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That Funny Money Has Turned Into Real Money And It Is Painful

A report from Newsweek. “New Jersey and Illinois are facing a stressed housing market, according to a new report. ATTOM revealed that nearly half of the counties most at risk are in those two states. New Jersey exhibited the highest rates of foreclosures among the top 50 counties facing the downside. The biggest clusters were found to be in New York City, Chicago and Philadelphia. Foreclosures have jumped, ATTOM pointed out, blaming the end in July 2021 of a government-instituted pause on banks repossessing homes where owners had failed to pay their mortgages on time that was in effect during the COVID-19 pandemic. ‘While the increase has slowed, nearly twice as many foreclosure cases were open in the second quarter of this year compared to same period in 2021,’ ATTOM said.”

Bisnow Houston in Texas. “Attendees at the Harris County Delinquent Tax Sale and foreclosure auction describe it as a bizarre and arcane function akin to a circus. On the first Tuesday of each month, the Bayou City Event Center fills with people armed with $5 cash for parking — and far more in their wallets — to buy distressed properties. For small and first-time investors, the monthly event is an opportunity to step into the ring. And for a handful of others, it’s the place to snap up multimillion-dollar commercial properties at rock-bottom prices. It’s also a place where serious CRE business gets done, including lenders officially taking ownership of properties after borrowers can no longer make payments on multimillion-dollar loans.”

“At the September foreclosure auction, lender MF1 sold a 282-unit multifamily complex after its borrower defaulted on a $51M loan backed by the property. Harris County real property records show that a newly formed limited liability company, Aspire at 610, bought the complex for $49.8M. MF1 provided the $51M loan in March 2022 to Rockstar Capital, an apartment syndicator owned by Robert Martinez, who calls himself ‘the apartment rockstar,’ The Real Deal reported. Martinez told the outlet this was his sole lender issue throughout his portfolio of 4,800 units and only occurred when his loan situation became unworkable after it reached its maximum interest rate of 5.65% last September.”

“In contrast to the festive atmosphere around it, the sale was a stripped-down affair. The trustee, an attorney, read the full foreclosure document out loud and opened the bid at $50M, a prearranged sum offered by a newly formed LLC. ‘Probably a dozen people who were milling around and found it interesting to see a $50M property get auctioned off. People standing around in shorts and T-shirts that were playing with houses,’ said Michael Knight, executive vice president of Better World Properties, a multifamily property owner and operator. ‘The attorney looked up and said, ‘Are there any other bids?’ People looked at one another jokingly and said, ‘Hey, you got $50M I can borrow?’ Certainly no response, but there was a little bit of a chuckle.'”

From Realtor.com. “Atlanta Hawks head coach Quin Snyder had hoped to net much more than he ended up getting in the sale of his Salt Lake City mansion. The former Utah Jazz head coach had listed his home in July 2022 for $12.75 million, eventually reducing the price to below $10 million. In the end, the house was on the market for $7.75 million when a deal was clinched. Yep, the buyer scored this swanky spread for around 40% off its original asking price.”

The Real Deal on New York. “Regrets? Peloton founder John Foley appears to have $4 million worth. The company’s former chief executive officer and executive chairman offloaded his estate at 442 Further Lane in East Hampton for $51 million, Behind the Hedges reported. The deal to an anonymous buyer closed in the spring, but only recently emerged in public records. Foley and his wife, Jill, didn’t enjoy Further Lane for very long. The couple signed a deal to buy the home in September 2021, then closed on the property three months later for $55 million. After three more months, however, the couple quietly started shopping their recent purchase. It’s unclear what brought on the change of heart, though Peloton’s post-pandemic blues probably played a role.”

Bloomberg on New York. “Buildings along Billionaires’ Row — a stretch of high-rise towers built after the financial crisis near the southern end of Central Park — have been trying for years to attract buyers. Jonathan Miller, president of appraiser Miller Samuel Inc., said this year’s performance is less of a crash and more of a return to pre-pandemic levels. ‘There was a perception that the market was a lot wider and deeper than it actually was for this density of high-end pricing,’ Miller said. ‘The evidence of that is sales are coming with big discounts.’ Miller said homes with ‘aspirational pricing’ often sell with even deeper cuts. Many have found buyers when sellers were willing to accept reductions of around 60% to 70%, he said. ‘There’s still lots of units to sell’ on Billionaires’ Row, Miller said.”

CTV News in Canada. “Sudbury Real Estate Board president Adam Haight said new construction would help balance supply and demand locally. ‘We’re not really a boom-and-bust kinda’ town just because of our economic diversity,’ Haight said. ‘Sometimes we’re getting competing offers where we’d see three or four (offers) as opposed to 10 to 15,’ Haight added. ‘So we’re not seeing those properties go $100,000 over list price, as much as we did a couple of years ago.'”

City News in Canada. “In a recent interview, Jason Ralph, President of Royal LePage Team Realty in Ottawa, spoke candidly about the current market conditions in the Capital Region and its recovery from the peak frenzy of pandemic buying and selling. How has the market changed since the peak has passed? Jason explains, ‘We do have somewhat fewer new listings now, and also the panic of competitive bidding has calmed down. Though, on the rare occasion in certain pockets of the market we still may get multiple offers, it’s more like three or four, not thirty or forty as it was during the peak of the pandemic.'”

“Why are many potential homeowners choosing re-sale over new construction? Jason posits, ‘New construction can be somewhat speculative, you’re purchasing a home that you aren’t moving into for potentially up to two years from now. There’s hesitation of a bubble due to the media even though prices have been holding strong. Builders have historically financed their construction and with financing rates the way they are, they would literally be building houses for free right now.'”

From The I. “UK homeowners on tracker mortgages can expect to be paying an average of £324 more per month on their mortgage compared to one year ago if the Bank of England raises its interest rate as expected next week. Psychologist Lisa Smith is one of thousands of people across the UK trapped on a variable rate mortgage. She and her husband, an architect, purchased a two-bedroom flat in Greenwich, London in 2013. When the couple, who now have two children, tried to move two years ago they discovered it was unsellable due to fire safety issues that had been discovered following the Grenfell Tower fire.”

“They decided to rent out the property, as they were relocating to Finland, and took out a two year fixed rate mortgage as they ‘thought it would be sorted’ within that time, Ms Smith told i. However, their fixed rate deal came to an end this month and the fire safety issues have not been fixed. Their bank won’t let them sign up to a new fixed rate deal and no other mortgage provider will lend to them, meaning they have been moved onto their bank’s SVR, which is currently at 7.79 per cent. As a result, their monthly payments have increased from £1170 per month to £1804 per month and the rent they receive no longer covers the cost. And their monthly payments are set to increase further if the Bank of England increases its rate next week.”

“‘It just makes us feel sick…it’s happening so frequently and obviously because there’s still a lot of uncertainty in the economy it just feels like we’ve got no control. We’re just at the mercy of whatever they decide and we’ve got no choice in the matter at all,’ she said. ‘We’re renting currently in Finland because we can’t buy anywhere. With the rising cost of service charges and insurance and everything else that goes along with the fire safety, and a potentially massive bill to do the remediation that’s required, we are massively out of pocket financially. The interest rate is just the final nail in the coffin.'”

YLE in Finland. “Interest rate hikes are now at their peak, according to Timo Ritakallio, CEO of the OP Financial Group. The message from the European Central Bank (ECB) was that they will keep rates up until inflation has been brought down. Zero interest rates distorted the idea of the price of money, according to the OP chief. ‘Debt is always something that has a price,’ he added, saying that he did not believe that zero interest rates could make a comeback.”

From Reuters. “For months, Sweden’s government has sought to play down a property crisis that has throttled confidence in the Nordic state, repeating a simple message: While some companies are in trouble, the country is not. Now Heimstaden Bostad, a $30 billion property investor with swathes of homes from Stockholm to Berlin, is grappling with a multibillion dollar funding crunch, which has rebounded on one of its owners – the country’s biggest pension fund. That undoubtedly raises the stakes for Sweden, the European nation hardest hit by a global property rout triggered by the steep rise in interest rates last year that abruptly ended a decade of virtually free money.”

“Sweden is one of Europe’s wealthiest states and the biggest Nordic economy, but it has an Achilles Heel – a property market where banks have lent more than 4 trillion Swedish crowns ($360 billion) to homeowners. Weighed down by these home loans, Swedes are twice as heavily indebted as Germans or Italians. The property crisis accelerated this month when pension fund Alecta, which owns a 38% stake in Heimstaden Bostad, said Sweden’s biggest residential landlord needed cash and it may contribute. Swedbank estimates the current shortfall for Heimstaden Bostad could be roughly 30 billion crowns ($2.7 billion).”

“With interest rates still climbing, analysts such as Marcus Gustavsson of Danske Bank, believe the worst is not yet over. He reckons that Swedish residential property prices have fallen by roughly 10% and that the property market may only be half way through the rout. ‘Until recently Swedes were bidding up the price of homes with funny money,’ said Andreas Cervenka, author of ‘Greedy Sweden,’ a book examining inequality driven partly by the housing boom. ‘With rising interest rates, that funny money has turned into real money and it is painful.'”

The Daily Mail. “A homeowner has issued a warning to Australians considering a house-and-land package after the company that was building his dream home went under – with his $50,000 deposit now hanging in the balance. Simone Homes Pty Ltd, based in Leppington in Sydney’s south-west, went into voluntary liquidation on August 24, owing at least $1.65million to tradies, suppliers and clients, according to a creditor’s report. Dozens of customers have been left in the lurch including Chris Le, who was unaware Simone Homes had even gone into liquidation until the news was reported in the media earlier this month. Almost two years later, the lot is still a vacant block of dirt.”

“‘I’m at their mercy. It means I say goodbye to my deposit if I exit this land house package deal,’ he told Daily Mail Australia. ‘But if I stay, what if this builder collapses too, and I lose more than $50k? There’s nowhere else to go. We don’t get a choice of making sure we have a good builder. We were forced to go with a builder that was appointed by whoever packaged this land and house tender. The last two years have been very painful for me, my partner and our parents.'”

From Bloomberg. “A massive retreat of funds from Chinese stocks and bonds is diminishing the market’s clout in global portfolios and accelerating its decoupling from the rest of the world. Foreign holdings of the nation’s equities and debt have fallen by about 1.37 trillion yuan ($188 billion), or 17%, from a December-2021 peak through the end of June this year, according to Bloomberg calculations based on the latest data from the central bank. That’s before onshore shares witnessed a record $12 billion outflow in August alone.”

“The exodus coincides with China’s economic slump due to years of Covid restrictions, a property market crisis, and persistent tensions with the West — concerns that have helped make the ‘avoid China’ theme one of the biggest convictions among investors in Bank of America’s latest survey. Foreign fund participation in the Hong Kong stock market has dropped by more than a third since the end of 2020.”

“‘Foreigners are just throwing in the towel,’ said Zhikai Chen, head of Asia and global EM equities at BNP Paribas Asset Management. There’s anxiety about the property market and a slowdown in consumer spending, he said. ‘Disappointment on those fronts has led to a lot of foreign investors rethinking their exposure.'”

South China Morning Post. “Police in China have for the first time detained a number of employees at the financial subsidiary of Evergrande – the world’s most indebted property developer – two weeks after the group again failed to make payments on its investment products. In a statement on Saturday night, police in the southern city of Shenzhen, where the cash-strapped developer is headquartered, said they had detained employees at Evergrande Wealth Management, including a person surnamed Du. Du Liang is the unit’s general manager but it is not known if he is among those detained.”

“According to the notice, the suspects were subject to ‘criminal compulsory measures,’ a term that usually refers to detention or restrictions on movements. Without specifying the number of employees held or the charges against them, the notice stated that the case was ‘under further investigation.’ It also called on the public to report suspected fraud in four ways – online, by phone, by text or by mail. The wealth management unit was in the spotlight in 2021 after it was revealed that half a dozen employees redeemed wealth management products ahead of their scheduled dates. Du reportedly cited ‘familial urgency’ in his decision to redeem, sparking fury among thousands of clients whose redemption had been paused. The group later said the six managers were reprimanded and ordered to return the proceeds.”

“Nationwide demonstrations erupted after Evergrande missed payments on 40 billion yuan (US$5.6 billion) of wealth management products in September 2021. At the time, about 200,000 people had bought the products, according to investors. By the end of June, the group had estimated debts of US$328 billion. On August 31, the wealth unit announced that it was unable to make payments to its investors due to a liquidity crunch, and that subsequent redemption arrangements would be announced separately. After years of serious insolvency, another Evergrande operation – its life insurance arm – was taken over on Friday by the newly created state-owned vehicle Haigang Life Insurance.”

“Rating agency Moody’s last week revised its outlook for China’s property sector from ‘stable’ to ‘negative,’ arguing that the government support measures to boost property purchases would have a short-term and uneven impact. Another debt-ridden developer, Country Garden, narrowly avoided default this month, after reporting a record loss and debts of more than US$150 billion. It has since received enough support to extend repayment deadlines for a series of onshore bonds. Similarly, state-backed developer Sino-Ocean on Friday suspended payments on all its offshore debt, including almost US$4 billion of dollar-denominated bonds, to embark on ‘holistic debt management’ – the latest company to show signs of trouble in China’s deepening property market crisis.”

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This Post Has 130 Comments

  1. ‘We’re not really a boom-and-bust kinda’ town…So we’re not seeing those properties go $100,000 over list price, as much as we did a couple of years ago’

    But those were my winnahs! Adam?

  2. New construction can be somewhat speculative, you’re purchasing a home that you aren’t moving into for potentially up to two years from now. There’s hesitation of a bubble due to the media even though prices have been holding strong. Builders have historically financed their construction and with financing rates the way they are, they would literally be building houses for free right now’

    That’s the spirit Jason, free igloos for everyone!

  3. ‘Rating agency Moody’s last week revised its outlook for China’s property sector from ‘stable’ to ‘negative’

    Moodys: always the very last to know.

    2. Good grief! How many years has it been already since the Evergrande implosion kicked off China’s plunge into the CR8R?

      1. China Evergrande logo
        Evergrande
        Evergrande arrests: China police detain staff at property giant’s wealth management arm
        Police do not list charges against arrested workers but urge public to report any suspected fraud
        Agence France-Presse
        Sun 17 Sep 2023 19.44 EDT

        Police in China have arrested several employees at a subsidiary of Evergrande, the troubled property giant that is struggling under debts running into the hundreds of billions of dollars.

        Employees at Evergrande’s financial subsidiary, Evergrande Wealth Management, were arrested, police in the southern city of Shenzhen said in a statement, without specifying the number of employees or the charges against them.

        Police in the statement also urged the public to report any cases of suspected fraud to the authorities.

        Evergrande’s enormous debt has contributed to the country’s deepening property market crisis, raising fears of a global spillover.

        The property sector which, along with construction, accounts for about a quarter of China’s GDP, is a key pillar of the country’s growth and has experienced a dazzling boom in recent decades.

        But the massive debt accrued by the industry’s biggest players – Evergrande had estimated debt of $328bn (307bn euros) at the end of June – has been seen by Beijing in recent years as an unacceptable risk for China’s financial system and overall economic health.

        Authorities have gradually tightened developers’ access to credit since 2020, and a wave of defaults have followed – notably that of Evergrande.

        Another Chinese property giant, Country Garden, has narrowly avoided default in recent months, after reporting a record loss and debts of more than $150bn.

        State-backed developer Sino-Ocean is the latest company to show signs of trouble. On Friday it announced it would suspend payments of offshore debts.

        Meanwhile, the Moody’s rating agency recently downgraded the outlook for China’s property sector from “stable” to “negative”, arguing that the government support measures will have only a short-term impact.
        …
        https://www.theguardian.com/business/2023/sep/18/evergrande-arrests-china-police-detain-staff-at-wealth-management-arm-property-giant

        1. “Evergrande’s enormous debt has contributed to the country’s deepening property market crisis, raising fears of a global spillover.

          That’s just silly to worry about. Everyone knows that what starts in China, stays in China.

          Like covid did, for instance. Oh wait!

    3. When it becomes a 100% sure bet that they have absolutely no money left to skim from, the rating becomes negative. It doesn’t pay to be hasty.

  5. Yep, the buyer scored this swanky spread for around 40% off its original asking price.”

    Gosh, this is getting perilously close to the 50% haircuts a very self-assured HBB REIC shill, now self-exiled to Butt-hurt Island, used to assure us was inconceivable.

  6. With the rising cost of service charges and insurance and everything else that goes along with the fire safety, and a potentially massive bill to do the remediation that’s required, we are massively out of pocket financially. The interest rate is just the final nail in the coffin.’”

    Gosh, you’re starting to sound like a cautionary tale, Lisa.

  7. “a government-instituted pause on banks repossessing homes where owners had failed to pay their mortgages on time that was in effect during the COVID-19 pandemic”

    Remember when you were told “two weeks to flatten the curve” back in March of 2020?

    Greatest FRAUD of my lifetime.

  8. New York Post (9/16/2023):

    “The Big Apple took in more migrants than anywhere else in the country since last spring, and city taxpayers are on course to spend an astronomical $40,000 per migrant — far more than any of the top five cities where asylum seekers land, data analyzed by The Post shows.

    Between last April through the end of July 2023, over 125,000 migrants have headed for the five boroughs, according to data on the zip codes where migrants told U.S. Customs and Border Protection they plan to settle.”

    https://nypost.com/2023/09/16/nyc-dumping-more-money-into-migrant-crisis-than-any-other-us-hotspot/

    According to your betters, Replacement Theory is a topic that you are not allowed to discuss.

    1. The irony of the great replacement theory is that they aren’t replacing whites in cities, they are replacing blacks who get driven out by Hispanics taking over their low rent neighborhoods. These new residents are far less murderous and violent than the former residents. Their murder rate is 1/5 the black murder rate. They did this in LA and it’s murder rate is less than half of Chicago’s with twice the population and most of the murders are still mostly blacks. No one seems to be discussing this but that’s what is totally happening. They’ll be expected to vote democrat of course

  9. And for a handful of others, it’s the place to snap up multimillion-dollar commercial properties at rock-bottom prices.

    Remember, knife-catchers: it’s the 2nd mouse that gets the cheese.

    1. DOW 30 -0.83%
      S&P 500 -1.22%
      NASDAQ 100 -1.75%

      Legendary investor Jeremy Grantham rang the alarm on stocks and recession, warned about the housing market, and hailed Elon Musk’s Tesla. Here are his 10 best quotes from a recent event.
      Theron Mohamed Sep 17, 2023, 4:35 AM PDT
      Jeremy Grantham. Nicholas Roberts/Reuters
      Jeremy Grantham issued grim warnings about the US stock market and economy this week.
      Stocks will slump despite AI buzz, and there’s a 70% chance of recession by early 2025, he said.
      Grantham touched on meme stocks, banking risks, real estate, commodities, and Elon Musk’s Tesla.

      Jeremy Grantham has sounded the alarm on US stocks, warned the economy is likely to slump into recession by early 2025, and cautioned that problems may be brewing in the financial system.

      GMO’s cofounder and long-term investment strategist also reflected on his inadvertent investment in a meme stock, advised against buying real estate or commodities, and touted Elon Musk’s Tesla and other companies fighting climate change.

      Grantham was speaking at an investor event held by Livewire Markets in Sydney this week. Here are his 10 best quotes, lightly edited for length and clarity:

      1. “I don’t think we’re in a new bull market. There’s never been a bull market in history that started from such high prices — and by a lot, this is not even close. But whether we’re going to go straight down, and how badly, that’s a more interesting issue.”

      2. “A dozen giant American stocks have had a hell of a run on the back of AI, and that has certainly created the impression that it’s game over. The problem is prices are incredibly high and basically the economy is beginning to unravel. So it’s a head fake, but it’s a hell of a head fake.”

      3. “The US equity market, led by the growth stocks, became a frenzy of meme starts and craziness, led incidentally by the biggest investment I ever made in a startup, QuantumScape. It came as a SPAC, which I hate, I think they should be illegal. This company that had four years before it had a product — forget profits or sales — was selling for more than General Motors or Panasonic. There was nothing at that scale in 1929 or 2000. This was probably one of the great speculative events of all time.”

      4. “I would be very careful with real estate. All over the world, the last 20 years of declining mortgage rates have driven real estate to really crushing high multiples of family income, so high that young people can’t buy a house. So I wouldn’t touch real estate.”

      5. “I am very nervous about the economy. I’m very nervous about an eventual financial trouble.”
      …
      https://markets.businessinsider.com/news/stocks/jeremy-grantham-quotes-stocks-recession-housing-market-bubble-tesla-economy-2023-9

        1. DOW 30 -0.83%
          S&P 500 -1.22%
          NASDAQ 100 -1.75%

          The housing market is brutal. These 6 charts show just how bad things are for buyers.
          Phil Rosen
          Sep 16, 2023, 5:15 AM PDT
          The housing market is brutal for buyers right now.
          The US housing market is brutal right now, as low inventory keeps unaffordability high.
          Getty Images

          – Record-high monthly mortgage payments and low home inventory have made the housing market historically unaffordable.

          – Home listings and homebuyer demand have also both tumbled since last year.

          – Below are 6 charts that illustrate how difficult the current housing market is for buyers.
          …
          https://markets.businessinsider.com/news/commodities/housing-market-mortgage-prices-homes-charts-redfin-property-real-estate-2023-9

          1. A frozen real estate market results in a crashing economy. Such is the nature of a Ponzi scheme. If you do not have constant inflows and appreciation it all collapses.

          2. This Ponzi collapse is playing out extraordinaly slowly, against a media campaign of denial and obfuscation.

      2. “20 years of declining mortgage rates have driven real estate to really crushing high multiples of family income, so high that young people can’t buy a house. So I wouldn’t touch real estate.”

        Why does it even matter if young people can buy a house, so long as investors with dumb borrowed money are willing and able to trade houses at ever higher multiples of their fundamental value as places to live in?

    2. S&P 500 is overvalued, stock valuations ‘disconnected’ from reality – JPMorgan
      Senad Karaahmetovic | Investing.com
      Published Sep 13, 2023 05:53AM ET
      View all comments (6)
      S&P 500 is overvalued, stock valuations ‘disconnected’ from reality – JPMorgan

      JPMorgan strategists have once again reiterated their concern about the sustainability of this year’s rally in U.S. equities. The S&P 500 is up 16.2% year-to-date.

      The strategists point out that the situation is becoming “increasingly unsustainable” due to expanding multiples in the face of a restrictive rate environment.

      “Equities are up 16% YTD mostly on multiple expansion while real rates and cost of capital are moving deeper into restrictive territory. History suggests this relationship is becoming increasingly unsustainable, posing risk to the equity multiple, especially since earnings expectations already face a high hurdle for 2024,” they wrote in a client note.
      …
      https://m.investing.com/news/stock-market-news/sp-500-is-overvalued-stock-valuations-disconnected-from-reality–jpmorgan-432SI-3173323

    3. JPM’s Michele Sees US Recession, Fed Cut by Year End
      TV Shows
      Bloomberg Surveillance
      September 12th, 2023, 5:40 AM PDT

      Bob Michele, CIO and global head of fixed income and commodities at JPMorgan Asset Management, says the Federal Reserve is signaling that it is willing to “make the economy a casualty” by prioritizing inflation-over-growth. Michele explains why he still expects a Fed rate cut by the end of the year on “Bloomberg Surveillance.” (Source: Bloomberg)
      …
      https://www.bloomberg.com/news/videos/2023-09-12/jpm-s-michele-sees-us-recession-fed-cut-by-year-end-video

      1. A rate cut, or two….or three of four does nothing. Unless they go back to ZIRP it’s futile. And that too is disaster in wait. Nothing staves off pain ahead. It’s coming.

    4. Does it seem like Wall Street is in denial about the Fed’s dogged determination to contain inflation and thereby avoid a repeat of the 1970s?

      1. Financial Times
        FT-Booth Survey US interest rates
        Economists expect Fed to defy investors with more interest rate rises
        FT-Booth survey finds majority of economists think central bank has more work to do to lower inflation
        Exterior of Federal Reserve in Washington
        The Fed is once again expected to pause in its most aggressive effort to reduce demand in decades at its two-day meeting on Tuesday and Wednesday
        Colby Smith in Washington and Eva Xiao in New York 3 hours ago

        The US Federal Reserve will defy investors’ expectations and raise interest rates by at least another quarter-point, according to a majority of leading academic economists polled by the Financial Times.

        More than 40 per cent of those surveyed said they expected the Fed to raise rates twice or more from the current benchmark level of 5.25-5.5 per cent, a 22-year high.

        This is in sharp contrast to the mood in financial markets, where traders in federal funds futures believe the US central bank’s policy settings are restrictive enough to get inflation under control and so it can keep rates on hold well into 2024.
        …

          1. That being said, what do you believe? And I’m not being a smart a$$, I’d sincerely and respectfully like to know.

          2. Simply that they are a consortium of large banks and that banks are predatory. I don’t believe that they care for the bank’s customers, except in empty words.

      2. Inflation was one of the main reasons among many that Carter lost in a landslide. Bidens slim chances get even slimmer with 7% inflation.

    5. HOME NEWS STOCKS
      Wall Street is turning cautious on US stocks, while some experts warn of pain ahead. Here’s what JPMorgan, Jeremy Grantham and others have said.
      Zahra Tayeb Sep 17, 2023, 2:00 AM PDT
      TIMOTHY A. CLARY / Getty

      – Investors are turning increasingly wary of what the end of 2023 brings for stocks and the US economy.

      – Wall Street banks including JPMorgan and Bank of America Merrill Lynch are turning more defensive in their investing approach.

      – Here’s what six top voices have said about US stocks as 2023 swings toward its final quarter.
      …
      https://markets.businessinsider.com/news/stocks/stock-market-outlook-jpmorgan-grantham-griffin-warn-pain-ahead-2023-9

    6. Trade
      Corporate Finance Financial Analysis
      Overvalued: Definition, Example, Stock Investing Strategies
      By Andrew Bloomenthal
      Updated March 29, 2022
      Reviewed by Michael J Boyle
      Overvalued
      Investopedia / Ryan Oakley
      What Is “Overvalued”?

      An overvalued stock has a current price that is not justified by its earnings outlook, known as profit projections, or its price-earnings (P/E) ratio. Consequently, analysts and other economic experts expect the price to drop eventually.

      Key Takeaways:

      – An overvalued stock has a current price that is not justified by its earnings outlook, typically assessed by its P/E ratio.

      – A company is considered overvalued if it trades at a rate that is unjustifiably and significantly in excess of its peers.

      – Overvalued stocks are sought by investors looking to short positions and capitalize on anticipated price declines.

      Overvaluation may result from an uptick in emotional trading, or illogical, gut-driven decision making that artificially inflates the stock’s market price. Overvaluation can also occur due to deterioration in a company’s fundamentals and financial strength. Potential investors strive to avoid overpaying for stocks.

      The most popular valuation metric for publicly traded companies is the P/E ratio, which analyzes a company’s stock price relative to its earnings. An overvalued company trades at an unjustifiably rich level compared to its peers.

      Understanding Overvalued Stocks

      A small group of market theorists believes that the market is perfectly efficient, by nature. They opine that fundamental analysis of a stock is a pointless exercise because the stock market is all-knowing. Therefore, stocks may neither be truly undervalued or overvalued. Contrarily, fundamental analysts are staunch in their belief that there are always opportunities to ferret out undervalued and overvalued stocks because the market is as irrational as its participants.

      Overvalued stocks are ideal for investors looking to short a position. This entails selling shares to capitalize on an anticipated price declines. Investors may also legitimately trade overvalued stocks at a premium due to the brand, superior management, or other factors that increase the value of one company’s earnings over another.

      How to Find Overvalued Stocks

      Relative earnings analysis is the most common way to identify an overvalued stock. This metric compares earnings to some comparable market value, such as price. The most popular comparison is the P/E ratio, which analyzes a company’s stock price relative to its earnings.

      Analysts looking for stocks to short may seek overvalued companies with high P/E ratios, particularly when compared to other companies in the same sector or peer group. For example, assume a company has a stock price of $100 and earnings per share of $2. The calculation of its P/E ratio is determined by dividing the price by the earnings ($100/$2 = 50). So, in this example, the security is trading at 50 times earnings.

      If that same company has a banner year and makes $10 in EPS, the new P/E ratio is $100 divided by $10, or 10 times ($100/$10 = 10). Most people would consider the company to be overvalued at a P/E of 50, but possibly undervalued at 10.
      …

    7. Financial Times
      Markets Briefing Markets
      European and Asia stocks dip as chipmakers lead declines
      Traders prepare for interest rate decisions in the US, UK and Japan
      A montage of a globe and a chart
      Daria Mosolova in London 2 hours ago

      European and Asian stocks retreated on Monday as investors worried that flagging global demand could weigh on the chipmaking sector.

      Europe’s region-wide Stoxx Europe 600 fell 0.5 per cent, dragged lower by healthcare and utilities stocks, while the Cac 40 in Paris lost 0.6 per cent and the Dax in Frankfurt gave up 0.3 per cent at the opening bell.

      In Asia, Hong Kong’s Hang Seng index and South Korea’s Kospi declined 1 per cent, while markets in Japan were closed for a holiday.
      …

    1. “Soros’ Open Society Foundation shelled out $5.5 million to the nonprofit Accelerate Action Inc. in 2020 and 2021 — which in turn gave at least $300,000 in 2022 to another nonprofit, Gen Z for Change, which boasts a network of 500 “activists, organizers, and creators,” tax filings show.”

      Globalists gonna globe.

      1. From what I’ve seen, whenever some Gen-Z Soy Boy drops a TikTok shilling for Biden, they get brutally mocked. No one is buying what they’re peddling.

    1. It’s a perfect storm for student loan borrowers, with payments and interest accrual restarting at the same time the expectations shock of no loan forgiveness sinks in.

      2. the expectations shock of no loan forgiveness sinks in

        I’m sure the Dems will dangle the carrot next year and millions of debtors will believe that this time they will have their loans forgiven and will once again pull the D lever.

        I saw an article on my home page saying that it isn’t really the student borrowers’ fault they are up to their eyeballs in non-dischargeable debt. I didn’t click on the link.

        1. I’d be all for forgiving college debt if borrowers were mostly conservatives. Because I believe in rewarding my voters, that how we get people to vote for us. Yes it kind of goes against conservative principles but you can’t enact other conservative principles unless you actually win elections. But since most borrowers are liberal slime, I must be against it.

    2. LOL@ have fun boycotting any future IRS tax refunds and Social Security payments, FSA.

      You should have considered the consequences before you borrowed $80,000 to get a Master’s degree in Obama Studies.

    3. Yahoo
      Yahoo Finance Video
      Housing: Many young adults have given up on the American Dream
      Gabriella Cruz-Martinez
      Sun, September 17, 2023 at 10:01 AM PDT·5 min read

      “I’ll never own a home.”

      That’s what one in five millennials and one in 10 Gen Zers think, according to a new Redfin survey that polled 3,313 young adults in May and June. They point to their inability to save for a down payment, costly financing, and student loan debt as major obstacles.

      The findings underscore just how much housing conditions have deteriorated for those generations entering their prime household-forming and homebuying years and how far the American Dream is out of reach — without major sacrifice or a helping hand.

      “I think the big concern is that homeownership is becoming increasingly unaffordable,” Redfin chief economist Daryl Fairweather, told Yahoo Finance. “Overall the picture looks like it’s going to get harder and harder for people to break into the housing market and buy their first home.”
      …
      https://finance.yahoo.com/news/housing-many-young-adults-have-given-up-on-the-american-dream-170148741.html

      1. They’re not wrong and they are the first generation that is actually poorer than the previous generation.

      2. https://twitter.com/APhilosophae/status/1703533246389117106

        CulturalHusbandry
        @APhilosophae
        The Last Exit.
        What causes revolutions? When does the violence start? To find the answer, study one group: Dissatisfied, angry young men. Nearly every revolution in human history was started by this cohort, and if you want to know how likely you are to have a revolution, ignore everything else and study the angry young men in your society…

    1. Built in 1900, the five-bedroom, seven-and-two-half-bath Georgian Colonial sits on more than seven acres of land in Greenwich

      Beautiful home. Envious conservatory.

    1. Trillions of this was printed because of a minor respiratory virus that was created in a Chinese lab funded by U.S. taxpayers and intentionally released to steal the 2020 election and create the greatest wealth transfer in history from the poor and middle class to billionaires.

      Must be one of those “we’re all in this together” kind of things, right?

      1. the greatest wealth transfer in history from the poor and middle class to billionaires

        I’d love to see Jeff Bezos with a giant, gaping head wound.

    4. Debt per capita $1 × 10^5 = $100,000

      Yet Congress seems quite unperturbed and they keep borrowing and borrowing. We’re now at $2T per year, which should be treated as a calamity. Meanwhile some like infamous AOC claim that there is no inflation and that anyone who says the contrary is a nahtsee.

      Meanwhile, nothing seems to work anymore. For example: my power washer needed a new pump. It took months for the part I needed to ship. No one had it in stock. A friend’s car needed a new engine control module, it took months to find one.

    2. “None of the appliances work,” Trahan said.

      They likely have to call an electrician to reset the breaker switch in the garage. Even the model house is eventually sold, and yes, the appliances are real.

    3. The range doesn’t work, the stove doesn’t work the oven doesn’t work

      Isn’t that one appliance?

      Can you shoot a TV show in an actual house with four walls???

  16. And on the subject of $33 trillion national debt…

    Russia Today — ‘Prepare for long war’ – NATO chief (9/17/2023):

    “The West must prepare for “a long war” in Ukraine, NATO Secretary General Jens Stoltenberg declared on Sunday. Despite claiming to want a “quick peace” in Ukraine, Stoltenberg insisted that he still supports President Vladimir Zelensky’s goal of a military victory over Russia.

    “Most wars last longer than expected when they first begin,” Stoltenberg said in an interview with Germany’s Funke media group. “Therefore we must prepare ourselves for a long war in Ukraine.”

    According to Russian President Vladimir Putin, Ukraine has lost upwards of 71,000 men since the counteroffensive began in June. Despite this stark attrition rate – with some units losing 90% of their manpower, according to Ukrainian sources, Stoltenberg insisted that NATO will continue to push for a military, not a diplomatic, solution.”

    https://www.rt.com/news/583101-stoltenberg-ukraine-long-war/

    71,000 is that a lot?

    William Kristol gets a tingle in his trousers when he hears that number.

    1. Apparently the manpower situation is so dire that Ukraine is going to try to extradite all young males who fled the country.

    2. “71,000 is that a lot?”

      How Big of a Mistake Did Biden Just Make on Ukraine?

      BY FRED KAPLAN
      JAN 19, 2022

      Did President Joe Biden just tell Russian President Vladimir Putin that it might be OK to launch a “minor incursion” into Ukraine?

      Toward the end of his nearly two-hour news conference late Wednesday afternoon, Biden was asked why sanctioning Putin for invading Ukraine would work, given that previous sanctions haven’t had much effect on Russian behavior.

      At first, Biden gave a by-the-book response. “Because he’s never seen sanctions like the one I’ve promised,” he replied. “Russia will be held accountable if it invades.”

      But then, Biden said that precisely how Putin will be held accountable “depends on what he does.” If he mounts “a minor incursion,” Biden said, “there are differences within NATO about what countries are willing to do.” If it’s “a major invasion,” there will be “severe costs” and “significant harm” for “Russia and the Russian economy.”

      So was Biden saying Russia might not incur severe costs and significant harm, if Putin mounts merely a “minor incursion”? And what is a minor incursion? Just another salami slice of eastern Ukraine, beyond Russia’s 2014 incursion into Donbas province and its annexation of Crimea? Just a helicopter landing in the capital? Just a few airstrikes?

      https://slate.com/news-and-politics/2022/01/biden-putin-russia-ukraine-minor-incursion.html

  17. Ok, so now they are attacking Russel Brand with bogus rape charges, to take him out because he dared to challenge the Globalist.
    They are trying to take Jordon Petersen out by threatening his licence .
    Countless Doctors are being attacked by medical boards.
    Trump being attacked by countless criminal accusations.
    This is what the villains of history did to take out their opposition.
    One of the biggest attacks is this narrative that over half the Country are terrorist and enemies of the State, if they voted for trump, or don’t like the Biden policies.
    You saw how they attacked the unvaccinated, went to punish them, threatened their jobs, denied then commerce, and were just about ready to take them to camps.
    These are well known tactics of Hitler/Stalin/Mao to eliminate opposition to their power grabs. They all took freedom of speech, took the guns, combined killed millions of people , for their dictorships.
    This is getting ridiculous.

      1. It doesn’t seem right for ordinary civilians to have to resort to vigilante actions to clear lawbreaking protestors from obstructing thoroughfairs.

  19. Here is a full list of nations who marched in the Mexican Independence day parade (copied from MExican media):

    El Salvador, Ecuador, Cuba, Colombia, Chile, Panamá, Nicaragua, Nepal, Guatemala, Honduras, Rusia, República Dominicana, Corea del Sur, Brasil, Belice, Uruguay, Venezuela, Sri Lanka y China

    I find odd the idea of inviting foreign powers to march in an independence day parade. While it was always broadcast in Mexico I don’t recall anyone ever watching it.

    Mexican independence day is celebrated over two days. Technically the 16th is independence day, but celebrations start on the 15th. One of the big events is “El Grito” (the shout) which is a reenactment of when Father Miguel Hidalgo rang the church bell in Dolores, Hidalgo, calling the townfolk to insurrection.

    The bell is now located at the national palace on the Zocalo in Mexico City. The president shouts a bunch of “vivas”, rings the bell and then waves the flag. This happens at 11 PM on the 15th. The Grito is reenacted in other locales, including places like Los Angeles. After the Grito is completed people celebrate through the wee hours of the morning. The 16th is hangover day. The military parade is typically dull as dishwater, though this year it was “interesting”.

    A lot of Mexican intellectuals, who suckle at the WEF’s teat, were quick to condemn Russia’s participation. Curiously none of them complained about China’s participation. Perhaps brown envelopes were distributed?

    1. I believe Mexico has become the US’s biggest import trader. I would guess Mexico is buying a crap load of Chinese stuff to arrange and sell to the US. Might explain their polite relationship.

      We’re really bad at foreign policy.

      1. From what I have heard, Chinese investment in Mexico has grown. So has investment from a lot of other countries. The city of Queretaro, which near Mexico City, has benefited from a lot of multinationals setting up shop there.

  20. What This $100B Ghost City Reveals About China’s Property Crisis | WSJ
    Wall Street Journal

    6 days ago

    Country Garden, once seen as one of China’s most stable property developers, is now struggling financially, leaving the future of unfinished megadevelopments like the $100 billion Forest City in doubt.

    The real estate project in southern Malaysia was planned to house around 700,000 people, but only 9,000 people live there with most units left empty. So why are Chinese real estate companies like the Evergrande Group and Sunac falling into financial distress?

    WSJ explains why China’s real estate developers are in the red.

    0:00 Forest City
    0:48 China’s real estate market
    2:56 What’s next?

    https://www.youtube.com/watch?v=D0PxRxwTa50

    4 minutes.

    1. Real Estate
      3 former Californians share why they decided to chase the American dream in Texas
      Alcynna Lloyd
      Sep 17, 2023, 2:59 AM PDT
      Cheng walking down a path with his son on his shoulders.
      Pengyu Cheng and his son celebrating Independence Day in Texas.
      Courtesy of Pengyu Cheng.

      – In 2021, almost 108,000 people migrated from California to Texas, according to Census data.

      – Unaffordable housing, diminishing air quality, and politics have driven some from the Golden State.

      – “We felt like we were paying a lot of money to live in a city we weren’t enjoying,” said one relocator.
      …
      https://www.businessinsider.com/moving-from-california-to-texas-american-dream-worth-it-2023-9

      1. Yahoo
        Reason.com
        California Was Once a Land of Boundless Opportunity. That’s No Longer True.
        Steven Greenhut
        Fri, September 15, 2023 at 5:00 AM PDT·4 min read
        California Golden Gate Bridge sunset
        Photo by Sam Goodgame on Unsplash

        After spending late summer in a picturesque town in the Pacific Northwest, I’m eager to get home to California and enjoy the sunshine and warm weather. But it’s not just the climate that I miss. There’s something fabulous about our varied scenery. The drive past Mount Shasta and into the Central Valley always stirs my heart. And I love the spirit of California, with its diversity of people, cuisine and cultures—as well as its fascinating Gold Rush history.

        The state always beckoned me, so much so that when I was offered a job in Orange County in the 1990s I accepted it immediately and then had to break the news to my shell-shocked wife. Even then, the home prices were daunting compared to the rest of the country—an imbalance that only has gotten more pronounced in the ensuing 25 years as slow-growth regulations took hold and led to a consistent underbuilding of new housing units.

        I still remember poring over The Orange County Register’s classifieds (remember classified ads?) and finally found a house we could afford. We drove down the street. There were bars on most windows, sketchy characters hanging out and graffiti on buildings. Despite my wife’s fears that we traded our serene Midwestern life for a scene from a crime drama, we eventually bought a home, raised three kids, and acclimated to the lifestyle.

        And it is a pretty great lifestyle. I’ve since visited every one of the state’s 58 counties and virtually every city and town of any note. My brain understands why so many friends and neighbors have moved to Texas, Arizona, and Florida, but my heart doesn’t.

        It’s time for state policymakers to recognize what’s going on and cop to their complicity in the continuing outmigration of people who, I suppose, mostly love the state as much as I do. “California has long beckoned with its coastal beauty and bustle—the magnetic pull of Hollywood, the power of Silicon Valley,” explained a recent New York Times article. “That allure helped make it a cultural, economic and political force. For 170 years, growth was constant and expansion felt boundless.”

        The article centered on new population figures: By 2020, California officials expected our population to soon reach 40 million—and they expected another 10 million people in the coming decade. When I was born in 1960, California had a population of less than 16 million people. When I moved here, it had more than doubled to 33 million—having gained far more than the current total population of my home state of Pennsylvania.

        California’s rapid growth infused every policy discussion. It went hand in hand with the sense of opportunity that built our culture. As recently as 2017, the state had gained 300,000 people year over year, but the numbers were slowing. We were edging closer to the 40-million mark, but the state no longer was a magnet for other Americans. The growth came mostly from births and immigration.

        Lawmakers dismissed the impact of the California Exodus, whereby many Californians—tired of the high taxes, unaffordable home prices, in-your-face progressive politics, and meddlesome regulations—moved to states with laissez-faire policies. Then after the 2020 Census the slowing growth turned to actual declines. Lawmakers blamed COVID deaths (as if other states hadn’t experienced the same pandemic). Now the decline trend is obvious.

        Per the Times, “The state lost more people than it gained in each of the last three years and shrank to less than 39 million people. Recent data released by the state Finance Department now offers a stunning prediction: The population could stagnate for the next four decades.” Endless growth isn’t necessarily a good thing in and of itself, but it toys with our self-esteem. I’ve lived in declining cities in the Midwest, and let’s just say that optimism is in short supply there.

        Sadly, this trend is entirely self-imposed. I’m not saying our leaders don’t love California, too, but their zeal for expanding government, quashing entrepreneurship and their focus on social engineering at the expense of basic governance has taken its toll.
        …

        1. ‘California’s rapid growth infused every policy discussion. It went hand in hand with the sense of opportunity that built our culture’

          People have been leaving for 15 to 20 years. And more saying they’re gonna leave every poll, every year along the way. Did you listen? It’s not just guberment, people out there are greedy. Something for nothing is the California way, not hardscrabble entrepreneurship.

          BTW, wa happened to my reparations?

          1. Something for nothing is the California way, not hardscrabble entrepreneurship.

            One of the reasons why companies like Hewlett-Packard and Oracle both moved their HQs to Texas.

      2. The Center Square California
        S&P says California outmigration could result in state credit downgrade
        By Kenneth Schrupp | The Center Square Aug 9, 2023
        California Gov. Gavin Newsom speaks about wildfire preparation during a news conference with a Fire Hawk helicopter in the background at CalFire’s Grass Valley Air Attack Base, Thursday, June 29, 2023, in Grass Valley, Calif.
        Adam Beam / AP Photo

        (The Center Square) – According to a new analysis from S&P Global, the steady flow of property insurers leaving the California market is resulting in skyrocketing insurance premiums from remaining providers, likely driving even more people to leave the state as property becomes even more unaffordable to own and maintain. Analysts at S&P Global believe this will impact credit ratings for California public finances as outmigration accelerated by cost increases could, “absent the state’s ability to adapt by cutting expenditures” and “lead to credit quality deterioration.”

        State Farm and Allstate recently announced they would stop accepting new homeowner insurance customers in California, and only maintain coverage for existing policy renewals, based, at least in part, on concerns about rising wildfire risks. Analysis from The Center Square has identified roughly 40% of forests in California, or roughly 7.5 million acres of federal forests and 5.6 million acres of state-managed forests are in need of treatment for dangerous buildup of brush that leads to wildfires. At the state’s current rate of fire-risk treatment of just 100,000 acres per year, it would take California 56 years to clear its current backlog, not counting the new areas in need of treatment each year.

        Rising property insurance rates are expected to put further pressure on the cost of living in California, of which housing costs are the largest and most expensive portion of living expenses. With 61% of California residents polled saying the cost of living is the number one reason they are considering leaving California, and four in every ten Californians are considering moving to another state, further increases in the cost of housing will drive even more people out of California. Loss and aging of California’s population is projected to decrease economic output and the availability of taxable income and spending from the government while increasing the relative number of beneficiaries to workers.
        …
        https://www.thecentersquare.com/california/article_67ba3cac-36e2-11ee-b380-efb179b8e18d.html

    3. Opinion
      California’s Outmigration Problem | Opinion
      Peter Roff , Newsweek Contributing Editor
      On 5/4/23 at 9:48 AM EDT
      Opinion
      California
      Gavin Newsom
      Democratic Party
      2024 Election

      Cultures have character—things that define them, differentiate them from others, and create the kind of mutual identity on which countries and civilizations are built.

      One that is almost unique to America is a kind of “wanderlust” that not only involves the desire to travel but the feeling that better opportunities are waiting for each of us somewhere other than where we currently are.

      It’s an impulse that’s caused America to grow. Whether it was the search for trails westward from the original 13 colonies, or the Great Migration when southern rural blacks moved to the rapidly industrializing north, or the gold rush that sent thousands of “forty-niner miners” to California in search of great wealth, the possibility that economic security could be found just by looking for it has caused populations to shift and communities to grow.

      What is not yet evident—except to the people who study the issue of outmigration closely—is that it is happening again. People are leaving blue cities and blue suburbs for the better economic conditions that exist in the red states.

      The state most adversely affected is California. It’s lost so many people compared to other states that for the first time since it gained statehood in 1848, it lost a congressional seat in the reapportionment that followed the 2020 national census.

      The reasons people are leaving are the subject of a new film by Siyamak Khorrami, who left his native Iran with his family when he was 16 in search of a better life. He understands what’s driving the “wanderlust” so many California residents are feeling.
      …
      https://www.newsweek.com/californias-outmigration-problem-opinion-1798186

          1. I appreciate you looking that up. I don’t watch tee vee so I didn’t they were already wetting their globalist scum media pants.

          2. The media talking heads are calling, in effect, for a gag order on Trump to keep him from blasting the corrupt two-tier “justice” system that has railroaded anyone who runs afoul of the globalists & Deep State. Nicole Wallace is berating the Establishment GOP hollow men for not using their “influence” to back the elite’s campaign against Trump, but the controlled-opposition RINOs are beginning to figure out which way the wind is blowing & how pissed off people are at the crony capitalist status quo & the Democrat-orchestrated migrant invasion.

            The MAGA “cesspool,” as Wallace refers to 75 million disenfranchised Trump voters, isn’t going to be forgiving toward RINOs who cravenly fall in line with globalist efforts to prevent Trump from monkey-wrenching the Cabal’s “selected, not elected” electoral process, or infringe on his 1st Amendment right to free speech.

          2. “MSNBC host Nicolle Wallace has suffered a roughly 80% decline in viewership in the 25-54 age demographic since President Donald Trump left office, the Washington Free Beacon reports, citing data provided by the Nielsen Media Research.”

            Nicolle needs an OnlyFans site.

          3. Nicolle needs an OnlyFans site.

            She couldn’t compete with the endless supply of 20 year olds with rockin’ bodies.

    2. Meltdown on live tv.

      That shill bought off puppet who peddled disinformation to millions, needs to be cancelled or sued or tried for disinformation and fraud. She was one of the worse .

      1. There she is practically in tears, asking for Republicans to stop President Trump. Wa happened to yer 81 million voters sweet pea? Because in dozens of polls, they aren’t there – can’t be found. It’s almost like they never existed in the first place!

        1. Sorry, globalist skank, but Trump is a middle finger in the face of the oligarchy that you’re shilling for, and if anything, he’s too moderate.

  23. I haven’t seen a single person wearing a mask all weekend in Southern Colorado.

    And I’ll be seeing it as soon as I get back to Denver because Denver is a cuck city that loves their cuck masks (see also: Reddit).

    1. I haven’t seen a single person wearing a mask all weekend in Southern Colorado.

      Just saw a few wearing masks in Home Depot here in middle TN. No clue why, to be honest, and sad to see it.

    1. If there’s a downside to seeing creepy Orwellian tech companies jettisoning thousands of “woke” employees to fend for themselves in #BidensEconomy, I’m not seeing it.

  25. Would a cap on credit card interest rates work as intended? Seems like it might backfire, by limiting the amount of credit available through credit card issuers to those with poor credit scores. An unintended consequence could be to either limit credit to those who need it most, or to drive them to underground credit providers, such as those who use kneecaps as collateral.

    1. Managing Money
      Debt
      ‘Americans are being crushed’: Sen. Josh Hawley calls for 18% cap on credit card interest rates as debt levels reach record highs — how he plans to help ‘working people’
      The Republican accuses credit card companies of “grinding working people into poverty.”
      U.S. Senator Josh Hawley speaks in the Hart Senate Office Building on Capitol Hill in Washington, D.C., March 22, 2022.
      Jim Watson / AFP via Getty Images
      By Bethan Moorcraft
      Sep. 13, 2023

      Senator Josh Hawley has introduced new legislation that would cap credit card interest rates at 18% in a move he hopes is “fair, common-sense, and gives the working class a chance.”

      The “Capping Credit Card Interest Rates Act” — introduced by Hawley on Sept. 12 — comes shortly after U.S. consumer credit card debt surpassed one trillion dollars, the highest level on record.

      Now, with the average credit card interest rates hitting a “record level,” according to Hawley’s office, the senator says he has had “enough” of banks raising the financial burden of working people.

      In a post on X (formerly Twitter), the Republican representing Missouri accused credit card companies of “grinding work[ing] people into poverty.”
      …
      https://moneywise.com/managing-money/debt/josh-hawley-calls-for-cap-on-credit-card-interest-rates

    2. Politics and policy
      BankThink
      Call Sen. Hawley’s bluff on credit card interest rate cap
      By John Heltman September 12, 2023, 3:13 p.m. EDT 4 Min Read
      Senate Judiciary Committee Nominations Hearing
      Sen. Josh Hawley, R-Mo., said he will introduce a bill that would cap credit card interest rates at 18% — far below the 36% federal cap that progressive Democrats have previously called for. Bloomberg News

      WASHINGTON — Not everyone knows this — though I suspect most bankers do — but there is no federal limit on credit card interest rates. They’re dependent on what state the issuing bank and/or customer resides in, the customer’s credit score, payment history and any number of variables.

      That makes sense because credit card users are not all the same. Some pay their balances in full each month; some carry a modest balance; and some are scammers using fake identities to bilk banks out of all the money they can before they disappear. In other words, some credit card debts pose a greater risk to the lender than others, and lenders are justified in pricing that risk accordingly.

      But there has been a persistent and surprisingly bipartisan effort in Congress to impose some kind of federal cap on consumer loans, including credit cards. Back in 2021, Rep. Glenn Grothman, R-Wis., joined Rep. Jesús “Chuy” Garcia, D-Ill., in introducing a bill that would cap rates on payday, car title and credit card loans at 36%; state legislatures are already doing the same thing, with Illinois and New Mexico passing 36% caps and several other states mulling similar legislation.
      …
      https://www.americanbanker.com/opinion/call-sen-hawleys-bluff-on-credit-card-interest-rate-cap

      1. Banks are parasitic, as one banker once told me. However, when people had much less debt, credit card interest was much lower. I have an amazingly high credit score, but it’s been a long time since I was offered a low interest rate credit card (not that I carry a balance). What caused this? I understand some people aren’t agile or strong enough to resist the credit card debt trap with the price of everything constantly going up. Who caused the price of everything to go up so much Mr. Senator? Whatever it is, why don’t you and your fellows “cap” that?

    3. TheHill.com
      Opinion>Finance
      The views expressed by contributors are their own and not the view of The Hill
      The unintended consequences of interest rate caps
      by Thomas P. Vartanian, opinion contributor – 05/19/19 3:00 PM ET

      Last week, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) introduced the Loan Shark Prevention Act amid a litany of references to executive compensation, payday lenders and credit card “rip offs.”

      They even invoked the Bible’s admonitions against usury. The bill would create a nationwide 15-percent annual percentage rate (APR) cap on interest rates on all consumer lending and credit cards purportedly to put money back in consumers’ pockets.

      The concept sounds great. Frankly, no one likes high interest rates. Commentators of various political persuasions have applauded it.

      Unfortunately, actions that politicize and regulate one aspect of a competitive market rarely have ever worked. More frequently, they have caused even greater financial pain and credit dislocation.

      The sponsors highlight the apparent unfairness of a median credit card interest rate of 21.36 percent, while the economy is still comfortably nestled in a low-interest-rate environment.
      …
      The critical problem is economics 101. When caps are imposed and market rates are rising, lenders simply adjust their customer eligibility profile to correlate to the interest rates that can be charged.

      As a result, the bottom tier of borrowers lose access to credit. Since the passage of the CARD Act in 2009, which regulated many aspects of credit card terms and rates, but did not impose interest rate caps, approximately 14 million subprime cardholders have been pushed out of the credit card market.

      Every time that markets are distorted by non-economic factors, whether it be political or regulatory intervention, they react to that distortion and produce unintended consequences. Sometimes the result is good, sometimes bad and sometimes a disaster.
      …
      A research paper published by the Federal Reserve Bank of Chicago in 1982 stated that the weight of economic evidence supports the conclusion that “[u]sury laws can succeed in holding interest rates below their market levels only at the expense of reducing the supply of credit to borrowers.”

      Another paper presented just this year on the use of interest rate caps in Chile reiterates the direct trade-off between consumer protection and credit availability. The paper found a direct link between the lowering of interest rates through caps and a commensurate reduction of almost 20 percent in credit availability.

      Given the country’s track record of having the highest levels of regulation and the greatest frequency of financial crises of nearly any nation in the world in the last two centuries, legislators should be reticent to tinker with the economy until they have fully considered historical precedents and rigorously analyzed the likely array of economic reactions and alternatives.

      As attractive, popular and politically expedient as interest rate caps may seem, such actions ultimately are painful medicine for the folks that really need the help. When it comes to running the largest economy in the world, more care and deliberation would go a long way to making it work better for everyone.

      Thomas P. Vartanian is the executive director and professor of law at the Program on Financial Regulation & Technology at the Antonin Scalia Law School at George Mason University.

    4. Federal Reserve
      Trump bemoans high interest rates and indicates he might pressure Fed to lower
      Published Fri, Sep 15 2023 3:00 PM EDT
      Updated Fri, Sep 15 2023 3:56 PM EDT
      Jeff Cox

      WATCH LIVE
      Key Points

      – Former President Donald Trump indicated that if he gets another term, he might pressure Federal Reserve Chair Jerome Powell to loosen monetary policy.

      – Asked specifically whether he would try to strong-arm Powell into lowering rates, Trump said, “Depends where inflation is. But I would get inflation down.”

      – Using the platform formerly known as Twitter, Trump while in office often berated Fed officials, once calling them “boneheads.”
      …
      https://www.cnbc.com/2023/09/15/trump-bemoans-high-interest-rates-and-indicates-he-might-pressure-fed-to-lower.html

  26. From the TX link:

    ‘Trustee auctions are just one part of the larger Harris County Tax Sale and aren’t conducted by Harris County, according to a fact sheet. Foreclosure notices filed with the Harris County Clerk’s Office specify when and where the trustee sales will happen. ‘

    “Some of these foreclosure documents will actually specify the metes and bounds of the room that the foreclosure is supposed to be held in, but it’s big enough space that you can put several hundreds of people in there,” Knight said. “People are walking in and out constantly with their foreclosures. If you’re not paying attention, you can easily miss it altogether.”

    This is very true. If it says courthouse steps at 10 am, it can be anywhere on the steps and often there are people milling around. Trustee agents will just walk up with a clipboard and start reading off the legal stuff. Not loud, just like they are talking to themselves. Of course outfits like auction.com make a very visible show with tables and multiple employees in uniforms, so not all trustee agents are slippery in this way.

    1. BTW I should mention auction.com will bid for the lender/seller at times. They also really work the bidding process in favor of the lender/seller. They have a reserve, but will start bidding out way low (lower than what’s owed which is typically what the lender has for a minimum) for the purpose of gauging interest and stirring the pot. And if you work out a good price, they may just step in at the end and say ‘seller bids higher’. It’s kind of a dirty process and auction.com’s role is far from perfect. So you may ask, what’s wrong with starting bids lower than reserve? That’s not how it’s usually done and some outfits won’t work that way. And it just adds to the general environment that they are wearing multiple hats at once and none of them favor the bidders.

  27. ‘As a result, their monthly payments have increased from £1170 per month to £1804 per month and the rent they receive no longer covers the cost. And their monthly payments are set to increase further if the Bank of England increases its rate next week’

    ‘It just makes us feel sick…it’s happening so frequently and obviously because there’s still a lot of uncertainty in the economy it just feels like we’ve got no control. We’re just at the mercy of whatever they decide and we’ve got no choice in the matter at all,’ she said. ‘We’re renting currently in Finland because we can’t buy anywhere. With the rising cost of service charges and insurance and everything else that goes along with the fire safety, and a potentially massive bill to do the remediation that’s required, we are massively out of pocket financially. The interest rate is just the final nail in the coffin’

    OK, Lisa, so I’m with you up to the part where yer in the coffin and the last nail is being hammered in. Then what happens?

  28. ‘Police in China have for the first time detained a number of employees at the financial subsidiary of Evergrande – the world’s most indebted property developer – two weeks after the group again failed to make payments on its investment products’

    I’ll have a blue Christmas without you
    I’ll be so blue just thinking about you
    Decorations of red on a green Christmas tree
    Won’t be the same, dear, if you’re not here with me
    And when those blue snowflakes start fallin’
    That’s when those blue memories start callin’
    You’ll be doin’ all right with your Christmas of white
    But I’ll have a blue, blue, blue, blue Christmas
    You’ll be doin’ all right with your Christmas of white
    But I’ll have a blue, blue, blue, blue Christmas

  29. The Cold Truth: Why Nobody Wants Million Dollar Properties In Barrie
    Mark Turcotte
    Sep 7, 2023

    Welcome to our channel! In this eye-opening video, we delve into the cold truth behind the peculiar disinterest towards million-dollar properties in Barrie. Join us as we uncover the top reasons why these luxurious homes fail to entice potential buyers and what this means for the real estate market in this vibrant city. Barrie, known for its thriving community and mesmerizing landscapes, offers an array of stunning properties. However, it seems that the allure of million-dollar listings doesn’t resonate with buyers as one might expect. Join us on this journey as we investigate the underlying factors contributing to this intriguing phenomenon. Throughout this detailed analysis, we’ll highlight the various challenges faced by sellers in the higher price range. From the limited buyer pool to specific location preferences, we’ll explore these factors and delve into the psychology behind potential homeowners’ decision-making process. Furthermore, we’ll examine the potential implications of this trend on the local real estate industry. Could this have a long-lasting impact on property values? Are there any opportunities for buyers or investors in the midst of this standstill? Find out as we share our expert insights and predictions for the future. Whether you’re a passionate real estate enthusiast, a curious resident, or simply intrigued by Barrie’s housing market, this video is a must-watch. Gain a deeper understanding of the current dynamics surrounding million-dollar properties and how it shapes the overall real estate landscape. If you’re ready to discover the hidden truths behind the lack of interest in million-dollar properties in Barrie, hit that play button and let’s dive in together! Don’t forget to like this video, subscribe to our channel for more compelling content, and click on the notification bell so you never miss an update.

    Are you looking to sell or buy Barrie real estate. Understanding the correlation between price and days on the market may be crucial to your success. In this video, we discuss how many property sellers in Barrie are now associating price with how long their property has been listed for sale. This allows them to price their property competitively and attract more potential buyers. Selling your home can be a daunting task, but with proper strategies and insights, you can achieve your goals with ease. Our team of experienced real estate agents is dedicated to helping you succeed in your real estate endeavours, whether you’re buying a new home or selling your existing property. Our mission is to provide you with actionable tips and tricks that will help you navigate the complex Barrie real estate market confidently. Don’t let your property sit on the market for months on end.

    https://www.youtube.com/watch?v=s2XGJO1hF6Q

    14:41.

    1. buy Barrie real estate

      I’ve been there a couple times a year for many decades. An hour north of Toronto and a choke point north around Lake Simcoe. Great Perch fishery. Then is a few clicks to a truly classic hamburger grill in Orillia, Webers! Beyond that it is wilderness cabin country. A century ago it was kind of a Trent Severn Canal town, but otherwise I don’t see any strategic business advantage. Cottage Country. Alot of bellyup businesses. Million$ houses. LMAF.

  31. Saw my GP today, Medicare mandated check-up. I like to needle 😏 him about the vax, and he conceded that “things have changed”. Things haven’t changed. Things that were always true have been revealed.

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