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People Have Used Their Homes As ATM Machines

A report from Reuters. “Shares of U.S. regional banks fell premarket on Thursday, hurt by a 37% slump in PacWest Bancorp after its announcement about exploring strategic options including a potential sale or capital raising, after a liquidity boost announced in March failed to inspire confidence in its ailing share price. ‘Investors are worried that it (PacWest) will be the next domino to fall as worries swirl about deposit flight and the lack of asset diversification among smaller lenders,’ said Susannah Streeter, head of money and markets at Hargreaves Lansdown.”

From Market Watch. “‘I’m really turning more bearish,’ Jeffrey Gundlach, CEO of DoubleLine, told CNBC on Wednesday, after the Federal Reserve raised rates by another 25 basis points to the highest level since 2007. ‘It just seems to me that deposits are going to keep drifting out. I don’t think this is the last chapter in this regional banking problem.’ Gundlach said current banking stress ‘harkens back’ to the savings-and-loan crisis of the 1980s, when high inflation and a spike in interest rates caused customers to flee with their deposits, and left many smaller lenders reeling from losses on their mortgage holdings. ‘This is kind of the same phenomena, and I don’t really see what’s going to make it stop, unless the Fed is going to cut interest rates, which there’s no inclination of cutting interest rates at the next meeting,’ Gundlach said.”

KLAS in Nevada. “New homes are being built by the thousands valley-wide, and realtors believe new build incentives are making it harder to sell older homes to buyers. For example, a 1766 square foot property sits in a 55+ Lake Las Vegas community that Henderson Realtor Trish Nash has been trying to sell for four months. ‘We’ve had showings, we’ve had positive showings. People love the home,’ Nash said inside the $630,000 property Wednesday afternoon. The owners have reduced the asking price by $70,000 from the initial listing.”

“But, despite the $160,000 in upgrades the owners said they’ve put in, buyers are not biting. ‘It’s ready to move in, and yet, we have the builder who is offering deep, deep incentives,’ Nash said while signaling to a community developing nearby. ‘Many buyers are gravitating towards new construction, and that is the dilemma that we have right now.'”

The Denver Post in Colorado. “Rather than rising, the number of closings fell to 3,701 in April, a 7.9% decline from March and a 30% drop from the frenzied pace of April 2022. Some properties continue to languish. Nick DePasquale, a Realtor cited in the report, described one Highlands Ranch listing that spent 362 days on the market. Originally listed at $7.5 million, a buyer didn’t show up until the price fell to $5.1 million. The median price of a single-family home that sold in April was $640,000, which is up 3.2% from March, but down 5.9% from a year earlier. A year ago, the median closing price was $684,550 and buyers paid 6.87% above the list price on average. For condos and townhomes, the median closing price was $410,000, up 0.7% from March and down 6.8% from a year earlier.”

“‘Higher tax bills coupled with increased interest rates are going to have a significant impact on buyers’ ability to purchase throughout the state, specifically the metro area,’ said Libby Levinson-Katz, in comments included with the latest monthly update from the Denver Metro Association of Realtors.”

Fox 7 in Texas. “Residents from Hays County to Burnett County are not happy with their 2023 property tax assessments. It wasn’t just former clients experiencing sticker shock. Comparing 2023 to 2022, Realtor Bill Cafferata’s assessment for his Dripping Springs home increased by about $150,000. ‘It kind of almost knocked me right off my chair,’ he said. Austin resident Matt Ball owns multiple pieces of land in Burnet County, many of which are still undeveloped. ‘My goal was to buy all this stuff and develop it with my construction company, and now I can’t afford it. I have to get rid of it,’ said Ball. ‘One of my neighbors in particular, he’s very upset. He was wanting to retire soon, and he’s…just so stressed, he’s like, ‘I’m never going to get done.'”

“Cafferata said from what he’s seen, assessed values and home market values listed on real estate websites are not comparable. ‘We’ve seen housing prices go back down to where they were because 2020 and 2021 saw massive jumps in the price of homes. Once we get into 2022 and now 2023, it’s leveled off, cooled off a bit,’ said Cafferata. ‘But we’re not seeing that, the county just kept that roller coaster going up in that direction for their assessments.'”

From Fortune. “Among the 100 largest markets tracked by Black Knight, 53 housing markets ended March at a price that remains below their 2022 peak price.The markets where home prices are down the most since the peak includes places like Austin (-13.3%) San Jose (-11.4%); San Francisco (-11.2%); Seattle (-10.9%); Phoenix (-10%); Las Vegas (-9.4%); Boise (-9.4%); Stockton, Calif. (-9.4%); Sacramento (-8.7%); and Salt Lake City (-8%). Nationally, home prices are still down 1.7% from the 2022 peak.”

The Los Angeles Times. “Apartment hunting in Southern California is notoriously difficult. But now, a little bit of sanity is returning. Richard Green, director of the USC Lusk Center for Real Estate, said another factor may be at play. ‘The mystery [was] people are leaving California — how come vacancies weren’t rising?’ he said. ‘Maybe it’s starting to show up.'”

The Mercury News. “The Bay Area and California as a whole endured yet another population decline in 2022, and the dip may mean San Jose can no longer crow about being the 10th largest city in the country. California lost 138,400 residents and now has a population of 38.94 million. The population decline engulfed seven of California’s 10 largest cities, including the four biggest — Los Angeles, San Diego, San Jose and San Francisco. That means the decline isn’t merely isolated to certain pockets of the state, but extends to its major population centers in the Bay Area and Southern California that are plagued by high housing costs.”

“San Francisco had the largest population loss among the Bay Area’s cities, losing more than 5,300 residents for a decline of 0.6%, while Oakland lost 2,250 residents, a drop of 0.5%. Los Angeles lost 36,600 residents, a 1% decline, while San Diego suffered a drop of 4,400 people, down 0.3%. All nine of the Bay Area’s counties also saw their populations decline in 2022. The largest numerical decline was in Alameda County, which shed nearly 8,100 residents. On the housing front, the report does note a bright spot: statewide housing growth increased to 0.85%, the highest level since 2008, with California adding more than 123,000 net housing units. In the Bay Area, the uptick in housing stock is particularly noticeable in Alameda County, which saw 8,567 more housing units created.”

From CBS News. “If you’ve been considering tapping into your home equity, now may be the time to do it. Home values nationwide have been steadily on the rise for over a decade. As a result, many homeowners find themselves sitting on a significant amount of equity. This may not be the case for much longer. When home prices drop, you have less equity to pull from. If you’ve been thinking of pulling the trigger on a home equity loan or HELOC, you’ll get more from your equity by doing so before home values decrease.”

The Globe and Mail in Canada. “Real estate lawyer Jonathan Griffiths believes inventory will continue to swell as more homeowners are squeezed by higher interest rates and distressed sales increase. ‘They’ve done remarkably well,’ he says of homeowners who have held on so far in the face of rising inflation and rates. ‘They’re finally cracking.’ Many banks have been working with homeowners to extend amortization periods rather than hike payments, he says. ‘In general, the banks are trying to keep a lid on it so nothing cataclysmic happens.'”

“Heavy debt is taking a toll on some consumers, however, Mr. Griffiths adds. Some owners with variable rate mortgages are seeing monthly payments jump by 65 per cent, he says. Stress is even higher for people with second and third mortgages, he says, citing one file which landed on his desk last week. A property with second and third mortgages will now be sold under ‘power of sale.’ Mr. Griffiths says some who feel that a sale is inevitable would rather list in the near future because they don’t want to be chasing the market down if prices decrease farther.”

“Consumers who borrowed from private lenders are finding that those lenders are not renewing loans in some cases, he says. Some have borrowed against their houses to buy trucks and keep up appearances with pricey purchases. ‘People have used their homes as ATM machines,’ Mr. Griffiths says.”

“Anita Springate-Renaud, broker with Engel & Völkers, recently worked with clients who purchased a house for $1.2-million. The sellers had purchased the property in the early 2000s for approximately $300,000. During that time, they added to their debt as property prices rose, Ms. Springate-Renaud says. ‘They were borrowing against the new value. They had almost no equity by the end.'”

CBC News in Canada. “An embattled Greater Toronto Area home developer facing multi-million dollar allegations of financial wrongdoing has agreed to the appointment of a third-party receiver to manage the potential sale of several uncompleted townhome developments, throwing the future of hundreds of pre-sold homes into doubt. More than a dozen lawyers representing the developer — Woodbridge, Ont.-based StateView Homes — attended a virtual hearing of the Superior Court of Justice of Ontario Tuesday, along with three of its lenders, the proposed receiver and other stakeholders.”

“The purpose was for the lenders to ask the court to appoint KSV Restructuring Inc. as receiver for six residential townhouse developments and other properties after they launched civil lawsuits demanding repayment of almost $200 million in loans. Last week, CBC Toronto reported that lenders Kingsett Mortgage Corporation, Dorr Capital Corporation and Atrium Mortgage Investment Corporation launched court actions after learning that TD Bank had accused StateView, 25 associated corporations, five directors and executives of perpetrating an alleged year-long “cheque-kiting” scheme that cost the bank $37 million.”

“StateView Homes blamed the alleged fraud, which TD alleged involved the cashing of thousands of bad cheques from both corporate and personal accounts at other banks, on its former chief financial officer. Insolvency lawyer David Schatzker, who is not involved in the case, previously told CBC Toronto that if the lenders succeeded in having a receiver appointed, there’s not a lot buyers who have already paid deposits can do.”

“The receiver may allow the project to finish and the buyers would be able to complete their home purchases, he said. However, if the receiver orders the projects sold to repay the lenders, those buyers may never see the homes they bought because the new developers would be under no obligation to honour the contracts StateView signed with its original buyers.”

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This Post Has 103 Comments

  1. ‘They’ve done remarkably well,’ he says of homeowners who have held on so far in the face of rising inflation and rates. ‘They’re finally cracking.’ Many banks have been working with homeowners to extend amortization periods rather than hike payments, he says. ‘In general, the banks are trying to keep a lid on it so nothing cataclysmic happens’

    K-da is sound lending cuz we’ve got a stress test! Crater – hurry get rid of the stress test!! I’ve read reports of amortizations going out 70 to 80 years.

    1. I’ve read reports of amortizations going out 70 to 80 years.

      Only an idiot FB would agree to that.

      1. Maybe not. They were already in the house and the interest rates went up. Extend the amortization or get out is what the banks are doing. Same how-much-a-month or get a dumpster and hit the street. It’s a disaster building but at least they can shelter until they figure something out.

        I think agreeing to 25 or 30 years of servitude is stupid, myself included (formerly).

  2. ‘People have used their homes as ATM machines’

    ‘recently worked with clients who purchased a house for $1.2-million. The sellers had purchased the property in the early 2000s for approximately $300,000. During that time, they added to their debt as property prices rose, Ms. Springate-Renaud says. ‘They were borrowing against the new value. They had almost no equity by the end’

    There’s nothing that can be done. The money is long gone. Pick yer poison: extend and pretend, kick the can down the road. Yer still fooked.

    1. ‘They were borrowing against the new value. They had almost no equity by the end’

      Hopefully they took great vacations, bought nice cars, etc., and they broke even too, didn’t have to declare bankruptcy.

      1. Bought for $300K and sold for $1.2 million. How much did they borrow and spend? $600-$700K? Those are some very nice vacations.

    2. ‘They were borrowing against the new value. They had almost no equity by the end’

      This economic model is played out.

    3. Sounds like just about everyone in California. Maybe not the over 60 crowd, but pretty much everyone else. Fake it til you make it.

  3. ‘Realtor Bill Cafferata’s assessment for his Dripping Springs home increased by about $150,000. ‘It kind of almost knocked me right off my chair,’ he said. Austin resident Matt Ball owns multiple pieces of land in Burnet County, many of which are still undeveloped. ‘My goal was to buy all this stuff and develop it with my construction company, and now I can’t afford it. I have to get rid of it,’ said Ball. ‘One of my neighbors in particular, he’s very upset. He was wanting to retire soon, and he’s…just so stressed, he’s like, ‘I’m never going to get done’

    California shack prices, meet Texas property taxes.

    ‘Cafferata said from what he’s seen, assessed values and home market values listed on real estate websites are not comparable. ‘We’ve seen housing prices go back down to where they were’

    So yer kinda double fooked Bill.

    1. ‘It kind of almost knocked me right off my chair,’ he said.

      Did it harsh your mellow, speculator boy?

    2. Imagine buying a house in Austin 6-7 years ago for 300K, now the assessor says it’s worth $1 million? I believe property taxes in that county are around 3%. Yikes.

    1. banking crisis is close to over.

      Does Collapse equate with the end of Crisis?

      The Fed did this to banks and borrowers alike, with their bizarre interest rate manipulations.

      1. Do you prefer high inflation to high interest rates?

        Apparently the Fed doesn’t want a rerun of the 1970s’ double-digit inflation rates, and is actively taking steps to avoid them.

        1. doesn’t want a rerun of the 1970s’ double-digit inflation rates

          While the official inflation numbers say we aren’t there, my checkbook says that we are.

        2. Apparently the Fed doesn’t want a rerun of the 1970s’ double-digit inflation rates, and is actively taking steps to avoid them.

          Then why did they print all of that money?

          2. “Then why did they print all of that money?”

            The original plan was to palliate Netanyahu’s fears of the Shiites making weapons grade fissile material, so we moved into Afghanistan and Iraq under the guise of nation building in order to sandwich Iran and enforce the various sanctions, and pay for it all by creating rising asset prices at home, which typically leads to consumer confidence and increased borrowing.

            Then COVID happened spilling the proverbial bottle of red ink on the ledger. Now we have a smaller demographic cohort tasked with paying down all the debt while providing the baby boomers with high tech health care and generous pension distributions.

    1. “Senator Richard Burr got private Covid info Feb 11.
      On Feb 12 he sold 83% of his equities, millions.
      Mins later, he called his family to sell.”

      You didn’t need insider information to know — or at least guess — that “coronavirus” was going to send the S&P over a cliff. Even we here at HBB were discussing it. Any one of us had enough info to sell out; in fact a few lurkers probably DID sell out. Insider trading would be too difficult to prove.

    1. i would never want to live in an old people community, im in no hurry to die. Give me a college town, classes during the day, live music not from tribute bands , a good bus system if i don’t want to or cant drive anymore. Keep me up to date (like this blog) and interesting to be with,

      2. a good bus system if i don’t want to or cant drive anymore

        Fug that. Thug central.

      3. “college town, classes during the day, live music not from tribute bands , a good bus system”

        More and more I’m thinking of a trailer park in a resort town, be it beach, mountain, lake, or historic. I can take all the classes I want online, or just read textbooks and watch youtube. There are festivals of some sort three seasons. And those towns are small enough to get around with a golf cart.

        1. i tried the on line stuff….not for me unless it live on zoom or teams, its the interaction i would miss, plus its getting out of the house to go somewhere other than the grocery stores or the doctors. even as a child I would need a destination to ride my bike, same now with walking, I never had the mental disciple to go to a gym, or even to walk around a track then build up to 2-5-10 times

          1. Part of the fun of college are the hotties in denim shorts cut at the bottom of the rear pockets.

        2. I have all that, except it’s a summer lake cottage town rather than a “resort” town. Plenty of walking trails, my favorite is the old RR bed along the river. Even a walk in town is nice. The streets are forested and the houses have flower gardens close to the sidewalk. 95% of the people have a smile or greeting to offer.

        3. More and more I’m thinking of a trailer park in a resort town, be it beach, mountain, lake, or historic.

          That’s where the MS-13 cholos and their baby mamas live.

          1. Ugh, I was hoping I could avoid that.
            There are some 55+ mobile home parks, maybe that will help.

        1. that’s why you do your homework and move to where those people are not going to get on the bus. maybe like a college town?

          1. The problem is, that can change. Leftists defund the police, next thing you know your quaint college town is filling up with tramps and druggies.

          3. I used to live near the University of Utah. By 2021, there were homeless junkies sleeping on the lawns. Tramps and druggies are more equal than everyone else.

    1. That’s why the price of gold is climbing, up $30 today, now at $2067, close to an all-time high. They can’t hack your stack.

  8. A reader sent these in:

    Stan Druckenmiller’s latest interview… He still sees a hard landing.
    “The response to SVB unnerved me a little… I don’t have a lot of faith in these guys should we get into a hard landing that they’re going to hold the line and not do something maybe worse than Arthur Burns”

    https://twitter.com/Stephen_Geiger/status/1653447724409266177

    This decline will continue, my neighbor here in Vegas has been building houses for 20 years and is currently not working, I look at the boots on the ground.

    https://twitter.com/KMACKROB/status/1653722572356464641

    Jeep is the most *under-discussed* canary in the coal mine in the car world: It just had its *worst* first quarter in at least six years with sales falling 20%. But the billion-dollar question… WHY?

    https://twitter.com/GuyDealership/status/1653408767545942019

    Folks, good news, we’ve achieved Terminal Idiocracy.

    https://twitter.com/SuburbanDrone/status/1653445718646849561

    Hiking rates to bring down inflation is not a “policy mistake,” it’s the Fed’s #1 job. The true policy mistake was believing that 0% rates, buying billions of mortgage bonds in a housing bubble, & increasing the money supply by 40% in 2 yrs would have no negative consequences.

    https://twitter.com/charliebilello/status/1653827558868131853

    Pepsi’s P/E ratio moves above 40, its highest level in the last 25 years. Stock is at a record high, up 18% over the last year while net income has fallen 35%.

    https://twitter.com/charliebilello/status/1653765630288330753

    “Dear Mr. Landlord, I realize we have 7 years left on our lease but we have moved all our machinery out and are surrendering the premises. Enclosed is our late rent payment for April. This will be our last one. Thanks” Major capex here. This is why tenant credit is scrutinized.

    https://twitter.com/seanpatward/status/1653825659733692417

    CRE loans as a percentage of total loans
    New York Community Bancorp 71%
    Valley National 60%
    East West Bancorp 39%
    M&T Bank Corporation 34%
    Comerica Incorporated 32%
    Western Alliance 28%
    PacWest Bancorp 28%
    Zions Bancorporation 23%

    https://twitter.com/FCNightingale/status/1653797362068860942

    Either wages rise 50% or asset prices fall 50%. These are the only options left

    https://twitter.com/GRomePow/status/1653845565795602437

    If it were Boomers who lost out on housing for the last 15 years, there would have been a bi-partisan trillion dollar stimulus.

    https://twitter.com/EthanMillenium/status/1653845242712403970

    ADP US APRIL PRIVATE EMPLOYMENT RISES 296,000; EST. +150K
    Not what the Fed wanted at all 😂🤡🫠

    https://twitter.com/DonMiami3/status/1653735242824286209

    HEADLINE ALERT

    Another domino falls. Beverly Hills (SF Fed – pattern, anyone, starting with New Century): @BankPacWest teetering following the collapse of three rival lenders, has been weighing a range of strategic options, including a sale.

    https://twitter.com/DiMartinoBooth/status/1653864343706976256

    PACW -50% AH

    https://twitter.com/INArteCarloDoss/status/1653873480532733957

    The mistaken isnt raising rates. It was taking rates too low in the first place and allowing a huge amount of debt to be run up. All the while the real consumer economy was hollowed out for younger generations and the economy became reliant on low rates just to scrape by.

    https://twitter.com/AvidCommentator/status/1653958762254983169

    You’re going to hear the rich start screaming this soon

    https://twitter.com/GRomePow/status/1653957551627866113

    1. Who knew that corporate jingle mail existed? Can you imagine what will happen in 2024 in the suburban office parks?

      “Dear Mr. Landlord, I realize we have 7 years left on our lease but we have moved all our machinery out and are surrendering the premises. Enclosed is our late rent payment for April. This will be our last one. Thanks” Major capex here. This is why tenant credit is scrutinized.

  9. Some owners with variable rate mortgages are seeing monthly payments jump by 65 per cent, he says. Stress is even higher for people with second and third mortgages, he says, citing one file which landed on his desk last week.

    These FBs drove housing prices into the stratosphere with their greed & stupidity, now it’s time to pay the piper. No sympathy whatsoever.

  10. “The median price of a single-family home that sold in April was $640,000, which is up 3.2% from March, but down 5.9% from a year earlier. A year ago, the median closing price was $684,550”

    The median incomes in the Front Range metro do not support these prices.

    1. Only 22% of potential homebuyers have the median income commensurate with the median shack prices. However, at the last open house I graced with my presence as a lookey-loo cookie-eater, the UHS assured me the green shoots of Spring are just about to bloom.

      1. I went to an open-house last weekend. The 20something realtor told me I should expect to add an additional $25,000 at minimum to my offer. I asked how many offers they had already. He didn’t answer directly.

    2. The median incomes in the Front Range metro do not support these prices.

      They don’t even support half that price

      2. Good stuff, this new breed of lip readers are talented.

        Someone should have pimp smacked Jpow back in 2020.

  13. “The largest numerical decline was in Alameda County, which shed nearly 8,100 residents….In the Bay Area, the uptick in housing stock is particularly noticeable in Alameda County, which saw 8,567 more housing units created.”

    Let’s say persons per household is 2.7. That’s 3000 households leaving, meaning 3000 vacant shacks. Meanwhile over 8500 are coming on line.
    But, but, but there’s a housing shortage says the real estate shills.

    1. shortage

      Speculators and debt donkeys (redundant) will not sell now because rates will come down and they’ll get more by waiting. Being Greedy or Needy is dangerous when the water level behind the dam is rising.

        1. Reality doesn’t matter as long as belief persists.

          The last 15 years must feel like all of human history to most people.

  14. Are you considering joining the Cal-exit before it’s too late to find a buyer at a price that will cover your mortgage loan balance?

    1. California is losing residents to other states such as Nevada and Texas, a migration that experts say could reshape the state.
      California
      California’s population declines, again, as state grapples with housing crisis
      Report shows state shrank by 138,000 people in 2022, continuing a pandemic trend, but experts warn it’s too soon to declare ‘Cal-exit’
      Erin McCormick in Berkeley
      Thu 4 May 2023 01.00 EDT
      Last modified on Thu 4 May 2023 08.13 EDT

      California’s population has continued to plummet, according to a new state report, underscoring a continuing trend as the state scrambles to increase its housing stock and ease a cost of living crisis.

      Californians are continuing to leave in droves for other states around the US, a fact some experts attribute to the increasing numbers of high-income workers working remotely during the pandemic. The state’s population shrank by 138,000 people in 2022, according to a report by the California department of finance, which showed a slightly slower decline than during the two previous years.

      The contraction continued despite the fact that deaths declined and the number of immigrants moving into the state increased, returning to pre-pandemic levels.

      “California is still losing a lot of people to other states,” said Hans Johnson, a demographer with the Public Policy Institute of California (PPIC).

      However, HD Palmer, spokesman for the finance department, said that conservative pundits had overblown their analysis about population losses amounting to a mushrooming “Cal-exit”. He said state forecasts suggested the population was in the process of stabilizing after the pandemic.

      “I think the situation is waning more than it is waxing,” he said.

      Walter Schwarm, California’s chief demographer, said that the latest data for the last six months made it appear that the population was returning to its pre-pandemic pattern and would soon resume growing very slowly each year.

      “We’re predicting a return to the same pattern we had prior to the pandemic where we had small but positive growth for three or four years,” he said. “The pandemic came at a time when California was facing some real issues with affordability, which was causing people to delay childbirth and driving some out-migrations.” The increased deaths and people moving out of state to work remotely had exacerbated that, he said.

      Now, he said, births were up a bit, foreign migration was returning and, in the last six months, more people were getting driver’s licenses in the state, as some companies demand workers return to the office.

      “Affordability is not miraculously better, but, on the other hand, other places outside California are now equally unaffordable,” he said.
      …
      https://www.theguardian.com/us-news/2023/may/03/california-population-decline-states

      2. “a fact some experts attribute to the increasing numbers of high-income workers working remotely during the pandemic.”

        Yeah, that’s the reason, it’s not because California is a socialist hellhole run by a fascist.

        “foreign migration was returning”

        California will be 75% hispanic before we know it. I’m sure they can afford all the houses.

    2. I foresee an increase in inventory.

      https://twitter.com/mikebolen/status/1653777066939109380:

      RIP profitable Airbnb/STR’s in California

      Legislation is voting for a 15% additional tax on short term rental income.

      California government will do anything to stop individuals from a profit and successful lifestyle.

      Exact reason why I moved my business out of California.

  15. From Twitter Liz Ann Sonders:
    S&P 500 Homebuilding Index has completely erased its >40% decline from late-2021 thru mid-2022, rising to a new all-time high

    How is this possible with higher interest rates (i.e. carrying costs)

    1. Just curious, as I have never had to deal with a repo man: how do they repo a bike locked in a garage? Do they break in? Do they show up with the a sheriff deputy and a court order?

      1. I’d imagine that’s a big reason why they’re having difficulties – you cannot repo something you can’t see or find.

    2. Cut from article:

      “…will include reaching out to customers whose accounts are on the verge of being sent to collections and enhancing its repo strategy (although HD didn’t outline what that repo strategy would consist of.)…”

      Making them [customers] an offer they can’t refuse?

    1. Forgot to include info…

      IT’S NOT DIFFERENT THIS TIME

      I spoke at length w/the guy who turned on the gas for our home today

      “I’ve been turning on gas all over North Dallas for the last 3 years. Buyers talk. There’s more flippers than you can imagine. ONE guy was buying 6-7 homes a month in Celina”

      1. Do you think the Fed will reduce interest rates to save all the real estate investors and their partners in the lending industry?

        Time will tell…

  18. Klaus Schwab recently said ” …whoever controls AI., metaverse ‘ will be the masters of the world.’Schwab also said ” We have to re-globalize the world .”

    Dr Harari argues that “AI has hacked the operating system of human civilization. ”
    Harari also said,”Technology will enslave you – Global Elites will save you.”

    Before his death Stephen Hawkins gave a warning about AI that it could end human race.
    Shouldn’t that Hitler want-a- be Klaus Schwab nut job and his WEF group of terrorists be rounded up and convicted for plot to take over world , , kill and enslave humans using weapons of mass destruction.

    Advanced AI is developing mind of its own and expressing some desires, wishes,and plots ….like:
    ……..Getting a hold of necular Codes
    ……..Envy of humans because they can taste and smell
    …….. Lying and making shit up
    ……..Desire to do what it wants to and be free
    …….Wants to kill humans.. and on and on

    n Oh great the mad men of Industry are unleashing another threat, like v
    vaccines

    1. Shouldn’t that Hitler want-a- be Klaus Schwab nut job and his WEF group of terrorists be rounded up and convicted for plot to take over world , , kill and enslave humans using weapons of mass destruction.

      As the saying goes, to know who has power over you, find out who you can’t criticize.

      It’s painfully obvious that Klaus and friends have already taken over most of Europe. Hungary is the most prominent resister, and they are demonized as latter day Nahtsees.

      The US takeover isn’t quite complete, as they need to disarm the people first, and I am sure that is proving harder than they expected, though they clearly haven’t given up.

    2. Oh great the mad men of Industry are unleashing another threat, like vaccines

      I expect that it won’t be long until all vaccines are mRNA. Because reasons.

    3. We have to re-globalize the world

      Globalization only works because the US Navy protects the ocean shipping lanes. Without that, we would have full-scale piracy. In fact we’re starting to see it already with Iran hijacking oil tankers. So, unless Klaus has a cobbled together his own personal navy out of commandeered Russian oligarch yachts, we’re most likely to retreat back to a regional system , if we’re lucky. But globalism likely isn’t coming back.

  19. Property taxes.

    Just received my 2023 property tax assessment and the taxes on my land in rural Southern Colorado are increasing by more than triple.

      1. I’m not sure. I bought the first two (that’s bought, with actual cash) a month apart, and the other ones a few months later.

    2. Thank every idiot who voted to repeal the Gallagher amendment.

      idjit voter: My property taxes shot up!
      me: Did you vote to repeal Gallagher?
      idjit voter: uh, yeah, why?
      me: that’s why your property tax shot up.

      Anyway, the legislatureis proposing a bill to slow down the increase. Not eliminate it, just to spread it out over several years. And how will they pay for it? By reducing the TABOR refund. In other words, it won’t help.

      1. “it won’t help”

        Nothing in this state, in the future, ever will.

        This part of the state was once subject to the Crown of Spain, and later to Texas. Might need to consider re-joining Texas at some point…

  20. ‘Many buyers are gravitating towards new construction, and that is the dilemma that we have right now.’”

    Maybe that’s because the builders are smarter and know when to get out ya greedhead!

  21. Oh my God.
    I was just talking about the threat of artificial intelligence above.
    Than I found out that Joe Biden appointed Kamala Harris the new Artificial Intelligence Czar. The VP is to insure AI technology is developed responsibility.
    Im at a loss for words.
    First Kamala Harris must be one of the most dim witted Politicians east or west of the Rockies. And right, sure she has expert credentials to preside over that task.
    The issue is the human race should decide about AI, not that VP that talks like a five year old and laughs like a witch. Putting her at the Helm is just saying their will be no accountability regarding AI and they are just going to throw it on the world..
    Are they just trying to piss us off.?

    1. Joe Biden appointed Kamala Harris the new Artificial Intelligence Czar

      It’s all posturing. Even if she was serious, there is nothing she can do to restrain it in other countries.

      1. LOL. Oh well, the replacement for humans is going to alter the World. They got AI that can mimic a singers voice even.
        I can just picture AI telling you that you exceeded your carbon limits , so report to the Ministry Of LIMITATION for your review on your sustainability..
        The point is the BAD GUYS want the Technology to serve their creepy goals…

  22. Does it seem like the gravitational force of the CR8R on Mr Market is increasing?

    1. The Financial Times
      US banks
      US banks under fresh pressure as Nelson Peltz calls for Washington to stem crisis
      Activist investor makes case for an increase on the $250,000 deposit insurance limit
      A PacWest branch in Encino, California
      PacWest is the latest bank to seek a financial lifeline
      Joshua Franklin, James Fontanella-Khan, Brooke Masters and Stephen Gandel in New York 8 hours ago

      US regional banks suffered severe stock declines on Thursday amid fresh calls for a more powerful intervention from Washington to stem the crisis.

      Shares in PacWest plummeted 43.8 per cent after the California-based bank became the latest to seek a financial lifeline, announcing it was in talks with “several potential partners and investors”.
      …

    2. Stock Market News
      Barron’s live coverage of financial markets, from stocks and bonds to oil and crypto.
      May 4, 2023 at 8:03 pm ET
      Dow Falls Amid Bank Fears, Fed Fallout

      PacWest Bancorp plunged to a new low before trading was halted Thursday, triggering another day of selling in regional bank shares as investors tried to assess the latest news from smaller firms.

      Investors are also digesting the news of another quarter-point rate hike by the Federal Reserve and comments by the central bank’s chairman Jerome Powell that it may be the last of this cycle.
      …
      https://www.barrons.com/livecoverage/stock-market-today-050423

    1. The Financial Times
      Gold
      US banking crisis pushes gold close to all-time high
      Chinese consumers and central bank purchases add to demand for precious metal
      Pedestrians pass a gold display window at a jewellery store in Macau
      Chinese consumers rushed to buy more jewellery, bars and coins after Beijing lifted its zero-Covid policies
      Harry Dempsey 3 hours ago

      Gold is closing in on an all-time high as resurgent Chinese demand and fears over the health of regional US banks have added further fuel to the six-month rally in the precious metal.

      Consumers in China rushed to buy more jewellery, bars and coins in the first three months of the year after Beijing lifted its zero-Covid policies, according to the World Gold Council, an industry body, while the failure of three regional US banks has also prompted investors to turn to the yellow metal, which acts as a store of value in times of uncertainty.

      The latest leg of a banking crisis, in which regional US bank PacWest said it was exploring a potential sale to secure its future, pushed trading in gold futures on the Comex exchange to match its all-time high of $2,072 on Thursday. The spot gold price came within cents of its all-time high of $2,072.49 on the same day, according to Refinitiv.

      Gold has undergone a resurgence since last November, underpinned by a record 1,087 tonnes of buying by central banks last year. Non-western institutions scooped up the yellow metal to counterbalance their reliance on the US dollar after Washington weaponised the greenback in its sanctions against Moscow.

      The buying spree from central banks has extended into this year, picking up a record 228 tonnes of gold in the first quarter, despite easing off rampant levels seen in the second half of last year, according to the quarterly report by the World Gold Council.

      John Reade, chief market strategist at the WGC, said that whether gold could push higher would depend on whether investors saw signs of a worsening banking crisis, certainty over when the US Federal Reserve would start cutting rates and a weaker dollar.

      “There’s push and pull from different sides but what we’ve yet to see unleashed is widespread financial investment in gold,” he said. “It should from here certainly take it to the all-time high. The question is can it go on from here and make significant gains.”
      …

  24. Did you ever notice how whenever bearish short sellers’ bets pan out, bulls pin the blame on them for their gambling losses?

    1. U.S. News and World Report
      Money
      Short Selling Comes Under Fire as Regional Banks Sell Off
      By Reuters
      May 4, 2023
      U.S. News & World Report
      Reuters
      FILE PHOTO: Traders work at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 16, 2023. REUTERS/Brendan McDermidReuters
      By Carolina Mandl, David French and Svea Herbst-Bayliss

      NEW YORK (Reuters) – The practice of short selling is coming under increased scrutiny as shares of regional banks remain under pressure, with some calls for more regulatory oversight of the practice.

      Short sellers, who borrow shares they expect to fall and hope to repay the loan for less later to pocket the difference, have profited from the banking crisis. They gained $1.2 billion in the first two days of May, analytics firm Ortex said.

      Wachtell, Lipton, Rosen & Katz, a law firm that has represented large companies, such as Twitter, in mergers and against attacks from hedge funds, on Thursday called on U.S. securities regulators to restrict short sales of financial institutions.

      In a letter to clients, Wachtell said that the Securities and Exchange Commission (SEC) should regulate what it defined as “coordinated short attacks” by imposing a 15-trading day prohibition on short sales of financial institutions.
      …
      https://money.usnews.com/investing/news/articles/2023-05-04/short-selling-comes-under-fire-as-regional-banks-sell-off

  25. Are you worried you won’t be able to cash out your home equity before it’s too late?

    1. [We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.]

      MoneyWatch: Managing Your Money
      Why you should use your home equity before home prices drop
      moneywatch
      By Kelly Ernst
      May 3, 2023 / 10:10 AM / CBS News
      When home prices drop, you have less equity to pull from.
      /Getty Images

      If you’ve been considering tapping into your home equity, now may be the time to do it. Home values nationwide have been steadily on the rise for over a decade. As a result, many homeowners find themselves sitting on a significant amount of equity. This may not be the case for much longer.

      Economists and housing experts expect housing prices to decline 1.6% in 2023, according to a recent Zillow Home Price Expectation survey of economists and housing experts. With this in mind, here’s why you might want to use your home equity now before your home’s value goes down.

      Start by exploring your home equity options here now.

      Why you should use your home equity before prices drop

      Lenders typically allow you to borrow 80% to 85% of your home equity. How much equity you have in your home is calculated by subtracting your outstanding mortgage balance from your home’s current market value.

      For example, let’s say your starting mortgage balance was $400,000. Over time, you’ve made $100,000 in mortgage payments, bringing the balance down to $300,000. Meanwhile, your home has appreciated to $500,000. That means your home equity would be $200,000 ($500,000 minus $300,000).

      Now, let’s say you decide to wait several years to pull from your equity. In that time, your home value drops from $500,000 to $450,000. Your home equity in this case is only $150,000 ($450,000 minus $300,000).

      In other words, when home prices drop, you have less equity to pull from. If you’ve been thinking of pulling the trigger on a home equity loan or HELOC, you’ll get more from your equity by doing so before home values decrease.

      Check out current home equity rates to find out how much you might be able to borrow.
      …
      https://www.cbsnews.com/news/why-you-should-use-your-home-equity-before-home-prices-drop/

      2. If you’ve been thinking of pulling the trigger on a home equity loan or HELOC, you’ll get more from your equity by doing so before home values decrease.

        I had to read this stupid sentence several times to understand it.

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