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All Those People Thought They Would Become Millionaires And They Are Now With Something More Or Less Worthless

A report from KOBI in Oregon. “The ‘Rogue Valley Association of Realtors‘ releasing new numbers regarding housing statistics in Jackson County. It shows the county sold less homes compared to this time last year. It dropped by 36 percent. Numbers from the realtors association also showed the median home price 5.7% from $424,000 at this time in 2022 to now $400,000.”

The Lookout in California. “There were 150 single-family home resales across Santa Cruz County in June compared to 123 in May and 143 in June 2022. The median resale price fell 9.5% last month to $1.23 million, compared to $1.36 million in May. Countywide, median prices fell an annualized 5.7% last month to $1.23 million from ust over $1.3 million in June 2022, in part as buyers purchased smaller homes and sales shifted away from expensive markets like Santa Cruz and Scotts Valley to communities such as Watsonville, Boulder Creek and Ben Lomond. Ben Lomond’s median price fell slightly to more than 3% from last June to $895,000. Aptos’ median sale price fell, too, dipping to $1.42 million in June from $1.5 million a year prior as buyers purchased slightly smaller homes than they did last year.”

Newsweek on California. “The exodus from San Francisco offices is gathering pace as businesses vacated nearly 2 million square feet of office space in the past three months, adding to the city’s problem with vacant buildings. That’s more than 35 million square feet of office space that’s sitting empty in the city, according to NBC Bay Area, which said more than half of the office space in the Yerba Buena district was empty at the end of June. ‘If we look at the city as a whole, you have retail, offices, and residential all supporting each other. Now there’s actually a broken network among different linkages of commercial properties,’ said San Francisco-based Moody’s Analytics economist Lu Chen.”

Reuters on New York. “The end of the pandemic has brought little relief to Manhattan’s depressed market for workspace, where empty floors remain the norm and by one calculation the values of 45% of the city’s office buildings are below their last sale price. The amount of space leased in the second quarter was down almost 50% from a year ago and was a quarter less than the five-year pre-pandemic average, according to brokerage data provided to Reuters. ‘There’s essentially almost no market for office buildings right now because people don’t know where the bottom is,’ said Andrew Nelson, a real estate economist who runs Nelson Economics in Washington.”

Bisnow Dallas/Fort Worth. “Apartment rents are expected to drop across Texas’ major metros through the balance of 2023 as the delivery of new units runs way ahead of demand. Of the 113 major Texas submarkets analyzed by RealPage, 1 in 5 are experiencing rent cuts. The market has turned most acutely in Austin, where rent growth dipped into the negative in June. The market also has one of the lowest occupancy rates in the country at 93.3%, according to RealPage data. ‘Not many markets across the country are sputtering along quite the same way Austin is,’ RealPage real estate economist Carl Whitaker said. ‘Among major metros, you really only have Phoenix, Vegas and maybe Sacramento that are matching the degree of weakness that is ongoing here in the Texas capital.'”

The Globe and Mail in Canada. “Potential real estate buyers in Toronto and the surrounding areas are taking a languid approach to house hunting as summer sojourns take over. Robin Pope, broker at Pope Real Estate Ltd., says some are hitting pause as they assess the impact of higher interest rates. Competition has eased and those still on the hunt appear to be feeling less pressure. For example, after he listed a hard loft in the city’s west end, one prospective buyer’s agent cancelled a showing about 30 minutes before the scheduled time because afternoon traffic was heavy. Typically, a spacious loft is hard to come by and buyers rush to get inside. ‘I was just surprised that she would take the risk when somebody was there waiting to open the door for her,’ Mr. Pope says. ‘They just don’t feel any urgency.'”

The Telegraph. “Demand for homes is plunging as the mortgage crisis forces buyers out of the market, estate agents have warned. The Bank of England yesterday estimated nearly a million homeowners faced a mortgage shock of around £500 a month if remortgaging before the end of 2026. Neil Foster, of Hadrian Property Partners in Northumberland, said: ‘The sales market feels like an oxymoron this month. Deals are few and far between and there is clear caution, particularly amongst buy-to-let investors, with the prospect of a perfect storm to come if the cost of debt continues to rise as prices begin to fall.'”

From Reuters. “For hundreds of thousands of ordinary Swedes, investing in one of their country’s biggest landlords SBB was a sure bet for years. Now it is at the epicentre of a property crash that threatens to engulf the Nordic state’s economy. On Friday, the heavily-indebted property group will offer investors a glimpse of its finances in its second-quarter results and enthusiasm for the one-time rising star has been displaced by a sense of foreboding. Its shares have lost over 90% of their value since peaking in 2021. Maria De Geer of the Swedish Shareholders Association said the company’s shares had once been so popular among Swedes it became known as a stock for the people, snapped up by roughly 300,000 small investors.”

“‘All those people … thought they would become millionaires,’ she said. ‘There are still lots and lots of small shareholders who’ve had a massive loss as they bought … at the peak and they are now with something more or less worthless.'”

South China Morning Post. “Hong Kong’s floundering residential property market has not yet bottomed out, and the road to recovery will be long and difficult given headwinds including high interest rates, a glut of unsold new units and a lack of buying power from mainland China, according to JLL. Factors including a volatile stock market, a challenging external economic environment and a decrease in new births and marriages are also affecting housing demand, the real estate company said in its midyear property market report,. ‘Hong Kong’s housing market is now having the longest price adjustment since 2008, and the market has not found a bottom,’ said Joseph Tsang, chairman at JLL in Hong Kong.”

Scoop New Zealand. “Home values decreased at a relatively consistent pace in the Wellington region last month. The average home value in the region is now $825,554, which is 6.7% less than at the start of 2023 and 17.4% less than the same time last year. The largest reductions this calendar year have occurred on the Kapiti Coast (-8.2%) and Porirua (-8.1%) with Hutt City experiencing the smallest (-4.4%). The national average home value is now $891,585, which is 11.8% lower than the same time last year and 5.6% less than at the start of this calendar year.”

Daily Mail Australia. “One of the many victims of controversial property development company Toplace has claimed he’s been left in financial ruin after the company suddenly collapsed. Its downfall is expected to impact thousands of apartment buyers and contractors across Sydney with several projects currently under construction. One of these is IT manager Patrick Quintal who owns and lives in a unit in the troubled Vicinity Apartments with his wife in Canterbury, in Sydney’s west. Mr Quintal bought the apartment in May, 2021 for $600,000 and moved in at the end of July.”

“‘When I bought I had no idea about any potential issues, most buildings have a couple of rendering problems, but it’s nothing that can’t be fixed,’ he told Daily Mail Australia. ‘But in about August of 2021 we got an engineering report that basically referred to the building as a death trap. The best way to explain it is everything that could’ve gone wrong in terms of construction, went wrong. The flooding reaches my apartment door and I just sit there and hope the rain stops.'”

“‘I can’t sell the apartment, I can’t refinance or get another mortgage, especially given how interest rates are,’ Mr Quintal said. ‘And the looming threat of having to pay $180,000 per person. It’s financial suicide. I can’t even move out and rent somewhere, and I’m already struggling to pay the mortgage repayments. The situation is dire. I’ve seen four separate units that have had to foreclose. There’s a unit I can see from where I live that had a sign on it that said the bank has repossessed it. This is going to get much worse for anyone here. I can’t get any of this money back, none of it is recoverable. It’s an active money sink.'”

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This Post Has 60 Comments

  1. ’empty floors remain the norm and by one calculation the values of 45% of the city’s office buildings are below their last sale price’

    Reminds me: wa happened to frozen soup line Larry and his hotel empire?

  2. ‘If we look at the city as a whole, you have retail, offices, and residential all supporting each other. Now there’s actually a broken network among different linkages of commercial properties’

    That’s true Lu, and you all shot yerself in the fook. I read the mayor of this sh$thole blame it on orange man the other day. That should clear things up.

  3. ‘Not many markets across the country are sputtering along quite the same way Austin is…Among major metros, you really only have Phoenix, Vegas and maybe Sacramento that are matching the degree of weakness that is ongoing here in the Texas capital’

    Carl, I’ll have you know this is THE holy grail of investing.

    1. “Sacramento”

      For those who don’t know, our state capital lies in the heart of the Central Valley. But news reports regularly posted here document falling housing prices in many other parts of California, especially desirable coastal areas. It seems like San Francisco keeps coming up as an extreme case of CR8Ring home prices.

        1. “Born and raised in San Francisco, Mayor Breed’s experiences growing up in Plaza East Public Housing and living in neighborhoods impacted by redevelopment, has lead to her commitment to creating opportunities for all San Franciscans to live and thrive.”

          LOL

          1. I recall that recently she literally begged businesses to not leave, with the promise of fixing the problems.

            All she can do now is grift as much as possible before the death loop finishes off the city.

          2. We’ve seen this movie over and over again.
            1. Residents beg for “investment” in their neighborhoods.
            2. Businesses invest in putting in new stores, cleaning up the blight, and sometimes sponsoring job programs.
            3. Residents complain that the area is too white, they don’t attend the job training, don’t buy the “fresh fruits and vegetables” that they’re always going on about, and then start outright looting and rioting the stores.
            4. The businesses don’t have much other option than to pull out.
            5. Residents complain about food deserts and beg for “investment” in their neighborhoods.

          3. In Chicago an interesting situation occurred recently when a very nice new grocery store was going to open at the site of the Whole Foods that closed (fled). The EBT crowd was so used to getting the best quality for free that they organized a large protest and angrily voiced their displeasure at being subjected to such low quality. They said the city should do better for them and that they would refuse to use this new store. They also accused the store of racisms even though it was the only entity willing to run a store there. Some things you have to see to believe:
            https://www.youtube.com/watch?v=u3ZFwO3si20

          4. In Chicago an interesting situation occurred

            Their entitlement is stunning. Scott Adams was right, stay as far away from these people as you can.

          5. “They said the city should do better for them…”

            @CaliforniaEBRDude replied: “We want… …we want… …we want…” How about picking up the ball and opening the kind of store you think you want?

            Still LOL

          6. “They believe that Sav-a-lot is not a good fit for Englewood.”

            Google-mapping the nearby streets — Yup, looks like Sav-a-lot is a pretty good fit. I’ve been in a Sav-a-lot, and this one looks much nicer. They’re probably taking advantage of the decor and fixtures left behind by the Whole Paycheck.

            BTW, there’s a WIC grocery right by it. Are there really WIC grocery stores? I think it’s a great idea. They can limit the stock to ONLY WIC items and so there’s no doubt what you’re allowed to buy.

        2. Sacramento housing stays strong due to enormous amount of Ukranians flooding the area.
          Illegals soak up any left over dwellings.

          rainbow umbrella fruitatero carts multiply daily.

    2. Please let Charlotte area get hit the hardest!!!! I want to be first place in the bloody nose contest.

  4. In fairness to residential real estate as an asset class, livable houses are seldim worthless. It’s just that when people borrow hundreds of thousands of dollars to buy them, they put themselves into a precarious financial position which may easily go negative if housing prices decline, as is presently occurring in many parts of the US.

  5. Is slowing inflation a sign that a soft landing is ahead for the US economy, or an early warning of a recession?

    1. Don’t stress about recession with inflation cooling and the job market booming, Nobel economist Paul Krugman says
      Theron Mohamed
      Jul 12, 2023, 4:11 AM PDT
      Paul Krugman.
      REUTERS/Brendan McDermid

      – The US economy may escape recession as inflation is slowing and interest rates aren’t hurting much.

      – Paul Krugman said remote work, industrial policies, and pent-up travel demand may be fueling growth.

      – The Nobel laureate sees little risk of recession given low US unemployment and strong job growth.
      …

      1. Can Brandon flatten the yield curve as easily as he stopped the Floyd riots across the country?

    2. Inflation is falling, fast – but it’s time to get ready for different sorts of economic pain
      George Glover
      Jul 12, 2023, 7:10 AM PDT
      Consumer spending US economy markets
      US inflation cooled to just 3% in June, according to the latest Consumer Price Index report.
      VIEW press / Getty Images

      – The latest Consumer Price Index report showed inflation cooling to just 3% in June.

      – That’s good news for both the Federal Reserve and ordinary Americans.

      – But there could be other types of economic pain ahead, with the jobs market slowing and some forecasters warning of a recession.
      …

    3. Krugman sure is pushing hard on the “no recession this time” argument.

      Time will tell. It’s too early to say how the inverted yield curve will resolve.

      1. A recession indicator that predicted every downturn since 1969 started flashing months ago—and a Wall Street veteran warns it always works on a delay
        BY Will Daniel
        June 27, 2023 at 10:32 AM PDT
        NYSE broker
        Traders are digesting a lot of signals.
        ANGELA WEISS—AFP/Getty Images

        Wall Street analysts and investment strategists love to use “recession indicators.” These simple statistics that serve as evidence of (potential) impending economic disaster can be invaluable tools for managing risk. Just look at one of the most famous of them all: the yield curve. Since 1969, a yield curve inversion has preceded every U.S. recession.

        The yield curve is a graphical representation of the relationship between the yields of related bonds—most commonly the U.S. 10-year Treasury and two-year Treasury. Typically, shorter-term bonds have lower yields than longer-term bonds because investors are taking more risk by locking up their money for longer. This relationship is represented by an upward sloping curve. But sometimes that yield curve can invert, meaning long-term bond yields drop below short-term bond yields.

        Megan Horneman, chief investment officer at Verdence Capital Advisors, warned Monday that even after nearly a year, investors shouldn’t be “complacent” about this “historical recession indicator.”

        “Historically, after the yield curve inverts, it takes ~15 months for the economy to officially enter a recession,” the Wall Street veteran explained in her Weekly Investment Insights research note on Monday. “Applying this same time frame to the current inversion (roughly one year ago), the economy could enter a recession in October of this year.”
        …
        https://fortune.com/2023/06/27/what-is-yield-curve-recession-indicator-15-month-delay/

      2. “Krugman sure is pushing hard on the “no recession this time” argument.”

        Krugman’s belly will always be full because he knows which direction the proverbial log is rolling.

    4. Economy
      The economy is doing exactly what we need to avoid a recession and keep booming
      Noah Sheidlower and Madison Hoff
      Jul 12, 2023, 8:09 AM PDT
      Jerome Powell
      Federal Reserve Governor Jerome Powell delivers remarks during a conference at the Brookings Institution in Washington.
      Carlos Barria/Reuters

      – Recent data reveals inflation is cooling, the labor market is slowing, and a recession may not come after all.

      – Inflation data released Wednesday showed that inflation is coming down fast.

      – The Fed may be pleased by this data, though a rate hike may still be on the table later this month.
      …

      1. “The economy is doing exactly what we need to avoid a recession and keep booming”

        – So, headline CPI inflation is decreasing, but core inflation is still 4.8%. This is what the Fed tracks. Still > 2x target.
        – We’re currently experiencing disinflation, but not deflation on the whole. That means that the price increases due to the 40 year high inflation over the past 3 years is still there.
        – Houses, rents, cars, food, insurance, etc. All still up 20-50%, or more.
        – Real (inflation-adjusted) wages have been falling for over 2 years.
        – Need actual deflation for a return to pre-pandemic prices.
        – The Fed wants inflation and hates deflation. Inflation is wealth transfer (outright theft). That’s what they want. From 99% to 1%.
        – Don’t believe the “inflation is falling” propaganda. Everyone that doesn’t own assets is still out 20-50% or more. This was stolen by the government.
        – Credit card consumer debt is at a record. Savings rate is very low.
        – Federal debt grew by $1T in the 5 weeks since the debt ceiling impasse.
        – Everything is awesome? Wait, what?

        1. – Houses, rents, cars, food, insurance, etc. All still up 20-50%, or more.

          New vehicle prices are simply mind blowing. I know someone who paid $50K for a Chevy Blazer. Not a Lexus or an Audi. For a Chevy Blazer.

          1. I can’t believe what people are paying for these new made in mexico Broncos. Saw one the other day $60,000. It was a special edition…ie. Lipstick and wheel flairs.

    5. Fox Business
      Credit Cards
      Published July 13, 2023 8:00am EDT
      Loan delinquencies could be early sign of economic trouble: Report
      Many Americans are seeing credit scores dip to pre-pandemic levels
      By Michael Lee FOXBusiness
      FOX Business’ Grady Trimble reports on House Republicans bill to remove President Biden’s mortgage rule and its support along party lines. video
      House GOP aims to remove Biden’s new mortgage rule benefiting those with lower credit scores

      Many Americans who saw their credit scores go up during the pandemic are delinquent on the loans and lines of credit they took out, spelling possible trouble for the economy.

      Current delinquency rates on loans opened in mid-2021 more closely resemble borrowers with credit scores 25 points lower on credit cards and personal loans, while the delinquency rates on auto loans opened at the same time more closely resemble credit scores 10 points lower, according to a Wall Street Journal report Wednesday.

      The troubling rise in delinquency comes amid heightened fears over a recession as the Federal Reserve has continued to aggressively raise rates, with the higher rates and increased price of goods putting strain on household budgets across the country.
      …
      https://www.foxbusiness.com/economy/loan-delinquencies-could-be-early-sign-economic-trouble

    6. If the government wasn’t chock full of liars this question could be worth asking, As for the CPI being down to 3%, I’m still seeing rising prices everywhere.

  7. The New York Times is not a newspaper, it is a propaganda outlet of the State Department.

    New York Times — G.O.P.’s Far Right Seeks to Use Defense Bill to Defund Ukraine War Effort (7/12/2023):

    “right-wing” … “the far right’s” … “the right wing” … “the rebellious right wing” … “the hard right” … “right-wing” … “the ultraconservative faction” … “right-wing” … “hard-right” … “Ultraconservatives”

    https://archive.li/XabWQ

    Note the language.

    Nobody outside of the Beltway (or the New York Times newsroom) supports Ukraine. Nobody.

    1. American taxpayers with Love in their hearts are praying for Russia, because they know that Russia is the future of Christian European civilization, as well as model for a future American Christian Nationalist homeland.

      Supporting Ukraine is treason to the United States.

      God is on Russia’s side. Let Jesus into your heart, and you will know that supporting Ukraine is rejecting God’s will, and supporting Satan. Pray for Russia.

    2. CNBC — UK minister’s comments on Ukraine cause a stir (7/13/2023):

      “In Vilnius, Lithuania, Ben Wallace spoke about the military needs of Ukraine, which has been battling Russia’s full-scale invasion since Feb. 2022.

      According to widely reported comments, Wallace said that “whether we like it or not, people want to see gratitude.”

      “My counsel to the Ukrainians is sometimes you’re persuading countries to give up their own stocks [of weapons] and yes, the war is a noble war and yes, we see it as you doing a war for not just yourself but our freedoms,” Sky News quoted him as saying.

      “I said to the Ukrainians last year, when I drove 11 hours to [Kyiv to] be given a list — I said, ‘I am not Amazon’,” he went on to add.

      https://www.cnbc.com/2023/07/13/uk-defense-secretary-says-ukraines-allies-want-gratitude.html

      Look at the photo from the other day of all the European diplomats with their backs turned to Zelensky, standing alone, rejected, in his grubby, sweaty, military uniform. He couldn’t even bother wearing a suit to the NATO summit.

      Anyone who supports sending cluster munitions to Ukraine is a war criminal.

      Russia is winning.

      1. “…sending cluster munitions to Ukraine…”

        It’s difficult to imagine DOD making that call; these are politicians calling the shots.

    1. The sale history and googlemaps street view history is interesting. In 2011, this was a run-of-the-mill mid-80s contemporary house with tall trees behind the back yard. Sometime between 2011-2019, the place was totaled in a fire(?), and all the trees are gone and its open land. It’s got new roof decking, so perhaps someone tried to rebuild it during the pandemic but had to give up. Likely a speculator hoping to cash in on the 2021 frenzy and didn’t finish in time.

      What is the terrain like there? Is it worth buying the land and putting up something new, like a manufactured house? Is there good water/weather/soil/HOA for homesteading? It looks like a high-end neighborhood.

      1. From wikipedia:

        Lynn Haven is a city in Bay County, Florida, United States, north of Panama City. The population was 18,493 at the 2010 census.[4] Like many communities in Bay County, the city was severely damaged by Category 5 Hurricane Michael on October 10, 2018.

        It’s in the Florida panhandle, next to Panama City. While not on the coast it is on a bay. Terrain? I’m going to guess flat as a pancake. Per wiki the mean elevation is 13 feet.

        I’m gonna guess the house for sale was destroyed by the hurricane.

        2. Hmm… the hurricane explains the loss of the trees. Many of those trees look outright broken in half. But the goolgemap history shows that the other houses on that street survived, and I don’t see signs of rebuild. Was this particular house badly built?

          1. My understanding is that hurricanes can generate tornados, which can account for very localized damage.

      2. oxide – Hurricane Michael, 2018 was a beast of a storm. That would explain all the trees being gone. I live about 120 miles to the west. I’m sure the neighborhood wouldn’t allow mobile homes though. In my opinion, it’s a total tear-down. However, if you can purchase it for a steal and presuming that the studs and slab are usable, it might can be salvaged. Presuming you can even find insurance. Way too ambitious of a project for me though.

        https://en.wikipedia.org/wiki/Hurricane_Michael

  9. Meanwhile, back in the USA.

    MarketWatch — As food prices rise in June, analysts warn of a ‘tipping point’ for Americans (7/13/2023):

    “Overall, there continues to be a similar narrative of extended upward pressure on food prices as we try to discern whether this stress has led to a tipping point where consumers are struggling to buy the foods that they want,” said Jayson Lusk, the head and distinguished professor of Agricultural Economics at Purdue University.

    Reported food insecurity across households of different income levels reached 17% in June, the highest level since March 2022, according to the monthly Consumer Food Insights Report from Purdue University. Although it didn’t deviate too much from the normal range — food insecurity hovered at 14% two months ago — Lusk said the increase is concerning given the amount of pressure on more financially vulnerable consumers.

    Nearly half of the survey respondents said they cannot afford the food they want.

    https://www.marketwatch.com/story/as-food-prices-rise-in-june-analysts-warn-of-a-tipping-point-for-americans-3af44f52?mod=home-page

    Nearly half?

    Must be one of those “we’re all in this together” kind of things. Better print some more soon to be worthless fiat currency and send it to Ukraine.

  10. “‘All those people … thought they would become millionaires,’ she said. ‘There are still lots and lots of small shareholders who’ve had a massive loss as they bought … at the peak and they are now with something more or less worthless.’”

    DIE Speculators DIE!!!!

  11. Sellers No Longer Have The Advantage In Vaughan, Richmond Hill & Markham Real Estate – July 5
    Team Sessa Real Estate
    Jul 13, 2023 VAUGHAN

    Vaughan Home Prices, Richmond Hill Home Prices & Markham Home Prices for the week of June 29 – July 5, 2023.

    https://www.youtube.com/watch?v=OVtaC0133P8

    15 minutes.

  12. ‘in part as buyers purchased smaller homes and sales shifted away from expensive markets like Santa Cruz and Scotts Valley to communities such as Watsonville, Boulder Creek and Ben Lomond…Aptos’ median sale price fell, too, dipping to $1.42 million in June from $1.5 million a year prior as buyers purchased slightly smaller homes than they did last year’

    The MIX!

    1. “…dipping to $1.42 … in June from $1.50…”

      $1.50 – $1.42 = $0.08. Who cares about a measly 8 cents?

      “million”

      Oh wait!

  13. ‘one prospective buyer’s agent cancelled a showing about 30 minutes before the scheduled time because afternoon traffic was heavy. Typically, a spacious loft is hard to come by and buyers rush to get inside. ‘I was just surprised that she would take the risk when somebody was there waiting to open the door for her…They just don’t feel any urgency’

    That’s the spirit prospective buyer, leave Robin waiting to open the door!

    1. Financial Times
      US banks
      Big US banks to post largest rise in loan losses since pandemic
      Rising interest rates pile pressure on borrowers and commercial real estate losses mount
      A montage of the exterior of the New York Stock Exchange with the logos of JPMorgan Chase, Goldman Sachs and Bank of America
      Analysts estimate that the six largest US banks have written off a collective $5bn tied to defaulted loans in the second quarter of this year
      Joshua Franklin and Stephen Gandel in New York July 9 2023

      The largest US banks are this week set to report the biggest jump in loan losses since the onset of the coronavirus pandemic, as rising interest rates pile mounting pressure on borrowers across the economy.

      The publication of second-quarter results is set to show that banks have benefited from higher interest rates to some degree, by boosting lending and investment income. But after three years of relatively low defaults, in part fuelled by pandemic-era stimulus cash and other government assistance, lenders are also starting to see the negative effects of higher rates and inflation on borrowers.

      The nation’s six largest banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — are predicted to have written off a collective $5bn tied to defaulted loans in the second quarter of this year, according to the average estimates of bank analysts, as compiled by Bloomberg.

      The six lenders will set aside an estimated additional $7.6bn to cover loans that could go bad, analysts estimate.

      Both figures are nearly double what they were in the same quarter a year ago. However, they remain below the hits big banks took at the beginning of the pandemic when charge-offs and provisions peaked at $6bn and $35bn respectively.

      Credit cards are the biggest source of pain for a number of the banks. JPMorgan’s card loan charge-offs totalled $1.1bn in the quarter, analysts estimate, up from $600mn in the same period a year ago. At BofA, credit card loans represent about a quarter of its charge-offs.

      Commercial real estate (CRE) loans are also proving a drag on banks’ performance. Property owners face reduced demand for office space as remote and hybrid work arrangements persist even though the pandemic has ended.

      Wells Fargo, the biggest CRE lender among the nation’s largest banks, told investors this month that it added $1bn to its loan loss provisions to cover potential losses tied to office buildings and other poor-performing properties.
      …

      1. “…lenders are also starting to see the negative effects of higher rates and inflation on borrowers.”

        Neither a borrower nor a lender be,
        For loan oft loses both itself and friend,
        And borrowing dulls the edge of husbandry.

        As William Shakespeare doubtless would note,
        It’s always wise to stay debt free.

  16. Liberal Media Drops ‘Insurrection,’ Refers to Jan. 6 as ‘Rally,’ ‘Demonstration,’ & ‘Protest’ Ahead of DOJ Charging Ray Epps

    by Adan Salazar
    July 13th 2023, 3:08 pm

    Left-leaning mainstream media outlets have noticeably changed up their takes on the Jan. 6 “insurrection,” now referring to it as a “rally” and a “protest” as the DOJ moves to criminally charge suspected federal provocateur Ray Epps for his role in the debacle.

    In an article Wednesday, The Washington Post reported Epps attended “pro-Trump rallies” on Jan. 6, curiously shifting away from the “insurrection” term they up until now used so frequently.

    Another notable instance where the liberal Democrat buzz word “insurrection” was conspicuously omitted was in The New York Times’ recent report about Epps’ lawsuit against Fox News, in which they wrote he merely “took part in demonstrations” at the Capitol.

    https://www.infowars.com/posts/liberal-media-drops-insurrection-refers-to-jan-6-as-rally-demonstration-protest-ahead-of-doj-charging-ray-epps/

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