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They’re Trying To Get Rid Of Them As Fast As They Can, It’s Just Sitting There Without A Buyer, They’re Losing Money

A report from Go Banking Rates. “The Florida cities on this list are showing alarming signs that could be pointing toward a housing crisis. Pembroke Pines, Florida: % of homes for sale that have been foreclosed: 74.47%. Hollywood, Florida: % of homes for sale that have been foreclosed: 63.41%. Nearly half of Jacksonville’s homes for sale are foreclosed — 1,706 out of 3,664 homes. The rental vacancy rate is at 6.6%. Miami is also showing some alarming signs, with nearly 70% of homes for sale being foreclosed, which translates to 3,010 out of 4,317. The rental vacancy rate is at 6.7%. Gainesville has the highest rental vacancy rate on this list, at 15.9%. Additionally, 21.28% of homes for sale have been foreclosed, foretelling a possible market drop.”

“Fort Lauderdale is also working with an inventory of houses for sale that are more than 50% foreclosed, or 463 out of 874 homes. In addition to rising cases of mortgage delinquency, the homeowner vacancy rate is rising, and the rental vacancy rate is climbing to 7%. People are starting to leave Orlando, spiking the vacancy rates for both renters and homeowners. The number of homes for sale that have been foreclosed is also perilously close to 50%, or 1,226 out of 2,538 homes.”

From News 4 Jax. “GoBankingRates pulled data from the Consumer Financial Protection Bureau, the Consumer Protection Bureau, and RealtyTrac and reviewed the percentage of mortgages that are delinquent and renter vacancy rates. Local realtors, however, said the data doesn’t paint a full picture of the North Florida market. Howard Flaschen with Round Table Realty doesn’t agree with Jacksonville’s rankings, noting that pre-foreclosures were considered in the data, which aren’t necessarily an indicator of what could happen in the future.”

“‘Someone may have been late on a payment. Or we’re negotiating with a bank for a forbearance or a loan modification or maybe they were even doing a refinance out of a HELOC and missed the payment or late payment, it’s going to be paid off at closing that shows up on many of the portal websites because they just do it in an automated fashion. A box gets checked somewhere it shows up as a pre-foreclosure,’ Flaschen said.”

Arlington Now in Virginia. “The average net sold to original ask dropped from a March peak of 105.9% to 96.6% in August. I suspect that once September-November listings close and we can start filling in those fields, we’ll see that number fall further but maybe not significantly because asking prices have started to react to weaker market conditions and many sellers are coming off their expectations for spring 2022 prices. I shared some detailed thoughts last month in a column addressing price drops in Arlington and the TL;DR version is that 1) yes prices have dropped relative to their peak this spring, 2) there’s not nearly enough data available locally to say with any statistical confidence how much that drop has been, and 3) my observation was/is that market-wide in Arlington we’ve lost most/all of the appreciation we saw in the first 4-5 months of 2022.”

KTNV in Nevada. “The Las Vegas housing market is experiencing a significant downward shift when compared to where it was at the beginning of this year. Andrew Smith, President of the Las Vegas-based Home Builders Research says the number of homes sold in October has gone down by 59% from the same month in 2021. He says builders are slowing down and just trying to play catch up…hoping to sell their increasing inventory of buyer-less homes. Smith says, builders just need to sell.”‘

“‘The owner of the lots losing money, so they’re trying to get rid of them as fast as they can. Same for a home builder. If they finish that house and it’s just sitting there without a buyer, they’re losing money,’ said Smith.”

The Vermont Digger. “The doubling of interest rates over the past year is affecting construction and the real estate market across Vermont in different ways. In Rutland, real estate agent Joshua Lemieux said he is no longer seeing offers of 30% to 35% above the asking price, as he did last year. In Bennington, interest rates appear to be having an impact, according to real estate agent Lilli West. She said she sees this especially with regard to investors, who had made Bennington the focus of tremendous real estate activity in 2021. ‘It’s really dried up the investors,’ West said. Because they are being scared away by rising interest rates, they are no longer competing against first-time home buyers, and those buyers have an easier time now, West said.”

The Register Star. “A typical Winnebago County home listed for $159,900 in October, down 3% from the previous month’s $164,800. Across metro Rockford, median home prices fell to $172,500, down 8% from a month earlier.”

From Mansion Global. “An Austin compound that was once the priciest listing in Texas is back on the market with a whopping $10 million price cut. The megamansion sitting on 21 acres overlooking Lake Travis was first listed in April for $45 million, according to listing records. The listing was removed just a month later, and returned to the market last week. The property last traded in 2018, when it was listed for $13.5 million. Texas is a non-disclosure state, thus Mansion Global could not determine the final price.”

The Sacramento Bee in California. “The median price in Placer County was flat, according to the state realtor group, and prices were down 1.4% in Sacramento. Yolo, Yuba and Sutter all saw October price drops of around 6% compared to September. Statewide, the median sale price for a single-family home was $801,190 in October, down 2.5% over September and just a few thousand dollars higher than it was in October 2021.”

The Daily Journal in California. “It may finally be a buyer’s market in San Mateo County as sales for single-family residential homes fell 18% to 296 from September to October, according to the San Mateo County Association of Realtors. Compass Real Estate Realtor Raziel Ungar said it’s becoming a buyer’s market because there are more sellers than buyers. Homes are also on the market for longer, giving buyers more leverage. ‘The sellers want to sell their house at the price from six months ago, or they are just backing out altogether,’ said Ungar. ‘People are in a cautious wait-and-see mode right now. Even though prices are down 10-15% from six months ago, because of interest rates, the mortgage would still be more expensive than if you bought six months ago.'”

“The median sale price for single-family home prices in October was $1.81 million and in comparison in October 2021 median sale price was $1.91 million, according to SAMCAR data. ‘It’s fair to say that median single-family home prices are about where they were in July and August of last year,’ said Ungar. But Ungar said October was the quietest month for sales he’s seen in years.

Multi-Housing News. “The SFR/BTR market has grown and changed substantially from a development perspective, too. The early leaders in this space included big, national homebuilders like Toll Brothers, D.R. Horton and Lennar, or as Alex Pollack, director of partnerships atMosaic puts it, ‘companies which already had multifamily subsidiaries and could pull these two operations together and be successful in the arena.’ Now, storm clouds are gathering, brought on by the dimming economic prospects. ‘From October 2021 to October 2022, the ability to raise capital went from one of the easiest to the most difficult in a six-to-nine-month period,’ Mitch Rotta, senior managing director at TruAmerica Multifamily.”

“Rotta depicted recession as a ‘painful moment,’ which will subject those in the SFR market to the first real headwinds. ‘A lot of smaller groups that were formed over the last two years will not make it.’ The slowdown in activity will be accompanied by a cleansing of the fringe players, location and product. ‘There are a lot of mediocre SFR players and, frankly, bad and poorly located communities that got built, and that type of activity needs to clear out of the sector,’ said Mark Wolf, CEO of AHV Communities.”

The Globe and Mail. “The Bank of Canada reported a $522-million third-quarter loss on Tuesday, the first time the central bank has lost money in its 87-year history. The normally profitable Crown corporation has been caught in a loss-making bind in recent months. After massively expanding its balance sheet during the pandemic, then racing to increase interest rates to fight inflation, the central bank is now paying more interest on its liabilities than it’s earning on its assets. This is the first in what is expected to be a stretch of quarterly losses, as the bank does not anticipate returning to profitability until 2024 or 2025.”

From CBC News. “Mortgage brokers say homeowners with variable-rate mortgages will be squeezed even further next week, as the Bank of Canada is widely expected to raise the country’s key lending rate. Now that interest rates are rising, and home prices are falling, many homeowners who bought at the market’s peak have found themselves questioning whether they made the right choice. In London, Ont., the average price of a home has fallen for eight months to roughly $640,000 in October, down from the market’s peak of about $825,000 in February.”

“‘It’s tough,’ said Mark Mitchell, a London, Ont., mortgage broker with Real Mortgage Associates. ‘Rates have gone sky-high.’ ‘The prime rate is 3.75 and the inflation rate is seven. Historically, the prime rate is supposed to be higher than inflation. Now I don’t think they’re going to go that far, but they still have a ways to go. All signs point to it’s going to get worse before it gets better.'”

“Mitchell said he’s advising borrowers with a variable rate mortgage to lock in now to avoid even more pain down the road, but if a client can’t afford to lock in because the payments are too high, he said it might be time to consider selling. ‘I’m already seeing a lot of anticipatory selling because it’s too high for them to lock in,’ he said. ‘There’s a lot of pain out there. It’s been a lot of tough conversations as of late, that’s for sure.'”

ABC Business. “It’s known as the ‘COVID housing boom’: Australia’s house and unit prices went wild as the pandemic set in. But data reveals some suburbs’ prices have slid back from peak levels earlier this year, with some showing double digit falls and a return to levels below March 2020 when the pandemic hit. Sydney and Melbourne have a list of suburbs with house and unit values now below those recorded at the beginning of COVID-19, CoreLogic data shows. Brisbane also, ever so slightly, makes the list.”

“Eliza Owen, CoreLogic’s head of research, expects price falls to deepen, with 2023 to have some ‘headwinds and tailwinds for the housing market. I think yes, we’ve got further to go with this downswing,’ she said. ‘There was a lot of purchasing done on low fixed rates through the pandemic, with fixed finance comprising around 46 per cent of new lending, and much of that lending will be rolling onto higher mortgage rates in the next 6–12 months.'”

Vietnam Express. “Many apartment projects in Vietnam have stalled due to lack of funds caused by credit tightening and higher interest rates, leaving buyers in trouble. Thao, a migrant worker, has been waiting for three years for an apartment at the D’s Gold building in HCMC’s Binh Tan District. She has paid VND700 million ($28,226), or 70% of the apartment’s cost, so far but found construction has come to a standstill over the past year. She said: ‘The apartment I visited last year and this year looks the same. The same wall, the same ceiling, the same floor. No more construction. No improvement.’ Due to the stalled project, she has to keep renting a house for VND4.5 million a month.”

“She and a dozen of other apartment buyers have taken blankets, mosquito nets and food to the construction site and are carrying on a live-in protest against the developer. ‘We have paid for our apartments, but are now begging for them.’ Hang has paid for an apartment of nearly 50 square meters costing VND780 million at D’s Gold using bank loans. ‘I have to pay the bank nearly VND3 million interest a month.’ Two years after she started paying, she still has to rent a room in a boarding house for VND1.5 million.”

“Many buyers at the Kingsway apartment project in the city’s Binh Tan District are in the same situation. Thanh, who has paid some 70% of the price, said construction has more or less stalled since the pandemic began. The veteran, who has lost an eye, said: ‘Apartments have not been painted yet. Entrances have not been built yet. Weeds have grown everywhere.'”

From Business Insider. “Sam Bankman-Fried said he has ‘no idea’ the status of his personal finances after FTX’s collapse. ‘I had $100,000 in my bank account last I checked,’ the former CEO told Axios. ‘Am I allowed to say a negative number?’ he told the outlet. ‘I mean, I have no idea. I don’t know. I had $100,000 in my bank account last I checked.'”

“Bankman-Fried’s finances, lifestyle, and sponsorships have come under intense scrutiny amid the collapse of FTX. While he was known for a simple lifestyle including cruising around in a Toyota Corolla and practicing effective altruism, he also channeled money into high-profile corporate sponsorships including naming rights for Miami Heat’s arena.”

This Post Has 178 Comments
    1. Something stinks. What a bizarre smirk. A million in watches? He was wearing them all? I mean, nothing else? Some Jesse type if scene here.

    1. Foreclosure numbers, loan modification :

      Illegal immigrants can get free housing. Only cronies will win.

      “they are no longer competing against first-time home buyers,”

      Right, the corrupt cronies are about to get lots more houses for cheaper. No j6p competing anymore. We will own nothing but Backman fried and his parents get million dollar vacation homes. The wealth gap already too bad. I like the rest of you will not go shoot Stewart Rhodes jailers, we are all slaves, no rope is coming.

      1. These preliminary numbers Ben posted today are something to keep an eye on. Try to put in perspective what 3000 properties would look like if printed out on standard paper. It would make a stack. Soon all of the major metro areas of Florida are going to have one of these stacks. In fact, there will be separate stacks for different entities. There will be stacks for Fannie Mae, Freddie Mac, and specific Bank entities, etc. Miami could easily have over 5000 empty houses rotting in the sun very soon. As they simmer the price starts to drop out. Over time they will be needing to take whatever they can get just to stop them from becoming a total loss. The environment in FL does not treat empty homes nicely. The deals are coming. I wouldn’t be at all surprised if Miami foreclosure inventory hit 10k or more at one time. It will become a real chore just to keep track of one stack for one area as it changes weekly. You will need to invest in a stock of paper just to keep up with it. This will be the time to patiently analyze the area you want to be in and go in for the kill. Every budget range will have opportunities but you need some cash to play. Every disgruntled Floridian should be in the planning stages to do battle in the coming bust. Wait until you can almost see the blood on the streets.

        You might also start collecting tools while you wait. Buy them from auctions of bankrupt companies and contractors. This is the way.

        1. Deals? My Illegal immigrants neighbors get FREe housing, Joe Biden gives students free loan forgiveness. Are you one of those silly hamsters on a treadmill who works to pay for all these cronies? Let me guess, unlike sbf, you and your parents don’t have million dollar Bahama homes. Stop being a slave, there are no deals for you in this crony capitalism until you refresh the tree of liberty. Specific to your point on Florida foreclosures, this crony govt will find a way for illegals or Democrat hedgefund cronies to get all that housing. I am not going to run on the treadmill anymore, this hamster is going blue, sitting down and living LA Vida loca with hunter b and sbf.

        2. “The environment in FL does not treat empty homes nicely.”

          I’ve seen several videos of HVAC systems being serviced in Florida where the squirrel cage fan above the evaporator coil is removed, and it looks like a Chia Pet growing in the drain collection pan. Yuck!

  1. “The Florida cities on this list are showing alarming signs that could be pointing toward a housing crisis.

    Yet we at the HBB remain oddly unalarmed.

  2. Howard Flaschen with Round Table Realty doesn’t agree with Jacksonville’s rankings, noting that pre-foreclosures were considered in the data, which aren’t necessarily an indicator of what could happen in the future…‘Someone may have been late on a payment. Or we’re negotiating with a bank for a forbearance or a loan modification or maybe they were even doing a refinance out of a HELOC and missed the payment or late payment, it’s going to be paid off at closing that shows up on many of the portal websites because they just do it in an automated fashion. A box gets checked somewhere it shows up as a pre-foreclosure’

    Any of these steaming pile REIC startups could have done this research. It turns out there are a sh$tload of defaults for sale in Florida.

    1. And notice that companies that supposedly exist to track foreclosure data, ‘missed’ (or hid) these facts. I’m talking about you attom.

    2. Doesn’t it take at 60-90(?) days to be in pre-foreclosure status? I thought you usually got 30 days grace to accommodate a single late payment. There might be lectures and penalties, but you’re not yet officially on the naughty list. Anyone got insight on this?

  3. ‘my observation was/is that market-wide in Arlington we’ve lost most/all of the appreciation we saw in the first 4-5 months of 2022’

    Eat yer crowz taxpayer.

  4. ‘The median sale price for single-family home prices in October was $1.81 million and in comparison in October 2021 median sale price was $1.91 million, according to SAMCAR data. ‘It’s fair to say that median single-family home prices are about where they were in July and August of last year’

    More than a year of cray cray gone. As the Toronto video I posted earlier points out, we are about to head into YOY comparisons with that period and it’s going to be ugly.

  5. Um, yeah…so after three years of “trust the science,” more and more former sheeple understand that “follow the money” uncovers the globalist agenda-pushing driving this manufactured fear and alarm by “the experts.” So I think I’ll take a hard pass on your Squid Games BS.

    Why the most perilous moment of the Covid pandemic is NOW, explains top doctor, as the virus spirals out of control in China

    1. The “science” itself was fine; it always is. It was the politician’s manipulation of the science — including numerous logical fallacy appeals to authority — which will be our downfall.

    2. Ok, in the above article they admit that China never used the Western Fake Vaccine to combat Covid 19. .This is what I have been trying to tell everybody.
      So, in spite of being ground zero for Covid and having 1.4 billion people, China had low low Covid deaths.
      So,after two years of the Panademic China all of a sudden comes up with this zero
      Covid policy, locking down millions for
      It becomes important that the WHO, Klaus
      Schwab , and even Dr Fauci has stated
      recently that China is the model for
      the response to Covid. ..
      So, I submit and predict that this is what the Health Authorities plan to inflict on global nations in the next round of the war on pandemics.
      The only problem is the China people are rebelling against being locked down like caged animals for months at a time.

      Also, since China didn’t use the Western fake vaccine, they are leaving out a major detail when comparing China to other nations.
      In other words, these fraudsters still plan to use fake pandemics and medical tyranny
      to assert marshal law lockdowns and world wide insanity to take over the World by this
      epic medical fraud. Add , Climate Change to the mix of fake emergencies, that is a exercise in deprivation of a world that can function, and this war against humanity is obviously upon us.
      That’s why it would be good for the World if the China population rebelled because no doubt the CCP is in on the Covid Scam.
      And how ridiculous it is that the so called Country that unleashed so called virus, is the model for response. So, ridicules that
      Dr Fauci funded that research in China when it was illegal in the US, yet he becomes the Spokesperson for Covid response in US.
      Just saying.

      1. So, in spite of being ground zero for Covid and having 1.4 billion people, China had low low Covid deaths.

        Keep in mind that the official death numbers in China are the excuse used for keeping the country locked down for 3 years. For all we know, those numbers are pure grade A baloney.

        1. those numbers are pure grade A baloney

          They are. In the early days of the pandemic, I found someone on Twitter (an aerospace engineer from what I gathered) who did a nonlinear regression of China’s reported data and could predicted China’s next data release.

    3. Every new variant is predicted to be deadly. Now get your booster! Strokes and myocarditis in large numbers and sudden deaths don’t just happen by themselves.

      1. Well, I was tracking the limited data that China was putting out.
        As I have stated before, in the beginning of Covid the little display of people falling in the street in China seemed so faked to me.

        The real data for excess mortality during the first year of Covid , shows that a panademic did not take place in terms of excess death. So, this prediction that millions were going to die was BS.
        I think the whole Covid was faked for most part. ..
        I think the objective was to get as many vaccines as possible into every arm possible , than booster after booster in this never ending Covid saga.

        1. I think the objective was…

          Getting shots in arms is failing, as I’ve read the uptake on the latest “bivalent” offering is hanging around 10%. What is being accomplished with a degree of success is bankrupting the country and a significant slice of the middle class.

  6. ‘I had $100,000 in my bank account last I checked,’ the former CEO told Axios. ‘Am I allowed to say a negative number?’ he told the outlet. ‘I mean, I have no idea. I don’t know. I had $100,000 in my bank account last I checked.’

    Do you still have checks Sam? If so, yer good to go!

      1. When they won’t reveal the cronies who raped kids with jizzlane maxwell, that should prove what slaves we all are. I have accepted it, we are finished. No rope is coming and our children are Joe pedo Bidens bitchez.

    1. She’s going to “invest” the money and use the proceeds to help Ukraine?

      Do they still have negative rate bonds over there to invest in?

      1. It’s like watching a tin pot dictator, like Lil Kim or Maduro, pontificate about their goals. I was almost expecting her to say that the chocolate ration will be increased.

      1. ‘The only thing this Cuban bastard child knows about Canadians is how to try and destroy their lives. FJT.’

  7. ‘data reveals some suburbs’ prices have slid back from peak levels earlier this year, with some showing double digit falls and a return to levels below March 2020 when the pandemic hit’

    See how this is playing out. Three years of sound lending gone poof. Below March 2020.

  8. “The owner of the lots losing money, so they’re trying to get rid of them as fast as they can. Same for a home builder. If they finish that house and it’s just sitting there without a buyer, they’re losing money,’ said Smith.”

    In case we forgot, remember this? And this was just one example of many. Got bulldozers?

    1. Jackhammers still pounding away at Lennar’s The Farm in Poway. The abandoned golf course site may have been an eyesore but it was quiet.

    2. I was on the Planning Commission for the city of Adelanto (west of the border of Victorville) circa ’04-05. I had high hopes that the city and the area had turned around and was posed for positive growth.

      We had a developer that wanted to build homes on two tracts seperated by another empty tract. One of the stipulations we were asking was that he build streets and sidewalks through the empty tract so kids could walk to school and water could drain properly.

      He swore up and down that houses would be built in the empty tract in a couple of years. Oh yeah buddy – if you are so sure why don’t you just go ahead and build the streets and sidewalks now?

      Since I was on the commission I had access to City Hall records and had done by homework looking over papers from the last boom in the 80s-90s. I also saw with my own eyes some of those tracts with incomplete streets, sidewalks and houses.

      Oh and who can forget the half-built housing tract the blew up in the neighboring Antelope Valley for Lethal Weapon 3 back in ’91.

      Clearly I voted “no.”

      I then sold my house for a bit more than double I bought it for (122k -> 265k) and got out of dodge. It sold again for 320k in IIRC 2007ish and by 2011 it went for auction at 64k.

      These guys will flee town the second the money stops.

    1. Billions of people chose to be faucis biotch, to be a lab rat. It’s over, as the big lebowksi told the dude, the hippies lost.

  9. 1.4B Chinese, and only a few thousands brave souls out confronting tyranny in the streets. Sounds kinda like Murica under the Brandon regime.

    China fights to escape Xi’s lockdown tyranny: Protesters turn streets into warzones, with hazmat-clad Covid-enforcers cowering under riot shields as bottles rain down on them and police strong-arming demonstrators

  10. Oh dear…I fear Kiwi cucks may turn on their horse-faced globalist stooge once they have to start packing boxes to GTFO of “their” house as true price discovery lays waste to their shack valuations.

    New Zealand House Prices Suffer Biggest Annual Drop in 13 Years

    New Zealand house prices suffered their biggest annual decline in more than 13 years in November as the central bank stepped up its inflation fight with a record interest-rate increase.

    Prices fell 2.9% from a year earlier, the largest year-on-year drop since July 2009, CoreLogic New Zealand said Thursday in Wellington. Values fell for an eighth consecutive month, sliding 0.6% from October. The average house price eased to NZ$958,622 ($595,000).

    1. I fear Kiwi cucks may turn on their horse-faced globalist stooge

      Short of an armed revolt I don’t see her going away. She will stuff the ballot box if needed. And if she truly does become too problematic, the WEF will replace her with another stooge,

      1. Yep, boris j to Liz truss to sunak. Hu Jintao to Xi. Bush to Clinton to Obama, etc etc. The leaders don’t matter, they are going to kill most of us. I beg Elon to keep me around as a pet, maybe he can use me as his clown like nuclear waste officer Brinkman. Every court needs a jester.

  11. A reader sent these in:

    Lance Lambert

    The U.S. housing market got drunk.
    The tipsy markets are seeing a hangover.
    The sh*t-faced markets are getting sick.

    At its height in 1989, real estate in Tokyo was valued 350 times (!) as much as top property in NYC and the Imperial Palace in Tokyo was ”worth” more than all the real estate in California. Well, today Canada has a higher private debt/GDP than Japan at the peak of that bubble.

    Check out food stamps. Oh – I forgot, SNAP now to make it more politically correct (Supplemental Nutrition Assistance Program). But we have a booming economy!

    Meanwhile, at the RBA: “I’m certainly sorry if people listened to what we’d said and acted on what we’d said and now regret what they had done,” he said.

    National Mortgage News

    Almost 60,000 home purchase agreements were terminated in October, which translates to a record 17.9% of contracts, @Redfin

    Home price declines accelerated in September. All 20 cities in the Case-Shiller index posted monthly seasonally adjusted declines in prices. U.S. home prices fell 0.8% last month and were down 2% in the third quarter (-8% annualized)

    I remember arriving in Palo Alto, CA in 1997 & seeing a house for sale for $500k. I thought “Who would ever stretch that much to buy a house?” How naive I was… 25 years later, the gov’t is now subsidizing $1mil+ mortgages

    Lance Lambert

    We’re in the second biggest home price correction of the post-WW II era.

    Replying to @NewsLambert

    Lance Lambert

    2007, 2008, 2009, and 2022. ^ years that have seen U.S. home prices, as measured by Case-Shiller, decline by +2% in a three-month period.

    Miami nightclub E11even was processing an avg of ~$660K per month in crypto transactions last year. Now it processes ~$3K/mo in crypto, a 99.5% drop.

    Other coastal cities saw similar declines this summer.
    March-to-September prices, seasonally adjusted
    Seattle: -7% (-14% annualized)
    San Diego: -5% (-10% annualized)
    Los Angeles: -3% (-6% annualized)
    These look even more severe on Q3 basis.

    This class A office building in my Austin neighborhood finished a few years ago and I haven’t seen a single worker go in or out since. The office market is like watching a train wreck frame by frame in slow motion.

    OMG … Trudeau talking about the rights of people in China to protest is the limit of hypocrisy for one day.

    Average wages – Housing carry cost (Price * mortgage)
    Going back 40 years:

    The Kobeissi Letter

    This month alone:
    1. Twitter: Laying off 75% of employees
    2. Apple: Hiring freeze
    3. Amazon: Laying off 10,000 employees
    4. Snapchat: Laying off 20% of employees
    5. Meta: Laying off 11,000 employees
    6. AMC: Laying off 20% of employees
    7. Intel: Laying off 20% of employees

    PM Justin Trudeau today:
    “Everyone in China should be allowed to protest. We will continue to ensure that China knows we will stand for human rights and with people who are expressing themselves.”…
    Also … PM Justin Trudeau towards Canadian protesters …

    The median sale price for a single family residence in the US, by state 🧐

    Scotia essentially telling Bank of Canada you better have a plan to lower rates sooner rather than later or there are going to be a lot of mortgage customers that don’t get renewed…

    Some realtors who transitioned to full time trading have gone back to part time jobs and part timers have gone back to full time jobs. Home inspectors, mortgage brokers, stagers, etc all obviously affected. Rainy day savings about to come in handy.

  12. New York Times — Is Spreading Medical Misinformation a Doctor’s Free Speech Right? (11/30/2022):

    “When Gov. Gavin Newsom signed into law a bill that would punish California doctors for spreading false information about Covid-19 vaccines and treatments, he pledged that it would apply only in the most “egregious instances” of misleading patients.

    It may never have the chance.

    Even before the law, the nation’s first of its kind, takes effect on Jan. 1, it faces two legal challenges seeking to declare it an unconstitutional infringement of free speech. The plaintiffs include doctors who have spoken out against government and expert recommendations during the pandemic, as well as legal organizations from both sides of the political spectrum.

    That lawsuit and another, filed this month in the Eastern District of California, have become an extension of the broader cultural battle over the Covid-19 pandemic, which continues to divide Americans along stark partisan lines.

    They could also more broadly test what steps — if any — the government can take to combat the scourge of misinformation and disinformation, even in cases where it affects personal and public health.

      1. Which variant? COVID was four different — and NOT interchangeable — diseases.

        Long COVID was primarily an artifact of the Wild-Type and Alpha variants.
        Wild type was outcompeted by Alpha.
        Then Alpha was obliterated by the vaccines.
        Delta came along AFTER Alpha was taken out by vaccines, but a lot of the Delta Long Covid was also prevented by the vaccines.
        Omicron barely caused any Long Covid at all.

        The vaccines had serious side effects, but Long Covid wasn’t one of them.

        1. Which variant?

          Does it matter? They are trying to sell us a bill of goods (again). Facts don’t matter when they are trying to spread fear.

          1. “Yes, variant absolutely matters. And I’m done wasting time on explaining it.”

            Just be happy that Ben is so generous that he allows the vaxxed to post on his blog.

      1. A Black Swan for his “pyramid” empire for sure but not our age. Twitter’s importance is vastly overstated.

        1. Elon is another pentagon connected stooge for the mic. A general once said if you control the lines of communications, you win wars. He is a Trojan horse for j6p, like Trump used to be a Democrat and never locked up Hillary.

  13. “‘The owner of the lots losing money, so they’re trying to get rid of them as fast as they can. Same for a home builder. If they finish that house and it’s just sitting there without a buyer, they’re losing money,’ said Smith.”

    Like rats jumping off a sinking ship…

    1. Logo of cryptocurrency exchange company AAX Limited.
      Photo: Handout
      Tech / Policy
      Hong Kong cryptocurrency exchange AAX has been hit by losses at 10kM trading unit, ex-employee says

      – AAX’s problems have been linked to failed FTX, where the company held some of its money

      – AAX has effectively shut down after it deleted its social media accounts and froze withdrawals this month, with the team now incommunicado

      Xinmei Shen
      Published: 9:00am, 30 Nov, 2022
      Updated: 6:09pm, 30 Nov, 2022

    2. BlockFi files for bankruptcy as FTX contagion grips crypto markets
      By Allison Morrow, CNN Business
      Updated 6:37 PM EST, Mon November 28, 2022
      These are the celebs impacted by the collapse of FTX
      01:34 – Source: CNN

      New York CNN Business — 

      Crypto lender BlockFi filed for bankruptcy Monday, becoming the latest casualty of the financial contagion unleashed by the collapse of Sam Bankman-Fried’s empire.

      BlockFi announced earlier this month that it had halted withdrawals, citing “significant exposure” to Bankman-Fried’s FTX exchange, as well as its sister hedge fund Alameda. FTX, Alameda and dozens of affiliates filed for bankruptcy on November 11.

      “Since the pause, our team has explored every strategic option and alternative available to us, and has remained laser-focused on our primary objective of doing the best we can for our clients,” the company said in a statement.’

      1. Fox Business
        Published November 29, 2022 6:46pm EST
        FTX crypto contagion continues after BlockFi bankruptcy
        BlockFi owes creditors between $1 billion to $10 billion, per a filing
        By Eric Revell FOXBusiness
        Bitcoin Magazine head of market research Dylan LeClair reacts to BlockFi filing for bankruptcy on “Making Money.” video
        Major cryptocurrency player BlockFi files for bankruptcy

        Fears of contagion in cryptocurrency markets continue to grow after BlockFi filed for bankruptcy on Monday due to the company’s financial ties to failed crypto exchange FTX. 

        It now says it owes more than 100,000 creditors between $1 billion to $10 billion. Eight of its affiliated firms are in Chapter 11 bankruptcy proceedings.

        BlockFi, a lending platform in the crypto space, allowed individuals to use cryptocurrencies as collateral for loans denominated in U.S. dollars. It ultimately peaked at a valuation of roughly $3 billion in early 2021.

        When crypto assets experienced a downturn over the last year, the price drop meant that the value of the collateral was less than the value of many of BlockFi’s outstanding loans. That caused it to experience liquidity problems and enter into a loan arrangement with Sam Bankman-Fried’s FTX in July as part of an effort to shore up its books. 

        Bitcoin, for example, has fallen to the $16,000 level, down more than 71% during the past 12 months.

      2. “…and has remained laser-focused….”

        So where was that ‘laser-focus’ and due diligence *before* FTX meltdown?

        What a bunch of complete BS artists.

        Makes the snake pit over at the REIConplex look like boy scouts by comparison.

    3. Yahoo
      Bitcoin Offshoot Becomes the Latest Victim of FTX’s Contagion
      Muyao Shen and Vildana Hajric
      Tue, November 29, 2022 at 12:36 PM·3 min read

      (Bloomberg) — The fallout from the collapse of Sam Bankman-Fried’s FTX crypto empire has spread to a new corner of the digital-asset market.

      Traders’ focus has turned to the price disparity between Bitcoin and a derivative of the largest cryptocurrency called wrapped Bitcoin, which can be used on the rival Ethereum blockchain. Wrapped Bitcoin is backed 1-to-1 by the token, which is held in custody by the digital-trust firm BitGo. While it normally trades on par with Bitcoin, a “persistent” discount emerged in mid-November, according to blockchain-data firm Kaiko.

      Wrapped Bitcoin, which is ranked as the No. 23 cryptocurrency by total market value, gained popularity during the peak of the decentralized finance boom. The version provides Bitcoin holders an easy way to trade, buy and sell these tokens in DeFi. The Bloomberg Galaxy Crypto Index has tumbled more than 25% since Binance chief Changpeng “CZ” Zhao raised concern about FTX three weeks ago.

      The discount has been sparked by concern that the wrapped Bitcoin is not fully backed, given that Alameda Research — the trading desk co-founded by FTX’s Bankman-Fried — was once the biggest merchant to issue the offshoot. Executives at BitGo dismissed the speculation, saying via Twitter that all of the derivative is backed 1-to-1 by Bitcoin held in custody by the firm.

      “Everyone is afraid of everything these days,” said Evgeny Gaevoy, founder and chief executive of crypto fund Wintermute.

    4. Bloomberg
      The Crypto Players Caught in FTX’s Contagion

      We’re just going to keep saying this: news moves fast in crypto. To help us stay on top of it, the show takes on some of the pivotal but perhaps less well known players in crypto – players whose names all begin with G. Bloomberg reporter Yueqi Yang joins to discuss Genesis, Galaxy, Gemini and more. Subscribe to the Bloomberg Crypto Newsletter at 
      Nov 30, 2022

    5. Bitcoin Climb Fails To Dispel Fears That FTX Contagion Is ‘Far From Over’
      November 29, 2022 • Joanna Ossinger

      Worries about contagion from the implosion of digital-asset exchange FTX clouded a rise in Bitcoin and other cryptocurrencies Tuesday.

      The largest token rose as much as 2.1% and was trading at about $16,485 as of 10:23 a.m. in London. Second-ranked Ether also posted gains, while meme token Dogecoin surged 10% at one point.

      Bitcoin has so far mostly weathered BlockFi Inc.’s bankruptcy on Monday. The crypto lender unraveled in the wake of the chaotic demise of Sam Bankman-Fried’s FTX and sister trading house Alameda Research.

      The crypto world is now nervously watching for further fallout from FTX, with the spotlight trained on the likes of struggling brokerage Genesis.

      “The credit contagion is far from over,” said Cici Lu, founder at Venn Link Partners, a crypto consultancy. There’s “still very low visibility, in the second and third layers of counterparty risk, in terms of who’s exposed to what,” Lu added.–far-from-over-70841.html

    6. As cryptocurrency nears a ‘Lehman Brothers’ moment, lawyers look at how insolvency law will cope

      Davies report outlines how Canadian insolvency law can accommodate the unique features of crypto
      Natasha MacParland, Davies
      By Zena Olijnyk
      29 Nov 2022

      With the FTX Group’s recent Chapter 11 filing for bankruptcy protection in the United States, on the heels of Celsius Network filing for the same respite, a report by Davies suggests that we could be entering what would be described as a “Lehman Brothers moment” for the crypto industry.

      Davies’ review of Q2 insolvency data published notes that there has been an increase in most types of insolvencies other than receiverships during that period. However, it also provides insight into the digital asset marketplace regarding cryptocurrency.

      It adds that all crypto stakeholders “should remain vigilant as market conditions and case law are changing rapidly.”

      Remembering the fall of Lehman Brothers

      The Davies report even refers to the 2008 financial meltdown of Lehman Brothers, when the financial services firm filed for bankruptcy. When a full-blown financial crisis erupted, the head of the U.S. Federal Reserve at the time, Ben Bernanke, encouraged Congress to bail out the biggest banks while creating new money to pour into the financial system.

      This policy, which was repeated at the start of the pandemic, proved effective in quelling financial panic but puts monetary policymakers “in a very difficult position” in an environment of rising inflation. To bring down inflation, central banks need to withdraw money from the economy and raise interest rates, increasing the likelihood of another recession. The failure of cryptocurrency exchange could augment that.

      With recent drops in crypto prices severely affecting several digital asset lenders and exchanges, the report says there’s a need to explore “what this could mean in the Canadian context – in particular, what could be in store for the key players in a cryptocurrency exchange insolvency.”

      Natasha MacParland, a partner with Davies and one of the report’s authors, says the fall of cryptocurrencies poses many questions.

    7. Short answer: no. I think everyone knew, deep in their money-grubbing souls, that these exchanges were not safe. They knew it was like putting money into an uninsured bank. But as long as crypto was going up, it was all fun and games and they stayed at the table like gamblers in Vegas. Meanwhile the exchange managers were playing banker without banker insurance.

      Now that their worst feats are realized, exchange customers are racing for the exits. I expect almost EVERY exchange to go BK similar to FTX. It’s true that the only solution is a cold wallet. But a cold wallet is the equivalent of keeping paper cash in the mattress. It’s not easy to survive today’s near-cashless society on paper cash.

      1. “Now that their worst fears are realized, exchange customers are racing for the exits. I expect almost EVERY exchange to go BK similar to FTX.”

        Sadly, given the absence of any contagion spillover effects on the real economy, it seems unlikely these crypto exchanges will qualify for too-big-to-fail bailouts. Crypto exchange losses will most likely be contained to crypto exchange investors.

        “It’s true that the only solution is a cold wallet. But a cold wallet is the equivalent of keeping paper cash in the mattress.”

        Cash, in the form of reserve currency fiat money HODLings, is unlikely to go to zero, given central bank regulation to limit inflation or devaluation.

        By contrast, cryptocurrency is a Ponzi asset, neither cash nor true currency, which seems to be trending towards zero.

      2. It’s not easy to survive today’s near-cashless society on paper cash.

        Again, I live in a very different world.

    8. Politics
      Sen. Sherrod Brown calls on Treasury Secretary Janet Yellen to help rein in cryptocurrency firms after FTX collapse
      Published Wed, Nov 30 2022 11:19 AM EST
      Updated 5 Hours Ago
      Chelsey Cox

      Key Points
      – Sen. Sherrod Brown sent a letter to Treasury Secretary Janet Yellen urging her to help work on cryptocurrency legislaiton after the FTX collapse.
      – In a letter to the Treasury chief, Brown, D-Ohio, told Yellen to incorporate recommendations from the Financial Stability Oversight Committee.
      – Major crypto firm BlockFi filed for bankruptcy weeks after FTX failed.

      Senate Banking Committee Chairman Sherrod Brown urged Treasury Secretary Janet Yellen on Wednesday to work with lawmakers and financial regulators to help write legislation to rein in the cryptocurrency market in the wake of the collapse of crypto exchange FTX.

      In a letter to the Treasury chief, Brown, D-Ohio, told Yellen to incorporate recommendations from the Financial Stability Oversight Committee, including legislation that would “create authorities for regulators to have visibility into, and otherwise supervise, the activities of the affiliates and subsidiaries of crypto asset entities,” with financial regulators, such as the Securities and Exchange Commission and the Federal Reserve Board.

      An Oct. 3 FSOC report noted gaps in the regulation of crypto asset activities.

      Brown sent the letter the day before Congress holds its first hearing on FTX’s collapse. The Senate Agriculture Committee has called Commodity Futures Trading Commission Chairman Rostin Behnam to testify Thursday on the firm’s dramatic and swift failure. Brown intends to hold his own hearing on FTX and its founder, Sam Bankman-Fried, in December, a spokesperson previously told CNBC.

      “As we continue to learn more details, the failure of this crypto exchange brings to mind the litany of financial firm failures due to the combination of reckless risk taking and misconduct,” Brown wrote to Yellen. “It is crucial that risks in this area are contained and do not spillover into traditional financial markets and institutions, and we draw the correct lessons regarding customer and investor protection.”

      When asked for comment, the Treasury Department referred CNBC to comments Yellen made at The New York Times’ DealBook Summit on Wednesday.

      “To the extent that the crypto world could deliver faster, cheaper, safer transactions, we should be open to financial innovation,” Yellen said. “That said, that’s not what most of it has been about. And I strongly believed and continue to believe and I think everything we’ve lived through over the last couple of weeks, but earlier as well, says this is an industry that really needs to have adequate regulation. And it doesn’t.”

      FTX filed for bankruptcy and its CEO, Bankman-Fried, stepped down earlier this month. The crypto giant was valued at $32 billion.

    9. The Industry
      Sam Bankman-Fried Made Another Risky Bet That Didn’t Quite Go as Planned
      It was just a live interview with the New York Times. What could go wrong?
      By Nitish Pahwa
      Nov 30, 202210:02 PM
      Sam Bankman-Fried speaks on a giant screen located above a car- and rain-soaked street.
      FTX founder Sam Bankman-Fried speaks during the New York Times DealBook Summit at Jazz at Lincoln Center in New York City on Wednesday. Michael M. Santiago/Getty Images

      Despite plenty of professional (and unsolicited) advice to the contrary, Sam Bankman-Fried just won’t stop talking. Whether the hole that the disgraced crypto titan finds himself in is merely reputational or legal and financial, he’s now eagerly grabbed a shovel offered up by New York Times columnist Andrew Ross Sorkin, who interviewed him live at the newspaper’s DealBook conference on Wednesday.

      It’s been just weeks since Bankman-Fried’s once-massive crypto exchange FTX—as well as the crypto hedge fund he founded, Alameda Research—went belly-up after a series of apparently heavily leveraged bets, troubles in the broader crypto ecosystem, and reports on the unseemly financial intermingling between the two ostensibly independent companies. Resignations and Chapter 11 filings followed; FTX customers were left wondering what happened to the $10 billion they had stored with the company in total, and whether they would ever get any of it back. At the same time, salacious reports about workday drug use, an alleged intra-C-suite polycule, and almost cartoonishly flippant risk-taking have helped make the FTX implosion one of the biggest stories in the world.

  14. LAPD serves search warrants in investigation of who recorded racist City Hall leak

    Richard Winton
    Tue, November 29, 2022 at 4:32 PM·
    4 min read

    Los Angeles police detectives have served several search warrants as they attempt to find out who recorded a meeting among three L.A. City Council members and a powerful labor leader filled with racist and offensive comments, law enforcement sources told The Times on Tuesday.

    The sources, who spoke on condition of anonymity because the probe is ongoing, did not identify the specific targets of the warrants.

    But they said the department obtained warrants for several social media accounts.

    Among the targets, the sources said, is the Reddit account to which the audio was posted and related cellphone records.

    1. Some people have the theory that something was put in their body, than something is turned on that hits them.

      The evidence shows that different stuff was in different viles of vaccines.
      Another Dr was proposing that they had a lot of blank vaccines in their first round , so people would get the impression that they were safe. That Dr thinks they plan booster after booster to deliver the poison. Another Dr was proposing that a lot of vaccines got degraded by not being kept cold enough .
      But, for these people to be covering up this sudden death , happening far and wide and happening to previously healthy younger people, its just outrageous.

      1. Tarara,
        Thanks for posting this mind blowing tape.
        I have noticed a increase in zombie like behavior.
        My niece who took three jabs because her employer enforced it, is not the same.
        She came out with her boyfriend for Thanksgiving to my house.
        My niece who had a quick wit, and generally was very smart, acted like a zombie that was noticeable by me.
        What can you do but be compassionate to people that are suffering. I begged her to quit the job rather than take the jab, but the boyfriend wanted to take the jab, and for her to take the jab also.
        My friend I talk about sometimes now has cancer , and other side effects that I think were caused by the vaccine.
        Its very painful to watch this suffering that is happening. I brought my friend some Thanksgiving dinner, and he was acting like a zombie also.
        I told you Im noticing the weird driving, and a general slowness of response by people in general. I could be wrong because its just my own observation .

        1. 🤗 I’d like to say it’s going to be alright, but this “Invasion of the Body Snatchers” stuff really rattles me, and I’ve been reading/hearing conspiracy/predictive programming stuff forever. I think I mentioned here that I got that pred prog vibe when watching the premiere episode of The Walking Dead (2010).

          It’s not like they didn’t just lay it out in front of us. This series focuses on infertility. Original British version is on YouTube. Saw it when it came out, chilling. Only got through the first episode of the American version.

          Utopia (Season 1, six episodes, Channel 4/UK, 2013)

          Season 2 is also on that YT channel.

        2. zombie like behavior

          The lipid nanoparticles (LNPs) used to delivery the mRNA cross the blood-brain barrier. Creutzfeldt-Jakob Disease is on the rise. 😢

          COVID-19 RNA Based Vaccines and the Risk of Prion Disease:
          “The results indicate that the vaccine RNA has specific sequences that may induce TDP-43 and FUS to fold into their pathologic prion confirmations. . . . The folding of TDP-43 and FUS into their pathologic prion confirmations is known to cause ALS, front temporal lobar degeneration, Alzheimer’s disease and other neurological degenerative diseases.”

          1. I’ve been looking any comfort I could get from the J&J being a viral vector, non-mRNA vax (no lipid nanoparticles) but there is surprisingly little info in comparison to others (once you get past those pesky blood clot injuries/deaths 🤬).

          2. There were comparatively (proportional) few side effects of J&J, but because those effects showed up early after the first (and only) shot, it was enough to derail the J&J rollout. Widespread mNRA effects didn’t show up until later.

            J&J was pretty quiet about their vaccine, not much advertising or news media. Meanwhile, Pfizer showed their true colors and pushed it like a profit vehicle. I’m still hearing radio ads about it, ugh.

          3. Thanks, oxide. I have been gathering what I’ve found. Others (twitter) have been wanting more info, too.

        3. Hi Wiz, want to add to my other reply in moderation.

          I begged her to quit the job rather than take the jab
          Me, too. Got nowhere but canceled, that is probably one of the reasons why.

          People were sucking pretty hard well before this, but now… I thought Breggin’s mention of this flattened affect was really frightening. I remember him being condemned for his views years and years ago.

          1. Breggin was on rense radio last night talking about Robert Malone being a Trojan horse for the deep state. I always thought rense was nuts until secretary of state Hillary said rense needed to be banned/censored.

            Is rense or breggin deep state controlled opposition? Why are they allowed to speak? I don’t trust anyone anymore. The only thing I trust is when bfb says all realtors are liars. You can take that to the bank. 😉

          2. deep state controlled opposition?
            Try not to think about it. It will drive you crazy.

          3. Breggin was on Rense Radio
            That was very interesting. Really, a lawsuit? I had no idea Malone was above comment or criticism /s

  15. Boo randy, how bad would things have to get for you personally before you would pick up a gun against ty4ants like George Washington did? You seem like a happy slave to me, nowhere near close to ready to die for your freedom. I chose the wrong side, but no l8nger, if you can’t beat them, join them. Changing my party from republican to demoncrat. You can all stop praying for me and start praying to me. Me and sbf gonna live LA Vida loca.

      1. Dumb ass above me who posted , who went to the dark side.
        You are so stupid to think that joining them is going to spare you from the death, enslavement and destruction these Entities
        have planned. Your just a useful stupid that they have brainwashed that they will betray in the end.
        Do you really think they are going to give you a Universal income and provide all your needs for doing nothing? They plan on killing you, or hacking you into being a drone like slave.
        You don’t get it. They think that humanity is useless eaters that need to be eliminated.

          1. Nothing makes me sleep like a baby than a broke assed hoof stamping debt donkey having a tantrum over falling housing prices on the HBB.

            I say let it stay.

    1. Changing my party from republican to demoncrat.

      As George Carlin once said: It’s a big club and you aren’t in it. Voting for the axis of evil won’t’ change that.

      1. Only suckers vote, my 2000 mules will make sure we win wether I vote or not. Yes I agree, the deep state will kill me too, we are all fodder, I am convinced they will get all of you first. So my betrayal, like Tulsi gabbard, may buy me just a few more days past yours. Remember Brando on mutiny on the bounty? They could hide back then, we can’t hide today. The very technology we all use to communicate will be used to track and kill us.

        1. “The very technology we all use to communicate will be used to track and kill us.”

          They are killing us with easy credit, and we rush in like the proverbial moths to the flame.

        2. The only chance you have is to side with humanity against the terrorist Cult of genocidal psychos..

    2. Boo randy, how bad would things have to get for you personally before you would pick up a gun against ty4ants like George Washington did?

      Anyone who talks about picking up a gun on the internet is either a glowie or an idiot. Which are you?

    1. “…Crypto’s Katie Haun Buys $41 Million Silicon Valley Estate…”

      If any clueless crypto investor wants to know where their dollars are actually going, here is Exhibit “A”.

      Are some people really this stupid?

      Guess I answered by own question.

    2. Haun, 47, had an unlikely path to fame and fortune. The Stanford Law alum spent a decade as a federal prosecutor for the U.S. Department of Justice. Among other things, she was tasked with creating the government’s cryptocurrency task force, which tracked criminals engaging in blockchain fraud and Bitcoin-related felonies.”


  16. A loss of consumer confidence explains CR8Ring San Diego home prices.

    I guess a doubling of mortgage interest rates since early 2022 has nothing to do with the situation?

    1. Business
      ‘Loss of consumer confidence’: San Diego home price drops fourth-most in nation
      San Diego home prices have been dropping as mortgage rates increase. Pictured: Residential homes in the Clairemont Community near Diane Avenue and Lehrer Drive.
      (Nelvin C. Cepeda/The San Diego Union-Tribune)
      The S&P Case-Shiller Indices revealed San Diego has seen its home price drop among the fastest of metros across the nation
      By Phillip Molnar
      Nov. 29, 2022 2:11 PM PT

      San Diego metro is seeing its home price drop among the fastest in the nation.

      Home prices were down 2.1 percent from August to September, said the S&P Case-Shiller Indices released Tuesday. That was tied with Dallas for the fourth-biggest drop in the nation, behind Phoenix, down 2.2 percent, Las Vegas, down 2.4 percent, and San Francisco and Seattle, both down 2.9 percent.

      San Diego metro home prices are still up 9.5 percent in a year. Yet that is down from a 30 percent annual rise in March. The pace of decreases has increased the possibility some markets in the 20-city index might erase annual gains. In San Francisco, prices are now up 2.3 percent annually, a major fall for a California market that led the nation in costs.

      Rising mortgage rates and, to a lesser extent, a negative view of the economy are seen by experts as reasons for the quick retreat.

      “Housing markets continue to face a loss of consumer confidenceand the ongoing standoff between buyers and sellers,” wrote Corelogic deputy chief economist Selma Hepp.

      1. “Home prices were down 2.1 percent from August to September, said the S&P Case-Shiller Indices released Tuesday.”

        Annualized rate of price decline is

        1 – (1-0.021)^12 = 22.5%

        “San Francisco and Seattle, both down 2.9 percent.”

        1 – (1-0.029)^12 = 29.8%

        Good thing everyone put 20% down!

    2. I was admittedly smug when my friend, who told me on March 1st that The Fed wouldn’t raise interest rates, told me not long ago that house prices were coming down. My response: “interest rates will do that.”

    1. Real Estate
      Mortgage rates fall for the third straight week, but demand still drops further
      Published Wed, Nov 30 2022 7:00 AM EST
      Updated 2 Hours Ago
      Diana Olick

      Key Points
      – The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased last week to 6.49% from 6.67%.
      – Mortgage applications to purchase a home gained 4% from the previous week but demand was 41% lower than the same week one year ago.

    2. Investopedia News
      Treasury Yield Curve Reaches Steepest Inversion in 40 Years
      The inversion between the 10-year and two-year Treasury yields widened further
      By Danial Clark
      Published November 30, 2022

      Federal Reserve Chair Jerome Powell will discuss the economy, inflation, and interest rates at an event in Washington, D.C. today. Many investors will also be looking to see whether he will address the possibility of a recession, especially given the Treasury yield curve recorded its deepest inversion in over four decades.

      An inverted yield curve is often seen as a warning that a recession is looming. Longer-term yields are usually higher than shorter-term yields because investors want to guard against the risk of unexpected inflation and rate increases. 

      The yield on the 10-year Treasury note dropped to 0.78 percentage points below the two-year yield, the largest negative gap since 1981, before easing slightly. The inversion reflects both surprising positive news on inflation as well as the view that the Federal Reserve will continue to raise interest rates and keep them at elevated levels.

      Yesterday, the Conference Board’s Consumer Confidence Index slipped to a four-month low, as concerns about inflation soured U.S. consumers’ outlooks. Lynn Franco, the Conference Board’s director of economic indicators, called consumers’ short-term expectations “gloomy,” and added that the survey suggests they feel the likelihood of a recession remains elevated.

    3. Updated Wed, Nov 30 2022 3:02 PM EST
      Dow gains 300 points as optimism grows after Powell signals smaller rate hikes ahead
      Alex Harring
      Carmen Reinicke
      Investors should focus on stocks with earnings resiliency, says Morgan Stanley’s Sherry Paul
      watch now

      Stocks climbed Wednesday as Federal Reserve Chair Jerome Powell confirmed that the central bank will slow the pace of its aggressive rate-hiking campaign that has weighed on markets.

      The Dow Jones Industrial Average was up 318 points, or 0.9%. Meanwhile, the tech-heavy Nasdaq Composite jumped 2.9%. The S&P 500 added 1.8%.

      “It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” Powell said in a speech at the Brookings Institution in Washington, DC. “The time for moderating the pace of rate increases may come as soon as the December meeting.”

      Powell cautioned the Fed may stay with restrictive policy for a long time before it ends its inflation fight.

      “Despite some promising developments, we have a long way to go in restoring price stability,” Powell said.

      Powell’s comments bolstered growing optimism among some investors that the Fed will deliver a smaller, half percentage point rate hike at its next meeting on Dec. 14 after four straight increases of three quarters of a point to tame high inflation.

      “Investors are looking for that rock of certainty – something to hang your hat on for greater predictability of where the Fed’s going with interest rates,” said Greg Bassuk, CEO of AXS Investments. “The messaging that the pace of rate increases can begin slowing as early as December was that rock.”

      The 10-year Treasury yield eased a bit on the news.

      The Dow and S&P 500 are both set to end the month up more than 4%, while the Nasdaq Composite is on track to gain around 3%.

  17. Can someone ELI5?

    Why is signaling a slow down in interest rates bearish? I actually don’t understand this one, but I’m ready to learn.

    1. 1. Borrowing long-term is typically used to fund long-term investments, such as home purchase or construction, or purchase of business infrastructure. When a recession is looming, investment demand wanes for long-term loans, resulting in a decline in the price of long-term loanable funds, which is long-term interest rates.

      2. Long-term Treasury bonds pay a fixed “coupon” (cash payment in dollars) every six months for 30 years, at which point the principal investment amount is returned with the final payment. When investors expect a recession, a guaranteed long-term series of payments becomes more attractive relative to stocks, whose value is dependent on earnings which are likely to shrink in a recession. Also, falling interest rates and inflation make a federally guaranteed series of fixed dollar payments (aka a long-term Treasury bond) relatively attractive compared to stocks with an uncertain future payment stream, particularly if corporate earnings are likely to fall in case of a recession.

      Which brings to mind the question: Why are investors so eager to pile into stocks on declining interest rates and inflation expectations when a recession is looming? Don’t they realize that a recession is highly likely to hammer corporate earnings, which are the fundamental determinant of stock values?

      1. If I understood correctly, it’s bearish because people will dump all their money into treasury bonds and that will cause the stock market to tank.

        Thank you! That was helpful! 🙂

        1. This is a very confusing period in financial history, as Quantitative Easing induced an unprecedented degree of positive correlation between Treasurys and stocks which seems to be continuing under Quantitative Tightening. Normally these asset classes are negatively correlated, explaining the long success of the 60-40 portfolio as a diversification strategy up until the recent period.

          The wild card is whether correlation will revert to negative if the economy enters a recession. Time will tell.

    2. A fellow Florida! Warren mosler , billionaire bond trader, mmt god, told me at a conference that the natural rate of interest must be zero. Over time as I gained his friendship he told me stop paying attention to all this finance kabuki theater.

      He said remember under Obama military murders of foreign children went up! That when Dominic strass khan wouldn’t play ball, some woman got him fired from the world bank, all by design. That Robert mueller told him that everyone was certain the ruble couldn’t fall in the 90s because the world would not allow a nuclear superpower to collapse. The world allowed it and nuclear material got smuggled out by starving scientists.

      He said no matter if you live or die, the owners of the fed reserve banks get 6% a year and that ww3 was certain. He moved to a small island in the Caribbean that will be hard for starving masses to reach.

  18. Joe Biden Jokes He’s Worried Jill Biden Will Leave Him for an Indian Reservation

    30 Nov 2022

    President Joe Biden joked Wednesday during a White House speech with tribal nations he was worried his wife would leave him for an Indian reservation.

    “She’s spent a lot of time at other reservations as well, I’m worried she’s not going to come home one of these days when she goes,” Biden said as the audience laughed.

    “You think I’m joking, I’m telling you,” he added. “If I hear more about the Navajos than I hear about me…”

    As the audience laughed again, Biden continued. “Y’all think I’m kidding don’t you?”

    The president explained his wife was attending a funeral Wednesday morning in “Indian country” for the mother of a family friend.

    Redbone – Come and Get Your Love

      1. What a blast from the past. I remember that song getting airplay round the clock…. and our school bus driver liked it and cranked it up while we smoked doobies in the back. This song and iron maiden run to the hills.

  19. The Financial Times
    Property sector
    The global housing market is heading for a brutal downturn
    A pandemic-induced property boom peaked at the end of 2021 but the sector is now braced for the broadest slowdown since the financial crash
    Valentina Romei and Alan Smith in London November 12 2022

    At the end of 2021, things looked rosy for the global housing sector. Across the 38 countries in the OECD, house prices were growing at the fastest pace since records began 50 years earlier.

    Analysis of data from Oxford Economics, a consultancy, shows a similar trend. In 41 countries, from Norway to New Zealand, house prices were rising, bolstered by record low borrowing costs and buyers with savings to spend. Arguably, there had never been a better time to own a home.

    Not even a year later, and the picture is completely different. While homeowners around the world are reckoning with increasingly unaffordable mortgage payments, prospective homebuyers are facing house prices that are rising faster than incomes. In the background, a global cost of living crisis deepens.

    What has changed, of course, is the spectre of rising prices and the economic shock of Russia’s invasion of Ukraine.

    This fuelled a surge in inflation — now at multi-decade highs in many countries — which prompted central banks around the world to sharply tighten monetary policy. The OECD also predicts that real-term wages are likely to fall next year.

    The upshot is that a pandemic-induced housing boom in the world’s richest countries is likely to be followed by the broadest housing market slowdown since the financial crash. This, in turn, could add further pressure on to flagging economies.

    1. MSM-favored experts are quite certain that this time is different, and destined to be milder than the housing downturn associated with the 2007-2009 financial crisis.

      Time will tell. But counting on currently low unemployment and housing inventory to limit the downturn seems like whistling during a stroll past the graveyard.

      ‘It is not clear yet how severe any crash might be. Globally, analysts are optimistic that in most large economies, the conditions of the property market do not suggest as deep a downturn as that experienced during the financial crisis.

      Back then, house prices among the most industrialised countries fell by 13 per cent from the peak in 2007 to the lowest point in 2012.

      The crisis resulted in more than 2mn foreclosures in 2009 in the US. In countries such as Greece, Italy and Spain, which also suffered housing and sovereign crisis, the housing crash was so significant that prices are not yet back to where they were in 2007.

      A key difference now is the strength of the labour market. Unemployment is not going to be as severe as it was in the wake of the financial crisis. The IMF forecasts the rate of joblessness to increase by less than 1 percentage point next year, compared to financial crash when it was closer to 3 percentage points.

      “While unemployment remains low, there is a reasonable chance that price downturns could be limited, with markets instead ‘freezing’ at low levels of transactions,” says Slater, of Oxford Economics. ‘

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