It Looks Like A Flipper Bought That Beat-Up House Before Realizing This Is Not The Market For Flippers
A report from KSAT in Texas. “Home prices in the Austin metro area have dropped $85,000 since last year, according to Redfin. Austin was among the pandemic boomtowns. Redfin analysts say those pandemic prices were unsustainable and ‘are now coming back down to earth.’ The median home price in the Austin Metro has come down 15.3% from where it was at its peak in April of 2022 — $555,000. It’s a trend seen across the country — just not to that extreme. Nationally, the median sale price fell 4.1% year over year. The state also issued more residential building permits last year — 263,000 — than any other state. ‘In the Fort Worth area, all of the new construction means buyers aren’t hindered by a lack of new listings. They’re building all over and in various price ranges,’ said local Redfin real estate agent Gena Campbell.”
12 News in Arizona. “With lush green grass, lakes and palm tree-lined streets, it’s easy to see what draws residents to Province, a new 55-plus housing community in Maricopa. Julie Schwarberg and her husband signed a contract and drove to a design center in Scottsdale to customize her brand-new home. She couldn’t have predicted the headaches that also came with the community. The problems began before they stepped foot in their home. ‘Our new construction fixer-upper,’ she said. From doors that don’t latch, to unfinished paint, and gaps in door frames, the number of problems has become overwhelming. Outside, she points out bubbled and chipped paint, a concrete barrier that was never sealed, and a doorbell that hangs off the wall. ‘They keep saying, ‘We’ll get to it,’ Schwarberg said.”
“Schwarberg has reported all of the problems to Meritage, the community’s builder, for months. She said Meritage employees have no-showed at several appointments, chalked some issues up to the house ‘settling,’ and told her they are experiencing supply chain issues. Schwarberg is frustrated as she watches Meritage continue to build in Maricopa. ‘Stop building and finish what you started,’ Schwarberg said. ‘They know that they have put houses together that are unacceptable and I want them to fix it.'”
LA Daily News in California. “John Burns’ real estate research shop has become one of the housing industry’s top analytical firms by taking a more holistic view of what drives homebuying. For two-plus decades, his eponymous Orange County-based company has become a critical cog in homebuilding thinking because its research looks far beyond real estate basics to encompass broader economic and demographic changes – not to mention the fleeting desire of house hunters. Q. So what do you think will happen next?”
“A: Mortgage-payment-to-income ratios need to come back in line through a combination of falling home prices, falling mortgage rates, and rising incomes. And all three of those things are happening right now. They’re just happening pretty slowly. We think that could happen by the end of next year. The bond market is signaling that mortgage rates should be in the low 5%. Wage growth continues to be north of 4%. So we’re thinking that’s going to continue. And then we think home prices are going to keep falling. The homebuilders have already dropped prices, the equivalent of 12%. The resale market hasn’t done that. So the homebuilders are actually selling pretty well because there is much better value. They’re buying down the buyer’s mortgage rate close to 5% and found a sweet spot there.”
Arlington Now in Virginia. “An apartment redevelopment proposed for a strip mall on Columbia Pike is stalled for the foreseeable future after the anchor tenant — a grocery store — fell through. But some of the existing tenants have already moved out. And now, the Fillmore Gardens shopping center on the 2600 block of the Pike, which includes a still-operating CVS, is attracting graffiti artists and other signs of blight, according to neighbors. Penrose Civic Association President Alex Sakes says the development was ‘slated to become a new crown jewel’ but is now ‘an unbelievable embarrassment.'”
“‘The never ending graffiti and garbage is truly appalling and gets worse by the day,’ he said. ‘My residents and I don’t just work here or drive past this site — we live here. We take great pride in our neighborhood and are happy to step up to help beautify this site once again. I’m not here to point fingers or place blame, but the condition of this site cannot and will not continue to perpetuate.'”
From NECN. “Massachusetts had the lowest rental vacancy rate in the U.S. in 2022 and the second-highest median rents, Boston features the second-highest traffic delay times in the nation, and the state recently posted its highest outmigration numbers in 30 years, according to the Massachusetts Taxpayers Foundation. ‘We’re seeing the future of our workforce, people aged 26 to 35, high-wage residents, and those in key sectors, dominate the outflow of residents and talent,’ MTF President Doug Howgate said. MTF Massachusetts saw nearly 111,000 people leave the state between April 2020 and July 2022.”
From Miami Today. “Never let the facts get in the way of a good story. The good story that we’ve been telling one another – and the world – is that during the pandemic Florida, and especially Miami-Dade County, enjoyed a huge population gain from around the nation. The facts, however, tell a far different story – at least, the facts in a US Census report released last week. Miami-Dade, however, didn’t contribute to those huge gains: the county actually lost – that’s right, lost – 27,925 persons in the 27-month period, or more than 1,000 a month.”
“Of the 67 counties in Florida, 12 of them actually lost population during the 27-month period the census looked at. Miami-Dade, the state’s biggest county by population, was the biggest loser. But of the other losers, the largest in population at 81,708 was Monroe County – the Florida Keys – which is a long string of small towns. The largest of the other counties was barely 27,000 total population. So the smallest communities were also losers.”
Bisnow New York. “The researchers who last year predicted $500B in value would be wiped from office buildings nationwide because of remote work gave a chilling update for real estate investors this week: They underestimated the damage. Academics from New York University and Columbia University published a report last summer predicting that New York City office values would rop 28% by 2029, representing value destruction of $49B. In an update released this month, the authors now project an average value drop of 43.9% from 2019 to 2029.”
“In just a three-year period between 2019 and 2022, office buildings nationally have lost roughly $506.3B in value, according to the researchers. Office buildings lost $69.6B in New York, $32.7B in San Francisco and $5.1B for Charlotte, they wrote. Office occupancy in New York remains below 50%, according to Kastle Systems data, and landlords are feeling the pain as a result. ‘The key takeaway from our analysis is that remote work is shaping up to massively disrupt the value of commercial office real estate in the short and medium term,’ the authors wrote in the report. ‘This conclusion is consistent with our finding that firms appear to demand substantially less office space when they adopt hybrid and remote work practices, and that such practices appear to be persistent.'”
The Globe and Mail in Canada. “In April, the average home sale price was $1.106-million in the Greater Toronto Area, up 2.4 per cent from the previous month and up 2.5 per cent from three months ago. That said, year-over-year prices were still down 12.2 per cent from the inflated peaks of early 2022. Meanwhile, cottage country and rural areas are staying flat or still dropping. For example, prices are down 3.1 per cent over last month in Bancroft and down 2.2 per cent in the Kawarthas.”
“‘I have also seen power of sales increase on MLS. Often to me it looks like it’s a flipper, somebody who bought that beat-up house before realizing this is not the market for flippers,’ said Davelle Morrison, broker with Bosley Real Estate Ltd.”
Radio New Zealand. “The weaker housing market has meant the proportion of properties resold at a loss has hit a seven-year high. CoreLogic’s latest Pain & Gain Report shows 6.1 percent of property resales in the first quarter of 2023 made a loss, up from 4 percent in the final three months of 2022. Auckland had the highest proportion of loss-making resales among the main centres, with 13.2 percent being below the previous purchase price. Auckland saw the most pain. Hamilton had the second-highest proportion of resale losses at 8.1 percent, followed by Wellington at 6.3 percent.”
“CoreLogic said apartment resales made up a bigger proportion of resale losses compared to other property types, with more than 28 percent of resales in the first quarter made at a loss. Chief property economist Kelvin Davidson said it was relatively uncommon for houses to make a loss at a resale, but that was changing. ‘From only half a percent of house resales being made for a gross loss in Q1 2022, that figure has now risen to 5.1 percent. That’s the highest since mid-2016.'”
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‘From doors that don’t latch, to unfinished paint, and gaps in door frames, the number of problems has become overwhelming. Outside, she points out bubbled and chipped paint, a concrete barrier that was never sealed, and a doorbell that hangs off the wall. ‘They keep saying, ‘We’ll get to it’
Lots of hosed buyers in this article. Welcome to Maricopa!
‘The never ending graffiti and garbage is truly appalling and gets worse by the day,’ he said. ‘My residents and I don’t just work here or drive past this site — we live here’
Wake up and smell the sh$thole Alex.
This isn’t quite a sh!thole yet. This site is one of those bad blighted blocks in a sea of gentrification, about a mile from Arlington National Cemetery. The site is surrounded by newer builds in the usual mixed-use 15-minute city mold.
I can see why the grocery store would have pulled out. There is a Giant grocery store right behind this strip mall and a Harris Teeter a few blocks away. However, there is no reason that losing the grocery store should be enough to derail a pretty big apartment complex in a prime location. It would be easy enough to find another retailer or high-end restaurant, or just not build that part. Maybe some brown envelopes, or lack thereof, were involved.
*should not be enough to derail an apartment complex
‘Miami-Dade, however, didn’t contribute to those huge gains: the county actually lost – that’s right, lost – 27,925 persons in the 27-month period, or more than 1,000 a month’
The media has been a lion!
We’re seeing the future of our workforce, people aged 26 to 35, high-wage residents, and those in key sectors, dominate the outflow of residents and talent,’ MTF President Doug Howgate said. MTF Massachusetts saw nearly 111,000 people leave the state between April 2020 and July 2022′
Wa happened to my shortage Massachusetts?
‘I have also seen power of sales increase on MLS. Often to me it looks like it’s a flipper, somebody who bought that beat-up house before realizing this is not the market for flippers’
Davelle, are you saying these flippers are just giving it away? Why that’s savagely unhealthy! Wa happened to my red hotcakes?
A reader sent these in:
The US Money Supply has fallen 4.6% over the last 12 months, the largest year-over-year decline on record (note: M2 data goes back to 1959).
https://twitter.com/charliebilello/status/1661233244573147136
The median price of a new home sold in the US is down 15% from its peak last October. After the last housing bubble peak the median new home price fell 22% nationally.
https://twitter.com/charliebilello/status/1661013393569095680
BREAKING: Futures begin pricing-in 2 more rate HIKES this year. There’s now a 43% chance of another 25 bps rate hike by July. Futures also see a 9% chance that rates increase TWICE by July. Just last week, rate CUTS were expected to begin in July. Meanwhile, the Fed still has not committed to any rate cuts in 2023. The current market-to-Fed disconnect is truly historic.
https://twitter.com/KobeissiLetter/status/1661355704798642176
Median price for new single-family home -8.2% year/year in April, worst since April 2020
https://twitter.com/LizAnnSonders/status/1661312751044640768
April survey from @Gallup shows 35% of U.S. adults named inflation as their family’s top financial problem (highest share on record) … other than last year’s 32%, previous record was 18% in 2008
https://twitter.com/LizAnnSonders/status/1660963218641108992
From Waller’s mouth (between Williams & Waller, I’d classify Waller as Powell’s First Lieutenant and Williams not too far behind. Of course both are permanent voters. June hike probability rose to 30% on Waller comments).
https://twitter.com/DiMartinoBooth/status/1661406750468079619
“35% of U.S. adults named inflation as their family’s top financial problem (highest share on record)”
All proceeding exactly as planned. Happy thirty eight month anniversary of “two weeks to flatten the curve” because “we’re all in this together.”
National health emergency was ended three weeks ago, Einstein. Covid lives rent free in your head.
ended three weeks ago, Einstein
For the math challenged, the time span from May 11 until May 25 is two weeks.
BTW, not all of the measures imposed have ended. Free jabs to last for another year plus.
i am so happy the masks were hard to breath and the hot air in my lungs hurt i wonder how much lung damage was done to people breathing in all the exhaled Co2 all day, and some were double masked.
Try telling that to the morons still wearing masks and demanding mandates.
National health emergency was ended three weeks ago, Einstein.
But the damage done by the “emergency” is permanent, Einstein. Just look at all of the babies and toddlers that lost their one chance to grow up normally and develop thinking and cognitive skills when all of the people around them were wearing masks. Infants develop language and other skills by looking at the faces and expressions made of adults and other people. Even that infamous Dr. Leana Wen was crying in her beer when she discovered that the stupid masks caused her own kids to become developmentally disabled.
It’s a good thing that chemists with masters degrees don’t get to receive grants and do independent research. Lab techs just know how to be techs.
The front desk person at the pediatrician’s office on Monday was masked and behind plexiglass. I couldn’t understand a thing she said.
April survey from @Gallup shows 35% of U.S. adults named inflation as their family’s top financial problem (highest share on record)
Just wait until the Dems start closing farms to save the world from global warming, then we’ll see the CPI go into the stratosphere. And most people have no clue that Kerry said farm confiscation should be on the table.
Gotta love the hypocrisy. The pretend to care about “food insecurity” for the poor while at the same time advocating a drastic reduction in food production. And don’t expect the MSM to discuss this. If anything, when rationing cards make their appearance they will sing their praises. Remember when Bernie Sanders said that breadlines were a good thing?
what a performance Mick Jagger / Tina Turner – State Of Shock / It’s Only Rock ‘n’ Roll (Live Aid 1985
https://www.youtube.com/watch?v=9wyuwJP-u9Q
“12 News in Arizona. “With lush green grass, lakes and palm tree-lined streets,”
Got water? If yes, for how long? So much wrong with that sentence.
My water flows into the Arkansas River to the Gulf of Mexico.
Arizona (and California) have no claim on my water.
12 News in Arizona. “With lush green grass, lakes and palm tree-lined streets, it’s easy to see what draws residents to Province, a new 55-plus housing community in Maricopa. Julie Schwarberg and her husband signed a contract and drove to a design center in Scottsdale to customize her brand-new home. She couldn’t have predicted the headaches that also came with the community. The problems began before they stepped foot in their home. ‘Our new construction fixer-upper,’ she said.“
– I’ve heard anecdotal evidence that new construction is a lotta crap. This also happened during Housing Bubble 1.0. Sh*t Chinese drywall was just part of it, but the real issue is/was shoddy construction.
– Also, AZ doesn’t really have H2O for new construction. Corrupt Government looks the other way due to copious brown envelopes. This is a problem when not enough H2O to flush yer toilet. Green lawns belong in KY, not AZ. But growth.
Arizona. “With lush green grass
That’ll need to be xeriscaped after everyone moves in.
“That’ll need to be xeriscaped after everyone moves in.”
– 🙂
– In CO, that means gravel and rocks. How nice! Oh, but landscaping is inexpensive.
In CA, xeriscapes include succulents. I hate the aesthetic.
gravel and rocks
Just consider it habitat.
“it doesn’t matter how much money they lose in the process.”
There are only so many billionaires in the world, and even they are going to run out money if companies like Gillette, Budweiser, Disney, and Target bleed out millions each day. Bring on the recession!
“…problems began before they stepped foot in their home. ‘Our new construction fixer-upper…”
Note to Julie Schwarberg:
Actually, what you bought was a tear-down.
Take a bubble level and check the [out-of] square walls.
Take a large marble and watch it roll down your [un] level kitchen floor.
The fun really begins when the sub-standard concrete starts cracking (despite re-bar, assuming any was used [inspector paid off]) and the No. 5 green lumber used for framing [illegally] starts splitting.
Rule of thumb: If a shady builder can save a nickel on something that costs 6 cents, they will.
We have the same problem in many parts of Texas. There’s a water shortage, but millions of people keep moving here every year
Ditto in the Centennial state. Fortunately the tsunami of newcomers has slowed here, and it might not be long before there is an exodus out of the state.
Ok, so new Poll, almost two thirds of Public believe News is” enemy of people.”
The social engineers in control of the narratives think they can sell anything if they repeat it enough and censor everything else.
In a given day ,I have seen the exact talking points repeated over and over again, in spite of being absurd, not logical, and not factually backed up at all. IT A JOKE.
The Powers that be have departed so far from reality, that even dumb asses aren’t buying it..
I think their “great narratives” and disinformation campaigns, the name calling, outright slander,race baiting, scapegoating , drama, etc. , has lost it’s appeal. .
Eventually people start noticing the World is nuts, and life isn’t getting better for them by being defrauded and brainwashed., swindled and lead off a cliff.
In fact, Im hoping a will to survive and thrive, will trump the One World Order agenda, because OWO is ridiculous and evil and totally nuts.
You will own nothing
“You will own nothing”
Billy Preston – Nothing From Nothing
https://youtu.be/8HqyEHqEYho
You will also eat bugs and be happy!
I know an ancient secret that can turn bugs into edible meat and eggs.
“I know an ancient secret that can turn bugs into edible meat and eggs.”
– Tastes like chicken 🐔? 😉
TPTB will try to outlaw those conversion devices, because climate change. They might even try to declare your residence a “farm” and confiscate it.
Yeah, I know, it sounds absurd, but we are living in Heinlein’s Crazy Years.
If they outlaw the flightless conversion devices, try a dovecote.
“You will own nothing”
I’m meeting with my REALTOR® tomorrow to do inspection on my teardown / scrape.
And it’s not a flip, I’m actually going to live there after I rebuild.
Gotta love this headline:
Curiously, no stores have been burned down by these “extreme elements of society”, unlike when the mostly peaceful protestors did just that. But somehow that was OK and justified.
But Corporate America has its marching orders, and it doesn’t matter how much money they lose in the process. Target’s CEO said that carrying the merchandise was “a good business decision”. Since when is losing 10-20% (or more) of your customer base “good business”?
The republic is speeding towards a cliff.
Well said Colorado.
Im thinking satanism, transgender grooming of children, sadist stuff, dark dark shit, isn’t going to fly in the long run.
This is a good sign its being rejected, as it should be. .
“Corporate America”
I own shares of Fidelity’s zero expense S&P 500 index fund. Where am I supposed to invest my money with diversification and a (to now) relatively consistent performance over time?
There are no specifically “non woke” index funds.
Try sector funds. Fidelity offers an energy fund which is mostly fossil fuels.
fossil fuels.
Buying high is not for everyone.
buy 5% CDs until the damage is done
Are CDs better than treasuries?
treasuries maybe a bit better rate, if you have access via TreasuryDirect
The decision to pull LGBTQ+ merchandise is spurring criticism that the retailer is caving to extreme elements of society
A small collection of mentally ill billionaires are driving all of this sh!t.
In an age of depravity, normal is considered extremist.
A small collection of
mentally illevil billionaires are driving all of this sh!t.I think that the goal is to demoralize the populace, to make them believe they are powerless to stop the madness. Even if Target were to lose 20% of its customers, the PTB would prop it up, and they will still continue to shove the deviancy down our throats.
“But Corporate America has its marching orders, and it doesn’t matter how much money they lose in the process.”
The Rise of Corporate-State Tyranny
MAY 17, 2021
A convergence between the world’s two superpowers is taking place. In the United States, as property and power further consolidate, the “diffusion of power,” so critical to democracy, erodes and autocracy develops naturally. Only players at the highest level possess the heft and the motivation to influence policy.1 This powerful front consists of a new alliance between large corporate powers, Wall Street, and the progressive clerisy in government and media.
Its agenda consists of several goals. On the corporate front we have the emergence of “stakeholder” capitalism, which embraces the state’s priorities implicitly and those of the progressives generally, as a way to please regulators, the woke among their employers, and, to some extent, their own consciences. In this they resemble companies in authoritarian states—like Mussolini’s Italy, Hitler’s Germany, and today’s China—where private capital accumulation is permitted but dissent from the agreed norms of the media-government-academy, once the privilege of individuals and corporations, is now largely verboten.
Yet complicity in the West differs from fascist or corporate socialist standards in one important way. In wealthy societies, a large part of the corporate elite does not see widespread economic growth or rising living standards as a goal but as an impediment to meeting the demands of the “stakeholders,” who are largely defined by the clerisy, their orbit of nonprofits, cowed media, and their academic mentors. Profits are fine in this arrangement but only if they do not increase the material consumption of the populace while allowing new advantages to select racial or lifestyle minorities. The new corporatism is not bad for established capitalists but offers little to the middle or working classes, or, for that matter, to smaller independent businesses.
https://dc.claremont.org/the-rise-of-corporate-state-tyranny/
The paper makes an interesting point: that the oligarchs who currently support the left could have their empires confiscated by future leftists. So in effect, they are hoping to be eaten last by the Bolsheviks.
Hilarious!
https://twitter.com/MarioNawfal/status/1661542033884958723?cxt=HHwWhsC-0abr_Y4uAAAA (2m12s video):
Trump just posted this video making fun of DeSantis. I have to admit, I couldn’t stop laughing😂
Trump spaces soon?
Elon won’t host Trump on Spaces until he solves the crashing problems.
Trump doesn’t need Elon, Einstein.
If Trump doesn’t need Spaces, then why did you suggest it?
I didn’t. I comment above a link, provide the link followed by the length of a video in parentheses, then use a colon after that to quote text from the tweet.
A couple of interesting pieces from The Last Refuge/The Conservative Treehouse:
Failure to Launch – Elon Musk’s Twitter Spaces Fails for Ron DeSantis
Ron DeSantis Will Launch His 2024 Campaign Wednesday Using the Alliance of Elon Musk and Rupert Murdoch as Boost (emphasis added)
“…John Burns’ real estate research shop has become one of the housing industry’s top analytical firms…” {really? <;)}
"…The bond market is signaling that mortgage rates should be in the low 5%…"
From CNN 25-May-23 – Mortgage rates up.
The 30-year fixed-rate mortgage averaged 6.57% in the week ending May 25, up from 6.39% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.10%.
Great analysis job by John Burns’ *top analytical* firm.
Great analysis
If you were to lend money to a property ladder climber right now, what interest rate would you charge? Your own personal money.
I wouldn’t worry about the interest rate, but I would demand 20% down.
20% isn’t enough.
I wouldn’t worry about the interest rate, but I would demand 20% down.
Sweetie, the interest rate is how you make the money.
A higher downpayment can protect the lender in case they have to foreclose and resell the home at a reduced price.
A sizable downpayment requirement also filters out customers who lack the means to repay the loan (wealth, savings, or incomes).
“And then we think home prices are going to keep falling.”
At least we all can agree on one thing.
🤢
Las Vegas Buyers Market Cancelled
https://www.youtube.com/watch?v=Ro0zA-V6BRY
May 25, 2023 #CNBC #californiarealtor #lasvegas
Buyers Market Canceled 2023
Why did it change so quick.
We live in a centrally planned economy!
When economic switches are turned off and on it changes on a dime!
Recall last March we said that homes in Vegas were going to fall 15% to 25% from the peak.
We gave you 5 reasons why.
That happened!
Guess what folks two of those reasons were people had to start paying their mortgage again and the end of PPP free money.
Guess what both of those switches have been turned back on!
People have stopped paying their mortgage again via Forbearance Frenzy.
Free money via ERC is back.
Just like that the greatest seller’s market has returned! 👌
January at the crystal ball we talked about PPP 2.0 and the forbearance
We had no idea that ERC was going to be so huge.
It’s impacting the housing market greatly.
Employment Retention Credit
Remember that 1.7 trillion dollar package in October.
You know that money wasn’t spent in October. ERC was hidden in the details
It is coming now hard and strong
Paying attention to when the government changes policy and flips on and off economic switches is when you need to make your moves before the general public knows!
Captain Noah knew that the forbearances were going to come back with a vengeance because HUD announced it in January!
Noah knew PPP 2.0 on steroids was coming back via government spending bill.
Hud and the government told us all this!
Noah used this anticipated housing shortage and bought several houses one he bought closed and sold it 24 hours later for a $100,000 more!
The change is so stunning that captain Noah was featured on a 4 part series on CNBC and was featured on NBC nightly news with Lester Holt.
Come to our events find out what’s going to happen in the next 6 months to 18 months.
Be like Noah make a 100 grand in 24 hours in this centrally planned real estate market!
David Bowie — Waiting For The Man (Velvet Underground cover) live in Santa Monica, CA 1972:
https://www.youtube.com/watch?v=BOcN8DR9UAo
Jimi Hendrix — Like a Rolling Stone (Bob Dylan cover) live at Monterey 1967:
https://www.youtube.com/watch?v=RBVGa5D6GDY
Derek & The Dominos — Why Does Love Got To Be So Sad?
https://www.youtube.com/watch?v=wFeYVTPv0t8
“The bond market is signaling that mortgage rates should be in the low 5%.”
With 30-year Treasurys yielding 4%, shouldn’t mortgage rates be closer to 7%?
https://www.cnbc.com/bonds/
https://www.foxbusiness.com/real-estate/mortgage-rates-spike-over-economic-uncertainty
“Wage growth continues to be north of 4%.”
Given the level of inflation we have had recently and the need for bond traders to price in an inflation risk premium to get a positive real return, it seems puzzling that longterm Treasury yields remain stuck below 4%.
https://www.cnbc.com/2023/05/23/former-fed-chair-ben-bernanke-says-theres-more-work-ahead-to-control-inflation.html
‘“The longer the overheating episode, the stronger the catch-up effect, and the weaker the anchoring of expectations, the larger is the effect of labor market tightness on inflation, and, implicitly, the stronger the eventual monetary contraction needed to return inflation to target, all else equal,” they wrote.’
Sounds pretty ominous…
Got stagflation? Coming soon to a country near you…
https://www.bbc.com/news/business-65707206
What is Dr. Copper trying to say?
https://fortune.com/2023/05/25/will-there-be-recession-copper-prices-warning-china-demand-billionaire/
https://m.investing.com/news/commodities-news/dr-copper-signals-recession-metal-at-best-value-since-july–qi-insights-3091221
Got stagflation? Coming soon to a country near you…
The goal is to de-industrialize Germany.
All is proceeding as planned.
The goal is to de-industrialize Germany.
Following the end of WWII, that was a stated goal of Henry Morgenthau Jr., the United States Secretary of the Treasury. He also oversaw the prescribed minimal diets of soup for the civilian population during the winter leading to hundreds of thousands starving to death.
FINANCE REAL ESTATE
The $500 billion ‘Office real estate apocalypse’: Researchers find remote work’s effect even worse than expected
“The key takeaway from our analysis is that remote work is shaping up to massively disrupt the value of commercial office real estate,” they wrote.
BY ALENA BOTROS
May 25, 2023 6:10 PM EDT
…
https://fortune.com/2023/05/25/office-space-crash-harder-than-expected-remote-work-economy-cre-crash/
May 24, 2023 – News
Why workers are leaving Massachusetts
Mike Deehan
Photo: Matt Stone/Boston Herald via Getty Images
Massachusetts has three big problems that are staggering the local economy, according to a new report: the availability of housing, the sorry state of our transportation systems and the outflow of talented workers to other states.
Why it matters: Massachusetts’s vaunted position as one of the best states to live and work in could be at risk if these long-term trends aren’t addressed.
…
https://www.axios.com/local/boston/2023/05/24/workers-leaving-costs-transportation
Massachusetts’s vaunted position as one of the best states to live and work in could be at risk
This is a joke, right? Heck, at least Clownifornia has good weather.
But you’d be cradled, kept warm in the bosom of democrats. 🙂
WRT Boston, it’s the people rather than the weather that are intolerable. Boston is segregated in every way imaginable (e.g., ethnically, educationally, socioeconomically). Topography doesn’t help matters. Bostonians are unfriendly and not infrequently conceited.
Not unlike urban Californians.
Fed’s Waller: inverted yield curve may signal belief in falling inflation
Reuters
May 24, 20232:00 PM EDT
Updated 2 days ago
Federal Reserve Board Governor Christopher Waller poses before a speech at the San Francisco Fed
Federal Reserve Board Governor Christopher Waller poses before a speech at the San Francisco Fed, in San Francisco, California, U.S., March 31, 2023.
REUTERS/Ann Saphir
May 24 (Reuters) – Federal Reserve Governor Christopher Waller on Wednesday said that while inverted yield curves in the context of stable inflation often point to a bad economic outlook, the current yield curve inversion may signal better times ahead.
“What you’re seeing in the inversion is not so much fears about bad economic outcomes in the future, but belief and trust that we’re going to bring inflation back down and rates will be lower in the future once we do that,” Waller said at a University of California, Santa Barbara economic summit.
…
https://www.reuters.com/markets/us/feds-waller-inverted-yield-curve-may-signal-belief-falling-inflation-2023-05-24/
“What you’re seeing in the inversion is not so much fears about bad economic outcomes in the future, but belief and trust that we’re going to bring inflation back down and rates will be lower in the future once we do that,”
It doesn’t seem like fears of bad outcomes and trust that future inflation will be lower are mutially exclusive.
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Here are ways retirees can protect nest eggs during a stock market rout
Published Thu, May 25 2023 3:08 PM EDT
Updated Thu, May 25 2023 3:36 PM EDT
Greg Iacurci
Key Points
– The market may contract along with the economy in a possible recession, but there are two ways retirees can protect the invested savings they’re living off of, says Christine Benz, director of personal finance and retirement planning at Morningstar.
– One of those defenses is changing the source of withdrawals — for example, pulling from cash or bonds instead of stocks.
– The second defense is to reduce the overall dollar amount retirees withdraw from their investments.
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https://www.cnbc.com/2023/05/25/here-are-ways-retirees-can-protect-nest-eggs-during-a-stock-market-rout.html
“Here are ways retirees can protect nest eggs during a stock market rout”
What are they talking about?
I’m not seeing any rout.
Perhaps they are recalling what happened the last time the debt ceiling impasse was resolved following a standoff?
https://www.kiplinger.com/debt-ceiling-crisis-what-happens-to-stocks
“Pressure began building months before, and the market wasn’t done fumbling for a bottom for many, many weeks. Ultimately, from the S&P 500’s closing 2011 peak to its closing 2011 trough, the index lost more than 19% on a price basis.”