale,” Summersgill said.
      …

    5. 90th anniversary of Black Tuesday, which heralded the Great Depression, holds lessons today
      Nancy Tengler
      Special to USA TODAY

      Oct. 29 marked the 90th anniversary of Black Tuesday, which preceded the Great Depression. Periodically the odd pundit weighs in on how today’s market is analogous to 1929 and, hey, by the way, buy some gold. Before the gold bugs take me to task, I am not anti-gold; I just don’t like the fearmongering. As the great Peter Lynch once said, “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.”

      I began my career as a professional investor in the mid-1980s and cut my teeth on Black Monday: Oct. 19, 1987. The Dow Jones Industrial Average dropped 22.61% in one day. The mood was bleak – there were rumblings that we were in for an extended crash.

      However, if investors sold in a panic, they would have missed two of the top 20 largest one-day gains in the Dow since 1950. On the very next day, the index rose by 5.9%, and the following day, Oct. 21, the market rose another 10.2%. And then we must remember how the market performed for the next decade-plus. … It exploded to the upside.

      Still, it took until 1954 for the 1929 peak to be regained. That’s some buy-and-hold strategy. That is a statistic the pundits trot out when drawing parallels back to 1929; 25 years to recoup losses extend beyond the average investor’s time horizon. And it is scary to contemplate.
      …
      https://www.usatoday.com/story/money/columnist/2019/11/03/black-tuesday-90th-anniversary-lessons-today/4149097002/

    1. Local
      San Diego officials look to strengthen tenant protection following lifted ‘no fault’ eviction ban
      by: Sarah Alegre
      Posted: Oct 4, 2022 / 09:55 PM PDT
      Updated: Oct 5, 2022 / 07:51 AM PDT

      SAN DIEGO – Following the expiration of San Diego’s no-fault eviction protection, landlords can now terminate their tenants’ lease agreements without cause or fault. Because of this, city leaders are now trying to step in before anyone ends up without a home.

      The San Diego City Council adopted a temporary ban on residential “no fault” evictions, proposed by City Council President Sean Elo-Rivera. It took effect on May 22, 2022 and ended September 30, 2022. The local law banned “no fault” eviction cases in the city, meaning a landlord could not evict a tenant for any reason that does not involve any nonpayment of rent, or violation of a lease agreement.

      A “no fault” eviction occurs when a landlord ends a lease with the tenant for reasons that do not involve any alleged nonpayment of rent, wrongful behavior or lease violation by the tenant.

      Because the moratorium has ended, backlogged eviction cases that had been paused in courts over the summer are now resuming this week. While city council suggests they’re looking for ways to strengthen tenant protection, eviction attorneys argue the city’s actions have put and will continue to place their landlord clients at a disadvantage.

      “They have not been able to utilize their property even though they’ve owned it, they’ve paid taxes, they made the investment,” said Roseanna Miani, an eviction attorney representing clients throughout San Diego County.

      On the other side of the debate, Gilberto Vera, a senior housing attorney with Legal Aid Society of San Diego, suggests the expiration on San Diego’s no-fault protection takes a much larger toll on the tenant, forcing the renter into a competitive and expensive housing market amid record high inflation.

      “It’s making it more difficult in this hyper competitive rental market for tenants on a fixed income, disabled and elderly who are regularly receiving government assistance,” Vera said.
      …
      https://fox5sandiego.com/news/local-news/san-diego-city-officials-look-to-strengthen-tenant-protection-following-lifted-no-fault-eviction-ban/

      1. With a massive homelessness problem on their doorstep, it’s hard to imagine San Diego city leaders siding with absentee and, in many cases, foreign landlords over local tenants who just need a place to live in.

      2. A “no fault” eviction occurs when a landlord ends a lease with the tenant for reasons that do not involve any alleged nonpayment of rent, wrongful behavior or lease violation by the tenant.

        Isn’t a lease a contract? Would you sign a lease that stipulates the LL can end it at any time for no reason?

        1. Does anyone have a lease that never ends? If you’ve been there for a while, you might be month to month. At the end of that month a landlord can terminate. Maybe they got a trouble maker. Maybe they are going to renovate and need the space vacant. For instance, I had a tenant who paid on time but kept bringing over criminal elements. I gave a warning, it wasn’t heeded and I kicked them out. There are leases that are strict with things like police calls. But in my experience the police won’t notify the landlord even if they are called to the property multiple times.

          1. My sister gave landlording a try as a moonlight occupation, back when she and her then-husband owned three homes between them. Her tenant changed the locks and allegedly was making ends meet by selling drugs. And she stopped paying rent. It took sixth months to get her evicted.

            There are definitely situations where a landlord needs a right to evict. Of course, my sister’s situation was a lot different from the no-fault variety described in the U-T article.

          2. If you’ve been there for a while, you might be month to month.

            Then it’s not a lease anymore, is it?

          3. Absolutely. All the terms of the lease are stated in writing and agreed to by relevant parties. Either party may request another 12 month lease. Happens all the time. Then the counter party has to consider if that’s in their best interest. The brass tacks of it are if it will stand up before a judge, it’s a valid enforceable lease for all parties.

          4. I suppose that a rental agreement could be considered a month to month “lease”. But if I sign for a 12 month lease, I would considered it unacceptable for the landlord to be able to evict me “without fault” before the lease expires. I think that would be a breach of contract. Now, if I am told that at the end of the lease that I need to move out, then yeah, that is reasonable.

        2. The article completely glossed over the issue of lease term. My understanding is that most leases are for one year. And as Ben points out, month-to-month rental agreements are also common. When you stay in a hotel, your occupancy agreement is typically for a period of a few days.

          Tenant protection against a landlord breaking a lease agreement to prematurely capture investment gains seems reasonable. If the proposed law requires landlords to renew expired leases in order to shield tenants against having to relocate, that would seem like a case of government overreach.

          1. “If the proposed law requires landlords to renew expired leases in order to shield tenants against having to relocate, that would seem like a case of government overreach.”

            That is indeed what this is. It’s not government overreach, it’s socialism. Silly me, I thought San Diego might actually be able to stay conservative.

        3. When they say “end a lease” they really mean not renew it, or in the case of a tenant who is month-to-month, give 30 days’ notice and then terminate the month-to-month rental agreement at the end of a 30 day “rental agreement”. Nothing in this article is talking about landlords terminating year-long leases in the middle of that year period. It’s talking about taking away the landlord’s right to give proper notice and have the tenant vacate. In other words, so long as the tenant pays the rent and doesn’t turn it into a meth lab, the tenant would have more rights in the unit than the landlord.

          1. When they say “end a lease” they really mean not renew it

            That would make sense. But why would you need a “no fault” law to do that?

    2. Is a 56% rent increase over three years alot? It’s interesting to know that one-bedroom apartments in Ocean Beach now rent for close to what we pay on our four bedroom house in North San Diego County.

      1. Business
        ‘You’re pushed out and pushed out’: Should San Diego protect renters from no-fault evictions?
        A termination of tenancy notice for Juliana Konze of Pacific Beach.
        (Eduardo Contreras/The San Diego Union-Tribune)
        As San Diego rents surge and COVID relief expires, some want permanent protection from no-fault evictions. But for landlords, removing tenants, making upgrades and raising rents is key to a viable business.
        By Roxana Popescu
        Oct. 29, 2022 6 AM PT

        The 10-unit apartment building in Ocean Beach looks like many others in San Diego: a row of parking spots out front, a few skinny palm trees that cast shards of shade against a shell pink façade. Inside, contractors have been working for months to make the compact one-bedroom units stand out. “Beautifully remodeled,” a listing reads. New appliances, new hardware, new flooring and new paint are some of the draws.

        The rent is new, too: $2,500. That unit or a similar one in the building was advertised for $1,600 in 2019.
        …
        https://www.sandiegouniontribune.com/business/story/2022-10-29/youre-pushed-out-and-pushed-out-should-san-diego-protect-renters-from-no-fault-evictions

    1. October Surprise going off script?

      “Thus, no, there is no credible evidence that either DePape or Pelosi was wearing their underwear when police arrived. Other sites appear to just be quoting or citing the original KTVU-TV story, without telling people it was retracted or they are just making the claim without offering a single shred of evidence to back it up. Heavy has written the San Francisco Police Department’s public affairs unit asking about the underwear claim and what the men were wearing, in order to fact check it further. We will update this story if response is received.

      Confusing matters, when you Google the term “paul pelosi underwear,” you still get the KTVU-TV article with the SEO title on the underwear. However, when you click on the story, the information is no longer in it, and the correction has been quietly placed at the bottom.”

      https://heavy.com/news/paul-pelosi-underwear-david-depape/

      1. Let he who has never engaged in a hammer fight at 2:30 a.m. with another dude in his underwear cast the first stone.

        1. Real Journalists.

          Lead article on the HuffPaint website right now — Elon Musk Pushes Conspiracy Theory On Twitter About Paul Pelosi Attack:

          “Twitter’s new CEO, Elon Musk, pushed a false conspiracy theory on Sunday about the life-threatening assault of House Speaker Nancy Pelosi’s husband days earlier, further amplifying the type of disinformation that can lead to political violence.”

          Clutch those pearls harder, globalist sh*tbags.

          “There is a tiny possibility there might be more to this story than meets the eye,” Musk responded to Clinton’s tweet, attaching a link to an article falsely claiming that Paul Pelosi’s attacker was a lover he met at a bar in the middle of the night. The claim is not credible by any means and further threatens the safety of not only Pelosi and her family but also those in the LGBTQ community.

          Musk’s amplification of the far-right conspiracy about the Pelosis comes just two days after he took the helm as Twitter’s chief, a move that has worried users and officials about the future of the platform and its anticipated elevation of disinformation. The billionaire’s tweet on Sunday was further evidence of that concern.”

          https://www.huffpost.com/entry/elon-musk-pushes-conspiracy-theory-paul-pelosi_n_635eaa7ce4b01c1b94e78407

          Go build your own Twitter?

          Um, no. Go buy Twitter.

          Never mind the spontaneously combusting vehicles for a minute, because this #Narrative is beginning to get fun. Globalists know they are backed into a corner that they can’t lie and censor their way out of.

          1. Gateway Pundit — Excerpts from the Paul Pelosi Story Elon Musk Tweeted and Then Took Down (10/30/2022):

            “As reported earlier today, Elon Musk called out Hillary Clinton for sharing a LA Times article that aimed to paint Paul Pelosi’s “attacker” David DePape as a far-right conspiracy theorist.

            Musk would respond to Clinton by tweeting “There is a tiny possibility there might be more to this story than meets the eye” and then proceed to link an article titled “The Awful Truth: Paul Pelosi Was Drunk Again, And In a Dispute With a Male Prostitute Early Friday Morning.”

            The article that Musk referred to in his tweet was scrubbed from Google.

            However, we have located a copy of that article and provide large segments of it below:

            “As SF’s gay bars closed at 2 am, two gay men met in a bar and went home together. Happens every night in the City by the Bay. Except one of these two men, was married to House Speaker Nancy Pelosi.

            I might disappear for telling you the truth. If I do, you’ll all know why. But here’s what really happened early Friday morning in San Francisco. IMHO–in my humble opinion.

            According to SFPD “RP [Reporting Person] stated that there’s a male in the home and that he’s going to wait for his wife. RP stated that he doesn’t know who the male is but he advised that his name is David, and that he is a friend,” the dispatch official said. “RP sounded somewhat confused.”

            It’s been a rumor for years in SF that Paul Pelosi is gay. David Depape is said to be a Castro Nudist. “The lunatic who allegedly assaulted Paul Pelosi is a Berkeley resident and a ‘Former Castro Nudist Protester’ and hemp ‘jewelry maker’ …sounds totally MAGA Republican to me.”

            https://www.thegatewaypundit.com/2022/10/excerpts-paul-pelosi-story-elon-musk-tweeted-took/

            Globalists gonna globe.

            “They’re not sending their best”

          3. “As SF’s gay bars closed at 2 am, two gay men met in a bar and went home together. Happens every night in the City by the Bay. Except one of these two men, was married to House Speaker Nancy Pelosi.”

            Lyrics:
            Everywhere is freaks and hairies
            Dykes and fairies, tell me where is sanity
            Tax the rich, feed the poor
            Till there are no rich no more

            Ten Years After – I’d Love To Change The World
            https://www.youtube.com/watch?v=K0dTx76FkiA
            *3-min, 44-sec

          4. The Awful Truth

            Ok, so here’s the theory, as related to me by a source

            Doesn’t read like known facts to me, more like creative gossip.

  27. A preview of coming attractions in Democrat-Bolshevik malgoverned urban cesspools. Will the Clinton Foundation be able to monetize this crisis now that the Clinton Crime Family has no political influence to peddle?

    Haitian ambassador warns criminal gangs may overrun country

    https://www.theguardian.com/world/2022/oct/30/haiti-ambassador-usa-criminal-gangs

    Armed gangs have shut off access to Haiti’s main fuel terminal, decimating basic services amid a cholera and hunger crisis

  28. Printing away inflation – you can’t make this sh*t up. Since BlackRock Jay has been following the lead of the Keynesian fraudsters at the BoJ, I expect that means more Money Printer Go BRRRRR from the Fed, too.

    Japan to unveil huge package to address inflation

    https://english.alarabiya.net/business/economy/2022/10/28/Japan-to-unveil-huge-package-to-address-inflation

    Japan is expected Friday to announce a huge stimulus package to cushion the economy from the impact of a weak yen and inflation, though the central bank refused to budge from the ultra-loose policy that has hammered the currency.

    Ahead of cabinet approval for the relief measures, Prime Minister Fumio Kishida said the government would “seek swift approval” of an extra budget worth 29.1 trillion yen (around $200 billion).

    1. “…huge stimulus package to cushion the economy from the impact of a weak yen and inflation…”

      Aren’t stimulus packages normally inflationary?

      What am I missing?

  31. Why would any buyer “invest” in obscenely overpriced skyboxes in Democrat-Bolshevik malgoverned urban centers that are spiraling into dystopia?

    $49m to live four blocks from THAT drug market? San Francisco’s ultra-luxurious Four Seasons Residences sells just 13 of its 146 apartments, as street crime and drug abuse are blamed for deterring prospective buyers including Steph and Ayesha Curry

    https://www.dailymail.co.uk/news/article-11370615/San-Franciscos-Four-Seasons-Residence-sells-13-146-apartments-crime-blamed-deterring-buyers.html

  36. A local case of “died suddenly”:

    DENVER — Hugh McKean, the Republican minority leader in the Colorado House of Representatives, died suddenly early Sunday morning.

    The cause of the 55-year-old’s death was not shared in a news release from Colorado House Republicans.

    Funeral services are being planned and will be made public once finalized.

    McKean was first elected to the Loveland City Council in 2009, before being elected to represent Colorado House District 51 in 2016.

    I would love to see the insurance stats for 2022 deaths when the year is up, but I have a hunch those will be unobtanium, though rising life insurance premiums would be a good proxy number. I’ll bet ER staff have a good idea about this, but know if they speak up they will be permanently dejobbed.

    This is just happening way too often, and we know that for every “person who matters” there are dozens, if not more, joe nobodies who die of suddenly and are not reported anywhere and are known only to their families. One of my inlaws almost died of suddenly and only survived because she was already at the ER (because she was feeling awful) when she went into cardiac arrest. Had she been at home when it happened she would be gone.

    I would love to find the number of Lovelanders who have died of suddenly, but I’ll bet it is nowhere to be found.

    1. Follow @EdwardDowd on Gettr

      https://gettr.com/post/p1vrwuxfe04: This chart of excess death rate increases is an example of what will be found on our Phinance Technologies Humanity Project web site very soon. It’s also in my book Cause Unknown. Denmark stopped vaccines for under 50…gee I wonder why?…

  37. How’s that voting for globalist Quislings working out for ya, UK sheeple?

    Nearly Half of UK Families Are Left With Less Than £3 a Week

    The share of people struggling to make ends meet has doubled in the last year.

    https://www.bloomberg.com/news/articles/2022-10-27/cost-of-living-crisis-inflation-uk-families-have-less-than-3-to-spend-weekly?sref=ibr3A0ff

    Elena Gheorghe had never eaten at a food bank until this year. But like millions of people in the UK, she has watched her daily expenses eat up more and more of her income, and she ran out of corners to cut.

    So, for the third time in recent weeks the 35-year-old mother and nursery school administrator is getting a hot meal at a London charity called Dads House. “It’s nice because people around you are the same like you,” she said while sharing a table with a former chef and entrepreneur. “Normal people.”

    1. Elena Gheorghe had never eaten at a food bank until this year.

      My understanding is that a “food bank” is where the needy get free groceries. This sounds more like a soup kitchen. In any case, it just goes to show how the globalists are destroying the middle class. Not too long ago these people would vacation in Spain.

  42. This is the weekend REIC K-dn show that I usually don’t link to cuz it’s long. I always listen in to see if there’s anything good and so far at 16 minutes it’s pretty juicy.

    How Low Will It Go? – Another 50bps – The Canadian Real Estate Show

    Oct 30, 2022 #canadianrealestate #canada #realestate #toronto #vancouver #calgary
    How Low Will It Go? – Another 50bps – The Canadian Real Estate Show

    Darryl and TK discuss the Canadian Real Estate Market in depth from their own unique perspectives with a particular focus on The Toronto Real estate Market. Today we are lucky to have Daniel Foch, Jordan Scrinko, and Mark Mitchell on the show to recap our discussion about Evergrande and its effect on Canadian real estate.

    https://www.youtube.com/watch?v=dRKlVmG3SVY

    1 hour 7 minutes.

  44. NYT reporter slammed for calling Obama’s 60th birthday party low-risk due to ‘sophisticated, vaccinated crowd’ (8/9/2021):

    “During a segment discussing the controversy surrounding Obama’s much-criticized Martha’s Vineyard celebration, Karni insisted that although the former POTUS was spotted not wearing a mask the guests overall were “following all the safety precautions.”

    ”This has really been overblown, they’re following all the safety precautions, people are going to sporting events that are bigger than this, this is going to be safe, this is a sophisticated, vaccinated crowd and this is just about optics, it’s not about safety”

    https://news.yahoo.com/nyt-reporter-slammed-calling-obama-220842756.html

  45. MarketWatch
    Americans’ personal savings have fallen off a cliff. Brace yourself for just how much they have declined.
    Provided by Dow Jones
    Oct 30, 2022 6:36 PM PDT
    By Quentin Fottrell

    Financial advisers offer their top tips for boosting savings as economic uncertainty increases

    As red flags go, this is a big one.

    The personal saving rate — meaning personal saving as a percentage of disposable income, or the share of income left after paying taxes and spending money — fell to 3.3% in the third quarter from 3.4% in the prior quarter, the government said Thursday. That is the lowest level since the Great Recession and the eighth-lowest quarterly rate on record (since 1947). Adjusted for inflation, savings are down 88% from their 2020 peak and 61% lower than before the pandemic.

    The personal savings of Americans have plunged this year, hitting $629 billion in the second quarter of 2022, according to the Federal Reserve Bank of St. Louis. That’s down from $1.98 trillion in the second quarter of 2021 and from $4.85 trillion in the second quarter of 2020, when it was boosted by COVID-related government cash. But it’s also down from $1.41 trillion in the second quarter of 2019, before the coronavirus pandemic shut down the economy and led to a wave of government benefits.

    Mingli Zhong, a research associate at the Urban Institute, a Washington, D.C.-based think tank, said people will either start cutting back on spending, which could eventually help bring prices down, or exhaust their savings by spending their income on essentials. In the latter scenario, the U.S. would likely tip into another recession, she added, something many economists are already forecasting for 2023. “More households with little savings would have little cushion against a recession,” Zhong said.

    What happened? A combination of wages not keeping up with inflation and people letting loose after being cooped up during the pandemic. “Many people’s spending habits went into deep freeze, even when folks were stuck at home and the only person they might see on a daily basis was the Amazon delivery person,” Janet Lee Krochman, a certified public accountant in Costa Mesa, Calif., told MarketWatch. And now? “I think the gloves are off and folks are playing catch-up.”

    After the worst days of the pandemic, Americans wanted to be out and about. “People want to experience life again, and create happy memories to help replace the not-so-nice ones that they have from the pandemic years,” Krochman said. Credit-card debt rose to $887 billion in the second quarter of 2022, according to the Federal Reserve Bank of New York. That’s up 13% on the year — the largest annual increase in 20 years.

    The pandemic, however, has left millions of working Americans in a vulnerable state — essentially just one paycheck away from living on the street.
    …
    https://www.morningstar.com/news/marketwatch/20221030275/americans-personal-savings-have-fallen-off-a-cliff-brace-yourself-for-just-how-much-they-have-declined

  47. 5 of the riskiest industries to work in during a recession, according to economists
    Published Fri, Oct 28 2022 9:00 AM EDT
    Morgan Smith

    There’s been a lot of debate lately over whether the U.S. will plunge into a recession soon. While a downturn isn’t inevitable, many economic forecasters believe it’s just a matter of time before a recession hits.

    “The worst is yet to come, and for many people, 2023 will feel like a recession,” the International Monetary Fund Oct. 11 report warned.

    Inflation continues to soar, causing chaos in the stock market, and companies are bracing for an uncertain future with layoffs, hiring freezes and, in some extreme cases, rescinding job offers.

    With recession fears looming, working professionals across the U.S. are worried about their future employment status: Nearly 40% of workers are worried about their job security heading into a potential recession, according to an August Bankrate survey of 2,458 U.S. adults.

    While no job is completely immune to economic headwinds, some industries tend to fare worse than others during a downturn.

    CNBC Make It asked three economists which industries they expect will be the most vulnerable during the next economic downturn.

    The riskiest industries to work in include:

    – Real estate
    – Construction
    – Manufacturing
    – Retail
    – Leisure and hospitality

    The jobs that are the “first to go” when a recession hits are the ones that depend on consumer spending and people having copious disposable income, says Kory Kantenga, a senior economist at LinkedIn.

    Retail, restaurants, hotels and real estate are some of the businesses often hurt during a recession. While such services “may enhance our quality of life, they’re not necessary to maintain our basic standard of living,” Kantenga says.

    Industries that require a lot of capital, such as manufacturing and real estate, also “tend to suffer” during downturns and are less “recession-proof,” says Julia Pollak, chief economist at ZipRecruiter. That will be especially true of the next recession, considering the rising interest rates and record-high inflation we’re currently seeing, Pollak adds.
    …
    https://www.cnbc.com/2022/10/28/economists-riskiest-industries-to-work-in-during-a-recession.html

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