We Are Broke And Scared And Feeling Helpless, Our Story Is But One Of Thousands
A report from Community Impact in Texas. “There is a trend seen between Southwest Austin, Austin and Travis County that holds true for all three—median home prices are down, new listings are down and pending sales are down. Additionally, active listings have gone up while monthly housing inventory has also increased. Compared to 2022, those trends are as follows: Southwest Austin: Median home price: $595,000, down 19.3%. Active listings: 798, up 126%. City of Austin: Median home price: $467,500, down 15%. Active listings: 2,574, up 144%. Travis County: Median home price: $537,000, down 17.4%. Active listings: 4,296, up 125.4%. ‘Last month’s housing market activity demonstrates not only a stable market, but one where optimism for the months ahead continues to grow,’ said Ashley Jackson, 2023 ABoR president.”
From Market Place. “Rising mortgage rates have hit different parts of the country differently. Seattle prices are down 12.4% from last year — the largest dip among the 20 metro areas Case-Shiller tracks. But Seattle real estate agent Sharon O’Mahony said it’s important to remember how hot the market was in early 2022. ‘I had a house sell down the street from me last year, which went $600,000 over list price, which was insane,’ she said. ‘So when they talk about the property prices coming down, yeah, you’re coming down from that.'”
The Union Tribune in California. “There were 2,887 homes for sale in San Diego County in May, said Redfin. Here’s how the different home types fared in May: Resale single-family: Median of $910,000 with 1,627 sales, up from $900,000 last month. Down from its peak of $950,000 in April 2022. Newly built: Median of $724,250 with 149 sales, down from $798,000 last month. This figure combines single-family homes, townhouses and condos. It is down from the peak of $890,500 in August 2022.”
“Here’s a look at the median prices across Southern California in May: Los Angeles County: Unchanged month-to-month with a median of $800,000; down 6.3 percent for the year. Orange County: Monthly rise of 1.2 percent for a median of $1 million; down 4.8 percent for the year. Riverside County: Monthly rise of 1.4 percent for a median of $556,500; down 3.6 percent for the year. San Diego County: Monthly rise of 0.9 percent for a median of $812,250; down 3.3 percent for the year.”
Bisnow Southern California. “Online real estate investing platform PeerStreet filed for Chapter 11 bankruptcy after its mortgage-origination business essentially evaporated and with less than half of its loan portfolio current on payments. So far in 2023, the company has originated just $5.4M in mortgages, bankruptcy documents say, compared with $385M last year and $696M in 2021. As of this week, about $205M of the unsecured mortgage payment-dependent notes PeerStreet holds were outstanding, according to an affidavit filed in the bankruptcy proceedings. Those notes are associated with roughly $220.2M of underlying loans, less than $93M of which were performing.”
“PeerStreet, based in El Segundo, California, filed for bankruptcy in a Delaware court on Monday. Its trouble seems to stem from the near-universal drop in commercial real estate deal-making that has occurred as interest rates have climbed in the last 18 months. Venture capital, ‘one of PeerStreet’s historic sources of funding,’ has also dried up, according to the affidavit. PeerStreet users invest in loans on offices, multifamily properties or strip malls. Investors in the platform must be accredited, but the threshold is low: Just $1K can get an investor in the door.”
The Nevada Appeal. “Northern Nevada’s multifamily apartment market has seen few sales transactions in 2023 as investors balk at taking out high-interest-rate loans and sellers eschew some significant price valuations for their properties. An example of how interest rates have changed property values: Ken Blomsterberg, senior managing director of investments with Marcus & Millichap highlighted a property owner who received an unsolicited letter of intent about a year-and-a-half ago but declined to sell. That same owner currently is in contract to dispose of the same property, but for approximately a 21 percent reduction in price. High interest rates aside, multifamily developers remain bullish on Northern Nevada with more than 5,000 apartment units currently under construction in the Truckee Meadows and surrounding communities.”
The Real Deal. “Adam Verner’s Springhouse Partners sold an apartment building near Union Square for 45 percent less than it paid for the property seven years ago — one of just four mid-market commercial transactions to hit New York City records last week. After paying $55.5 million for the mixed-use building at 51 Irving Place in 2016, Verner told The Real Deal that the building was of a quality and in a location that was hard to replicate, making it a prime opportunity for renovation. In the end, it sold this month for just $30.7 million.”
The Commercial Observer. “Properties and mortgage notes securing nearly $600 million in outstanding CMBS debt were auctioned from January through mid-June 2023, based on CRED iQ’s observations of impending losses for investors.Of the 16 REO properties that were auctioned, the average holding period between title acquisition and auction date was approximately 1.5 years. The most protracted distressed sale was a March auction of Square 95, a 155,309-square-foot big-box retail outparcel of the Potomac Mills Mall in Woodbridge, Va. The special servicer acquired the title on behalf of the CMBS trust in June 2018. The high bid was roughly $15.2 million, equal to $98 a square foot, which was approximately 22 percent less than the property’s most recently reported appraisal value of $19.5 million. Outstanding debt on the property was roughly $22 million.”
“One of the most severe discounts from appraisal to final bid — equal to minus 49 percent — was the Crystal Mall in Waterford, Conn. The 518,480-square-foot property had been REO since October 2022 and was sold for $9.25 million, equal to $18 a square foot. The final bid was approximately half of the property’s most recently reported appraisal value of $18 million and 94 percent lower than the mall’s appraisal from April 2012, when its $95 million mortgage was originated.”
CBS Colorado. “In an RTD lot next to an open power outlet, they made their home. Kari Vernon and her boyfriend were living by a power box near a light pole in the green grass. There was a pile of things including suitcases and clothes, covered by a loose tarp. But it hadn’t been raining. ‘Missed the bus that last three days because only three buses that leave here in the morning and three that come here in the afternoon. So if you miss them three buses, you’re stuck here,’ she said. They had come to Evergreen to get away from the city. ‘Denver, I will never stay down there,’ she said. ‘It’s like once the sun goes down, it’s crazy.’ On the morning after talking about their situation at the Evergreen Park and Ride lot Kari Vernon and her boyfriend slept in, unwilling to come out of their enclosure to talk. The 7:40 bus came and went. They were still there.”
From Storeys in Canada. “The Supreme Court of British Columbia has set a foreclosure date for more properties owned by Coromandel Properties, this time for the lands associated with a project planned for a site one block away from Nanaimo Station in Vancouver. The project, referred to as ‘AC Nanaimo,’ is one of the 16 ongoing projects listed in Coromandel Properties’ petition to the Supreme Court seeking creditor protection under the Companies’ Creditors Arrangement Act (CCAA) earlier this year. In early May, the BC Supreme Court also set the foreclosure date for a six-parcel assembly near Oakridge Centre that Coromandel Properties had planned to redevelop into two 18-storey residential buildings. The final redemption date for those properties was set at June 30.”
From Yahoo News. “A homeowner has revealed her mortgage has gone up by £480 in the last month after interest rates hit a new 15-year high. Mum-of-one Leanne Kearey, 33, described her new monthly house payment as ‘horrific’ following the Bank of England’s decision to raise interest rates by 0.5% to 5% last week. Kearey’s monthly payments have been hiked from £1,120 to £1,600 after she got a new two-year fixed deal for her home in Chadderton, Oldham, when her current one ended. Kearey, who lives with her husband and young daughter, said: ‘We were mortified when we found out, it’s horrific – how are people meant to live? It’s devastating to see, and I know others are really struggling financially, it feels like things are only going to get worse.'”
The Telegraph. “Germany’s central bank may need a bailout to cover losses on the debt it hoovered up as part of the European Central Bank’s (ECB) massive bond-buying programme, the country’s federal auditor has warned. The Bundesrechnungshof said losses faced by the Bundesbank on more than €650bn (£570bn) of bond purchases were “substantial” and ‘could necessitate a recapitalisation with budgetary funds.’ Economists have blamed bond-buying programmes for stoking inflation amid a series of negative supply shocks that have increased the risk of economies overheating.”
“Steep rate hikes by the ECB meant that the Bundesbank suffered a €1bn hit to its bond holdings last year alone. This is because the central bank is now paying more in interest to commercial banks on deposits at the Bundesbank than the interest it earns on its stockpile of bonds. The ECB started reducing the size of its balance sheet this spring. The losses are similar to those seen in the UK, where the Bank of England has estimated that transfers between the Treasury and the Bank will amount to around £30bn annually over the next three years alone.”
“All sectors of the German economy suffered a decline, according to the survey, which noted that in manufacturing ‘the business climate deteriorated substantially.’ It added: ‘Hardly any industry has been left untouched by this development.’ Carsten Brzeski at ING said the collapse in activity suggested that ‘the rebound of the German economy has ended before it ever really began.’ He added: ‘Today’s disappointing Ifo index reading suggests that the hoped-for rebound of the German economy is nothing more than hope.'”
From WA Today. “A Perth couple with six children say they will have no roof over their head come October after their landlord did not renew the lease on the property they rent while they wait for their new home to be finished. Zoe-marie Masters and her husband Joel signed a preliminary works agreement with Commodore Homes, owned by Western Australia’s largest builder, BGC, in December 2020. Fast-forward to June 2023, and their home in Mandogalup’s Apsley Estate is yet to be complete.”
“‘We are now down and out financially, having spent in excess of $48,000 in rent and mortgage interest since our slab went down,’ Masters said. She said the family was forfeiting heating their house on cold winter days, as well as non-urgent medical care, to try and make ends meet. Masters feared they would not be unable to afford their mortgage when their house was complete in the wake of 12 interest rate rises and further rate pain flagged by the Reserve Bank. ‘We are broke and scared and feeling helpless,’ she said. ‘Our story is but one of thousands.'”
“With Perth in the grips of a rental crisis, Masters feared their children still living at home – aged two, four, 10, 12 and 16 – would be homeless until BGC finished their home. She blamed the delays on the company signing up more clients than it could handle. In a letter sent on Tuesday to a BGC Housing Group executive, Masters said they had endured the most ‘soul-crushing experience’ building a family home with the company. ‘A company of such economic importance to Western Australia has held the lives of us all in the lowest regard,’ she wrote. ‘You and others at BGC Housing Group all have your heads in the sand in regard to the real life destruction your business decisions have caused.'”
“Brett Martin and his fiance Jaime Fitton are building in the same estate. He said it was frustrating to see other new homes completed more quickly. ‘It’s beyond a joke,’ Martin said. ‘The whole process is absolutely crushing both mentally and financially from having to pay both rent and mortgage along with top up payments for trades.’ Earlier this month, about 70 BGC clients protested outside a display home which they claimed was being given priority for completion while they waited years for their own builds to be finished.”
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You will own nothing.
‘I had a house sell down the street from me last year, which went $600,000 over list price, which was insane,’ she said. ‘So when they talk about the property prices coming down, yeah, you’re coming down from that’
Those were my winnahs! Sharon. But I still wonder how those shacks appraised.
‘received an unsolicited letter of intent about a year-and-a-half ago but declined to sell. That same owner currently is in contract to dispose of the same property, but for approximately a 21 percent reduction in price. High interest rates aside, multifamily developers remain bullish on Northern Nevada with more than 5,000 apartment units currently under construction in the Truckee Meadows and surrounding communities’
Keep those airboxes coming boys!
Keep those airboxes coming boys!
Airboxes when there’s desert scrub as far as the eye can see. Nobody wants to live in airboxes in the desert.
‘Adam Verner’s Springhouse Partners sold an apartment building near Union Square for 45 percent less than it paid for the property seven years ago’
‘One of the most severe discounts from appraisal to final bid — equal to minus 49 percent — was the Crystal Mall in Waterford, Conn. The 518,480-square-foot property had been REO since October 2022 and was sold for $9.25 million, equal to $18 a square foot. The final bid was approximately half of the property’s most recently reported appraisal value of $18 million and 94 percent lower than the mall’s appraisal from April 2012, when its $95 million mortgage was originated’
It’s crater-city out there. When CCP virus started the CRE REIC was saying, look there’s no distress! Eat yer crows REIC.
A shopping mall not far from where I live was auctioned in 2017 for about half of what it was worth. It had been limping along for a long time, and finally closed a few months ago. It will be demolished in the next year. It had the usual problems: declining neighborhood, slow sales, two shootings and a stabbing.
Kinda sad to see the mall go, but nobody really needs malls anymore. Malls were primarily there for impulse-shop women’s clothing, and women’s fashion went to heck 10 years ago when we all got fat and discovered leggings. The big fashion item nowadays is makeup.
Our dead mall is an interesting situation to see. First came the mall with a Sears. It was very successful. There are old videos of it on youtube and everything is fine. Then along comes a big Kmart across the street on one side. Then both Sam’s Club and Super Walmart get built across the street on another side. Kmart is now a large desolate ’emporium’ of imported trinkets for home decorations mostly from India and the Sears and mall have been replaced with an Amazon distribution center that was finished last year and has yet to open; they refuse to give a date now. The only thing thriving is the Walmart and Sam’s Club. However, the Walmart has a huge police security tower thing that towers over the lot. So many bad decisions on display. Maybe the Amazon warehouse can house a few thousand ‘asylum seekers’.
but but but diversity is our strength.
yeah, ain’t no one going to a crowded (or uncrowded) mall anymore, too much diversity.
Stay away from crowds.
I follow Scott Adams advice. Avoid the vibrants.
Everytime I visit the neighborhood mall, I always ask “where da white peepole at?”
Because they ain’t at the mall
I’ll occasionally visit the fancy upscale mall on the North Shore of Chicago and there’s lots of white people but none are speaking English. The Eastern Europeans and Slavs are everywhere.
Malls aren’t for the natives anymore.
The malls of the 80’s with mostly well behaved high school kids had disappeared. Most kids today are BIPOC and most of them are rowdy wildings, like the silly kids who took over an entire Chicago street last weekend for several hours twerking on cars and causing tens of thousand of dollars in property damage. Leadership laughs it off! Them silly kids just having fun smashing and grabbing they say
‘Missed the bus that last three days because only three buses that leave here in the morning and three that come here in the afternoon. So if you miss them three buses, you’re stuck here,’ she said. They had come to Evergreen to get away from the city. ‘Denver, I will never stay down there,’ she said. ‘It’s like once the sun goes down, it’s crazy.’ On the morning after talking about their situation at the Evergreen Park and Ride lot Kari Vernon and her boyfriend slept in, unwilling to come out of their enclosure to talk. The 7:40 bus came and went. They were still there’
Coddling these bums is a one way street to nowhere.
“once the sun goes down, it’s crazy”
The homeless problem is so bad in Denver that the homeless are fleeing to Evergreen to get away from it.
Denver voted for this.
And under the new Mayor Johnston, nothing will ever get better. Enjoy your “doom loop” Denver because it’s what you voted for.
We’re getting a lot of homeless camps in and around Charlotte. They tend to be spread out and not consolidated So they don’t stand out as much. We has one near our neighborhood….in a industrial park. Had a nice camp in the woods. I would see what looked parents dropping of water and food. They always had a sad look…..I do feel sorry for these people. Cops got them out of there recently.
If they would just lay out in the sun and learn spanish they could get a luxury hotel room fully stocked with food and a brand new game system to entertain themselves while they wait for free housing and other gibs. They should be fleeing to the border.
Is it fair to say that people with homes to sell are in denial about the devastating impact of mortgage rate increases since early 2022 on housing demand?
Face the facts: Demand has CR8Red.
“Newly built: Median of $724,250 with 149 sales, down from $798,000 last month. This figure combines single-family homes, townhouses and condos. It is down from the peak of $890,500 in August 2022.”
August 2022 $890,500
May 2023 $724,250
9 months elapsed (5 – 8 mod 12)
Annualized rate of change is
1 – (724250/890500)^(12/9) =
-24%
New home prices in San Diego are CR8Ring!
‘We were mortified when we found out, it’s horrific – how are people meant to live?’
Well to start with, you have to stop eating Mum-of-one Leanne.
‘We are now down and out financially, having spent in excess of $48,000 in rent and mortgage interest since our slab went down,’ Masters said. She said the family was forfeiting heating their house on cold winter days, as well as non-urgent medical care, to try and make ends meet. Masters feared they would not be unable to afford their mortgage when their house was complete in the wake of 12 interest rate rises and further rate pain flagged by the Reserve Bank. ‘We are broke and scared and feeling helpless,’ she said. ‘Our story is but one of thousands’
Zoe-marie, if they finish yer shack, which is doubtful, you can paint the walls any color you like!
“…how are people meant to live?”
Hehe, what people? You’re subjects. 🙂
‘She said the family was forfeiting heating their house on cold winter days, as well as non-urgent medical care, to try and make ends meet’
I have to say that’s the spirit Zoe-marie. Don”t give it away.
‘Resale single-family: Median of $910,000 with 1,627 sales, up from $900,000 last month. Down from its peak of $950,000 in April 2022. Newly built: Median of $724,250 with 149 sales, down from $798,000 last month. This figure combines single-family homes, townhouses and condos. It is down from the peak of $890,500 in August 2022’
New shacks significantly cheaper than 60 year old junk. How’s that going to turn out?
CR8R
FB’s are screwed. The homebuilders are able to cut prices as materials and labor costs decrease. The new homes are cheaper per sqft
as materials and labor costs decrease
When that happens, they might. So far I’m not seeing that in my build.
Lumber came down, everything else seems to have gone up. Labor especially. And lumber has been heading back up.
Does it seem like global financial markets are drowning in an ocean of easy central bank credit?
Financial Times
Opinion Markets Insight
The return of quantitative easing
Stock to be boosted by increasing levels of global liquidity in markets
The Marriner S. Eccles Federal Reserve building in Washington
Michael Howell yesterday
The writer is managing director at Crossborder Capital and author of ‘Capital Wars: The Rise of Global Liquidity’
Rising world stock markets appear to confirm that global liquidity — the pool of cash and credit shifting around financial markets — is once again expanding after skidding lower last year.
So much then for central bank quantitative tightening, the much-mooted unwinding of the massive stimulus programmes to support markets and economies.
Our estimates show that the liquidity cycle bottomed during October 2022, in the wake of former UK prime minister Liz Truss’s “mini” Budget debacle, and looks set to trend higher over the next few years. Investors should therefore expect a continuing tail wind from global liquidity instead of last year’s severe headwinds. This should prove good for stocks, but less positive for bond investors.
Britain’s gilt sell-off last autumn gives us a foretaste of future challenges for sovereign debt markets and points to some coming hard decisions for both policymakers and investors. The integrity of banks and sovereign bond markets are sacrosanct in modern finance. Led by the US Federal Reserve, central banks have just injected substantial cash into money markets over recent months helping to bailout flaky banks. But in coming years they will probably have to bailout debt-burdened governments, too.
In short, markets need ever more central bank liquidity for financial stability and governments will need it even more for fiscal stability. In a world of excessive debt, large central bank balance sheets are a necessity. So, forget QT, quantitative easing is coming back. The pool of global liquidity — which we estimate to be about $170bn — is not going to shrink significantly any time soon.
…
what these people can’t seem to understand is that absolutely no amount of QE can solve it anymore. hyperinflation will wipe us all clean. there will be a few winners, and the vast majority will be simply homeless. then the guillotines will be rolled into the main squares and all the winners will loose their heads.
it is about all economies being massively out of balance. just setting the boat on fire with QE won’t help much.
CNBC — More than $200 billion in Covid loans potentially stolen by fraudsters, watchdog says (6/27/2023):
“Fraudsters potentially stole more than $200 billion in federal loans intended to help small businesses struggling during the Covid pandemic, a government watchdog said on Tuesday.
The Office of the Inspector General estimated in a new report that at least 17% of the $1.2 trillion disbursed by the Small Business Administration may have been ripped off by fraudulent actors.
More than $136 billion from Economic Injury Disaster Loan program and $64 billion from the Paycheck Protection Program loans was potentially stolen, the inspector general found.”
https://www.cnbc.com/2023/06/27/fraudsters-stole-200-billion-in-covid-loans-watchdog.html
$200 billion is that a lot?
Sounds like a “we’re all in this together” kind of thing.
I don’t know….this stuff?….it’s gonna be interesting when the covers are really pulled off this whole stimi debacle.
I was residing in a rather economically depressed Oregon logging town when the stimi Monday was flowing. And it seemed that overnight suddenly the town was full of people driving around in $100k trucks. Have a friend who owns a hot tub biz there and his sales exploded during that time. Like nothing he’d ever experienced in the 15 years of owning that business. And the conspiracy theorist in me wants to say this is exactly what they wanted to happen.
And the conspiracy theorist in me wants to say this is exactly what they wanted to happen.
Not that I’m keeping score, but the “conspiracy theorists” are up about 134 – 0 over the approved Narrative purveyors.
Amazing it can be done and sad
https://www.yahoo.com/news/pictured-first-fragments-destroyed-titan-151027948.html
I’ve got sever friends and customers that received over a million and they didn’t need it. Got forgiven…one bought a huge yacht, sport fisher.
You can go on federalpay.org ppp. You can look up companies names and see what they received. It’s kind blowing. I’ve noticed several of the landscape companies in my area with brand new trucks….never saw that before. Had a neighbor getting new windows….dude was driving a new $100,000 dually king ranch.
My CPA firm received $16 million despite increasing its revenues and income in 2020-2022. The money was all pocketed by the firm’s partners. I believe law/CPA firms and the medical industrial complex benefitted the most from the scamdemic
‘Last month’s housing market activity demonstrates not only a stable market, but one where optimism for the months ahead continues to grow,’ said Ashley Jackson, 2023 ABoR president.”
Realtors are liars.
MarketWatch — Flight delays mount on East Coast as airlines face big July 4 holiday-travel test (6/28/2023):
“Travelers waited out widespread delays at U.S. airports on Tuesday, an ominous sign heading into the long July 4 holiday weekend, which is shaping up as the biggest test yet for airlines that are struggling to keep up with surging numbers of passengers.
At various times, the Federal Aviation Administration held up flights bound for LaGuardia Airport in New York and Reagan Washington National and Baltimore-Washington airports near the nation’s capital.
By evening on the East Coast, about 6,500 flights had been delayed and about 1,900 canceled. United Airlines UAL, +5.08%, with a major hub in Newark, N.J., canceled about 500 flights or 18% of its schedule, and JetBlue JBLU, +8.82% canceled 16% of its flights, according to FlightAware.
Call it the storm before the storm.
The FAA was expecting about 48,000 flights on Tuesday, rising on Wednesday and peaking at more than 52,500 on Thursday, which figures to be the biggest travel day of the holiday period.”
https://www.marketwatch.com/story/flight-delays-mount-on-east-coast-as-airlines-face-big-july-4-holiday-travel-test-b10f6c8f?mod=home-page
Denver International ran out of cots for stranded travelers this week. Must be a “build back better” kind of thing.
Wait until the impact of prioritizing DEI over competence & merit in air traffic control towers & aircraft maintenance hangers starts to manifest.
I’ve been expecting that to happen for some years. When it does, our betters will no doubt instruct us that it’s all for the best because we little people don’t need to fly or drive so much anyway. PS, being afraid to fly on planes that fall out of the sky or ram each other is ray cyst. PPS, so is noticing their private jets.
People will be afraid to fly after a few disasters. Just what the global warming cultists want. Only travel for the 1%
Only travel for the
1%0.1%. Do highly-paid software developers run of the mill doctors and lawyers fit in your concept of “elite”?
BlackRock CEO Larry Fink has spent years reminding investors that they should consider responsible environmental, social, and governance practices when evaluating companies. But he now refuses to use the word “ESG” any longer, saying “it’s been misused by the far left and the far right.”
“I’m not blaming one side or the other, but it has been totally weaponized,” Fink said Sunday at the Aspen Ideas Festival, according to media reports.
One anti-ESG advocate in Washington responded to Fink’s comments with relish. Rep. Andy Barr (R-Ky.) told Yahoo Finance in an interview that he sees the new remarks as a win for his effort to stop the ESG trend in its tracks.
“The pendulum swung too far,” he said Tuesday, arguing that asset managers have been too responsive to pressure from the left in recent years. “They didn’t know that there would be a counterweight and I think they’ve learned that.”
https://finance.yahoo.com/news/blackrocks-fink-why-i-wont-say-esg-anymore-171715025.html
Why don’t we dispense with the Republicrat duopoly puppet show, and just let Larry Fink & BlackRock run the country directly? It would be a lot more efficient.
Nah, let’s just strap Larry into ol’ sparky for fun.
Wall Street Journal — SVB Customers Who Lost Their Deposits Remain on the Hook for Loans (6/27/2023):
“Silicon Valley Bank’s customers in Asia whose deposits were recently seized by the Federal Deposit Insurance Corp. are in a bind for another reason: they still have loans outstanding—to First Citizens Bank.
When SVB failed earlier this year, the FDIC stepped in to protect all of the California bank’s U.S. deposits and arranged a sale of the lender’s U.S. customer accounts, branches and loans to First Citizens Bancshares.
Left out of that deal was SVB’s branch in the Cayman Islands, which had deposits from the bank’s clients in China, Singapore and other parts of Asia, including venture-capital and private-equity firms with funds that domiciled in the British overseas territory. Those investment firms were stunned in late March when they found out their deposits weren’t protected, and the FDIC—acting as SVB’s receiver—had drained their bank accounts, The Wall Street Journal reported previously.”
https://archive.fo/sRInM
People like Sam Bank Fraud don’t go to prison. Going to jail is only for the “little people.”
Did you know that the Brandon regime’s economic track record is “incredibly popular”?
https://dnyuz.com/2023/06/28/white-house-ridiculed-for-defending-bidens-economic-record-as-incredibly-popular-with-who/
Honest Government Ad | Labor
Jun 26, 2023
The Australian Labor Party has made an ad and it’s surprisingly honest and informative.
https://www.youtube.com/watch?v=fHB0vDhdM3c
3:37.
LOL!
That’s some hilarious schitt right there!
A reader sent these in:
Is there anything left unbailed? Energy bills, mortgages, pensions, food stamps, universities, utilities,… What is this system that runs on continuous bailouts?
https://twitter.com/INArteCarloDoss/status/1673251524254760960
Maybe, just maybe, the root cause of inflation was the compulsive obsession with immaterial increments of short term growth at every turn of the cycle? Maybe this populist obsession that led to failed policies should end? Maybe focus should be on sound policies whatever short term costs are? Maybe?
https://twitter.com/INArteCarloDoss/status/1673250226960838657
Called 911 last week – 4 min hold. Someone called ambulance & they said it will be a while. Please leave ur number & we will call you back. WTF?! Bloodwork wait time this morning is 69 mins. Feel free to buy that 1.2M townhouse though. Welcome 2 Ontario.
https://twitter.com/ManyBeenRinsed/status/1673332811950956544
Dealer demand for used cars is cooling: Vehicle appraisals on the inventory platform ‘AccuTrade’ are down *20%* from last month. Down from 500K to 400K appraisals… In 1 month 😳 Why is this concerning? Because dealer buying patterns correlate to consumer demand.
https://twitter.com/GuyDealership/status/1673304617193537537
This starts to feel like holding a beach ball underwater 👇 (FT)
https://twitter.com/MichaelAArouet/status/1672522560439762945
2008 was such a fantastic year for GM 👇
https://twitter.com/MichaelAArouet/status/1672634256311349249
“Wolf Of Airbnb” Konrad Bicher Pleads Guilty In Connection With PPP And Real Estate Fraud Scheme
Bicher failed to make $1M in lease payments on @Airbnb
properties. Also fraudulently applied for and received $565,000 in PPP funds
https://twitter.com/Guruleaks1/status/1673448612628512768
THIS IS WHY EVERY ECONOMIC & FINANCIAL REPORTER SHOULD BE REPRIMANDED FOR FAILING TO CITE @IRSnews ERC PROGRAM WHEN NAIVELY SPEAKING TO “GOODS TO SERVICES IMMACULATE CONSUMPTION SHIFT” EMBRACED BY BECAUSE IT WAS CREATED BY A SELL SIDE THAT ONLY OPERATES OFF A BANK-FRIENDLY AGENDA
https://twitter.com/DiMartinoBooth/status/1673326210934292481
The fact that there are 1,000s of Chevy Silverado and GMC Sierra Trucks sitting in vacant GM lots right now is not getting enough attention.
https://twitter.com/GuyDealership/status/1673862901424173057
Reality check via @MorganStanley * 29% w/federal student loans confident they’ll have enough money to start making payments w/o adjusting spending in other areas. * 37% will need to cut their spending in other areas. * A whopping 34% said they won’t be able to make payments AT ALL
https://twitter.com/DiMartinoBooth/status/1673844333408026633
The Pentagon: We don’t know where $6.2 billion went.
https://twitter.com/alifarhat79/status/1673850540713824256
Ford laying off ‘at least’ 1,000 salaried and contract workers. It will lose $3 billion making EVs this year. Ford is now likely losing more than $30,000 on every electric it sells. Last week the federal government (i.e. you) loaned Ford and a South Korean company $9.2 billion to build battery factories in the south, on top of federal tax credits to entice buyers. The next few years should be interesting for Detroit (and taxpayers). Let’s see if its .. sustainable.
https://twitter.com/SullyCNBC/status/1673828443224416256
“Because of large deficits the U.S. Treasury will have to sell a lot of debt and it appears there will not be adequate demand for it. If that happens, it will lead to either much higher interest rates or the Fed printing a lot of money.” -@RayDalio
https://twitter.com/jessefelder/status/1673854148515885057
My in laws have an Airbnb on their property. They’ve been doing it for 3 years. No bookings in May. So far none in June. I would imagine that we’ll see airbnbs, and full portfolios hit the market soon
https://twitter.com/maxfisherRE/status/1673711205951877121
TOP THREE CAUSES OF THE GREAT DEPRESSION:
1. Vulnerabilities in the Global Economy
2. Financial Speculation
3. Blunders by the Fed
Glad these aren’t an issue today 😬😬
https://twitter.com/texasrunnerDFW/status/1673804907776729088
Went flying with a Grand Canyon helicopter tour operator that told me his business is down 40% YoY.
https://twitter.com/FreightAlley/status/1673906273648263170
Airbnbs are bleeding money by a lot.
Credit crunch
Less disposable income
Credit cards are maxed out
Steaks 🥩 $20 a piece
People are broke
Car payments $850 average
Groceries $250 per trip
House mortgage $2800 per month
And airbnb owners are asking what’s going on ? The fed wants this and they are succeeding really well at it. Don’t be that blind person
https://twitter.com/dig_deeper1/status/1673719171300085760
Car prices are about to drop, an oversupply of vehicles will lead to manufacturers slashing prices. There are too many cars and not enough buyers. UBS reports that the production of cars is outpacing sales by 6%, this leaves about 5 million cars just sitting around, unsold. To sell these cars, manufacturers might have to cut prices. Data also shows that vehicle prices have fallen for three straight months. This is good news for consumers, who will be able to find great deals on new cars. However, it is bad news for automakers, who will see their profits squeezed.
https://twitter.com/FluentInFinance/status/1673753329409687554
BREAKING: Costco, $COST, has said it is cracking down on members’ families using ID cards, saying that shoppers who purchase their items through the self-checkout lane will be asked to show their member ID & photo in order to confirm that they pay the annual subscription fee.
https://twitter.com/unusual_whales/status/1673806156786200577
Is there anything left unbailed? Energy bills, mortgages, pensions, food stamps, universities, utilities,… What is this system that runs on continuous bailouts?
This tweet is in response to an article about New Zealand’s government bailing out universities.
Gender Studies, Black Studies, and DEI departments are worth every penny, no matter the cost!
“Because of large deficits the U.S. Treasury will have to sell a lot of debt and it appears there will not be adequate demand for it. If that happens, it will lead to either much higher interest rates or the Fed printing a lot of money.”
Which seems more likely?
The former.
Seems more attractive:
1) They can blame the resulting rate increases on market forces, rather than Fed policy decisions.
2) They would risk further eroding credibility if they restarted QE, after having tried to convince speculators that QT and balance sheet shrinkage was the way forward. This could add to inflationary pressures, due to the expectations shock, the eliminationc to and the stimulus effect of further interest rate suppression.
“the eliminationc to”
…the elimination of a credible commitment to QT..
Since ford is losing $30,000 for vehicle I’m just gonna tell them to send me a check for $20,000 and I’ll save them 10,000 by not buying a vehicle. LOL
‘Germany’s central bank may need a bailout to cover losses on the debt it hoovered up as part of the European Central Bank’s (ECB) massive bond-buying programme, the country’s federal auditor has warned’…All sectors of the German economy suffered a decline, according to the survey, which noted that in manufacturing ‘the business climate deteriorated substantially.’ It added: ‘Hardly any industry has been left untouched by this development.’ Carsten Brzeski at ING said the collapse in activity suggested that ‘the rebound of the German economy has ended before it ever really began.’ He added: ‘Today’s disappointing Ifo index reading suggests that the hoped-for rebound of the German economy is nothing more than hope’
At least they cured cancer with all that money…
‘Germany’s central bank may need a bailout to cover losses on the debt it hoovered up as part of the European Central Bank’s (ECB) massive bond-buying programme, the country’s federal auditor has warned’
I thought central banks were the ones responsible for bailing out everyone else?
Hopefully for them, it’s still turtles all the way down.
What I got from this article is that there are people, making payments for a house ahead of completion. Huh?
The other thing I learned is that home prices are CR8Ring. OK, which one of you is the real BFB.
Mafia Blocks, who’s been MIA of late.
Fat Bastard went keto. got a life outside the internet sumo ring.
Nice. Hope he found a place to live where the prices aren’t CR8Ring
F🤬 You, and F🤬 Your Apology.
ChilliJonCarne
Jun 28, 2023
Matt Hancock would like to apologise for destroying countless amount of lives and leaving people still distraught to this day. Oh well, that’s ok then isn’t it
https://www.youtube.com/watch?v=Fn-Rk2Vl_8k
8:16. A comment:
Never forgive, never forget. My elderly mum and I were given a half hour slot, once a week to stand at the window of my dad’s care home to visit. We did this for 10 months, hail, rain or snow, we were there, all 3 of us crying. My dad would try to put his fingers out the window so he could touch us. Heartbreaking doesn’t even come close, I don’t know if I will ever recover from the trauma. Our only consolation was that the staff there were really caring and we knew they were doing their best to look after their residents. Then, out of nowhere, 17 of the staff tested positive for convid, with no symptoms, and got sent home. Foreign agency staff were brought in, suddenly my dad, who always had a great appetite, was supposedly refusing food and within a week he was dead, as were 7 other residents. Murdered by the state but of course, the deaths were recorded as Covid. Sitting with my mum trying to work out which 20 people we could have at the funeral was another trauma. There is a special place in hell for the people responsible for this and I will never forgive and never forget.
“Murdered by the state”
Sounds about right.
And in case any of you forgot, consider how well coordinated this was, almost as if the instruction manual was written well before the alleged “pandemic” wad leaked from a lab funded by U.S. taxpayers.
The can choke on all of their used masks as well.
Don’t forget the masses that supported this and wanted us dead for not going along with the masks and clot shots
RNC Research
@RNCResearch
Reporter: “How involved were you in your son’s Chinese shake-down text message? Were you sitting there? Were you involved?”
Biden: “No, I wasn’t.”
Reporter: “Were you?”
Biden *yelling*: “No!”
https://twitter.com/RNCResearch/status/1674057971591168000?s=20
The 2020 election was stolen.
Stolen, did you say? Yes, the 2020 election was stolen.
Housing Prices Are Falling As Reality Sinks In
apts
5 HOURS AGO
Doug French
The local paper’s headline posed the question, “Do renters have the upper hand in Las Vegas right now?” “[The apartment project] offered us two weeks of no rent to get us moved in on the timeline we wanted,” said a renter who was also given passes to the Life Is Beautiful music festival as part of the deal. “They also throw resident events every month providing food and entertainment,” she added.
https://mises.org/wire/housing-prices-are-falling-reality-sinks
Dang that reality! Ain’t it a bummer to have your financial bunble burst?
bubble (thumb typing is rough)
Thx, jeff. Posted at City-Data Las Vegas, mostly for my own amusement, since it’s a site no one seems to bother with anymore. I like to inject FUD into the LLs who still linger there.
“Rents are definitely falling,” said Shawn McCoy, director of the Lied Center for Real Estate and an associate professor at the University of Nevada, Las Vegas.
Is the AirBnB revenue collapse sparking your housing market crash fears?
https://www.newsweek.com/airbnb-revenue-collapse-housing-market-crash-fears-1809543?amp=1
Is it safe to assume at this point that interest rates have peaked?
Financial Times
Central bank chiefs warn interest rates will keep rising
Fed, ECB and other leaders say tight labour markets mean most aggressive tightening in a generation must continue
Montage of Christine Lagarde, Jay Powell and Andrew Bailey
From left: European Central Bank’s Christine Lagarde, Jay Powell of the US Federal Reserve and Andrew Bailey, governor of the Bank of England
Martin Arnold in Sintra 3 hours ago
The world’s top central bank chiefs signalled their readiness to increase interest rates further and keep them high, as they warned tight labour markets are still pushing up wages and prices.
The heads of the US Federal Reserve, the European Central Bank and the Bank of England warned at a conference in Sintra, Portugal, that more action may be needed to bring inflation down towards targets of about 2 per cent despite some economists’ predictions that further rate rises could trigger a recession or financial crisis.
“Although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough,” Fed chair Jay Powell told the much-watched central bankers’ conference.
…
“…targets of about 2 per cent…”
I thought the Fed’s inflation target was 2 percent. How did ‘about’ sneak its way in there?
I thought the Fed’s inflation target was 2 percent. How did ‘about’ sneak its way in there?
Back in Uni the prof told me it was a 1-3 percent range. This 4+ percent is just nonsense tho.
4+ percent will lead to riots
We hired a new apprentice who is still in high school and graduating this winter. He told me he always knew college wasn’t for him and he wanted a trade.
Respect. He’ll be so far ahead of his allegedly “educated” debt addled peers by the time he is 25.
“We hired a new apprentice who is still in high school and graduating this winter.”
That almost stopped down here back in the mid to late 80s.
It has started again but most of what I see is the kids of immigrants, the ones whose parents came to this country and took the jobs our college debt bound high school grads wouldn’t take are the ones doing it. Now they were probably anchor babies who are now high school educated kids who are fluent in two languages and will probably dominate the ownership and tradesmen for decades to come.
UBS intends to eventually reduce the total combined headcount by about 30%, or 35,000 people,
https://nypost.com/2023/06/27/ubs-to-slash-more-than-half-of-credit-suisse-workforce-report/
Apples In Stereo — Try To Remember:
https://www.youtube.com/watch?v=r-3X6R1nhfo
Olivia Tremor Control — Define A Transparent Dream:
https://www.youtube.com/watch?v=6ZlWV9AA9Sg
Olivia Tremor Control — Jumping Fences:
https://www.youtube.com/watch?v=qw_UcCwUjMI
The Lilys — And One (On One):
https://www.youtube.com/watch?v=E3BKmmUiWrQ
This song sounds like a drug overdose. I’ve lost a few friends to that. If you’re addicted, listen to the lyrics and think about what you want to do with your life…
Call me jaded if you wish, but I simply don’t understand how handing out downpayment assistance will help make homes more affordable.
Seems more likely to lure people into overpaying and locking in an expensive mortgage, just before a recession makes it harder for many to make monthly payments.
California Rep. Maxine Waters introduces bills to spend hundreds of billions of dollars to fight homelessness and solve the affordable housing crisis
Eliza Relman Jun 27, 2023, 9:37 AM ET
California Rep. Maxine Waters speaks onstage at the Women’s March Foundation’s National Day Of Action! The “Bans Off Our Bodies” reproductive Rights Rally at Los Angeles City Hall on May 14, 2022
Sarah Morris/Getty Images
Rep. Maxine Waters, a California Democrat, introduced a trio of bills addressing the housing crisis.
They would expand housing vouchers and send $100 billion to help first-generation homebuyers.
The bills, which offer a slew of other policy solutions, are focused on reducing the racial wealth gap.
Rep. Maxine Waters, a California Democrat, introduced a trio of bills last week that offer far-reaching fixes for the nation’s worsening housing affordability and homelessness crises.
The legislation — which includes expanding housing vouchers and sending $100 billion to help first-time, first-generation homebuyers — is focused on reducing the racial wealth gap. The gap between the rate of homeownership among Black versus white families is now at its widest point in a decade and contributes significantly to the wealth gap.
“Together, these bills represent the single largest and most comprehensive investment in affordable housing in U.S. history and comes at a time when our nation’s housing and homelessness crisis has reached its worst state,” Waters said in a statement.
One bill — the Housing Crisis Response Act of 2023 — includes over $150 billion in funding for affordable housing and investments in closing the racial housing gap. It aims to create almost 1.4 million affordable homes and help 294,000 households pay rent, while strengthening oversight of fair housing practices to battle discrimination.
Another bill — the Ending Homelessness Act of 2023 — includes $10 billion to provide housing for people experiencing homelessness and would make the temporary US Interagency Council on Homelessness permanent.
It would also dramatically expand the federal housing voucher program to make it an entitlement that all Americans who qualify for can receive, rather than being turned away due to lack of supply. Currently, just 20% of those who are eligible for housing vouchers actually got them, lawmakers found, and those who receive them first sit on a waitlist for an average of two and a half years. Overall, just one in six eligible families live in public housing, receive a rent-reducing voucher, or live in a subsidized multifamily unit, according to the US Census Bureau.
The third piece of legislation — the Downpayment Toward Equity Act of 2023 — would send $100 billion in assistance to about 5 million first-generation homebuyers, who are disproportionately Black and Hispanic. It would provide up to $20,000 in aid for first-generation homebuyers and up to $25,000 for “socially and economically disadvantaged” buyers.
It’s appropriate that Waters, the top Democrat on the House Financial Services Committee, is a leading voice on housing affordability and homelessness issues, as her state is disproportionately impacted by these issues. The state is dealing with an enduring housing shortage and skyrocketing rent and home prices. And while California is 12% of the country’s total population, it’s home to 30% of people experiencing homelessness and half of the unsheltered homeless population in the US.
…
https://www.businessinsider.com/maxine-waters-affordable-housing-homelessness-spending-bills-help-homebuyers-renters-2023-6
California housing
California
These California metro areas are the most expensive for renters in the U.S., study shows
An undated ‘for rent’ sign in from of a rental property.
(Getty Images)
Iman Palm
Posted: Jun 28, 2023 / 02:19 PM PDT
Updated: Jun 28, 2023 / 02:32 PM PDT
Several California metropolitan areas are considered to be the most expensive markets in the country for renters, according to a new study.
The 2023 ‘Out of Reach’ Report, published annually by the National Low Income Housing Coalition, found that various California counties dominated the list of the least affordable U.S. markets for renters, with metro areas in Northern California rounding out the top three.
California metro areas deemed the most expensive markets for renters
1. Santa Cruz County
2. Marin, San Francisco and San Mateo counties
3. Santa Clara County
4. Monterey County
5. Santa Barbara County
6. Orange County
Los Angeles County didn’t make the top ten for the overall list but was still considered an expensive place to rent a modest two-bedroom apartment. The average rental price for a two-bedroom apartment in the county is $2,781, according to RentCafe.
Researchers used a metric called Housing Wage, “which estimates the hourly wage full-time workers must earn to afford a rental home at fair market price without spending more than 30% of their income,” to determine the least and most affordable markets for renters, NLIHC said.
Analysts found that in California, residents would have to make nearly $90,000 to afford a two-bedroom apartment comfortably. The average hourly wage needed to afford the rental would be $42.25, according to the report.
The hourly rate needed to afford a two-bedroom apartment in the Golden State is nearly 1.5 times higher than the national rate of $28.58/hour. That means workers earning $15.50, the state’s hourly minimum wage requirement, would need to work 2.7 full-time jobs to afford a two-bedroom apartment without spending more than 30% of their income.
In California, about about 45% of people are renters.
“The affordable housing crisis worsened over the past few years as the COVID-19 pandemic, unusually low housing vacancy rates, skyrocketing rental prices, and record-breaking inflation exacerbated the financial insecurity of low-income renters,” the report said.
The fact that living in California can be expensive is not exactly breaking news. The high cost of housing and other necessities has been the driving force behind some residents moving out of the state or considering doing so.
California wasn’t the only state with high living expenses. Analysts found renting a two-bedroom apartment in Hawaii, Massachusetts, New York and Washington wasn’t cheap.
…
https://ktla.com/news/california/california-metro-areas-deemed-the-most-expensive-places-for-renters-in-the-u-s-new-report-says/
Great news, San Diego: You didn’t make the list of top six most expensive rental markets!
It doesn’t. It’s the last kick of the can.
Maybe if we just give them 1% down payment assistance, they can get on that ladder…
The Wall Street Journal
Portland Is Losing Its Residents
The Oregon city lost nearly 3% of its population between 2020 and 2022
Portland, Ore., which has long had a reputation for being clean, safe and hip, is struggling with crime and homelessness.
DON RYAN/ASSOCIATED PRESS
By Zusha ElinsonFollow
June 28, 2023 10:00 am ET
PORTLAND, Ore.—Mark Rogers has made a list of things he misses about Portland—its vegan restaurants, Powell’s bookstore, public transit—and the things he doesn’t—having his things stolen, stepping in human excrement, extreme politics.
…
I have fond memories of Powell’s book store. First job was at Nike HQ after college in the early 90s.
Windsurfing the gorge, flying out of little air strips and shooting rifles in the back country high deserts of Eastern OR and WA. Good times.
Do you worry about a doomsday scenario where banks CR8R to the tune of half a trillion dollars?
Financial Times
US banks
Big US banks would lose $541bn in doomsday scenario, predicts Fed
Annual stress tests show lenders with more than enough capital to weather economic catastrophe
Michael Barr
In a nod to the recent US banking crisis, the Federal Reserve’s Michael Barr warned stress tests were ‘only one way’ to measure strength
Joshua Franklin and Stephen Gandel in New York and Colby Smith in Washington 6 hours ago
The largest US banks would lose $541bn in a hypothetical doomsday economic scenario but still have more than enough capital to absorb the losses, according to annual stress tests conducted by the Federal Reserve.
The passing grades given by the Fed on Wednesday to banks including JPMorgan Chase and Goldman Sachs lent support to claims from Wall Street executives and regulators that systemically important banks can withstand heavy losses.
The results will also help determine how much capital banks have to hold in the next 12 months. As long as banks match or exceed the requirements, they are free from Fed restrictions on how much capital they can put towards shareholder dividends and stock buybacks.
Analysts predicted the capital requirements of institutions such as Goldman, JPMorgan, Morgan Stanley and Bank of America will decline due to the results. This bolstered hopes for higher dividends or more share buybacks, sending the banks’ stocks up about 1.5 per cent in after-hours trading.
The results come just months after three of the largest bank failures in US history — Silicon Valley Bank, Signature Bank and First Republic — triggered a regional banking crisis. Smaller banks that have come under pressure from investors following the collapse of SVB, including PacWest and Comerica, were not included in the stress tests.
“Today’s results confirm that the banking system remains strong and resilient,” Fed vice-chair for supervision Michael Barr said in a statement.
…
“The largest US banks would lose $541bn in a hypothetical doomsday economic scenario but still have more than enough capital to absorb the losses,…”
$500 bn? ‘Ti
‘Tis a mere flesh wound.
“…but still have more than enough capital to absorb the losses…”
There isn’t a banker anywhere on the entire planet who is going to absorb a $541bn loss. This chapter is where the belt tightening plebs are called upon.
Are you ready for CR8R?
https://www.visualcapitalist.com/chart-u-s-home-price-growth-over-50-years/
“Although price growth has slowed, nominal prices are still 42% higher than pre-pandemic levels.”
Incredible.
https://fb.watch/lDNfetT4Xl/