Staying With Your Cheapest, Most Uptight Friend – And Paying Them For The Privilege
A report from Seven Days in Vermont. “When Moriah Stokes and Vincent Connolly purchased a second home in Morrisville in 2017, they already had plans to list it on Airbnb. The couple were living in Colorado at the time, and Stokes, who grew up in Morrisville, wanted to be able to visit her family without staying in a hotel. When the couple decided to move back to Vermont in 2019 to raise their three young children, the home was waiting for them. Stokes and Connolly acknowledge that they benefited hugely from their short-term rental. ‘Vincent was like: ‘I want to have 10 of these. I want to have one in every ski town,’ Stokes said jokingly.”
“But when Stokes and Connolly settled in, their opinion of short-term rentals changed. Morrisville is just north of Stowe and the Stowe Mountain Resort, making it an ideal place to convert single-family homes and apartments to short-term rentals. After watching vacation rentals proliferate in their neighborhood, the couple became staunch supporters of a successful effort last year to impose limits on short-term rentals in the village. Stokes said it’s been hard to watch her hometown change so rapidly. ‘I would rather keep the community and lose my investment,’ Connolly said.”
WCSC in South Carolina. “The City of Folly Beach could lose $1.5 million in revenue if they decide to limit short-term rentals according to a project manage. Another major concern came from some real estate agents that spoke Wednesday night. They say they’re having major trouble closing deals because of this potential cap. Others, like Michael Riffert, say it’s affecting their overall livability. ‘Even though it hasn’t even gone to vote yet, I am being impacted right now,’ Riffert said.”
“Riffert has been a builder on the island for more than 16 years. Since the short-term rental cap is still up for debate, he says he’s had to pull two of his homes off the market from buyers’ concerns. ‘They see that our property rights are being stepped on and they’re like, ‘We don’t want any part of it. We don’t want to move to this community,’ Riffert said. ‘And that’s what we’re up against right now.'”
WFTV in Florida. “Some downtown Orlando condominium owners feel like the President of their owners association wants to run the place like a hotel, even though the city prohibits short-term rentals of entire condo units. The President of the Board admitted in court records to running a rental business with the units he owns. We wanted to ask him about a letter sent out to owners in response to complaints to code enforcement about short-term rentals, and the feeling from some owners at the Jackson that moves made by the Board might leave them no choice but to sell at a loss.”
“‘I just wanted a quiet place, and actually one that had a manageable HOA,’ owner Stephen Komives said. ‘And at the time, this one did.’ Now, some owners say a special assessment of over a million dollars, what they were told was needed to replenish reserves, has pushed their budgets. ‘The overall total amount that I’m paying per month is around $1700,’ Andrew Aponte said. ‘It’s almost tripled.’ ‘I went from, I think about $400 a month [in HOA fees] to nearly $1200 a month,’ Michelle Deleon claimed.”
“The owners question whether it’s an effort to encourage them to sell to make room for rentals. 9 Investigates went through property records and found half of the 52 units in the building are connected to association board members, either directly or through associated LLCs, including board president Nabeel Ansari.”
The Florida Phoenix. “At a City Commission meeting last fall in Pinellas County’s Indian Rocks Beach, local resident Jerry Newton’s frustration was evident. The problem? Short-term vacation rentals in his community. ‘Yet another month has passed,’ Newton said. ‘In the meantime, there are more hotel rooms and more unfamiliar faces every day next door to our homes. It’s beginning to look like our city leaders are not willing to do anything about this cancer. And the answer that ‘our hands are tied’ isn’t going to cut it.'”
“Indian Rocks Beach Mayor Cookie Kennedy has gone to Tallahassee in previous years to discuss short-term rentals with state lawmakers. ‘The big thing that many said to me was, ‘this is a property rights issue,’ but when you make that comment, what about the person who’s lived 25 to 40 years next door (to a short-term rental property)? What happened to their property rights?’ Kennedy said.”
The North East News. “Columbus Park, a historic urban neighborhood near downtown Kansas City, is being overrun by unregistered Short Term Rentals (STR), neighbors say. Now, the City is working on solutions that could have STR property owners paying their fair share. ‘We have a group of volunteers diligently trying to track these unpermitted businesses, and we are overwhelmed with that task, discovering new, illegal Airbnbs each week,’ the letter said. ‘Columbus Park is becoming an unwilling hotel district. This industry is becoming an international investment and real estate business, buying up homes in bulk. Communities are commodities to them.'”
“‘I know a lot of people sometimes try to say that Short Term Rentals or Airbnbs are just somebody who’s renting off an extra room and perhaps a carriage house,’ said Mayor Quinton Lucas. ‘However, in reality, there are a lot of folks in Kansas City that own 40, 80, 120 different single family homes that are being used as Short Term Rentals. They are operating like hotels, they’re operating as substitutes for hotels and motels.'”
Business Insider on Arizona. “The desert destination Scottsdale, Arizona, 30 minutes from downtown Phoenix, is putting its foot down on the thousands of short-term rentals dominating the local real-estate market. Starting this month, the city is requiring Airbnb and Vrbo hosts to apply for an operating license and pay a $250 annual fee. The regulation is a warning to the industry that has flourished under a 2016 Arizona law that banned local caps on short-term rentals. A 2022 state law allowing cities to require licenses made the move possible for Scottsdale, which had been hamstrung in its efforts to expand oversight of the market.”
“In resisting regulations, the hosts are upsetting locals who complain that short-term rentals have a detrimental effect on the city by reducing available housing for residents and the sense of community. ‘There are relatively few areas where there are majority homeowners or residents left,’ Susan Edwards, a local resident, told Phoenix’s CBS affiliate. ‘It’s destroying neighborhoods in Scottsdale,’ Edwards added.”
“Indeed, the explosion of short-term rentals in Scottsdale is ‘out of control,’ Solange Whitehead, a Scottsdale councilwoman, said. She likened the simmering tensions over the issue to a ‘slow-cooked lobster.’ ‘We have people in cul-de-sacs that no longer have neighbors,’ said Whitehead. When one Scottsdale local confronted a neighboring short-term host over ‘horrible parties and lewd behaviors,’ the host responded that maybe it was time for the neighbor to move out, she said.”
CBS Los Angeles in California. “While Los Angeles County might be one of the most expensive places to live in the United States, rent prices have dropped steadily over the last four months, a trend noticed across nine of California’s 10 most-populated cities. The city with the largest drop in rental prices was Oceanside, where in December, prices dropped by nearly 4%. In Los Angeles and Long Beach, there was a 1% drop. Anthony Lopez, a realtor with RE/MAX Vision, says that the drop comes from a combination in more homes on the market and more units for rent than there are prospective renters.”
“‘It’s about proactive landlords that are recognizing the loss that they’re having by keeping the property vacant,’ he said. ‘would you rather take $200 less in the mortgage and have your property vacant, or be paying your mortgage?’ On top of all of this, there are a number of additional factors pushing people to consolidate households. ‘Pandemic, inflation, cost of living,’ Lopez said. ‘I remember last year I was helping a client with a lease and there were at least 30 applicants. Now, you got some that aren’t getting any applications.'”
KRON 4 in California. “Downtown San Francisco is still struggling to recover from the pandemic, according to a new study that examined 62 large cities and placed the city in last place. The study found downtown San Francisco only has 31 percent of the activity seen before the pandemic in 2019. San Francisco recovered the least out of all of them. This does not come as a surprise to local economists. ‘Companies moved away, tourism is down, and people are moving away. These effects have come to a head in the downtown economy,’ said Jeff Bellisario, Bay Area Council Economic Institute Executive Director.”
“They said a part of the problem is all the vacant offices in San Francisco. According to city data, tourism in the city struggled right up until the end of last year, with hotel occupancy falling below 50 percent. ‘San Francisco set itself up for this. It zoned out residential and doubled down on commercial offices in the downtown zip code. That’s what it decided this area of the city should be and it was the wrong bet,’ said Karen Chapple, a University of Berkeley and Toronto professor.”
The Windsor Star in Canada. “The Town of Essex has launched a new hotline for reporting and responding to concerns about short-term rental units in the municipality. Since Jan. 1, owners of short-term rental units in the Town of Essex are required to have a valid licence to advertise or operate those units. Enforcement is now in effect. Neighbours who spoke with the Star last year noted parties, big backyard bonfires, fireworks year-round and ‘out-of-control’ parking on residential streets as key issues affecting local residents.”
The Brisbane Times in Australia. “Barney Gardner watched as his once-bustling, working-class suburb of Millers Point was turned into extravagantly renovated townhouses and rows of empty holiday homes. ‘Just about all of them are Airbnb because they were turned into one- bedrooms, and there are still quite a lot of empty properties that have been sold, and the people haven’t done anything with them,’ Gardner said .The harbourside enclave, which was once known for its social housing, has become the Sydney suburb with the highest proportion of unoccupied dwellings, with 34 per cent of its homes empty on the most recent census night.”
“It’s one of the suburbs contributing to the 164,624 empty homes across Greater Sydney. The unoccupied rates of some places, such as Copacabana, The Entrance and Avoca (28 per cent), are easily explained by the high proportion of holiday homes. And unusually high vacancy in Kensington (18 per cent) and Glebe (14 per cent) might be explained by the absence of foreign students during lockdowns in 2021. But that’s not a one-size-fits-all explanation. North Parramatta – in the heart of Sydney suburbia where the median three-bedroom house price is $1.06 million – had a relatively high 16 per cent of homes unoccupied on census night.”
From The Guardian. “Having engaged in a lot of qualitative research recently, I’ve discovered the following: everyone is sick of Airbnb. In its early years, Airbnb was a more economical and adventurous alternative to a hotel. Nowadays, it costs a small fortune to rent a shack on Airbnb and, when you get there, you are forced to abide by a long list of rules and buy your own toilet paper. It’s become a bit like staying with your cheapest, most uptight friend – and paying them for the privilege.”
“I’m not the only person to have made this observation. Every few weeks a tweet dunking on Airbnb seems to go viral. The latest example comes courtesy of a writer called Jeremy Gordon, who got more than 100,000 likes for tweeting the following: ‘Decided to stay in a Holiday Inn instead of an Airbnb for an overnight trip and strongly feel, one hour after check-in, that there has never been a more luxurious experience in all of human history.'”
“Let me be clear that I’m not being sponsored by big hotel when I say this (if big hotel would like to sponsor me then please get in contact!), but I’m not sure I’ll ever stay in an Airbnb again. To be fair, this is partly because Airbnbs are now obscenely priced and I can’t afford to. Sometimes I look at Airbnbs for fun and then, when I find one that seems reasonable, I realise it’s actually a tent. Someone has put a bed in a tent in a field and is renting it out for more than $100 a night.”
“The last time I stayed at an Airbnb was in 2021, before childcare ate all my disposable income. We had a new baby and wanted a relaxing few weeks away from the city, so we booked a riverside cottage in the Catskill mountains. As it turns out, ‘relaxing’ and ‘three-month-old baby’ don’t really mix. Being greeted with a long list of rules when we arrived didn’t help matters. Some of these rules were reasonable, some were not. Do not put drinks on the coffee table! I’m sorry, what? It’s a coffee table. The clue is in the name. You put coffee on it. If you have furniture that you don’t want people to put drinks on, then don’t rent out your place on Airbnb for a ridiculous amount of money.”
“There were a few other hiccups with this Airbnb. The hair that had been left in the sink, for example. (The host gave us a refund on the $300 cleaning fee.) The broken dishwasher. (The host grumbled, then sent a plumber.) And the snake. The first time I went to the basement to use the washing machine, I almost stepped on a snake. ‘Just thought you might want to know a snake lives in your basement!’I messaged the host, who was thoroughly sick of us by now. The curt response: ‘Well, it’s the countryside.’ That put me in my place, didn’t it? I didn’t realise that everyone in the countryside has a snake in their basement. While it may have been no big deal to the owners, it made doing the laundry eventful. First I’d pop my head into the staircase and yell: ‘Hello snake!’ to make sure it knew I was coming. Then I had to locate the bloody thing.”
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𝗕𝗼𝘇𝗲𝗺𝗮𝗻, 𝗠𝗧 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗣𝗿𝗶𝗰𝗲𝘀 𝗖𝗿𝗮𝘁𝗲𝗿 𝟯𝟭% 𝗬𝗢𝗬 𝗔𝘀 𝗗𝗲𝘀𝗽𝗲𝗿𝗮𝘁𝗲 𝗦𝗲𝗹𝗹𝗲𝗿𝘀 𝗦𝗹𝗮𝘀𝗵 𝗣𝗿𝗶𝗰𝗲𝘀 𝗗𝗼𝘂𝗯𝗹𝗲 𝗗𝗶𝗴𝗶𝘁𝘀
https://www.movoto.com/bozeman-mt/market-trends/
𝘈𝘴 𝘢 𝘯𝘰𝘵𝘦𝘥 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘴𝘵 𝘢𝘥𝘷𝘪𝘴𝘦𝘥, “𝘎𝘦𝘵 𝘸𝘩𝘢𝘵𝘦𝘷𝘦𝘳 𝘺𝘰𝘶𝘳 𝘩𝘰𝘶𝘴𝘦 𝘸𝘪𝘭𝘭 𝘧𝘦𝘵𝘤𝘩 𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘪𝘵’𝘴 𝘨𝘰𝘯𝘯𝘢 𝘧𝘦𝘵𝘤𝘩 𝘭𝘦𝘴𝘴 𝘭𝘢𝘵𝘦𝘳. 𝘈 𝘸𝘩𝘰𝘭𝘦 𝘭𝘰𝘵 𝘭𝘦𝘴𝘴.”
Kiwis are distraught to see their horse-faced WEF overlord mount her broom & head off into the sunset.
https://twitter.com/therealrukshan/status/1615888109283209222?cxt=HHwWjMDT6ZHr5OwsAAAA
Will Turdo be next?
Notice how the lapdog media suddenly turned on Brandon? Methinks his globalist puppetmasters have realized he’s outlived his usefulness and a more presentable stooge is needed. It won’t be Kamala – the markets would drop thousands of points overnight if we woke up to that pathetic babbling imbecile as our next president.
Meet the new WEF overlord, same as the old WEF overlord.
‘ the city struggled right up until the end of last year, with hotel occupancy falling below 50 percent. ‘San Francisco set itself up for this. It zoned out residential and doubled down on commercial offices in the downtown zip code. That’s what it decided this area of the city should be and it was the wrong bet’
They were probably preoccupied with sourcing lamp posts that could better withstand the bum urine Karen. What to do with the foreclosed hotels? I know, let’s convert them to housing!
‘I remember last year I was helping a client with a lease and there were at least 30 applicants. Now, you got some that aren’t getting any applications’
That’s some shortage Tony.
Another major concern came from some real estate agents that spoke Wednesday night. They say they’re having major trouble closing deals because of this potential cap. Others, like Michael Riffert, say it’s affecting their overall livability. ‘Even though it hasn’t even gone to vote yet, I am being impacted right now,’ Riffert said.”
Die, speculator scum.
‘There were a few other hiccups with this Airbnb. The hair that had been left in the sink, for example. (The host gave us a refund on the $300 cleaning fee.) The broken dishwasher. (The host grumbled, then sent a plumber.) And the snake. The first time I went to the basement to use the washing machine, I almost stepped on a snake’
I know people who travel and they don’t even look at hotels. I don’t understand it. BTW host, a plumber can’t help with washing machines, unless you didn’t hook it up.
I don’t feel sorry for these people getting taken for a ride by Airbnb. They are just as responsible as the speculators who bought them.
If you have a lot of people getting together who will split the cost AirBnB makes sense.
Otherwise, it’s economically ridiculous.
‘They see that our property rights are being stepped on and they’re like, ‘We don’t want any part of it.
You’re building hotels in residential neighborhoods, with no regard for the impact on the quality of life on those who have to put with the shenanigans of the “guests” who frequent STRs. What about their rights?
Ben, as I read all these news clips you’ve posted, it occurs to me that we could very well be witnessing a bursting housing bubble. This is perhaps a topic we should explore on the HBB.
‘The big thing that many said to me was, ‘this is a property rights issue,’ but when you make that comment, what about the person who’s lived 25 to 40 years next door (to a short-term rental property)? What happened to their property rights?’
When I do a post like this I usually get comments about property rights. These people are operating a hotel and aren’t around. How would that work at a real hotel? ‘Here’s the key, drop it in a box when you leave, don’t play rap music after 3 AM.’
‘Don’t kill anyone.’
MADE TO PAY Eerie update after husband ‘dismembered wife’s body with hand saw at Airbnb on their anniversary getaway’
Caitlin Hornik
Published: 21:22 ET, Jan 18 2023
Updated: 21:23 ET, Jan 18 2023
A MAN accused of killing his wife and later returning to dismember her body with a hand saw while staying at an Airbnb has been ordered to pay the woman’s family $1.5million.
Joseph Ferlazzo Jr, 42, is being held without bail after he allegedly killed his wife, Emily Schwarz Ferlazzo, 22, during their anniversary vacation.
…
https://www.the-sun.com/news/7170599/husband-dismembered-wifes-body-airbnb/
Maybe the take away is don’t marry someone half your age.
When I do a post like this I usually get comments about property rights. These people are operating a hotel and aren’t around. How would that work at a real hotel? ‘Here’s the key, drop it in a box when you leave, don’t play rap music after 3 AM.’
Right. There is no such thing as property rights where you get to ignore the zoning laws in place for decades and decide to do whatever you want. This was only possible because these scvmmy SiliCON Valley parasites lawyered up to stave off legal action.
The people who talk about “property rights” would be the first to call the police if their own neighbor decided to turn their backyard into a pig farm, which is also against said zoning laws. But “property rights!” Fvck you, hypocrites.
By the way, if I could “do magic,” as they say, I would snap my fingers and turn every adjoining property to every Airbnb in the US into a stinky, nasty pig farm. They’d never get another guest. That’s what they deserve.
Pigs don’t smell. What smells is the accumulated manure of barn kept pigs.
Now, some owners say a special assessment of over a million dollars, what they were told was needed to replenish reserves, has pushed their budgets.
Given the shoddy construction of the vast majority of the condos built since Housing Bubble 1.0, anyone stupid enough to buy into such an edifice can expect never-ending, ever-increasing “special assessments,” with a growing percentage of residents unable or unwilling to pay their share.
Also the massive property tax increases and the massive insurance premiums. But the really big underlying problem in all HOA’s is that depreciation is never accounted for.
for example. a roof lasts 20 years. In the part of every due’s should be 1/20th of the price of a roof (of course it goes up over time) and every year the current owner pays their portion of the roof. (painting, parking lot, etc).
But that’s not what happens. They have no reserves and make no adjustments to current due structure and the current owners just hope to sell before something big comes due, so the new owner has to pay all 20 years all at once. Happens all the time. (rule #1, screw the next guy)
A report from Seven Days in Vermont. “When Moriah Stokes and Vincent Connolly purchased a second home in Morrisville in 2017, they already had plans to list it on Airbnb. ‘I would rather keep the community and lose my investment,’ Connolly said.”
It’s not a matter of choice my helpless Debt Donkeys. You got donked…. You got donked but good.
Sacramento, CA Housing Prices Crater 31% YOY As Rampant Mortgage And Appraisal Fraud Leaves Market In Smoldering Ruins
https://www.movoto.com/sacramento-ca/market-trends/
A letter to the editor:
The other day, I posted about #Airbnbust, and the risk of Debt Service Coverage Ration (DSCR) loans.
Some DSCR loans are advertised as NONI (“Non Owner No Income”) loans because no proof of income is required for investors who never plan to be an owner (live, work or play with neighbors), and occupy the property as a primary residence.
DSCR loans are alarming longtime observers of the real estate market. In a weak economy, STR investors who qualified based on rental income alone are likely to default at a rate 300% higher than individuals with conventional mortgages.
I hope Pagosa realtors are not encouraging young starry-eyed inexperienced STR investors to ‘make it happen, quit your job, retire, make the move to the mountains, work for yourself, and live off the passive income streams that STR units can provide’. I hope that the majority of the estimated 1,000 STR units created in Archuleta County during the last decade were paid for with substantial cash down-payments, and financed with conventional home mortgages.
A standard DSCR loan includes a ‘step-down’ prepayment penalty structure called ‘5/4/3/2/1’. If an STR investor must sell an STR unit, and pay-off the DSCR loan in year one, then the STR investor must pay a prepayment penalty — 5% of principle loan amount.
The penalty steps down to 4% in year 2, 3% in year 3, 2% in year 4, and 1% in year 5.
I hope we don’t have 100 illegal STR units — 10% of the STRs in Archuleta County. Approximately 25% of STRs in New York City are estimated to be illegal.
I hope 25 STR units (2.5% because of #Airbnbust) are not forced onto the MLS as inventory For Sale.
If a $500,000 Pagosa Lakes home was converted into an STR unit during 2020 – 2022, and the STR unit must be sold in 2023, then the DCSR prepayment penalty is about $25,000 per STR unit sold.
If STR units are sold at distressed prices, commissions are paid to Realtors, and the new MLS inventory might improve Workforce Housing availability. The real estate market needs a “reset”, but unfortunately when DSCR loans are involved in a recession market — things don’t always turn out well for young starry-eyed, inexperienced STR investors.
The five scariest numbers for a young starry-eyed inexperienced STR investors might turn out to be 5/4/3/2/1.
https://pagosadailypost.com/2023/01/17/letter-five-scary-numbers-for-str-investors/
I get unsolicited emails from Debt Service Coverage Ratio lenders and they really target the STR loanowner. These STR guys must be fooked if that’s going on.
The Air Bnb bubble is way worse than people realize. If those homes get sold as business dries up, prices will adjust south much faster
Right now they’re HOLDing, waiting for prices and the market to “come back.” What’s funny is most of these clowns have almost no reserves. I’m long insomnia.
Perhaps the rising trend of layoffs will lead to just such an outcome?
Pfizer CEO Refuses To Answer Questions About Jab At Davos
https://www.bitchute.com/video/r6f2UyPK9Odd/
3 minutes.
Nice catch there!
This guy deserves the death penalty.
Nuremberg v2.0
Why wait for a trial? Somebody could kidnap him off the street in Davos, drive him a few hundred miles north into Germany and hang him from the same gallows they used in 1946.
It’s a medical genocide.
Is the Wall Street-Federal Reserve Looting Syndicate about to actuate the next Great Muppet Reaping?
https://twitter.com/FinanceLancelot/status/1615837765127766016?
“Don’t set drinks on the coffee table”, that’s a good one , a hint to stay away from there….
Sarasota Fl, has short term rental unit laws ,like 30 day min. stay , but it appears they do not enforce them at all… We stayed in the conclave of Pinecraft there ,last year , It’s where the richest Amish winter from the cold northern states ….about 15 square blocks ,never seen anything like it, they have their own Park , and huge eating places , it’s a tourist attraction by itself ,every nook and cranny is rented out , and not cheap ,the city even has a seasonal bus,for them, that runs to Seista beach all day long . The overflow rent condos down at the beach ….A half dozen huge private buses , pick up and put off people every day in winter ,they’re semi-private , from Lancaster Pa , from Ohio ,and Ind, Amish areas…….It’s all real cool-like
When one Scottsdale local confronted a neighboring short-term host over ‘horrible parties and lewd behaviors,’ the host responded that maybe it was time for the neighbor to move out, she said.”
The sooner the STR speculator scum are financially destroyed and blocked from bringing their plague & pestilence into residential neighborhoods, the better. Of course that will require getting rid of the AirBnB hirelings in City Hall.
A reader sent these in:
Liz Ann Sonders
Credit card interest rates continue to soar and have now passed peak seen in 1985 per @NewYorkFed data
https://twitter.com/LizAnnSonders/status/1615686677351071745
Danielle DiMartino Booth
Can you hear me now, Jerome?
https://twitter.com/DiMartinoBooth/status/1615718417314582529
Danielle DiMartino Booth
It’s a GREAT DAY for Pivoteers!
*PPI tumbles most since pandemic onset
*Retail Sales fall by most in a year
*NY Services (biggest svsc economy in nation) continues sickening slide
*Industrial Production misses big w/nasty revisions to Feb 2021 low
*CAPU lowest since Dec 2021
https://twitter.com/DiMartinoBooth/status/1615717348522004481
Danielle DiMartino Booth
Another well advertised casualty. @PartyCity seeking bankruptcy protection, a final blow for the retailer that struggled to rebound after sales plummeted during the pandemic. The firm filed for Chapter 11 bankruptcy in the Southern District of Texas on Tuesday.
https://twitter.com/DiMartinoBooth/status/1615707814491561984
The Fed’s war on jobs is getting us accustomed to the smell of layoffs in the morning
Amazon just announced another 18,000 job cuts
And Microsoft is expected to announce cuts of up to 5% of its 200,000+ workforce
https://twitter.com/menlobear/status/1615718906416738311
Defense lawyer: Whatever you do, just lay low and stay quiet. The less the prosecution has to work with, the better. SBF:
https://twitter.com/GRDecter/status/1615731505879203840
Since 2020, the richest 1% of people have accumulated 63% of all new wealth created around the world.
https://twitter.com/GRDecter/status/1615521251035938817
David Rosenberg
Sorry, folks. No soft landing. On track for 3 straight quarters of declines in real retail sales alongside 2 successive negative production numbers. Only happens in recessions.
https://twitter.com/EconguyRosie/status/1615749682226929664
New Zealand – REINZ Housing Price Update (December)
Prices MoM (since peak):
– National -1.7% (-15.2%)
– National (ex-Auckland) -1.4% (-11.6%)
– Auckland -2.1% (-20.1%)
– Wellington -2.6% (-21.6%)
The Kiwi housing price crash continues
https://twitter.com/AvidCommentator/status/1615523172211920896
KABOOM!! 💣💣💣
$1.1 million loss in just 1 year
Bought Feb 2022: $8.8 million
Just sold for $7.7 million
West Vancouver
https://twitter.com/mortimer_1/status/1615566503008686080
At the peak of the housing bubble, the monthly mortgage payment on a new home equaled 96.4 hours of wages. Right now, at 6.33%, it’s 96.2 hours of wages.
https://twitter.com/JeffWeniger/status/1615873926516690947
This is how shortages turn into abundance. A decade ago, many more households being formed than houses being built. A shortage. But last 5 years…
Total new houses started: 6.97 million
Total households formed: 4.98 million
We move to abundance.
https://twitter.com/JeffWeniger/status/1615767265680719872
Always remember the monetary policy lags. The Fed finishes a tightening cycle and then it may take a year or two before you see the low in the ISM Services PMI. It’s at 49.6 now. I suspect it heads lower.
https://twitter.com/JeffWeniger/status/1615726626188173316
How’s the Fed’s “price stability” working out for you?
https://twitter.com/JeffWeniger/status/1615553439840325632
The housing market is a strong as it ever has been….Jesus Christ of you bought in the past 18 months your are f*cked.
https://twitter.com/GoLikeHell_/status/1615866600913240066
Huge housing price cuts in Los Angeles. One down $250K. Another down $100k. The biggest was a $5.75 million price cut to only $639k!
https://twitter.com/TrackInflation/status/1615802720128217088
What do you mean “real estate is collapsing”? Imagine yourself trying to buy a house as a Millennial or Gen Z. The price is 30-40% higher than pre-Covid, and this is before you factor in mortgage rates.
https://twitter.com/realDillonEvans/status/1615837168043270145
Rich people big worried about their welfare going away
Quote Tweet ron insana
Dear Fed, please stop! The yield curve inversion is 127 basis points! 1 1/4 percentage points! Not this wide since 1981! Inflation’s falling. Retail sales are falling, real estate is collapsing. Wage inflation’s not a Fed issue but a demographic issue! Stop now! I beseech you!
https://twitter.com/GRomePow/status/1615860673107619841
Bill Gates says he’s not sure why he visited Epstein Island 36 times
https://twitter.com/ShresthaAlishna/status/1615372527269982209
The biggest threat to housing market is capitalism
https://twitter.com/GRomePow/status/1615842375619969024
Scary thought … a year ago, 80% of new car purchases were OVER MSRP. 13m new cars were sold. Since then trade-in values have plummeted. The negative equity situation is SCARY.
https://twitter.com/shefska/status/1615814214810992641
She knew she would get wiped out in the next election due to her totalitarian policies during Covid. Instead of facing the voters, she is running. Which country will she flee to in exile to avoid prosecution?
https://twitter.com/WallStreetSilv/status/1615866492867706882
The Kobeissi Letter
Layoffs Since October:
1. Twitter: 75% of employees
2. Microsoft: 10,000+ employees
3. Amazon: 18,000+ employees
4. Goldman Sachs: 8% of employees
5. Meta: 13% of employees
6. Coinbase: 20% of employees
7. Intel: 20% of employees
8. Salesforce: 10% of employees
https://twitter.com/KobeissiLetter/status/1615746384841285633
The Kobeissi Letter
JUST IN: After today’s announcement that Microsoft will be laying off 10,000 employees, tech layoffs in 2023 are now at a total of 35,000 employees. Since October, we have seen almost double the amount of tech layoffs as 2001.
https://twitter.com/KobeissiLetter/status/1615724253948612616
Aaron Layman
It’s not that sellers can’t sell their existing home on the resale market. It’s that many are still under the delusion their existing home is worth more than it really is.
https://twitter.com/dfwaaronlayman/status/1615533285932961793
Ben Rabidoux
Canadian businesses don’t see @bankofcanada getting inflation back into their target range over the next 2 years.
https://twitter.com/BenRabidoux/status/1615050448058126339
Lucky Lopez
Not Only are Gas Prices Down but also exotic cars Values losing 3-8% of value Per month for the last 6 months 😱
https://twitter.com/AutomotiveLife1/status/1615776814168961024
Lucky Lopez
Tesla Car Values are falling! 18.9% in the last 90days. Now they just lowered New car prices
https://twitter.com/AutomotiveLife1/status/1615391679917494272
Millennials trying to buy a home after seeing ads for third-tier pizza in 🇨🇦.
https://twitter.com/StephenPunwasi/status/1615736382491889664
Just a reminder, falling interest rates and invert yield curve is a sign of bad things to come for the housing market
https://twitter.com/GRomePow/status/1615771391583989765
Ron Butler
@ronmortgageguy
Have You Ever Heard Any Canadian Politician, Any Government Official, Any Policy Expert Say House Prices Must Come DOWN?
We hear: Affordability
We hear: More Supply
We hear: More Public Housing
We hear lot’s from the people who are in charge of the Housing in Canada
https://twitter.com/ronmortgageguy/status/1615702810439421952
Just 6 months ago, Tesla “flipping” was actually a thing. That game is over with the average price of a used Tesla now down 25% from the peak
https://twitter.com/charliebilello/status/1615703653741985794
‘Can you hear me now, Jerome?’
It’s a GREAT DAY for Pivoteers!
I guess Danielle has a whopping big mortgage too. I’ve listened to people go on about interest rate inversions, etc. They go back and say this happened in year so and so. What if it’s just lines on a page? How do we compare these lines to a time when the central bank didn’t buy the curves?
You know what is real? Inflation. When it started up in the late 1960’s (pre-oil shocks BTW), it took almost 20 years to reign in.
“When it started up in the late 1960’s (pre-oil shocks BTW), it took almost 20 years to reign in.”
That’s a big factor in the current situation which the Pivoteers seem to miss. The Fed was complicit in dragging out its efforts to contain inflation in the 1970s, and is trying to avoid following the same path that led to Volcker. They are taking care of business up front this time.
taking care of business up front
They took care of business up front alright. They might have overharvested just a tiny little bit.
They definitely overfertilized!
Or was it more a matter of overwatering?
It’s a GREAT DAY for Pivoteers!
I guess Danielle has a whopping big mortgage too.
All of these financial types who get airtime are completely oblivious to the struggles of the every day person. I remember when she interviewed that Lucky Lopez car guy. All she was concerned about was when the price of Cadillac Escalades would fall because she wanted to buy a new one.
“Bill Gates says he’s not sure why he visited Epstein Island 36 times”
That must have been a lucrative shakedown.
It’s also false info like most things on Twitter and some news. He was accused of that and flight records and customs records were Subpoenaed. No truth…but he has been around Epstein, like everyone other A lister….trump included. I’m not a gates fan for the record.
I do know a lot about private jet travel, and I can tell you, it leaves a paper trail like you won’t believe. I can see every gulfstream jet in the air right now, altitude, speed…climb profile. Flightaware is one of the providers
It’s also false info
You actually don’t know that. All of the info regarding Epstein and his guests has been hidden from the public because they’re all the “elites” of the world. What IS clear is what he was doing, which was providing young women for wealthy men to bang. I find it interesting that people like you rush to defend guys like Gates when you don’t even have any knowledge to do so.
Given the revelations of the last few years, at this point, any “elite” person of any sex/status/job/political office should be assumed to be a pedo. At this point they all are or the number that isn’t is so small as to be statistically insignificant.
It’s also false info like most things on Twitter and some news.
I’d like to see your statistical analysis to back up this claim. You wouldn’t have happened to just pull this out of your asz, would you have?
“…private jet travel…”
I would imagine most of their flights are in class A airspace, which is above 18,000-ft where these jets can achieve their best performance, and class A requires IFR flight plans to be filed prior to departure. Their insurance carriers likely have their own flight rules for policy holders too.
“I’m not a gates fan for the record.”
His expensive divorce was probably not in his retirement plans. It is also unfortunate that even with immense wealth that he could not enjoy intimacy from his wife or on the sly.
Liz Ann Sonders
Is she worth following?
2024 could be the worst year for the housing market
Financial Post
Jan 19, 2023
John Pasalis, President of Realosophy Realty, speaks with Financial Post’s Larysa Harapyn about how 2024 could be the worst year for the housing market.
https://www.youtube.com/watch?v=1VJ7YgthSvg
5:41.
That San Francisco piece never once mentioned the homeless issue, the smash-n-grab crime wave or the vehicle prowls. How do they expect anyone to live downtown?
“It’s a GREAT DAY for Pivoteers!”
So how come Mr Market is so glum? And sliding ever so much deeper into the CR8R?
The Financial Times
Markets Briefing Equities
Global stocks tumble as weak US data stoke recession fears
Traders’ concern increases over effect on company profits of Fed’s aggressive monetary tightening
Christine Lagarde pledged to ‘stay the course’ on interest rate rises
George Steer
54 minutes ago
Wall Street stocks tumbled on Thursday after souring US economic data stoked fears of a coming recession, even as the figures lifted the chance of a smaller rate increase when the Federal Reserve meets at the end of the month.
The US benchmark S&P 500 and the tech-heavy Nasdaq Composite both declined 0.7 per cent in early New York trading, following on from sharp falls for European stocks earlier in the day.
December data showing weak US retail sales and a steep decline in industrial production drove the S&P 500 down 1.6 per cent on Wednesday, reversing a trend of equity markets rising despite signs of slowing economic growth.
Confident that inflation has peaked, investors are nevertheless growing increasingly concerned about the depth of an expected recession and the effects of the Fed’s aggressive monetary tightening campaign on company profits. Microsoft’s decision to cut 10,000 workers only added to the gloom, while consumer goods conglomerate Procter & Gamble’s shares slid after reporting a slowdown in net sales.
“Bad news is bad news” again said Charlie McElligott, a strategist at Nomura. Noting US equities’ relatively strong start to 2023 against an uncertain macroeconomic backdrop, Premier Miton’s chief investment officer Neil Birrell joked he was “worried we’ve had the entire year’s returns in the first two weeks”.
…
‘“Bad news is bad news” again’
Gulp!
It’s bad news for stock HODLers when Wall Street’s and Main Street’s definitions of bad news agree.
Markets
DOW 33,044.56 down 0.76%
S&P 500 3,898.85 down 0.76%
NASDAQ 10,852.27 down 0.96%
Fear & Greed Index
Bad news for the economy is now bad news on Wall Street
By Paul R. La Monica, CNN
Updated 4:08 PM EST, Thu January 19, 2023
New York CNN —
The market is bracing for a perfect storm of bad news. The latest worry? The impending debt ceiling drama in Washington.
The United States hit its borrowing cap on Thursday, forcing the Treasury Department to start taking “extraordinary measures” to keep the government open.
If an agreement isn’t reached, markets could plunge (like they did the last time this happened in 2011) and the United States risks having its credit rating downgraded again.
“From both an economic and a financial perspective, a failure to raise the debt ceiling would be an unmitigated disaster,” said David Kelly, chief global strategist with JPMorgan Funds, in a report earlier this week.
…
https://www.cnn.com/2023/01/19/investing/dow-stock-market-today-economy/index.html
It’s pretty interesting that Mr Market seems more willing to trust Christine Lagarde’s pledge to ‘stay the course’ on rate hikes than Jerome Powell’s similar commitment to ‘keep at it’ until inflation is contained. Lagarde was one of the holdouts among rate hike doves, while Powell led punch bowl despiking operations among central bankers.
The Financial Times
Eurozone economy
Christine Lagarde promises to ‘stay the course’ on high interest rates
Euro and government borrowing costs rise as ECB president’s Davos remarks stoke expectations of more big rate rises
ECB president Christine Lagarde said headline, core and all other measures of inflation were still a concern at the central bank in Frankfurt
Chris Giles in Davos, and Valentina Romei and George Steer in London
4 hours ago
Christine LaLe warned financial markets on Thursday that the European Central Bank was determined to “stay the course” and signalled further big interest rate rises lay ahead to get inflation down.
In comments that bolstered the euro, the ECB president told the World Economic Forum in Davos that markets should ditch their view that the central bank would soon slow down its rate rises in response to signs that eurozone inflation has peaked.
“I would invite [financial markets] to revise their position; they would be well advised to do so,” she told a panel.
…
The Financial Times
Currencies
Dollar touches 7-month low as Fed rate rise expectations slide
Falls in retail sales and wholesale prices ease pressure on US central bank and emerging markets
US dollar banknotes
The dollar index measuring the currency against a basket of its peers has fallen 10.7% since September
Jennifer Hughes and Kate Duguid in New York yesterday
The dollar touched a seven-month low on Wednesday, reversing a trend that dominated much of 2022 as lower expectations of sharp Federal Reserve rate rises eased pressure on global markets.
The fall in the US currency, one of the steepest since the aftermath of the global financial crisis, came as US retail figures showed a 1.1 per cent year-on-year drop in sales in December — a bigger than expected fall that highlighted continuing weakness in the US economy.
“The trend has been very much in favour of dollar weakness, so it doesn’t take much to push it further in that direction,” said Alan Ruskin, head of G10 FX strategy at Deutsche Bank. “Any minor macro information can sway [the dollar].”
Expectations about the Fed’s future actions are influential in currency trading since higher interest rates drive up yields on US debt, attracting foreign inflows that boost the dollar.
The dollar index measuring the currency against a basket of its peers has fallen 10.7 per cent since September, the fastest rate of decline since 2009.
Data released on Wednesday also showed a 0.5 per cent month-on-month decline in wholesale prices — the sixth consecutive fall — further boosting hopes that the pressure on the Fed to raise rates is relenting. US consumer inflation has fallen consistently for five months.
The trade in the US currency became known as “King dollar” as it rose on the back of big Fed rate rises last year, but the recent data have bolstered market expectations that borrowing costs will not rise much further in 2023.
The Fed has already pivoted from 0.75 percentage point to 0.5 point increases and is increasingly expected to shift to 0.25 increments.
“We currently have traders putting a 5 per cent chance on a 0.50 percentage point increase at the next Fed meeting. It is not often you get that kind of certainty,” said Ed Al-Hussainy, strategist at Columbia Threadneedle.
…
It’s the fake tan.
Yahoo
Reuters
US STOCKS-Wall St falls as recession worries resurface
Amruta Khandekar and Shreyashi Sanyal
Thu, January 19, 2023 at 7:47 AM PST·3 min read
Procter & Gamble falls, warns of commodity cost pressures
Indexes down: Dow 0.62%, S&P 0.66%, Nasdaq 0.82%
By Amruta Khandekar and Shreyashi Sanyal
Jan 19 (Reuters) – U.S. stock indexes fell on Thursday as worries about a looming recession crept into the foreground of the earnings season, while shares of Procter & Gamble fell after the company warned of cost pressures.
Fears of the Federal Reserve’s sharp interest rate hikes slowing the economy were fanned by weak retail sales and manufacturing data on Wednesday, with the S&P 500 and the Dow logging their biggest daily percentage declines in over a month.
The challenging economic environment has dealt a blow to corporate America, with companies such as Microsoft Corp and Amazon.com Inc announcing plans to cut thousands of jobs.
Both the megacap firms were among the top drags to the benchmark S&P 500 on Thursday.
Retailers and consumer discretionary stocks were among the leading decliners on the S&P 500, down 1.1% and 0.9%, respectively.
…
https://finance.yahoo.com/news/us-stocks-wall-st-falls-154738561.html
Davos WEF
Jamie Dimon says rates will rise above 5% because there is still ‘a lot of underlying inflation’
Published Thu, Jan 19 2023 6:21 AM EST
Updated 3 Hours Ago
Yun Li
JPM -2.76 (-2.02%)
Jamie Dimon: Rates will rise above 5% because there is still ‘a lot of underlying inflation’
JPMorgan Chase CEO Jamie Dimon believes interest rates could go higher than what the Federal Reserve currently projects as inflation remains stubbornly elevated.
“I actually think rates are probably going to go higher than 5% … because I think there’s a lot of underlying inflation, which won’t go away so quick,” Dimon said Thursday on CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.
To battle soaring prices, the Fed has raised its benchmark interest rate to a targeted range between 4.25% and 4.5%, the highest level in 15 years. The anticipated “terminal rate,” or point where officials expect to end the rate hikes, was set at 5.1% at its December meeting.
…
https://www.cnbc.com/2023/01/19/jamie-dimon-says-rates-will-rise-above-5percent-because-there-is-still-a-lot-of-underlying-inflation.html
The Financial Times
Markets Briefing Equities
US stocks fall as investors assess rate rise outlook
Traders’ increases over effect on company profits of Fed’s aggressive monetary tightening
Lael Brainard
Lael Brainard, vice-chair of the US Federal Reserve: ‘We are determined to stay the course’
Harriet Clarfelt in New York and George Steer in London
32 minutes ago
Wall Street stocks fell on Thursday after central bankers vowed to “stay the course” on fighting inflation, and as investors analysed a new batch of data for clues about the health of the US economy.
The benchmark S&P 500 index closed 0.8 per cent lower, while the technology-heavy Nasdaq Composite lost 1 per cent.
Thursday’s equity market moves came as Lael Brainard, vice-chair of the Federal Reserve, said “it will take time and resolve” to get “high” inflation back down to the US central bank’s target of 2 per cent.
“We are determined to stay the course,” Brainard said at an event hosted by the University of Chicago’s Booth School of Business.
Earlier in the day, European Central Bank president Christine Lagarde said in a panel discussion at the World Economic Forum: “We shall stay the course until . . . we can return inflation to 2 per cent in a timely manner.”
…
The Dow…. it’s cratering.🤣
More interestingly, after dropping in tandem throughout 2022, stocks and Treasury bonds have decoupled, a strong recession indicator.
U.S. 10 Year Treasury Note TMUBMUSD10Y (Tullett Prebon)
11:41 AM EST 01/19/23
Yield 3.399% -0.133
The Wall Street Journal
Credit Markets
Treasury Rally Intensifies After Signs of Slowing Growth
Data on retail sales, industrial production help drag down yields
Bank of Japan Gov. Haruhiko Kuroda. The central bank’s decision to keep policy unchanged gave an immediate boost to government bonds around the world.
Photo: Koichiro Tezuka/Bloomberg News
By Sam Goldfarb
Updated Jan. 18, 2023 4:21 pm ET
The 2023 rally in U.S. Treasurys picked up new momentum on Wednesday after the Bank of Japan maintained its cap on bond yields while new data pointed to a further slowdown in U.S. inflation and economic activity.
The yield on the benchmark 10-year U.S. Treasury note settled at 3.374%, according to Tradeweb, down from 3.534% Tuesday and marking its lowest close since early September.
…
Why buy houses that are taxable, depreciate and they’re difficult to sell when everyone else is selling too?
$4,795,000 4 bd 5 ba 4,653 sqft
652 Broadway St, Venice, CA 90291
https://www.zillow.com/homedetails/652-Broadway-St-Venice-CA-90291/20451018_zpid/
Date Event Price
1/17/2023 Price change $4,795,000 (-4.1%) $1,031/sqft
12/2/2022 Price change $4,999,000 (-1.9%) $1,074/sqft
9/7/2022 Price change $5,095,000 (-3.8%) $1,095/sqft
7/15/2022 Listed for sale $5,295,000 (+18.2%) $1,138/sqft
10/1/2021 Sold $4,480,000 (-9.4%) $963/sqft
9/1/2021 Contingent $4,945,000 $1,063/sqft
8/24/2021 Listed for sale $4,945,000 $1,063/sqft
8/19/2021 Pending sale $4,945,000 $1,063/sqft
7/21/2021 Listed for sale $4,945,000 (+199.7%) $1,063/sqft
9/5/2019 Sold $1,650,000 $355/sqft
8/1/2019 Pending sale $1,650,000 $355/sqft
7/23/2019 Price change $1,650,000 (-8.1%) $355/sqft
5/14/2019 Price change $1,795,000 (-10%) $386/sqft
4/12/2019 Price change $1,995,000 (+45.6%) $429/sqft
4/28/2017 Sold $1,370,000 (+3.8%) $294/sqft
3/10/2017 Price change $1,320,350 (+0.7%) $284/sqft
1/5/2017 Listed for sale $1,310,850 (+9.2%) $282/sqft
11/18/2016 Pending sale $1,200,000 $258/sqft
10/30/2016 Listed for sale $1,200,000 $258/sqft
the ultimate privacy for a nooist retreat or another Epstein
“the ultimate privacy…”
There’s no such thing as privacy unless you are self sufficient. Your cook, gardener, pilot, etc., are all susceptible to bribes.
That house would be very difficult to secure–it has a back alley and sandwiched between $12,000 1940’s homes. The bad guys are burglarizing luxury homes in Bel Air and Beverly Hills these days in broad daylight. The only way to button up this monstrosity would be to surround it with razor wire and a 20 foot wall to the back alley. Don’t even consider coming home late at night and parking in the garage–you’d better be packing some heat. It’s easier to get a concealed-carry permit in Los Angeles City now. Paying over $4,000,000 just to have to worry about being shot in your own garage after work seems to be rather crazy.
Anyone looking to buy a knifecatcher’s special?
“7/15/2022 Listed for sale $5,295,000 (+18.2%) $1,138/sqft
10/1/2021 Sold $4,480,000 (-9.4%) $963/sqft”
That house is located in the Oakwood neighborhood:
https://en.wikipedia.org/wiki/Oakwood,_Los_Angeles
Back in the day, it was da Hood–you didn’t go there if you valued your life. It was the Watts of West L.A. Since then it has become gentrified to some degree. I grew up not far from there, but that entire area of L.A., Venice and Mar Vista have plenty of longtime residents who don’t make a six figure salary. It’s not a safe place to walk at night.
Since then it has become gentrified
It was built between these years.
7/21/2021 Listed for sale $4,945,000 (+199.7%) $1,063/sqft
9/5/2019 Sold $1,650,000 $355/sqft
Can anyone comment on Realtors voice-to-skull mind control on debt donkeys?
TIA
“Now, some owners say a special assessment of over a million dollars, what they were told was needed to replenish reserves, has pushed their budgets. ‘The overall total amount that I’m paying per month is around $1700,’ Andrew Aponte said. ‘It’s almost tripled.’ ‘I went from, I think about $400 a month [in HOA fees] to nearly $1200 a month,’ Michelle Deleon claimed.”
“The owners question whether it’s an effort to encourage them to sell to make room for rentals.”
As anyone even paying a little attention knows, every condo building in Florida is being forced to significantly raise its reserves after that condo tower collapsed, and that HOA fees tripling is about the norm. This has nothing to do with short term rentals.
Cramer tossing the towel:
Jim Cramer blasts ‘dangerous’ $4.3B bailout of crypto bank — here’s how to prepare for a total collapse of crypto confidence
https://finance.yahoo.com/news/not-business-usual-jim-cramer-130000924.html
‘They dug their own graves.’
— Elon Musk
Tesla CEO Elon Musk has no shortage of opinions to share on Twitter, from his views on cryptocurrency to claiming that Tesla stock prices are too high.
The latter tweet wiped $14 billion off the company’s value with just seven words, so to say his opinions can move markets is an understatement.
Now Musk has turned his attention to the housing bubble in response to a tweet by Dogecoin co-founder Billy Markus, who goes by the name Shibetoshi Nakamoto on Twitter.
Predatory Lending Led to the Housing Bubble Burst?
In the Tweet, Markus claimed that cryptocurrency was originally created in response to the heavy hand of central bank control following the 2008 recession that led to the rampant printing of money and bailouts.
The decentralized nature of cryptocurrency could avoid manipulation by governments because, in essence, no one was in control of it other than a pre-defined algorithm.
Markus also blamed the 2008 recession on predatory lending practices during that time that were allowing previously unqualified buyers to purchase homes with little to no money down and low initial mortgage payments that ballooned over time.
Musk Disagrees – ‘They Dug Their Own Graves’
Musk responded to the tweet with his opinion that the fundamental error made during the 2008 recession was assuming that housing prices only go up.
He was careful to note that he doesn’t support predatory lending, but he also said that many of those same lenders were severely wounded or didn’t survive the housing market collapse. “They dug their own graves – a lesson we should all take to heart, including me,” he stated.
In Musk’s view, the critical error made by lenders that caused them to lower lending standards and led to their demise was an “axiomatic error” that housing prices could never decline.
Lessons Learned in the Current Housing Market?
With rising interest rates and inflation hammering the current housing market, it remains to be seen if lessons were learned from the housing crisis 14 years ago.
A huge run up in prices following the 2020 COVID-19 pandemic, as remote work changed the housing market and buyers rushed in to pay whatever it cost in fear that prices would only continue to go up.
With the recent rise in mortgage rates – doubling in a matter of months – the interest portion of monthly mortgage payments has skyrocketed for new purchases, potentially adding an extra $1,000 or more and putting a dent in affordability.
This affordability crisis has brought the rise in home prices to a screeching halt, but only time will tell if the housing market will stay more resilient this time around.
Hopefully in 2023, the main lesson Musk pointed out from the 2008 crisis has not been forgotten – housing prices do not always go up.
…
https://www.msn.com/en-us/money/realestate/they-dug-their-own-graves-elon-musk-on-housing-bubble/ar-AA16rsA9
Some things never change.
Home
Trends
Almost Half of Homebuyers Who Took Out an Adjustable-Rate Mortgage Regret Doing So
(Getty Images)
Trends
Almost Half of Homebuyers Who Took Out an Adjustable-Rate Mortgage Regret Doing So By Andrea Riquier
Jan 10, 2023
Share
Adjustable-rate mortgages, which offer homebuyers on a budget an initially low interest rate, are making a big comeback. But as financial markets churn and the economy remains shaky, some borrowers are regretting their decision to opt for what many see as a risky gamble.
About 43% of those who took out an ARM regretted it, according to a recent survey by U.S. News & World Report. ARMs work by offering a fixed mortgage interest rate, usually lower than a 30-year fixed-rate loan, for a period of several years. Then the rate resets, usually annually, according to what interest rates are doing at the time. The popular 5/1 ARM, for example, will have a fixed rate for five years that then resets every year thereafter based on the market.
That’s where folks can get themselves in trouble if they can’t afford their new mortgage payments when rates increase.
“ARMs can still be a great tool for the right buyer,” says Erika Giovanetti, a loans expert at U.S. News & World Report. “Especially now, they are a really good way for people to be able to afford those monthly payments, but people need to be aware of the exact terms they are agreeing to in the loan agreements. They also need to be able to have a plan in place to afford higher monthly payments.”
About 1,200 borrowers with an ARM participated in the survey taken between Dec. 14 and 20, 2022. Half of them said they opted for an ARM because the introductory rate was lower than those on fixed-rate mortgages. And slightly more than half said they did so because they plan to refinance or sell their home before the rate starts to adjust.
…
https://www.realtor.com/news/trends/almost-half-of-homebuyers-who-took-out-an-adjustable-rate-mortgage-regret-doing-so/
It’s nice of Millennials to abandon stocks in favor of other asset classes, some of which may lose them alot of money.
It makes buying to try the CR8R more affordable to have the Millennials out of the game.
Rich young Americans have lost confidence in the stock market — and are betting on these assets instead. Get in now for strong long-term tailwinds
Millennials have given up on stocks. Act accordingly.
A young women delegate flies to a business meeting, looking out the window and drinking coffee on board the plane.
Marharyta Gangalo/Shutterstock
By Moneywise
Nov. 30, 2022
The stock market has long been the go-to choice for people looking to invest their money. But that could be about to change as a younger generation — with a preference for alternative investments outside the shaky stock market — enters the scene.
According to a recent survey from Bank of America, individuals aged 21 to 42 with at least $3 million in assets only have 25% of their portfolio invested in stocks — compared to 55% for wealthy investors over age 43.
So what assets do rich millennials favor?
…
Get in on cryptocurrency
Once considered a niche asset, cryptocurrency has now entered the mainstream. Of course, many investors learned about cryptocurrencies’ volatility the hard way through this year’s massive pullback. But some wealthy millennials still believe in the asset class.
It’s easy to get in on the action — there are plenty of platforms that allow you to invest in crypto. Just be aware of fees: many exchanges charge up to 4% in commission fees just to buy and sell crypto. But some investing apps charge 0%.
Robinhood has already made trading stocks free and easy, no matter how much you can afford to invest — making it wildly popular with millennials.
Robinhood can also be used to invest in crypto, even if you don’t have millions to work with. This platform lets you place an order to buy or sell crypto at fractional amounts instead of buying whole coins.
…
https://moneywise.com/investing/alternative-investments/rich-young-americans-investing-alternatives
R.I.P. David Crosby.
Crosby Stills Nash — Long Time Gone:
https://www.youtube.com/watch?v=nS3l_TwPNRY
Crosby Stills Nash — Pre-Road Downs:
https://www.youtube.com/watch?v=VP569PHmoFQ
The Byrds (covering Dylan) — My Back Pages:
https://www.youtube.com/watch?v=1G9TJk853ps
No!!!!!
His words of wisdom inspired me to invest in some good guitars: “If you buy yourself a good instrument, you’ll want to practice more.”
https://twitter.com/RexChapman/status/1616196040813682688
It seems as though authors and entertainers were long ago privy to the agenda.
https://twitter.com/BuyErasers/status/1616199243198332928:
David Crosby on stage 4 years after the assassination of JFK, a man ahead of his time
100% safe and effective.
C.J. Harris, the former American Idol contestant who died Sunday in his hometown of Jasper, Alabama, suffered a fatal heart attack, the Walker County Coroner’s Office has confirmed to Deadline.
The 31-year-old Harris was rushed to the hospital but CPR efforts proved unsuccessful.
At this point, one might ask “why are none of the family members, friends and loved ones speaking out about this? It’s obvious the jab had something, if not everything, to do with it.”
Fear and intimidation. That’s why. The government and the Democratic Party have been engaging in a campaign of psychological manipulation and torture of the entire US citizenry. “If you don’t do and say exactly as we wish, we will ruin you. You will be canceled, we will take away your entire financial livelihood, and you will become a pariah in society.” That’s what’s going on.
Just ran into an acquaintance. He’s been jabbed and boosted. He told me that he had covid a second time the late last year, and that the antiviral meds made him feel even worse.
Also jabbed and boosted:
https://finance.yahoo.com/news/fed-chair-powell-tests-positive-for-covid-19-153135536.html
I don’t know how all of these people get Covid, much less multiple infections of the bug. I’ve had nothing that resembles the flu or Covid except for some minor symptoms that were probably allergy related. Most of the people I know haven’t had Covid. Nothing about this “pandemic” makes any sense.
Ditto, agree. Don’t know why, since I was told I was immunocompromised – “of the utmost urgency to get vaccinated.” Laughed at the suggestion, shunned for it by one doctor. Been in crowds, seen people (though never been Sally Social). Not even had even a cold for years.
Nothing about this “pandemic” makes any sense.
May I suggest https://boriquagato.substack.com/ and https://arkmedic.substack.com/. Given your background, you should really like the first link.
The guy I mentioned above, even though he was sick 2 months ago, still looked like a bus hit him.
100% safe and effective.
FTX just declared bankruptcy a couple of months ago, and hasn’t even completed working out how to stiff its creditors, and there is already talk of restarting operations.
I guess all is well in the craptoverse?
https://www.wsj.com/articles/new-ftx-chief-says-crypto-exchange-could-restart-11674143168
Why?
Why?
Thee is a presidential election in 2024 and someone has to launder/donate the money!
thee = there