The Most Reckless Monetary And Fiscal Experiment In History
A report from NBC News. “Silicon Valley Bank is shutting down. The California Department of Financial Protection and Innovation said Friday that it was taking over and closing the distressed bank to protect deposits, naming the Federal Deposit Insurance Corporation as its receiver. The FDIC has formed a separate entity where all insured SVB deposits will be available by Monday morning. The closure marks the biggest bank failure since the 2008 financial crisis and the second-largest in U.S. history after Washington Mutual collapsed during that industry-wide meltdown, according to FDIC data.”
Bisnow London. “UBS has bought fellow banking giant Credit Suisse in a deal that will create a bank with an $80B commercial real estate loan book and more than $100B of real estate assets under management — making it the fourth-largest CRE lender in the world — but the key element of the deal for CRE is whether it can stop liquidity drying up in the banking system. ‘This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,’ UBS Chairman Colm Kelleher said in a press release.”
The Evening Standard. “Mark Yallop, former chief executive of UBS in the UK, also raised the prospect that there is more to emerge of the risks surrounding Credit Suisse than currently publicly known. ‘Looking at what has been released about the term of the deal, it looks like an attractive transaction for UBS and its shareholders but obviously the fact that it is so attractively priced suggests that potentially there is more risk sitting on the Credit Suisse balance sheet than perhaps has been visible publicly before now,’ he said.”
From Bloomberg. “Some of Credit Suisse Group AG’s bond holders are furious with the terms of UBS Group AG’s takeover. The deal will trigger a complete write-down of Credit Suisse’s 16 billion Swiss francs ($17.3 billion) worth of Additional Tier 1 bonds, as the riskiest notes introduced after the global financial crisis are known. This would mark the biggest loss yet for Europe’s $275 billion AT1 funding market. To make matters worse, some traders were buying these notes over the weekend. They had hoped for a benign takeover and some quick profits.”
“Even at the current price, Saudi National Bank, a top investor, would be losing 1.1 billion francs less than 15 weeks from when it finished buying its stake. So sorry, Credit Suisse’s AT1 bond traders, life is unfair. Better luck next time.”
From Reuters. “Swiss media was also shocked by the developments. ‘A zombie is gone but a monster is born,’ read the title of a commentary in the Neue Zuercher Zeitung, often seen as the voice of the establishment. ‘A few months ago, nobody would have thought that Credit Suisse would fail. However it is not an accident,’ the newspaper wrote in the piece accusing the bank of arrogance and pride. ‘The Swiss bank had a stock market value of CHF 100 billion in 2007, of which CHF 7 billion were left last Friday,’ it said. ‘There has thus been a massive destruction of value, at the hands of managers who have carelessly underestimated risks and helpless board members who have too often failed to control things.'”
From Politico. “When Congress rewrote the rules for Wall Street following the 2008 financial crisis, it put the Federal Reserve at the center of oversight for the nation’s wounded banks. Now, the Fed is at the center of a political firestorm as Washington looks for culprits in a new banking crisis. Mark Calabria, who at the time of the 2018 rollback was chief economist to Vice President Mike Pence, rejected complaints by Democrats that the follow-up law gutted Dodd-Frank, the landmark 2010 legislation that was the biggest overhaul of financial rules since the Great Depression.”
“‘I tried to gut Dodd-Frank,’ said Calabria. ‘It was not successful. People who bought into ‘Dodd-Frank ended bailouts’ now have to admit it doesn’t,’ he added.”
From Cal Thomas. “A Wall Street Journal editorial has it right: ‘You can’t run the most reckless monetary and fiscal experiment in history without the bill eventually coming due. The first invoice arrived as inflation. The second has come as a financial panic with economic damage that may not end with Silicon Valley Bank.'”
The Daily Sentinel in Colorado. “The housing market in the Grand Valley remains rather stagnant, according to the February Bray Report. A total of 300 homes were sold in February 2023, down from 450 sales, or 33%, compared to February 2022. Active listings were up from a year ago with 479. The report also indicated that properties in Mesa County are staying on the market for longer. Houses were, on average, staying on the market for 76 days in February, up 55% from a year before.”
“‘It has been pretty slow lately, and a big part of that is because of the economic turbulence and uncertainty we’re seeing nationwide right now,’ said Maureen Wixom, a broker associate at Bray Realty. ‘Things have gotten worse. February is worse than January since interest rates have ticked up, over 6.5% generally now. That is the main factor as to why things have slowed. Every time interest rates go up, more people get knocked out of the market.'”
“The median home price has dropped. February was almost identical to February 2022‚ $359,750 to $359,000. But home prices started rocketing up way for much of 2022 before dropping at the end.The high median price for 2022 was $416,000. Wixom said that six months ago, she and her colleagues foresaw a drop in interest rates by spring 2023. It came as a surprise, Wixom said, when they only increased.”
The Union Tribune in California. “As he pushed the with his two young children up Ninth Avenue during his mid-day walk in downtown San Diego, Jarvis Leverson stopped at the intersection of F Street. Across the street, the sidewalk was crammed with tents and makeshift canvas shelters erected by the homeless people who have lived there for weeks, even months. Discarded cartons of food and piles of trash were scattered outside the tents, in the gutter and on the street. It’s a daily occurrence for Leverson, who lives in the Parkloft condominiums on Island Avenue.”
“People who live there, where some units with views of Petco Park sell for more than $2 million, say they are wearying of the worsening conditions in their neighborhood. Leverson and his wife bought a unit in the building in 2020. They had lived in the same unit as renters seven years earlier. Back then, Leverson said, it was an up-and-coming East Village neighborhood and sidewalks were clear of homeless encampments.”
“‘You name it, I’ve seen it,’ Leverson said, describing the contrast of walking from a $1 million unit into abject poverty, drug use and mental illness. ‘I’ve seen people OD on the street, seizuring, foaming at the mouth. Every day I walk past people doing meth and with needles in their arms. People with their pants down, defecating on the street. I’ve seen people fighting. I’ve seen a person beating someone with a pole. I’ve seen people having sex.'”
“Nathan Crowley, who has lived in Parkloft two years, has experienced worse. Around 4 p.m. on Jan. 30, Crowley said he was pushing a shopping cart at the neighborhood Ralphs when he saw a man who appeared dirty and disheveled, eating food from the shelf. A few minutes later, Crowley was in the meat section looking down when he saw the same man out of the corner of his eye charging forward with a wine bottle in his hand. Crowley was struck in the face with the bottle, and he dropped to the ground. ‘It was bad,’ he said. ‘Blood was everywhere. I couldn’t see. I was in huge pain.’ Crowley later learned he was the third person the man was suspected to have assaulted that day.”
The New York Post. “Louis C.K. has taken a hit on the sale of his historic Soho townhouse. The controversial Grammy-award winning comedian recently sold out Madison Square Garden, bought the five-bedroom property for $6.5 million in 2012. But, according to property records filed this month, the comedian sold the 35 Charlton St. spread for $5.8 million. The dwelling most recently asked $6.5 million — Louis C.K.’s purchase price. It listed last September for $8.49 million before lowering the asking price to $7.5 million a month later. The price then fell to $6.5 million in December, according to StreetEasy.”
From Fox Business. “A new report from real estate brokerage firm Redfin showed that the median U.S. home sale price fell 1.2% in February from the previous year. ‘Buyers are struggling because higher interest rates have increased the cost of homeownership, and sellers are struggling because they’re still adjusting to the fact that their home won’t sell for what their neighbor’s did a year ago,’ said Andrew Vallejo, a Redfin real estate agent based in Austin, Texas. ‘The drop in prices is bringing more house hunters off the sidelines, but they’re in no rush because rates are high and they have the upper hand.'”
The Globe and Mail in Canada. “In 2021 and early 2022, moneyed buyers from expensive cities such as Toronto and Vancouver flocked to suburbs and smaller towns looking for bigger homes and lower prices, ramping up competition in markets such as Chilliwack, London and Halifax. But now that home prices have plunged by between 10 per cent and close to 30 per cent in most of those areas, locals believe it’s their chance to get into the market.”
“In Chilliwack, where the price of a typical home dropped from a peak of $907,600 down to $677,600 in January, realtor Jason Sandhu said about 70 per cent of his buyers are now from the region. By contrast, in the first few years of the pandemic, 70 per cent of his clients were investors from Vancouver, Surrey and Langley, all more expensive areas.”
“In London, residential real estate prices in January were down 27 per cent compared to their pandemic peak of February, 2022. Yet a typical home still costs 60 per cent more than it did in January, 2019. In Halifax, where home prices started the year 10 per cent below their previous peak, the benchmark home price remains 70 per cent higher than it was four years ago.”
“In Saint John, real estate agent Lesley Oland would often see 25 to 30 offers on a property in 2021 and the first half of 2022, with bids as high as $50,000 over asking. Now, she said, multiple bids for a home priced at market value generally involve two to 10 buyers, with offers going $5,000 to $10,000 over asking. ‘And if a seller overprices, then he’s not gonna get any,’ she said. ‘Now, people will wait.'”
This Post Has 133 Comments
Comments are closed.
𝗔𝘂𝗿𝗼𝗿𝗮, 𝗖𝗢 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗣𝗿𝗶𝗰𝗲𝘀 𝗖𝗿𝗮𝘁𝗲𝗿 𝟭𝟮% 𝗬𝗢𝗬 𝗔𝘀 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗗𝗲𝗳𝗮𝘂𝗹𝘁𝘀 𝗔𝗻𝗱 𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗦𝘂𝗿𝗴𝗲 𝗔𝗰𝗿𝗼𝘀𝘀 𝗖𝗼𝗹𝗼𝗿𝗮𝗱𝗼
https://www.movoto.com/aurora-co/market-trends/
𝘈𝘴 𝘢 𝘯𝘰𝘵𝘦𝘥 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘴𝘵 𝘴𝘶𝘨𝘨𝘦𝘴𝘵𝘦𝘥, “𝘞𝘩𝘺 𝘣𝘶𝘺 𝘢 𝘩𝘰𝘶𝘴𝘦 𝘸𝘩𝘦𝘯 𝘺𝘰𝘶 𝘤𝘢𝘯 𝘳𝘦𝘯𝘵 𝘰𝘯𝘦 𝘧𝘰𝘳 𝘩𝘢𝘭𝘧 𝘵𝘩𝘦 𝘮𝘰𝘯𝘵𝘩𝘭𝘺 𝘤𝘰𝘴𝘵. 𝘉𝘶𝘺 𝘪𝘵 𝘭𝘢𝘵𝘦𝘳 𝘢𝘧𝘵𝘦𝘳 𝘱𝘳𝘪𝘤𝘦𝘴 𝘤𝘳𝘢𝘵𝘦𝘳 𝘧𝘰𝘳 70% 𝘭𝘦𝘴𝘴.”
I got lucky, we sold our house in Colorado Spring in 1 day, $1k over asking. Purchased in 2021 April, $125k reno, sold for $820k all cash. Maybe lucky, or CS is still a hot market, because Denver is a shit hole and sinking fast. CS is Denver 25yrs ago, it’s beautiful with a ton of potential, company’s are moving here by the dozens, airport is primed for expansion, downtown is building apartments like crazy. Like I said, Denver 25yrs ago.
+1
If I don’t leave the state I’m probably moving there in the next few years.
Sounds like appraisal fraud.
Kent, WA Housing Prices Crater 26% YOY As Seattle Housing Market Turns Toxic
https://www.movoto.com/wa/98042/market-trends/
‘Even at the current price, Saudi National Bank, a top investor, would be losing 1.1 billion francs less than 15 weeks from when it finished buying its stake’
Annnd it’s gone.
It was cheaper than renting the shares.
Did UBS buy Credit Suisse because now UBS would be too big to fail? Wonder if anyone has looked at UBS’ balance sheet and find out what risks adventures they are hiding.
‘People who bought into ‘Dodd-Frank ended bailouts’ now have to admit it doesn’t’
Senator running deer has 4 crooked fingers and a thumb that says you better take that back or she’s RAISING HER VOICE dammit!
Maybe Timothy Geithner will explain why bail outs are necessary?
When the failure of a single financial institution would put the entire global financial system at risk, the institution is deemed too big to fail and the only choice is to bail it out.
If a whole lot of large financial institutions engage in similarly reckless behaviors that make them all systemically risky, such as backing uninsured deposits with an unhedged longterm bond portfolio, then everyone everywhere all at once is screwed.
Global banking crisis: One big problem down, too many others left to go
Analysis by David Goldman, CNN
Updated 9:37 AM EDT, Mon March 20, 2023
Will UBS move stave off panic? Economy reporter weighs in
New York CNN —
After a major, systemically significant bank crumbled over the weekend, the banking crisis left financial institutions and regulators scrambling Monday to prevent its spread.
Credit Suisse, hobbled for decades by mismanagement, scandal and bad bets, finally succumbed to the emerging global banking crisis. Its stunning and rapid takeover by rival UBS, orchestrated by Swiss authorities Sunday, took one giant, wobbling domino off the table. Hours later, a group of central banks from around the world boosted the movement of US dollars through the global financial system to keep loans flowing to households and businesses and support the world’s major economies.
The question investors and nervous customers want answered this week: What’s next? Are other banks about to fall – or be saved? Will regulators be forced to step in with more rescue plans?
In the United States, the banking crisis began nearly two weeks ago with the sudden collapses of Silicon Valley Bank and Signature Bank over a three-day span. That sent shockwaves through the global banking system.
Regional banks with similar profiles to SVB, including First Republic Bank (FRC), PacWest (PACW) and Western Alliance (WAL), have teetered on the brink over the past week. Anxious customers have pulled tens of billions of dollars in cash from the smaller banks and placed them with bigger institutions that are better capitalized.
To pay customers their withdrawals, regional banks have scrambled to access enough cash. First Republic received a $70 billion loan from JPMorgan Chase a week ago and another $30 billion lifeline from a consortium of 11 banks, organized by US regulators, on Thursday. That still appears to be insufficient, with First Republic’s shares tumbling another 33% Friday.
Moody’s downgraded First Republic’s credit rating to junk status Friday night and S&P cut the bank’s rating to junk Sunday. Moody’s said the downgrade reflects the deterioration of the bank’s financial profile and “significant challenges” it faces from its reliance on shorter-term and higher-cost funding as customers yank their cash out.
…
https://www.cnn.com/2023/03/20/investing/banking-crisis-credit-suisse-first-republic/index.html
‘Things have gotten worse. February is worse than January’
I’ve been hearing in the videos that the spring isn’t springing yet.
News of a nascent banking crisis may not put buyers into eager shopping mode.
Maybe the post-Supterbowl bounce has shifted to a post-March Madness bounce.
Dead cat bounce?
Socialism for the rich, bootstrappin’ capitalism for the poors.
Nothing ever changes.
More porridge sir?
Porridge sucks.
‘You name it, I’ve seen it,’ Leverson said, describing the contrast of walking from a $1 million unit into abject poverty, drug use and mental illness. ‘I’ve seen people OD on the street, seizuring, foaming at the mouth. Every day I walk past people doing meth and with needles in their arms. People with their pants down, defecating on the street. I’ve seen people fighting. I’ve seen a person beating someone with a pole. I’ve seen people having sex’
Jarvis was a renting and now he’s earning that sweet equity!
‘Nathan Crowley, who has lived in Parkloft two years, has experienced worse. Around 4 p.m. on Jan. 30, Crowley said he was pushing a shopping cart at the neighborhood Ralphs when he saw a man who appeared dirty and disheveled, eating food from the shelf. A few minutes later, Crowley was in the meat section looking down when he saw the same man out of the corner of his eye charging forward with a wine bottle in his hand. Crowley was struck in the face with the bottle, and he dropped to the ground. ‘It was bad,’ he said. ‘Blood was everywhere. I couldn’t see. I was in huge pain’
First of all Nathan, congratulations. You bought an airbox during CCP virus and paid waaay over asking, cuz minor respiratory thing. You sir are a winnah! Keep saying to yerself ; weather Nathan, think about the weather. Those stitches will be out soon.
San Diego?
This description could be any city in the western U.S.
Los Angeles, San Francisco, Portland, Seattle, Las Vegas, Phoenix, Salt Lake City, Denver, Austin, it’s like they publish the same article, same narrative every time, with the location changed.
Who knew that decriminalizing meth and fentanyl would have actual consequences?
It wasn’t too bad in downtown San Diego before the Great Financial Crisis (2007-2009). Then it got bad, and way worse during the pandemic.
Back in the 90’s we had some friends visit San Diego. They stayed at one of the hotels across from the embarcadero. The hotel staff told them to not go out at night.
I simply don’t get why people, especially people with families, would want to live in downtown anywhere. Downtown areas have always been cesspools. You only go there to catch a concert, visit a museum or attend a ballgame, and once you are done you get the hades out of there.
speaking of downtown concerts: the wife & longtime best friend (Romy & Michelle +20yrs) are attending the kick-off tour of Depeche Mode this Thurs at the Golden One Center in Sacramento.
oh, sorry, I meant “DOCO”.
anyway, I briefly considered having one of my grown sons escort them to & from the venue just for safety concerns.
then again, the of flood of goths reliving their glory days should be enough to bewilder the perpetual addicts/crazy/predators that infest the area!
Depeche Mode – Personal Jesus (Official Video)
attending the kick-off tour of Depeche Mode
How fun!!
They’re performing in San Diego on 12/6 and 12/8.
This is far more fun.
https://youtu.be/YpNFKkun5DM?t=91
Not a KISS fan.
You don’t need to be in California to be attacked by the homeless. I saw one of them myself in WalMart a couple weeks ago. It wasn’t pretty. And my area is teeming with median walkers with fake signs too.
It is everywhere and it’s not going to get better.
I have a cousin who recently retired. He and his wife were considering a move into one of those shiny glass towers in downtown San Diego. After a look around the area, they changed their minds.
I attended a bachelor send off in 2018. It was a bus tour of various San Diego microbreweries. When we stopped in downtown San Diego, the bus driver told us to “watch where you step”. This was around the time when San Diego was washing downtown sidewalks with bleached water, due to hepatitis fears. There were no tents near our stop, but the homeless were quite visible.
think about the weather. Those stitches will be out soon.
Now that’s funny!
‘Blood was everywhere. I couldn’t see. I was in huge pain’
Yet Nathan will still vote Democrat even as the homeless animal pisssses on his dying body. And of course, Trump is more evil than AH.
Yet Nathan will still vote Democrat
Once upon a time incidents like this would wake people up. Not anymore.
“Orange man bad” is one helluva drug.
Yep, the swamp remains in fear of him.
‘it looks like an attractive transaction for UBS and its shareholders but obviously the fact that it is so attractively priced suggests that potentially there is more risk sitting on the Credit Suisse balance sheet than perhaps has been visible publicly before now’
Mark, are you saying it’s worser?
‘But now that home prices have plunged by between 10 per cent and close to 30 per cent in most of those areas, locals believe it’s their chance to get into the market’
K-dn REIC/media is trying to put a smiley face on the igloo cluster crash.
I won’t own anything? 🙁
What are these “students” majoring in?
Miami Beach orders curfew Sunday night after two fatal shootings, flood of people, guns has created ‘peril that cannot go unchecked’ (3/19/2023):
“Miami Beach again imposed a curfew Sunday night after a bloody weekend in which two people died during separate shootings and large, rowdy crowds flooded the streets.
“We don’t ask for spring break in our city,” Gelber said. “We don’t want spring break in our city. It’s too rowdy, it’s too much disorder and it’s too difficult to police.”
Spring break?
“Officials may instate another curfew Thursday through March 27, with the restrictions primarily focused on South Beach, the popular tourist spot that spring breakers love.
The Miami Beach police said a man was shot on Ocean Drive in South Beach at about 3:30 a.m. Sunday.
He later died at the hospital.
Meanwhile, cops chased down a suspect, police said on Twitter.
The alleged shooter was identified as Dontavious Leonard Polk, 24, of Fort Lauderdale, according to news stations citing police reports.”
Age 24? He must be a grad student. Maybe medical school.
“Polk was walking with three other men on the sidewalk when he slowly approached the victim and fired at him, according to police, NBC 6 South Florida reported.
The victim fell to the ground and Polk shot him several more times before fleeing, police alleged. He was chased down and tackled by police, the news station reported, with a firearm and bullet casings recovered.”
https://nypost.com/2023/03/19/sunday-night-after-two-fatal-shootings-flood-of-people-guns/
“They’re not sending their best”
What are these “students” majoring in?
Burning, looting and murdering?
Funny how spring break morphed from being held by rowdy college students to felonious vibrants.
Just walks up to a guy and shoots him? Likely a gang execution, nothing to do with Spring Break.
Hopefully another black thug.
Dontavious Leonard Polk
A common Amish first name. Also commonly seen in Chinese American medical students.
Why do vibrants make up these dumb names?
They used to try and emulate the French by adding a Le or De in front of a name. Now it appears they gone ancient and want to sound Latin.
*they’ve
“They used to try and emulate the French…”
Indeed, and true in and around New Orleans.
Didn’t this exist back in the 1970s?
California to seek beds for mental health, drug treatment (3/19/2023):
“California voters would decide whether to fund a major expansion of housing and treatment for residents suffering from mental illness and addiction, under the latest proposal by Gov. Gavin Newsom to address the state’s homelessness crisis.
Newsom announced Sunday that he will ask allies in the Democratic-controlled Legislature for a measure on the 2024 ballot to authorize funding to build residential facilities where up to 12,000 people a year could live and be treated.
The governor called the plan the next step in how California expands services for unhoused people, especially those with psychological and substance use disorders.
California, home to nearly 40 million people, has nearly one-third of the nation’s homeless population, and their numbers are growing much faster than in other states, according to an analysis of federal data by the Public Policy Institute of California. Tent encampments have popped up on sidewalks and under freeway overpasses, and people in clear mental health crisis are a common sight on city streets.
Recent polling shows half of California voters believe the heavily Democratic state is headed in the wrong direction, including a majority of independents. And after years of growth, the state’s population has been dropping as people look elsewhere for more affordable homes and a better quality of life.”
https://www.sfgate.com/news/politics/article/california-to-ask-voters-to-approve-new-mental-17848223.php
“authorize funding to build residential facilities”
I’m just optimistic that they are building new facilities instead of slotting these folks into empty individual apartments or hotel rooms where they would harass the law-abiding public. Because that’s what they want to do with Section 8 types — slot them into the suburbs where the rest of us are supposed to “lift them up” or whatever.
mental health hospitals Ok, All Newsom needs is a couple hundred billion dollars for all his big plans
“California Gov. Gavin Newsom is facing increased pressure to use his authority to unilaterally enact proposals that would dole out billions of dollars to Black residents in reparations as a way to make amends for slavery if the state legislature doesn’t act.
The California Reparations Task Force, which was created by state legislation in 2020, is considering a proposal to give just under $360,000 per person to approximately 1.8 million Black Californians who had an ancestor enslaved in the U.S., putting the total cost of the program at about $640 billion.
That all this virtue signalling is utterly unfundable shows that the players are either:
1) Deluded
2) Have no intention of making good on these promises, which are meant to stoke the race war even further.
All Newsom needs is a couple hundred billion dollars for all his big plans
What was the latest projected shortfall for this year? Article from 2/23/23 says 22.5 B is the expected shortfall with forecasts that could make it even worse.
Yeah, he is gonna need about $30B more just to get his current budget to work. Good luck getting all those other Billions.
“Respiratory virus”
Yes, it is remote workers who spiked housing, rent costs (3/20/2023):
“Directly or indirectly, COVID pandemic policies ushered in the worst U.S. inflation in 40 years, particularly regarding housing.
Housing costs have never been higher or more burdensome for both renters and owners. Over 40% of renter households in the U.S. are paying more than the recommended 30% of their net income for housing making them officially fit the description of “cost-burdened.”
Researchers at the National Bureau of Economic Research compared national rent and ownership trends to isolate what caused already-rising housing prices to spike since late 2019. The report, authored in May 2022, is decisive about the cause.
“We show that the shift to remote work explains over one-half of the 23.8% national house price increase over this period,” the report reads. “Using variation in remote work exposure across U.S. metropolitan areas, we estimate that an additional percentage point of remote work causes a 0.93% increase in house prices after controlling for negative spillovers from migration.”
https://kdvr.com/news/data/yes-it-is-remote-workers-who-spiked-housing-rent-costs/
Every mountain town in Colorado has been destroyed by CCP Flu economics. No skilled trades will ever afford to live in these communities, ever again. So when you bid your next project, plan on having to hire people to come in from Denver, and pay for their hotel rooms and per diems.
And have fun waiting in line 45 minutes to get your latte because there are no service workers, greedhead pigs.
Directly or indirectly, COVID pandemic policies ushered in the worst U.S. inflation in 40 years, particularly regarding housing.
ANd best of all, we exported this problem to the rest of the world.
A reader sent these in :
Regional Acceptance renamed Regional Rejection.
The tightening in credit availability is going to FLUMMOX an entire generation that (is still supported by mom & dad) but also has credit & has ONLY known free money since they got access to credit.
https://twitter.com/DiMartinoBooth/status/1637127458661998594
That’s the thing with CRE. Even if you lived through 2007-08, Fed rode in with ZIRP & QE back then to save the day. Now, monetary policy tight & will stay tight for longer than young CRE cowboys expect. Top that w/Office being fully impaired & rampant oversupply in other sectors
https://twitter.com/DiMartinoBooth/status/1637066564204740610
Debt gets MORE expensive in a deflationary environment. THINK about that.
https://twitter.com/DiMartinoBooth/status/1636919140442152960
There are 6,776 STRs advertised in NOLA. 8.6% are licensed. Only a few are owner-occupied. Many are whole-house STRs. Where do residents live?
https://twitter.com/NOLALeyda/status/1636795005665939457
Yesterday, WSJ said that 186 banks are facing the same risks as Silicon Valley Bank. Today, a coalition of 110 banks are asking for FDIC insurance on all deposits for 2 years. Every hour counts right now as hundreds of banks face the same issue. Panic is spreading quickly.
https://twitter.com/KobeissiLetter/status/1637247898445332481
Hmmm…I wonder what the extent of the “plumbing problems” being revealed by the day, if not by the hour? Keep in mind the WORLD is effectively massively short many trillions of #USDollars.
https://twitter.com/NatInvestor/status/1637564992261087233
You can learn an important lesson from Credit Suisse: In 2006, Credit Suisse had a market cap of $70B. By 2016, they had a market cap of $30B. By 2022, they had a market cap of $10B. Today, they were acquired for $2B. Lesson: give up.
https://twitter.com/ChrisJBakke/status/1637503813346267136
AirBnB owner can’t remove woman due to California’s 30-day squatter’s rights.
https://twitter.com/LPMisesCaucus/status/1637604547106332673
“Silicon Valley Bank’s risky practices were on the Federal Reserve’s radar for more than a year — an awareness that proved insufficient to stop the bank’s demise. The Fed repeatedly warned the bank that it had problems.”
https://twitter.com/Mayhem4Markets/status/1637639450393030658
French Protesters: “We have beheaded Louis XVI and we can do it again!” The French are basically saying they will cut off Macrons head ⚠️ ⚠️ ⚠️
https://twitter.com/WallStreetSilv/status/1637612418280071173
Flashback: Janet Yellen June 2017
https://twitter.com/WallStreetSilv/status/1637604869292056576
Flashback: Credit Suisse passed stress test 9 months ago. I guess those “stress tests” were all just part of the show.
https://twitter.com/WallStreetSilv/status/1637514295012458500
Interesting note from GS: Banks with < $250bn of assets accounted for 50% of U.S. commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending and 45% of consumer lending. https://twitter.com/JLinWins/status/1637634600590618624
Most of my buyers don’t have much drive. They’re “on the market” but feeling discouraged by a combination of low inventory and small bidding wars once they finally find a place they like. Others have one foot in the market but are also wary of the economy in a sort of vague way.
https://twitter.com/kmasonrealtor/status/1637425015082680324
Small banks have been lending MORE than large banks with respect to individuals, small businesses, and residential/commercial real estate. What happens to the real estate market when these banks stop lending? Not inflation…DEFLATION…
https://twitter.com/SpecialSitsNews/status/1637632458072965125
The average price of a used Tesla is $21k lower than the peak last July. 24-month low.
https://twitter.com/GuyDealership/status/1637158939237154816
4.10pm tomorrow
https://twitter.com/great_martis/status/1637712258099978240
Even globalist propaganda outlets are sounding the alarm on the next Great Financial Crisis. Heckova job, central bankers!
https://www.news.com.au/finance/business/banking/as-bad-as-it-gets-credit-suisse-rescue-deal-sparks-fears-of-fullblown-banking-crisis/news-story/61a7c0930104824fedc8de0ec0e2f5ae
crushing…. housing…. losses…
Logan, UT Housing Prices Crater 14% YOY
https://www.movoto.com/logan-ut/market-trends/
“Respiratory virus”
How Colorado homeowners still reeling from the COVID pandemic can apply for financial assistance (3/20/2023):
“The clock is running out on millions in federal COVID mortgage assistance and 15 area governments and nonprofits are trying to get the money out the door.
Colorado received about $175 million from the American Rescue Plan Act to fund mortgage assistance in 2021. By the end of January, however, about $121 million remained unspent, so the Department of Local Affairs expanded its pilot program for distributing the money before a December 2024 deadline.
The issue has grown more urgent, some program managers said, as home prices continue to rise making it less likely that a homeowner who loses their house to foreclosure will be able to buy again in Colorado.”
Working exactly as intended. Blackstone owns it all, and you get a tent under the bridge. WE’RE ALL IN THIS TOGETHER.
“A homeowner buys a home in order to build generational wealth, and it is an investment over time, and when that investment is interrupted by two years of not being able to work or leave your home or incur extra expenses, that economic effect goes far into the future, much farther than people think,” Adams said.
https://coloradosun.com/2023/03/20/federal-housing-aid-for-colorado-homeowners/
I thought people buy a house to have a place to live? Guess that’s all changed under the new CCP Flu economics.
“two years of not being able to work or leave your home”
Greatest FRAUD of my lifetime.
RE: “The Most Reckless Monetary And Fiscal Experiment In History”
As long as we insist upon using fiat currency created out of thin air with zero intrinsic value, this circus will continue forever . . .
using fiat currency created out of thin air
The beauty of our system is that the fiat tokens are loaned into circulation, creating a never ending stream of interest revenue for the creating entity. And the amount in circulation must always increase to keep the wheels turning.
Fiat is the perfect answer to technology advancements. Without it, the cost of living would have plummeted.
Re: Without it, the cost of living would have plummeted.
The nightmare of every Economist, who equate price inflation with economic growth and even set target for inflation although the entire history of Industrial Revolution and the resulting rise in standard of living teach the exact opposite . . .
World’s top climate scientists issue ‘survival guide for humanity,’ call for major course correction (3/20/2023):
“Deep, rapid and sustained greenhouse gas emission reductions across all sectors will be necessary if warming is to be limited by 1.5 degrees Celsius, the report says, noting that global emissions should already be decreasing and will need to be slashed almost in half by 2030.”
https://www.cnbc.com/2023/03/20/ipcc-report-on-climate-un-scientists-call-for-course-correction.html
No private vehicle ownership.
No gas stoves.
15 minute cities.
Eat the bugs.
Social credit score.
Central bank digital currency.
And yes, more lockdowns.
In case any of you forgot, at last year’s G20 summit in Bali, the attendees dined on wagyu beef.
No private vehicle ownership.
New ICE car sales bans will spread, and there will be a shortage of EV’s because of battery scarcity, meaning only the people who matter will have cars. While you wait in the rain for an overcrowded bus, the few who still have cars will zoom by on empty roads.
How about ‘diagnostic’ black boxes that record every turn, every speed and every location driven. (and potentially transmitted to satellite or 5G tower in real time)
Not too much of a stretch that your insurance company [or big brother] decides when, where, how you drive. Of course, all under the guise of ‘saving you money’ or ‘making your driving experience safer’.
What a crock this his all become.
Many currently offer you a “discount” if you voluntarily plug in a surveillance device into the diagnostic port under the dash. I suppose this means that not all cars have the surveillance hardware built in. For now, you can decline the spy box, but I suppose that it is only a matter of time until it’s “no spy box, no insurance”. And if the spy box reports you were doing 33 in 30 mph zone, your premiums will go up.
Or you drove to a ‘sketchy’ part of town.
Or your personal biometric data is out of band. (ie. body temperature too high).
Or your passengers are on a ‘watch list’ (obtained from passenger phone(s) GPS).
Or….[fill in the blank]
All the underlying technology to implement such a scheme already exists. Nothing new to invent. Now, its all about implementation.
Shake hands with Big data and data mining.
Shake hands with your personal data, your life, in the cloud.
Cloud servers everywhere on planet earth, accessible by ‘well meaning, helpful’ elite 3rd parties
For now, you can decline the spy box, but I suppose that it is only a matter of time until it’s “no spy box, no insurance”
And perhaps the scariest new requirement is the one going into new cars in 2026 where the driver has to prove he is capable of driving before the engine will start and the car will monitor the driver the entire time.
Hopefully that time frame will get pushed out.
This reminds me of a sci fi short called “Utopia”. In it an Australian citizen has to have his breath analyzed by blowing into a tube in his car before the car will start. Later his car won’t run because his passenger was caught littering and he has to pay a huge fine before it will run again.
The person who invents the AI driver to fool it will make a fortune. Ebay will probably ban them right away but they will be available at flea markets for 25 bucks. Capitalism!
“…is the one going into new cars in 2026 where the driver has to prove he is capable of driving before the engine will start…”
Of course, this restriction will help push the driverless car notion.
At the end of the day, all future traffic will be controlled by a 3rd party.
Almost like a gigantic model train set, someone else(s) is going to tell you when, where, how, how much, how fast you will get to drive.
This reminds me of a sci fi short called “Utopia”. I
Great film. I think of the same film reading this “crap.’
When I lived in Louisiana, one of my crazy Cajun neighbors fired up his air boat to go down main street for a six pack in the middle of the night.
Track that!
@In Colorado
sci fi short called “Utopia”
Snitching pays well – does not bode well.
https://web.archive.org/web/20230109150555/https://www.nytimes.com/2022/03/19/nyregion/clean-air-idle-car.html
Snitching pays well – does not bode well
Until it doesn’t. Can’t imagine a mafia-owned business racking up idling commercial truck fines would take kindly to this guy. A couple busted kneecaps and a scary message into his ear would be the last you ever heard of him.
That would do it!
That’s what happened in the novel “Flashback “‘ except they were hydrogen powered cars, and it was set in Colorado ..
A provocative dystopian thriller set in a future that seems scarily possible, Flashback proves why Dan Simmons is one of our most exciting and versatile writers.
Check out Tucker Carlson’s video last week on 50 years of incorrect climate predictions. This is just another one. But no one ever learns.
https://www.realclearpolitics.com/video/2023/03/17/tucker_carlson_anyone_who_was_paying_attention_in_america_understood_that_the_experts_were_full_of_it.html
The objective isn’t to predict correctly. The objective is to scare people into submission so that they give up their cars, freeze in the winter, swelter in the summer, and do everything they are told to do. The great jabbing was a dress rehearsal.
Hahahahaha- yea…I’m sure Tucker knows. Lol
“survival guide”
Humans survived an Ice Age that lasted tens of thousands of years. I think we’ll survive losing Miami and Martha’s Vineyard. As for those low-lying Pacific islands that will be swamped … yeah I think we’ll find room for the islanders in rapidly aging places like China, Japan, Italy…
Will the Plunge Protection Team show up sometime soon to stanch the bleeding in the stock market?
The Wall Street Journal
Finance
First Republic Bank Looms Large for U.S. Regulators After Credit Suisse Sale
Yellen and Powell try to reassure investors to halt slide in financial stocks
From SVB’s Collapse to the Fed’s Balancing Act: A Week of Market Turmoil
Illustration: Jacob Reynolds
By David Benoit
and Andrew Ackerman
Updated March 19, 2023 6:59 pm ET
U.S. policy makers warily watched the rushed rescue of Credit Suisse (CS -53.77% decrease; red down pointing triangle) Group AG over the weekend, hoping that its purchase by UBS Group AG would stem a slide in financial stocks triggered by the recent collapse of two regional banks.
Late Sunday, the Fed and five major central banks announced a coordinated effort to improve liquidity by moving U.S. dollars among themselves each day, starting Monday, instead of once a week. The central banks then lend those dollars out to financial institutions, in an effort to backstop other countries’ funding needs should strains emerge in global markets.
…
The Financial Times
First Republic
Wall Street CEOs try to come up with new plan for First Republic
Shares of lender plummet after rating downgrade despite $30bn lifeline last week
A customer exits a First Republic Bank branch in Manhattan Beach, California
The continued slide in First Republic’s share price on Monday came after its credit rating was cut for the second time in a week
Stephen Gandel, Joshua Franklin, Brooke Masters and Ortenca Aliaj in New York 3 hours ago
Wall Street bank chief executives are trying to come up with a new plan for First Republic after a $30bn lifeline failed to arrest a sharp sell-off in the lender’s shares.
The executives will discuss if anything more can be done for the California-based lender on the sidelines of a pre-planned gathering in Washington on Tuesday, which is being organised by the Financial Services Forum, one of the main industry lobby groups, said people familiar with the matter.
Shares of First Republic, which have fallen almost 90 per cent this month, closed down 47 per cent on Monday despite an attempt by 11 banks to stabilise the lender by depositing $30bn last week.
That has prompted Jamie Dimon, the JPMorgan chief executive who spearheaded the deposit plan, to explore other options to support First Republic, one of the people said. One of the possibilities under consideration is converting all or a portion of their deposits into a capital infusion, another person said, in a development that was earlier reported by the Wall Street Journal.
“Those deposits are liabilities on the balance sheet — they owe the bigger banks money,” the person said, referring to First Republic. “If those deposits were converted to equity . . . it puts [First Republic] in a better financial position on a relative basis.”
…
Humpty Dumpty sat on a wall.
Humpty Dumpty had a great fall.
All the king’s horses and all the king’s men
Couldn’t put Humpty Dumpty together again.
Analysts Warn Investors To Dump 10 Big Stocks Before It’s Too Late
MATT KRANTZ 08:00 AM ET 03/20/2023
Analysts don’t usually tell investors to sell S&P 500 stocks. So when they do, it’s wise to pay attention.
Wall Street analysts slapped their highest number of sell ratings on 10 S&P 500 stocks, including Principal Financial (PFG), T. Rowe Price (TROW) and Lumen Technologies (LUMN), says FactSet. Seeing sell ratings on stocks is highly rare, as nearly 54% of analyst ratings are now buys and 40% are holds.
But rising worries about the banking crisis are sparking volatility — as are warnings to dump stocks before it’s too late. Now 6.2% of analysts’ recommendations on stocks are a sell, slightly higher than the 6.0% average in the past five years.
“Analysts and companies have been more pessimistic in their earnings outlooks for the first quarter compared to historical averages,” said John Butters of FactSet. “As a result, estimated earnings for the S&P 500 for the first quarter are lower today compared to expectations at the start of the quarter. The index is now expected to report its largest year-over-year decline in earnings since Q2 2020.”
…
https://www.investors.com/etfs-and-funds/sectors/sp500-analysts-warn-investors-to-dump-big-stocks-before-its-too-late/
Does it seem like financial advisors are overworrying the situation? The Fed chair, the Treasury Secretary, and othe financial bailout authorities are on top of the situation, and have it fully contained. Any further expected decline in U.S. corporate earnings is already reflected in the share prices.
So learn to stop worrying so much, and back up yer truck!
Global banking crisis: One big problem down, too many others left to go
Analysis by David Goldman, CNN
Updated 1:20 PM EDT, Mon March 20, 2023
Will UBS move stave off panic? Economy reporter weighs in
New York CNN —
After a major, systemically significant bank crumbled over the weekend, the banking crisis left financial institutions and regulators scrambling Monday to prevent its spread.
Credit Suisse, hobbled for decades by mismanagement, scandal and bad bets, finally succumbed to the emerging global banking crisis. Its stunning and rapid takeover by rival UBS, orchestrated by Swiss authorities Sunday, took one giant, wobbling domino off the table. Hours later, a group of central banks from around the world boosted the movement of US dollars through the global financial system to keep loans flowing to households and businesses and support the world’s major economies.
The question investors and nervous customers want answered this week: What’s next? Are other banks about to fall – or be saved? Will regulators be forced to step in with more rescue plans?
In the United States, the banking crisis began nearly two weeks ago with the sudden collapses of Silicon Valley Bank and Signature Bank over a three-day span. That sent shockwaves through the global banking system.
Regional banks with similar profiles to SVB, including First Republic Bank (FRC), PacWest (PACW) and Western Alliance (WAL), have teetered on the brink over the past week. Anxious customers have pulled tens of billions of dollars in cash from the smaller banks and placed them with bigger institutions that are better capitalized.
To pay customers their withdrawals, regional banks have scrambled to access enough cash. First Republic received a $70 billion loan from JPMorgan Chase a week ago and another $30 billion lifeline from a consortium of 11 banks, organized by US regulators, on Thursday. That still appears to be insufficient, with First Republic’s shares tumbling another 33% Friday.
Moody’s downgraded First Republic’s credit rating to junk status Friday night and S&P cut the bank’s rating to junk Sunday. Moody’s said the downgrade reflects the deterioration of the bank’s financial profile and “significant challenges” it faces from its reliance on shorter-term and higher-cost funding as customers yank their cash out.
And many other banks, the identities of which will likely remain unknown for quite some time, sought emergency loans from the Federal Reserve over the past week. Banks borrowed a record $153 billion from the Fed’s discount window last week – a last-resort option for banks to gain quick access to cash.
…
https://www.cnn.com/2023/03/20/investing/banking-crisis-credit-suisse-first-republic/index.html
“Banks borrowed a record $153 billion from the Fed’s discount window last week – a last-resort option for banks to gain quick access to cash.”
Dumb questions of the day:
1) Is $153 billion alot?
2) Does it have to be repaid?
3) Can anyone borrow from the Fed’s discount window at their offer rate, or do you have to be a systemically risky bank to do it?
Markets
Published March 20, 2023 12:03pm EDT
Bank turmoil could bring ‘vicious’ end to bear market, Morgan Stanley says
Morgan Stanley’s strategist sees ‘painful’ early stages of bear market exit
By Megan Henney FOXBusiness
Turmoil within the banking sector is likely to bring a “vicious” start to the end of the bear market in U.S. stocks, according to Morgan Stanley.
Michael Wilson, the chief U.S. equity strategist at Morgan Stanley and a longtime Wall Street bear, said in an analyst note on Monday that the stock market is in the early and painful stages of exiting the bear market than began in the summer.
“The last part of the bear can be vicious and highly correlated,” he said. “Prices fall sharply via an equity risk premium spike that is very hard to prevent or defend in one’s portfolio.”
He suggested that stocks are still not worth the risk, particularly when investors can turn to safer assets like Treasurys and other bonds.
…
https://www.foxbusiness.com/markets/bank-turmoil-could-bring-vicious-end-bear-market-morgan-stanley-says
US banking crisis is causing mounting ‘hysteria’ amongst investors: Kenny Polcari
Mar. 17, 2023 – 2:06 – SlateStone Wealth chief market strategist Kenny Polcari joined ‘Varney & Co.’ to discuss the U.S. banking crisis, predicting its impact on the stock market.
…
https://video.foxbusiness.com/v/6322739290112#sp=show-clips
For many electric vehicles, there is no way to repair or assess even slightly damaged battery packs after accidents, forcing insurance companies to write off cars with few miles – leading to higher premiums and undercutting gains from going electric.
https://www.yahoo.com/finance/news/scratched-ev-battery-insurer-may-050459910.html
and undercutting gains from going electric
There are no gains from going electric, unless you consider everyone taking the bus to be a gain.
I believe US National Security Council spokesman John Kirby is saying…
“Putin is winning”
Ukraine ceasefire ‘unacceptable’ – White House
Bringing the ongoing hostilities to a halt would only “ratify” Russia’s “conquest” of Ukrainian lands, John Kirby has said
19 Mar, 2023 17:42
Washington is firmly opposed to a ceasefire between Russia and Ukraine, US National Security Council spokesman John Kirby has said, branding any peace initiatives “unacceptable” in the current situation. The senior White House official made the remarks on Sunday in an interview with Fox News.
https://www.rt.com/news/573242-ukraine-russia-ceasefire-unacceptable/
https://www.msn.com/en-gb/news/world/ukrainian-commander-reveals-true-scale-of-losses-and-pays-the-price/ar-AA18LktD?ocid=Peregrine
There are no winners in trench warfare. Look up a YT video, the battles of WW-I. Both sides lost hundreds of thousands of men in each of these battles! This commanding officer is just a tool being used by the jooz back in Kyiv.
The family must be so proud.
(you can tell his apology was written for him by the Public relations (PR) guy who writes the apologies for the players, coaches and owners when they F.U.)
Son of Flyers interim GM apologizes for pushing woman’s wheelchair down steps
BY TOM IGNUDO, SIAFA LEWIS, NIKKI DEMENTRI
MARCH 16, 2023 / 4:19 PM / CBS PHILADELPHIA
PHILADELPHIA (CBS) — The son of Flyers interim general manager Danny Briere released a statement Wednesday afternoon to apologize after surveillance video showed him pushing a disabled woman’s wheelchair down the steps of a bar last weekend.
“I am deeply sorry for my behavior on Saturday,” Carson Briere said. “There is no excuse for my actions, and I will do whatever I can to make up for this serious lack of judgment.”
https://www.cbsnews.com/philadelphia/news/carson-briere-wheelchair-push-bar-flyers-danny-briere/
julia
@juliazukowski
I usually don’t post anything serious on my twitter but something happened Saturday night and just can’t stomach the thought of this kid getting away with it. In the video below is a @MercyhurstU student and is currently on the @HurstMensHockey team. Carson Briere.
https://twitter.com/juliazukowski/status/1635537697040130048?s=20
At first I thought from the headline that she was in the wheelchair as it was pushed down the stairs. Still, the wheelchair was damaged and that was a very douchebag thing to do. I expect his dad will be buying her a top of the line replacement and maybe some “we’re so sorry cash” to go with it.
This being the age of “cameras everywhere” dumb azzes like this guy need to learn that only vibrants get away with cr@p like that.
The MSM keeps telling us how much we want Big Mike to be our next president. Is the fix already in?
https://tennesseestar.com/politics/commentary-michelle-obama-is-not-coming-to-save-the-democrats/admin/2023/03/16/
Not a chance.
Globalists gonna globe.
https://nypost.com/2023/03/18/texas-mom-says-her-daughter-played-seducing-hooker-during-school-game/
Man from da hood bit#h slaps Mr. Science and his posse.
Justin Hart
@justin_hart
Watch this absolute legend take on Fauci! Tony is totally embarrassed going door-to-door pushing vaccines in D.C. “You all attack people with fear!”
https://twitter.com/justin_hart/status/1637830280697479169?s=20
Funny how those who fell for the great jabbing still get covid, often more than once!
It turned out to be a vaccine that doesn’t confer immunity. I wish someone had warned me before I attended a largish family gathering where everyone was vaccinated and one of the guests shared his case with my half of the attendees.
<< cough cough >>
LOL
I do find it funny!
Amazon to Cut 9,000 More Jobs After Earlier Layoffs
“Amazon.com Inc. said it would cut 9,000 more corporate jobs across units that include its profitable cloud-computing and advertising businesses, a sign that the company’s cost-cutting is extending into all aspects of its operations as technology giants continue to slash spending.”
Future’s so bright I gotta wear shades!
‘No One Is Immune’: Massive Layoffs Coming to ESPN
WARNER TODD HUSTON20 Mar 2023198
2:23
Disney is preparing to lay off 4,000 employees, and it has been reported that many of those layoffs will be at its ESPN cable sports network and its other side entertainment divisions. And insiders say no one is safe.
According to the New York Post, the list of layoffs is set to be completed sometime over the next few weeks.
https://www.breitbart.com/sports/2023/03/20/no-one-is-immune-massive-layoffs-coming-espn/
‘There has thus been a massive destruction of value, at the hands of managers who have carelessly underestimated risks and helpless board members who have too often failed to control things.’
The Ecstasy of Gold – Ennio Morricone
https://www.youtube.com/watch?v=PYI09PMNazw
3:20.
… and the torment of rage when a debt donkey realizes the house is worth 60% less.
https://youtu.be/BY1H1rZL53I?t=101
If all the plumbers, HVAC technicians, electricians, went on strike for a month, it would bring this country to its knees.
New York City and Washington DeeCee parasites, you need us more than we need you.
Sincerely, where your energy and food comes from. You will starve and die. You produce nothing productive anybody wants or needs. Look at France, stop living on your knees…
‘Fact-Checkers’ Cover for Greta Thunberg After She Quietly Deletes 2018 Tweet Predicting 5-Year Doomsday Scenario
by Adan Salazar
March 20th 2023, 6:33 pm
‘A top climate scientist is warning that climate change will wipe out all humanity unless we stop using fossil fuels over the next five years,’ Thunberg predicted in now-deleted post.
The mainstream media came to climate alarmist Greta Thunberg’s aid over the weekend after she quietly deleted a tweet predicting worldwide calamity this year if the world didn’t stop using “fossil fuels.”
Earlier this month, it was noted Thunberg deleted a tweet from 2018 quoting an article that claimed “climate change will wipe out all of humanity unless we stop using fossil fuels over the next five years.”
Brigitte Gabriel
@ACTBrigitte
Greta Thunberg deleted this tweet because it exposes her for being a fraud. Make sure the entire world sees it.
https://twitter.com/ACTBrigitte/status/1634658776492957697?s=20
jeff, have some respect – it soon will be Dr. Greta Thunberg.
https://anglican.ink/2023/03/21/faculty-of-theology-of-the-university-of-helsinki-to-confer-honorary-doctorate-on-greta-thunberg/
Do you expect the Fed to postpone its inflation fight until the banking conflagration is extinguished?
Finance · economy
The expert who pioneered ‘quantitative easing’ has seen enough: Central banks are too powerful and they’re to blame for inflation
BY Richard Werner and The Conversation
March 20, 2023 at 12:37 PM PDT
Jerome Powell
Federal Reserve Chair Jerome Powell.
Samuel Corum/Bloomberg via Getty Images
Fifty years ago, a war broke out in the Middle East which resulted in a global oil embargo and a dramatic spike in energy prices.
The war, between Israel and an Arab coalition led by Egypt and Syria, began on October 6 1973 – the Jewish holy day of Yom Kippur. The oil embargo, announced 11 days later by the Organisation of Petroleum Exporting Countries (Opec) under the leadership of Saudi Arabia, was followed by a major hike in the price of a barrel of oil at the end of December 1973.
Many historical accounts suggest the decade of global inflation and recession that characterises the 1970s stemmed from this “oil shock”. But this narrative is misleading – and half a century later, in the midst of strikingly similar global conditions, needs revisiting.
In fact, inflation around the world had already been picking up well before the war (which lasted less than three weeks). The Federal Republic of Germany, Europe’s largest economy and biggest energy consumer, experienced its highest inflation rates of the decade throughout 1973 – first peaking at 7.8% in June that year, before the war and any hint of an oil price increase.
So what was already driving inflation around the world at that time? A clue can be found in a 2002 paper written by MIT professor Athanasios Orphanides while he was on the board of the US Federal Reserve (America’s central bank, also known as the Fed). He wrote:
“With the exception of the Great Depression of the 1930s, the Great Inflation of the 1970s is generally viewed as the most dramatic failure of macroeconomic policy in the United States since the founding of the Federal Reserve … Judging from the dismal outcomes of the decade – especially the rising and volatile rates of inflation and unemployment – it is hard to deny that policy was in some way flawed.”
In reality, central bank decision-makers led by the Fed were largely responsible for the Great Inflation of the 1970s. They adopted “easy money” policies in order to finance massive national budget deficits. Yet this inflationary behaviour went unnoticed by most observers amid discussions of conflict, rising energy prices, unemployment and many other challenges.
Most worryingly, despite these failings, the world’s central banks were able to continue unchecked on a path towards the unprecedented powers they now hold. Indeed, the painful 1970s and subsequent financial crises have been repeatedly used as arguments for even greater independence, and less oversight, of the world’s central banking activities.
…
https://fortune.com/2023/03/20/is-federal-reserve-too-powerful-inflation-quantitative-easing-richard-werner/
Great catch! This piece confirms my personal thesis of when our economy took a terrible turn especially regarding middle east comitments, the most recent being attempts to keep Iran from becoming a nuclear power, which has cost us $7-Trillion, that is $7,000 Billion, and politicians never mention it.
Below is a URL regarding Japan’s 80s bubble economy. It is an interesting documentary.
Princes of the Yen | Documentary Film
https://www.youtube.com/embed/p5Ac7ap_MAY?wmode=transparent&start=0
*roughly 94-min duration
ABC News
The banking crisis threatens the the Fed’s inflation fight. Here’s how.
Interest rate hikes are causing one financial emergency and solving another.
ByMax Zahn
March 20, 2023, 4:08 PM
The collapse of Silicon Valley Bank, the second-biggest bank failure in U.S. history, has thrust the financial system into distress, pulling attention away from a separate problem: sky-high inflation.
The twin economic challenges pose a dilemma for the Federal Reserve because its strongest tool, the benchmark interest rate, is a key cause of the financial emergency but the primary solution for high prices.
The central bank has aggressively raised interest rates over the past year, bringing inflation down significantly from a summer peak, though it remains more than triple the Fed’s target of 2%.
The rapid rise in interest rates, however, tanked the value of bonds held by Silicon Valley Bank, precipitating its failure.
A continuation of the rate hikes risks further intensifying the banking crisis, putting additional financial institutions at risk of collapse. However, a pause on rate increases could undermine the Federal Reserve’s fight against inflation, allowing high prices to persist and eat away at household budgets, economists said.
Advertisement
“It’s a very delicate balance,” Andrew Levin, an economics professor at Dartmouth College and a former Fed economist, told ABC News. “If we’re in a situation where the Fed can’t make sure prices are stable because it’s too worried about the stability of the banking system, that would be a very unfortunate situation.”
Still, the Fed could avoid facing a choice between the two objectives, since tighter lending practices taken up by private sector banks in response to the financial distress may cool the economy on its own accord, allowing the Fed to forego raising rates while still bringing down inflation, economists said.
MORE: Fed was aware of Silicon Valley Bank problems more than a year before its collapse
“It does seem as though financial instability could take care of inflation anyway,” Julia Pollak, chief economist at Zip Recruiter, told ABC News.
Over the last year, the Federal Reserve raised its benchmark interest rate 4.5%, the fastest pace since the 1980s.
The Fed has put forward a string of borrowing cost increases as it tries to slash price hikes by slowing the economy and choking off demand. The approach, however, risks tipping the U.S. economy into a recession and putting millions out of work.
So far, however, the economy has proven fairly resilient, Levin said, citing the robust job market.
“If the economy continues to be strong, inflation might well stay far above the Fed’s target,” Levin said. “Interest rates may need to go substantially higher to bring inflation down.”
…
https://abcnews.go.com/US/delicate-balance-banking-crisis-fight-inflation/story?id=97984223
Covid vaccines are poison. They poisoned you. You’ve been poisoned, the turbo-cancer is taking over, and they’re is nobody you can sue. Pfizer poisoned you and you’re probably going to die
#NoRefunds
Aren’t you a ray of sunshine?!
Somebody has to step up to take our minds off the gloomy prospect of an unfolding banking crisis.
“Somebody has to step up to take our minds off the gloomy prospect of an unfolding banking crisis.”
That’s your job.
He’s chronicling the unfolding bank crisis.
“He’s chronicling the unfolding bank crisis.”
You are correct, I completely misunderstood the Professor’s post. I will watch what I hit the send button on at that hour from now on.
My apologies all the way around.
Awsome call Red.
Cream – Sunshine Of Your Love
https://youtu.be/zt51rITH3EA
Is all well again in the banking world, now that the shotgun marriage of UBS to Credit Suisse has been consumated?
The Financial Times
Credit Suisse Group AG
Tens of thousands of jobs at risk after UBS takeover of Credit Suisse
Domestic Swiss business and investment bank set to bear brunt of cuts
Swiss authorities engineered the Credit Suisse rescue over the weekend after becoming alarmed at the rate of customer withdrawals it was suffering
Owen Walker in Paris and Chris Flood in London 3 hours ago
UBS’s rescue of Credit Suisse is expected to result in tens of thousands of job cuts, with Switzerland’s financial sector already bracing for a heavy hit from the contentious takeover.
Credit Suisse’s domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, according to people familiar with UBS’s plans.
These people added that it was too early to quantify how many roles would go, but it could be as much as a third of the 120,000 jobs in the combined group, as UBS winds down much of the investment bank and removes overlapping roles in Switzerland.
…
The Financial Times
Credit Suisse Group AG
Additional tier 1 bonds: the wiped-out debt at centre of Credit Suisse takeover
Controversy around decision has rippled across the wider $260bn AT1 market
Holders of $17bn of Credit Suisse’s additional tier 1 bonds will have their investment wiped out following the bank’s takeover by UBS
Thomas Hale in Shanghai yesterday
The sale of Credit Suisse to UBS is the most dramatic moment in global banking since the financial crisis of 2007-08. It has also thrust into the spotlight the reforms that the global financial system has undergone in the past 15 years.
Since the last crisis, regulators have sought to transfer more of the risk of a systemic bank failure away from depositors and on to bondholders. This was seen as a way of strengthening bank balance sheets, and avoiding contagion between banks or the need for taxpayer-funded bailouts.
On the face of it, the Credit Suisse episode fulfilled that ambition. About $17bn in Credit Suisse additional tier 1 (AT1) bonds were wiped out as part of the transfer to UBS, essentially reducing the burden on its new owner and hitting investors who knew they had bought risky instruments.
…
The Financial Times
Opinion
Financial & markets regulation
Four ways to fix the bank problem
It is not clear how bad this crisis is going to be but reform is urgently needed
Martin Wolf
Illustration of two paramedics carrying a patched up piggy bank on a stretcher
© James Ferguson
Martin Wolf 3 hours ago
Banks are designed to fail. And so they do. Governments want them to be both safe places for the public to keep their money and profit-seeking takers of risk. They are at one and the same time regulated utilities and risk-taking enterprises. The incentives for management incline them towards risk-taking, just as the incentives for states incline them towards saving the utility when risk-taking blows it up. The result is costly instability.
If one thing is clear about the events of the last two weeks, it is that the vaunted reforms introduced after the global financial crisis have not changed any of this that much, or at least not enough.
Yes, leverage of banking systems has fallen since the crisis. But it remains dangerously high. According to the Federal Reserve, on March 8 2023, the difference between the book value of the assets and debt liabilities of US commercial banks was $2,137bn. This slice of equity backed assets that were notionally worth $22,800bn. But a recent paper suggests that mark-to-market losses are already around $2tn. A general run would force these losses into the open and wipe out the equity. To prevent this, the authorities may have to protect all deposits.
…
Possibility of a Minsky moment in markets has increased, claims JPMorgan’s Kolanovic
Investing.com | Mar 20, 2023 02:55PM ET
By Sam Boughedda
JPMorgan’s Marko Kolanovic said in a note Monday that the possibility of a Minsky moment in markets and geopolitics has increased.
“The bailout of several U.S. banks did not manage to calm markets, which consumed another large bank in Europe,” he noted. “In a Trichet-like moment, the ECB increased rates by 50bps.”
Kolanovic acknowledged that the Fed is facing a difficult task on Wednesday but is likely already past the point of no return, and “a soft landing now looks unlikely, with the airplane in a tailspin (lack of market confidence) and engines about to turn off (bank lending).”
Kolanovic believes that even if central bankers successfully contain the contagion, credit conditions look set to tighten more rapidly because of pressure from both markets and regulators.
He also sees cracks beginning to emerge in U.S. credit fundamentals, adding that “Euro credit spreads will likely continue to widen unless we see meaningful policy intervention.”
“The historical template for FX during widening credit spreads is for USD strength, coupled with relative safe-FX (USD, CHF, JPY) strength vs. high- beta,” the analyst added. “We see little change in oil fundamentals and keep our price forecasts unchanged for now, while financial stress and macro uncertainty have boosted safe-haven demand for gold and silver.”
…
https://m.investing.com/news/stock-market-news/possibility-of-a-minsky-moment-in-markets-has-increased-claims-jpmorgans-kolanovic-432SI-3035011