You Don’t Want To Catch A Falling Guillotine
A report from the Santa Fe New Mexican. “Santa Fe home prices, which have soared into the stratosphere for the past few years, are moving a little closer to earth. A little. Across the city of Santa Fe, the median price sunk 8.3% from the fourth quarter of 2022 — from $599,750 to $550,000. Those numbers largely were driven by a 12.2% decline in million-dollar homes in the South Capitol area across to St. John’s College and along Zia Road to St. Francis Drive. With soaring interest rates, 2023 was a jolting ride in the Santa Fe real estate world, with some neighborhoods seeing prices plummet 40% and 44% and others seeing gains of 2%, 3% and 9%. Overall, though, the scorching home price increases of the last three years settled down last year.”
“Joshua Maes, president of the Santa Fe Association of Realtors board is optimistic for 2024, with signals interest rates could come down and the presidential election looming. ‘I think we’re going to see more inventory,’ he said. ‘Some sellers are going to realize we’re going to have to sell. Buyers are starting to come out again. It’s a win-win for buyers and sellers. Interest rates are going to start making sense again.'”
The Journal Sentinel in Wisconsin. “A large site overlooking the Milwaukee River at East Brady and North Water streets is being listed for sale − five years after plans for condos there were announced. The 2.66-acre lot, 1693-1701 N. Water St., is owned by an affiliate of Wangard Partners Inc. The firm in December 2018 said it would build a six-story, 61-unit condo building there. The Journal Sentinel reported in January 2023 that not a single condo unit had been built since 2018, with only 25 condos built since 2011. ‘In the last decade, bankers and developers have abandoned the condo business en masse, due to financing constraints and lingering fear from the last housing crash. Barring some ‘upside-down math,’ developers say they don’t want to go back,’ the Journal Sentinel reported.”
“Wangard’s site is listed with Barry Co. for $6.5 million. It includes more than 560 feet of river frontage. The firm bought the site in 2012 for $2.4 million. It was sold by a bank that had acquired the property from an investors group led by developers Boris Gokhman and Walter Shuk. That group gave the property to the bank to help settle a pending foreclosure suit. Gokhman and Shuk, of New Land Enterprises LLP, had planned to build condos on the site before the housing bubble burst.”
The Real Deal on Texas. “The sudden collapse of Austin-based developer StoryBuilt last summer left many wondering how such a promising company could unravel so quickly. Now, as a receiver works to salvage what remains of the company’s assets, some of the errors that led to StoryBuilt’s downfall — and who could be held responsible for them — are coming to light. In its latest receivership report, Los Angeles-based Stapleton Group said it has discovered a pattern of sloppy bookkeeping and minimal documentation.”
“The receivership reported that it has allowed one of StoryBuilt’s developments to go to foreclosure auction without protest. The situation highlights just how far the values of some StoryBuilt projects have fallen, with lenders on the hook. The development, called Bruno, was planned as a 42-unit rental project at 2001 South First Street. Moody’s Bank lent StoryBuilt $9.5 million for the project in 2022, but the developer imploded before building it. The property went to auction, where Moody’s was the highest bidder. The winning bid: just $3.2 million, according to property records, about a third of the loan value.”
WSB 2 in Georgia. “With home inventory being so low in metro Atlanta right now, a newly constructed house has become an attractive option for many people looking to buy. But those new homes come with their own set of potential problems. Donald Hudson told Channel 2 consumer investigator Justin Gray that he has found more than 30 serious problems in his new Ellenwood home. ‘Pretty much every single room has flaws and defects from Day One. They continue to get worse as the days go on,’ Hudson said.”
“Other neighbors in the newly built community — Tuxedo Estates — also told Gray they are dealing with construction problems in their houses. ‘We were given a gas fireplace but there’s no gas in the neighborhood. So we have a beautiful fireplace under our TV, but no way to use it,’ neighbor Jamie Wilson said. ‘It’s a purchase that you can’t just walk away from,’ neighbor Erica Macon said. ‘You stay up at night. I do, just wondering, ‘Did I make a huge, huge mistake?’ And it brings tears to your eyes,’ neighbor Antonio Mahone said. ‘You see a defect, they see a defect, and they just paint right over it,’ Hudson said. Hudson’s case is now in arbitration. ‘Do you regret this purchase?’ Gray asked Hudson. ‘Absolutely, I do,’ Hudson said.”
The San Francisco Chronicle in California. “Real estate giant Brookfield has purchased a massive portfolio of loans tied to 76 San Francisco apartment buildings following one of the biggest mortgage defaults of the pandemic. Brookfield is now poised to become one of San Francisco’s largest residential landlords, with the option to foreclose on around 2,165 apartments across the buildings. The deal is one of the biggest of the pandemic amid major turmoil in the city’s real estate market, with numerous property owners defaulting, selling after steep discounts or seeking major tax cuts.”
“Veritas’ empire had already shrunk: Another developer, Prado Group, bought loans tied to 20 different San Francisco apartment buildings owned by Veritas in September, after Veritas defaulted on $124 million in debt. Brookfield has also retreated from San Francisco, abandoning the former Westfield San Francisco Centre mall, which it owned with partner Westfield.”
The Wall Street Journal. “The apartment rental market finally stopped clobbering tenants with big price increases in 2023. That trend will likely continue in the new year. When rents were on a tear, owners also benefited from soaring values as investors spent record amounts on apartment buildings. But that bull run for owners fizzled out last year as rents moderated. Investor appetite also has waned as higher interest rates have driven down values of all types of commercial property. Sales of apartment buildings were down 68% in November, compared with the same month a year earlier, according to data provider MSCI Real Assets. Prices paid for apartment properties fell 12%.”
“Nearly one million apartment units are under construction, and most of them are set to open during the next 12 months, according to a report from real-estate firm CBRE. Nashville, Tenn.; Austin, Texas; Dallas and Atlanta are among the cities adding the most new units, CBRE said. Some investors think prices will fall even further this year and are putting off plans to buy buildings. ‘You don’t want to catch a falling guillotine,’ said Marcel Arsenault, CEO of Colorado-based property investment firm Real Capital Solutions.”
CBC News in Canada. “The pace of home sales in Ontario in 2023 hit lows not seen the turn of the century, and with little evidence that mortgage rates will drop significantly any time soon, forecasts are predicting the sluggishness to continue into early 2024. While prices have dropped somewhat from their pandemic-driven highs, the combination of high-interest rates and buyers waiting for prices to tumble further has created a slow sales market throughout much of the province, according to a range of industry information. Condominiums are the segment of Ontario’s housing market that looks to be in the roughest shape in 2024, in part because a large proportion are owned by investors.”
“John Pasalis, president of Realosophy Realty Inc., adds that sellers have yet to bring down their asking prices deeply enough to offset the increased borrowing costs that buyers face. ‘As their mortgages come up for renewal, it’s going to be harder to afford those condos,’ said Pasalis. ‘Over the next 12 to 18 months, we’ll probably see more investors unloading properties just because they can’t afford to have so much debt at today’s interest rates,’ he said. Ron Butler, a broker with Butler Mortgage adds he expects to see many investors trying to sell off small condos in urban centres because their plans to turn them into short-term rentals fell through.”
The Globe and Mail in Canada. “Ontario’s real estate market is beginning the New Year with buyers and sellers in a stalemate. Many industry watchers are cautiously optimistic that both sides will find some common ground in early 2024. John Lusink, president of Right at Home Realty and Property.ca says the two camps have conflicting interpretations of the market statistics. Buyers pointed to low sales volumes as grounds for negotiating a reduced price; sellers pointed to flat year-over-year prices as a reason to hold firm. ‘The market is stuck,’ he says.”
“Mr. Lusink says inventory has risen substantially from the very low levels of the two previous years. Listings at his company sat 40-per-cent higher in December compared with the same month last year and 100-per-cent higher compared with December, 2021. Even when sellers are willing to budge, buyers have a tough time qualifying for financing with interest rates so high. Another cohort of homeowners rushed to buy while ultralow rates were on offer during the first years of the COVID-19 pandemic. Many have seen their mortgage payments soar and some are now deciding to sell – but not in a panic, says Mr. Lusink. The sellers saying ‘get it sold’ are typically investors who need to cash out, he says.”
From Globes. “Israel’s real estate market in 2023 was in a deep recession and there are major concerns that the recession could continue throughout 2024. The number of deals in the first nine months of 2023 totaled 58,000, down 36% from the corresponding period of 2022 and down 46% from the same period in 2021, which was a record year for Israeli real estate. At the pace of deals in the first nine months of the year, 2023 was shaping up to be the worst year in Israeli real estate for 20 years. The outbreak of the war at the start of the fourth quarter will make the final quarter figures even worse than the preceding three quarters of 2023.”
“Ashkelon unsurprisingly saw the number of housing deals in October slump 90% to 37 from a monthly average of 300, while in Nahariya the number of deals fell 73% in October from a monthly average of 112 to 30. Numbers were also exceptionally low in the Tel Aviv region in October. Yankele Zini from the Ish Maftayach in Hadera says, ‘Whoever doesn’t drop the price today doesn’t sell the apartment.’ He adds that prices in the city have risen substantially in recent years and probably no longer match demand.”
The Associated Press. “Homebuyers stuck in limbo due to unfinished houses have been thrown a lifeline, with West Australian government loans to help struggling builders complete projects. The $10 million program will provide interest-free loans of up to $300,000 for builders with houses that have been under construction for more than two years. Treasurer Rita Saffioti said that with a fast-growing population, housing remained a key issue in the state. ‘There are hundreds of homes that are out there that are not being completed by builders leaving families stranded,’ she told reporters on Thursday. ‘Homeowners who are left in limbo living with family members (or) continuing to rent when they’ve got a property that they’d like to move into.'”
“Opposition housing spokesman Steve Martin said it was too little and too late. ‘This will do nothing for the hundreds of people who have half-built homes because their builder has already gone broke,’ he said.”
The Korea Times. “Three local ratings agencies are coming under heavy criticism for slashing credit ratings for Taeyoung Engineering and Construction, only hours after the troubled builder filed for debt workout, on Dec. 28 of last year. They are Moody’s Investors Service-affiliated Korea Investors Service, Korea Ratings and NICE Investors Service. Market watchers say the collective last-minute rush barely explains months of stalling and failure to closely monitor rapid corporate deterioration developments and make prompt revisions accordingly.”
“Also at play are claims of deliberate oversight, amplified in large part by the ratings agencies’ exclusive reliance on corporate issuers for hefty evaluation fees. Few ratings bodies are incentivized to make timely downbeat projections. This almost always comes at the expense of retail investors whose primary source of information is from the supposed fairly assessed creditworthiness of corporate issuers.”
“Taeyoung is the latest reminder of past ratings fiascos, as evidenced by the case of Korea Investors Service downgrading Legoland’s rating to the lowest D from the top A1 in just a matter of weeks after reports of default last year. In 2012, ratings agencies downright stalled the downgrade of Tongyang Group until after the conglomerate filed for court receivership. ‘Everyone in the market knew about Taeyoung’s financial soundness deteriorating,’ an industry official said. ‘The agencies should have lowered to at least around BBB grades to limit market impact. Whether intentional or not, they simply did not do their jobs.'”
This Post Has 90 Comments
Comments are closed.
‘With soaring interest rates, 2023 was a jolting ride in the Santa Fe real estate world, with some neighborhoods seeing prices plummet 40% and 44%’
It’s a good thing everybody put 50% down!
It was still cheaper than renting!!!
‘In its latest receivership report, Los Angeles-based Stapleton Group said it has discovered a pattern of sloppy bookkeeping and minimal documentation’
This is an understatement. Looking at the details IMO I’d say these clowns were running some kind of scheme. There was no way this was going to fly.
‘The receivership reported that it has allowed one of StoryBuilt’s developments to go to foreclosure auction without protest. The situation highlights just how far the values of some StoryBuilt projects have fallen, with lenders on the hook. The development, called Bruno, was planned as a 42-unit rental project at 2001 South First Street. Moody’s Bank lent StoryBuilt $9.5 million for the project in 2022, but the developer imploded before building it. The property went to auction, where Moody’s was the highest bidder. The winning bid: just $3.2 million, according to property records, about a third of the loan value’
So the lender tried to sell it for a third of the loan and no bids. Austin is sinking like a turd in a well.
This must be fake news. The HBB was assured that 50% property drops were inconceivable.
“…Moody’s Bank lent StoryBuilt $9.5 million…”
After reading stories like this one, you begin to wonder if these banks actually perform due diligence prior to underwriting the loan, or if they just pick up their crack pipes and throw darts.
They certainly didn’t audit the books cuz there weren’t any.
The important thing is, no more mean tweets.
https://www.dailymail.co.uk/femail/article-12919779/arizona-woman-tears-three-jobs-money-debt.html
The one thing I’ll never give up personally is getting my nails done, because I have been doing that my entire life,’ she shared, adding she also gets Botox and filler.
‘It doesn’t really matter cause it makes me happy,’ she told viewers, adding she only gets lip filler ‘once a year’ and Botox maybe ‘maybe three times a year.’
Jourdan also acknowledged that she did go on a few trips this year, and had more planned – but didn’t want to say no to everything.
‘Just wanna know if anyone else is like me right now,’ she concluded the video, which has been viewed more than 2.9 million times.
Pretty much sums it up.
Perhaps she might consult with Rodney Rodriquez. “Access to a car” Watch out Denverites I highly doubt a guy with a rake can afford auto insurance or is that one of the city gov perks too?
Rodney Rodriquez, 31, said he hopes he made the right decision in making a months-long journey from Venezuela, where he earned the equivalent of $10 a month.
Rodriquez said he’s looking for work because he has gardening tools and access to a car, but no money.
https://www.msn.com/en-us/news/us/hundreds-of-migrants-in-denver-tent-city-evicted-by-authorities-over-health-safety/ar-AA1mqsl7?ocid=entnewsntp&pc=DCTS&cvid=2616d039673d4623b235f1f6d73bbcd1&ei=20
I don’t know what these people are being told, but it seems they really believe the streets are paved with gold and they will be paid huge salaries for menial work. I wonder what the sight of hordes of homeless Americans does to their “dream”
Rodney Rodriquez, 31, said he hopes he made the right decision in making a months-long journey from Venezuela, where he earned the equivalent of $10 a month.
Rodriquez said he’s looking for work because he has gardening tools and access to a car, but no money.
I have some news for “Rodney” (what is it with Venezuelans having English names?) but there won’t be any yard work here at all until around May. He might try clearing snow but there is still no heavy snow in the forecast.
Also, this preponderance of them owning beaters lends a lot of creedence to claims that migrants were getting $5000 gift cards upon being processed and released, contrary to “fact checkers” claims that it was untrue.
Cold? It’s been a mild Colorado winter so far. Just wait until the mercury really drops, say to below zero. And wait until he sees how much it costs to rent a lousy, dirty room.
I think they had no idea of what they were getting themselves into. Not a clue about how cold most of the US is during the winter or of how high the cost of living is.
$10 a month my ass. That’s Central African poverty. Maybe $10 a day.
No, I was not like you, Jourdan. When I was your age, I got a haircut once a year, didn’t know what makeup was, didn’t have a car at all, was teased by a boyfriend about my “tiny little lips,” and my manicurist was the little Swiss Army knife scissors.
If she’s not making it, she needs to quit, move back home, and go to a two-year community college for, I dunno, interior design, paralegal, any kind of medical tech, sous chef, something practical. Hell even Flagger Force might be a step up, but that would ruin her precious nails.
She allegedly makes six figures, which I doubt.
I saw that too, in the comments, “six figures.” But I didn’t see it anywhere in the article or the video itself. So where did the commenters get the six figures from? Maybe from other videos she put out?
The average income in that area is around $50K, so maybe that’s the three jobs together.
It was pretty funny that she wanted to go back to serving so she could “use her personality” to make more money. For tips? More likely for tricks if you ask me.
‘Also at play are claims of deliberate oversight, amplified in large part by the ratings agencies’ exclusive reliance on corporate issuers for hefty evaluation fees. Few ratings bodies are incentivized to make timely downbeat projections. This almost always comes at the expense of retail investors whose primary source of information is from the supposed fairly assessed creditworthiness of corporate issuers’
Moral hazard strikes again1 Who is doing ratings on MBS in the US of Banana Republic? Same crooks as 20 years ago.
Not a single ratings agency official went to prison for assigning bogus AAA ratings to toxic-waste MBSs that Goldman Sachs & its ilk hived on on unsuspecting “investors” that GS traders snarkily referred to as “muppets” in internal communications. Meanwhile, hundreds of J6 protestors who took an unguided tour of the Capitol Building languish in the gulag on trumped-up “insurrection” charges.
https://www.youtube.com/watch?v=9xZx1lf2tvs
on trumped-up “insurrection” charges.
I haven’t heard that anyone was charged with “insurrection”.
“Moral hazard strikes again! Who is doing ratings on MBS in the US of Banana Republic? Same crooks as 20 years ago.”
– I was assured last time it was all AAA rated. Some tranches, not so much!
“It’s deja vu all over again.” – Yogi Berra
– BTW, U.S. debt just hit $34T. I am the banana republican!
– We need our own Javier Milei right here. Right now!
‘It’s a purchase that you can’t just walk away from,’ neighbor Erica Macon said. ‘You stay up at night. I do, just wondering, ‘Did I make a huge, huge mistake?’ And it brings tears to your eyes,’ neighbor Antonio Mahone said. ‘You see a defect, they see a defect, and they just paint right over it’
Don, Erica, Tony, just calm down and remember: it’s still cheaper than renting.
It’s a purchase that you can’t just walk away from,’ neighbor Erica Macon said. ‘You stay up at night. I do, just wondering, ‘Did I make a huge, huge mistake?’
Who knew that emotion-based decision-making might have consequences.
“Don, Erica, Tony, just calm down and remember: it’s still cheaper than renting.”
– I realize that this is sarcasm, but from numbers I’ve seen recently, it’s anywhere from 50% – 100% less expensive to rent right now, based on P&I alone. Property taxes + home owner’s (loan owner’s) insurance are becoming unaffordable or unobtainable in some areas. Maintenance (3-4%/yr.) not included.
– The U.S. housing market is completely FUBAR, courtesy of Federal Government, which includes the unelected and unaccountable Fed as their central bank agent. Torches and pitchforks, or just a low information electorate?
– Reference: John Law and the Mississippi Bubble.
– I’m sure this is fine. 🙃
“…Property taxes + home owner’s (loan owner’s) insurance are becoming unaffordable or unobtainable in some areas. Maintenance (3-4%/yr.) not included….”
Holding costs are a very real issue.
What’s interesting is that you will never see any mention of holding costs in the MSM.
The whole REIConplex is dependent on positive press from the MSM to perpetuate the R/E endless wealth illusion.
“. . . painting over it . . .”
reminds me of when house flipper Armando Montelongo hired a company to spray paint the dead front lawn green.
In its latest receivership report, Los Angeles-based Stapleton Group said it has discovered a pattern of sloppy bookkeeping and minimal documentation.”
Imagine if incompetent or complicit regulators and enforcers went straight to prison for criminal negligence.
‘Whoever doesn’t drop the price today doesn’t sell the apartment’
Just like that Yankele, yer giving it away?
sellers pointed to flat year-over-year prices as a reason to hold firm. ‘The market is stuck,’ he says.”
Just stand there and dissolve. What’s not stuck is the 2×4 of reality.
‘Wangard’s site is listed with Barry Co. for $6.5 million. It includes more than 560 feet of river frontage. The firm bought the site in 2012 for $2.4 million. It was sold by a bank that had acquired the property from an investors group led by developers Boris Gokhman and Walter Shuk. That group gave the property to the bank to help settle a pending foreclosure suit. Gokhman and Shuk, of New Land Enterprises LLP, had planned to build condos on the site before the housing bubble burst’
What a sorry tale. Already had one group walk away, the chump who picked it up is trying to bail out, but wants more than twice what they paid out of foreclosure? Maybe you’ll strike gold! Or oil.
I’m from IL but much of my family is from WI. Milwaukee is a dump with a really high murder rate. Downtown is small and not too lively, not like a chicago Downtown with hundreds of thousands of people living in condos. Milwaukee is all about the suburbs. OTOH Madison WI is a really really cool place except for the libs that live there but otherwise really cool, compact, lively.
‘Veritas’ empire had already shrunk: Another developer, Prado Group, bought loans tied to 20 different San Francisco apartment buildings owned by Veritas in September, after Veritas defaulted on $124 million in debt. Brookfield has also retreated from San Francisco, abandoning the former Westfield San Francisco Centre mall, which it owned with partner Westfield’
The biggest bay aryan landlord tosses the keys, and this K-dn corporation, who tosses keys first and often, buys it fer pennies on the peso! What a country.
‘Pretty much every single room has flaws and defects from Day One. They continue to get worse as the days go on,’ Hudson said.”
Builders and developers have maximized profits by using substandard materials and hiring cowboy subcontractors using illegal alien cheap labor. I wouldn’t touch any new-build house since craftsmanship has become a lost art.
‘buyers waiting for prices to tumble further has created a slow sales market throughout much of the province, according to a range of industry information’
That’s the spirit!
‘Condominiums are the segment of Ontario’s housing market that looks to be in the roughest shape in 2024, in part because a large proportion are owned by investors…adds that sellers have yet to bring down their asking prices deeply enough to offset the increased borrowing costs that buyers face. ‘As their mortgages come up for renewal, it’s going to be harder to afford those condos. Over the next 12 to 18 months, we’ll probably see more investors unloading properties just because they can’t afford to have so much debt at today’s interest rates’
Tiff broke it off in yer a$$ John.
‘Ron Butler, a broker with Butler Mortgage adds he expects to see many investors trying to sell off small condos in urban centres because their plans to turn them into short-term rentals fell through’
And the guberment has already decided to fook STR owners.
Die, speculator scum. Just die already.
The poor grocery in Compton, been there 45 years , and then destroyed at 3 AM by 100 13% thugs…..that’s got to hurt local values some, or maybe not …….and the cops just stay the HXXL out of the way ,too….so what’s the reason they have law enforcement in CA , anyways ? maybe to spend up the Pension $$$$ ?
Cue activist cries of “food deserts” in 3…2…1…
A second admission along these lines was recently made by former National Institutes of Health Director Dr. Francis Collins – Tony Fauci’s boss.
In this video clip, Collins – who once called for a “devastating takedown” (see above) of those who questioned the hard pandemic response – said his DC and public health blinders, well, blinded him to the problems his pandemic response caused and is still causing:
‘If you’re a public health person, and you’re trying to make a decision, you have this very narrow view of what the right decision is, and that is something that will save a life. Doesn’t matter what else happens, so you attach infinite value to stopping the disease and saving a life. You attach zero value to whether this actually totally disrupts people’s lives, ruins the economy, and has many kids kept out of school in a way that they never might quite recover from. Collateral damage. This is a public health mindset. And I think a lot of us involved in trying to make those recommendations had that mindset — and that was really unfortunate, it’s another mistake we made.’
(You can see Collins for yourself here.)
Needless to say there is not even a half-hearted apology involved. And Collins is/was wrong in the approach to public health he apparently subscribes to, as throughout modern history it has involved a cost/benefit analysis and a weighing of the impact on society.
Public health, practiced properly, does not – and never before has – attached “zero value to whether this actually totally disrupts people’s lives, ruins the economy, and has many kids kept out of school in a way that they never might quite recover from.”
“We had the exact wrong people in charge at the exact wrong time,” said Stanford professor of medicine (and one of the people Collins tried to “take down”) Dr. Jay Bhattacharya. “Their decisions were myopically deadly.”
https://brownstone.org/articles/why-are-so-many-californians-dying/
Justice is coming, globalist scum.
Pull the mask up over your nose, grandma killer!
As expected, to act like a mass murder,homicide health policy was simply a policy decision doesn’t cut it.
Firstly, shut down of globe is extreme and wasn’t warranted, along with masks.
Warp speed expiermental vaccines of a failed vaccine technology was a crime of epic assault, along with the fraudulent ^safe and effective ” fraud.
Than you add to that, the mass bribery, extortion, censorship of viable cures, and malpractice that killed thousands, and the assault was warfare, not health policy with any merit.
The attempted cover up of the orgins of Covid, and a foreign Nation China in partnership with US gain of function bio weapons, mysterious release.
The biggest assault on destruction of small business, while billions went to Monopoly Corporations and bribed hospitals to not treat respiratory victims.
A cure of respirators, and a failed ebola drug that shuts down kidneys, was a clear death order with a high death rate.
The total of decisions in this so called Global Panademic was not just a policy decision screw up of opinion and we will do better next time. It was a lethal attack on targeted populations , and a transfer of trillions to the culprits, in a pre- planned scheme of ultimate take over of World.
And now we have the fraud of Climate change, Now the so called policy decisions on this other pre- planned weapon of mass destruction to usher in control of World resources, and human imprisonment by a fraud of co2 emissions justifying a New World Order prison planet.
This was pre planned war launched ,under the illusion of health policy fraud, designed to advance a invasion by a genocidal sinister ememy.
Climate Change is the other weapon of mass destruction in this attack where the solutions proposed are lethal , fraudulent , insane and ridiculous.
Policy decisions that are lethal, destructive, insane , while censoring dispute and free speech ,is war by the enemy who have invaded and captured the Health system as well as other systems.
Arrest them now.
you attach infinite value to stopping the disease and saving a life.
Isn’t that why there’s triage?
“Some investors think prices will fall even further this year and are putting off plans to buy buildings. ‘You don’t want to catch a falling guillotine,’ said Marcel Arsenault, CEO of Colorado-based property investment firm Real Capital Solutions.”
– I realize that this is multi-family / apartments, but it seems like the current bubble bursting is going to be worse than last time; we’re moved from “catch a falling knife” meme to “catch a falling guillotine.”
– BTW, I’m all in favor of bringing back the guillotine when the SHTF. The can was kicked after the GFC. Not this time. Heads on pikes also works, which would follow the first option.
Is inflation now contained?
Financial Times
Opinion Global Economy
Buckle up — the inflation battle is entering a new phase
The US, UK and eurozone are on course to declare victory this year but difficult trade-offs await
Illustration of a percentage sign that appears as a cannon targeting a central bank
Chris Giles
January 2 2024
There is a fair chance that by the time the trees come into leaf in Washington, Frankfurt and London, this decade’s inflation crisis will definitively be over. The eye of the storm has already passed and prices have been rising at rates no higher than central banks’ targets in recent months.
…
Financial Times
Eurozone inflation
German inflation rises to 3.8% in blow to rate-cut hopes
Energy subsidy phaseout pushes up prices in EU’s largest economy ahead of closely watched eurozone figures
Shoppers and pedestrians in Berlin
Figures for the overall eurozone, due on Friday, are expected to show inflation rose from 2.4% in November to 3% in December, ending six months of consecutive declines
Martin Arnold in Frankfurt
2 hours ago
German inflation accelerated to its fastest rate for three months in December, casting doubt over investors’ hopes that the European Central Bank will start cutting interest rates as early as March.
Inflation in Europe’s largest economy rose at an annual rate of 3.8 per cent in December, up from 2.3 per cent a month earlier, according to the harmonised index of consumer prices released by the federal statistical agency on Thursday.
…
Financial Times
Federal Reserve
Fed officials said rates could remain high ‘for some time’
December meeting minutes appear to dampen prospect for cuts to start in March
Traders work on the floor of the New York Stock Exchange
The dovish tone of the Fed’s December meeting led many investors to bet that rate cuts could start within months
Claire Jones in Washington and Harriet Clarfelt in New York
2 hours ago
Most Federal Reserve officials wanted to keep borrowing costs high “for some time”, according to minutes of their meeting in December, adding to doubts that the US central bank is poised to begin cutting interest rates as early as March.
While officials expressed optimism that the Fed was quelling inflation, they were also careful not to commit to any immediate loosening of monetary policy, according to a record of the meeting published on Wednesday.
Rate-setters “reaffirmed that it would be appropriate for policy to remain at a restrictive stance for some time until inflation was clearly moving down sustainably toward the [Federal Open Market] Committee’s objective”, the minutes showed.
…
The Economist
Finance and economics | Still energised
Has America really escaped inflation?
The country’s extraordinary economic vigour keeps the threat alive
A woman carries shopping bags during the holiday season in New York
Not yet droppedimage: Reuters
Jan 3rd 2024 | Washington, DC
At some point American economic growth will disappoint expectations. For now, though, it appears to have ended 2023 much as it passed the previous few years, with yet another expansion that defied forecasts. Recent data suggest that the economy grew at an annualised pace of 2.5% or so in the final three months of the year, more than twice the median expectation of analysts at the start of the quarter.
Although such momentum is welcome, it complicates the outlook as the Federal Reserve contemplates when to start cutting interest rates. America’s strength is broad-based. Investment in manufacturing facilities has soared to record highs, propelled by the Biden administration’s subsidies for electric-vehicle and semiconductor production. Elevated mortgage rates have led to big falls in sales of existing houses, but property developers have responded to the dearth of single-family homes on the market by ramping up building. The government has remained a backstop to growth—albeit a worrying one from the standpoint of long-term fiscal sustainability—with its deficit running at about 7% of GDP, which is virtually unprecedented during peacetime without a recession.
…
https://www.economist.com/finance-and-economics/2024/01/03/has-america-really-escaped-inflation
News & Insights
US Markets
Reuters-Logo
TREASURIES-Yields jump higher following better than expected jobs data
January 04, 2024 — 08:44 am EST
Written by David Randall for Reuters
NEW YORK, Jan 4 (Reuters) – U.S. Treasury yields moved higher Thursday after economic data that suggested that the U.S. labor market remains strong.
The number of Americans filing initial claims for unemployent benefits, known as jobless claims, totalled 202,000 last week, lower than consensus estimates of 216,000, according to the Labor Department. New state unemployment benefit claims rose by 12,000 last week to 218,000.
At the same time, U.S. private employers hired more workers than expected in December, according to the ADP National Employment Report. Private payrolls increased by 164,000 jobs last month, the largest monthly increase since August.
The yield on 10-year Treasury notes US10YT=RR was up 8.2 basis points to 3.989%.
The yield on the 30-year Treasury bond US30YT=RR was up 8.1 basis points to 4.138%.
…
https://www.nasdaq.com/articles/treasuries-yields-jump-higher-following-better-than-expected-jobs-data
With recession worries behind them, are near term rate cuts off the Fed’s table until inflation comes down to their two percent target level?
Chuck roast $7.99/lb. Chuck!
“The annual rental report by Zumper, a privately owned rental platform in North America, shows that some cities, including Denver, are nearing an oversupply of housing, and prices could drop because of that.
Zumper’s report looped Denver in with several Sun Belt cities that are nearing an “oversupply” of rental housing as population levels stabilize. This could mean lower housing prices soon.
However, right now Denver’s median rent price is up 8% year-over-year with one-bedroom apartment prices of approximately $1,760, dipping from its summer median price of $1,820.
“We’re also seeing record numbers of new multifamily buildings come online in many markets, which will help absorb demand from people opting out of buying a home,” the annual report stated.
https://kdvr.com/news/data/denver-nears-housing-oversupply-potential-pricing-drop-report/
Bus in another 30,000 Venezuelans and give them all apartments for FREE.
Bus in another 30,000 Venezuelans and give them all apartments for FREE.
That is what they are expecting, even demanding, But as they are learning, Denver is like most major metros: it’s broke as a joke. But they won’t accept it. They continue to make demands.
They don’t understand how things work in the US. I read that a bunch of Venezuelans protested at CIty Hall, demanding they be given “work permits”, which of course City Hall lacks the authority to grant. They were told that they need to talk to the Feds about that, and they didn’t like that answer. They don’t don’t understand that they are pawns in a game.
90% + of those airboxes are luxury. Illegals aren’t going to pay the loans.
There is so much they do not understand. The weather, the job market, the cost of living. As our buddy “Rodney” complained: he’s tired of living in a tent.
I really wonder what these people’s moods are going to be when they are are still in tents next summer. I think it’s going to get ugly.
Hopefully they will call everyone back home and tell them not to come!
“work permits” = code for free benefits (including health insurance). [1]
[1] Here in California, its 700,000 non-citizens as of Jan 1st.
Governor Newsom said “We can afford this”..
Governor Newsom said “We can afford this”..
$60B in the hole tis but a flesh wound, per Newsom
With every day that passes I become more convinced that the Left is seeking to destabilize everything, or as others call it: a controlled demolition of the country.
And the current crop of invaders are not like the ones from the past. These ones are aggressive, demanding and I think will turn to crime and violence when they don’t get what they want. They were raised as communists, after all.
Yes, about half just want to destroy. The other half are just too dumb to make a budget. They’re the guys who win a million in the lottery and spend it all. These types of people run major cities now. Just spend while they can. Worry about long term consequences later, and are just too dumb to understand second order effects. “How would you feel if you didn’t eat breakfast this morning?” “But i did eat breakfast this morning”
KanekoaTheGreat
@KanekoaTheGreat
🚨JUST IN – President Trump Releases Summary of Election Fraud in the 2020 Presidential Election in the Swing States
Introduction: It has often been repeated there is “no evidence” of fraud in the 2020 Election. In actuality, there is no evidence Joe Biden won.
Ongoing investigations in the Swing States reveal hundreds of thousands of votes were altered and/or not lawfully cast in the Presidential Election. Joe Biden needed them. On Election Night Nov. 3, 2020, President Donald J. Trump was sailing to reelection with landslide leads in numerous battlegrounds. In Georgia, President Trump was up by 12 points, and over 335,000 votes, with 56 percent of the vote in at 10:17 p.m. In Wisconsin, President Trump was leading by 121,380 votes and 5 points at 12:12 a.m., which Fox News anchor Bret Baier noted was “not a small margin.” In Pennsylvania, President Trump was leading by 659,145 votes at 12:38 a.m., a full 15 points. In Michigan, President Trump was leading by 293,052 votes and 10 points.
The election was over. However, precincts in Atlanta, Detroit, Philadelphia, Phoenix, and Milwaukee kept counting until the results reached the desired outcome, which was the opposite of the will of the voters. Georgia went from having a total of 4.7 million votes, already a record for the state, according to Brad Raffensperger’s count on Nov. 4, to certifying almost 5 million. This was 300,000 more votes than what the top elections official claimed were cast in the Election.
https://x.com/KanekoaTheGreat/status/1742670648433090764?s=20
The 2020 election was stolen.
Unelected Occupant will be giving a campaign speech in Valley Forge, PA on 1/6 to mark the anniversary of the Fed sponsored and Fed led Fedsurrection, because stolen election.
FJB
Posted these late last night but screw it I’m posting them again.
What’d I Say · Ray Charles
https://youtu.be/jBYq0AYTj-Y?si=7qiCH0kCJbV4A8ky
Ray Charles – I got a woman
https://youtu.be/CnI_LuCJ4Ek?si=M_5OBdGPgnd-nEu4
The son of George Soros couldn’t have said it better.
Citizen Free Press
@CitizenFreePres
Nikki Haley says it’s inappropriate to call the illegal immigrants ‘criminals’:
“We don’t need to be disrespectful. We don’t need to talk about them as criminals. They’re not, they’re families that want a better life.”
https://x.com/CitizenFreePres/status/1742744362130272710?s=20
She is such a RINO she should be growing a horn on her nose.
they’re families that want a better life
No doubt that fits many. One thing is sure, they were let in by criminals on our side.
they’re families that want a better life
90%+ are young males, so that statement is false.
I don’t post much. A few years ago I posted around this time when I got my rent renewal offer and wished my landlords nothing but pain and sorrow for the New Year.
I can’t find the post now but I’m still renting. Probably moved locally twice since then in search of better value. A year ago we moved back to the same complex we were in when I posted before… because we like the area.
Just got the renewal offer. $500 a month increase.
When does this end? I’m about to be over 50% of monthly income for 1100 square feet, two shared walls, and neighbors with 3 screaming kids.
we like the area
Good luck navigating your options.
Yeah, that’s about all I could come up with as well.
$500 increase! Where are you, Manhattan?
This, unfortunately, is the worst time to be in the housing market as either a renter or a buyer since I moved out of my childhood home in the early 1980s.
Sorry…
Mine was $200, but I got her down to $150. Found out just how crazy my LL is during the negotiations, very un-businesslike. She views herself as my benefactor, and feels she’s been too kind. I disagreed, so things were said. Don’t think I will fare very well next time, unless rents have undisputedly dropped.
Wants to send vendors around to price new windows. Getting ready for next tenant, no doubt.
‘I think we’re going to see more inventory,’ he said. ‘Some sellers are going to realize we’re going to have to sell’
There’s a narrative shift going on right now as inventories grow. Speaking of such things. There’s always a decrease of housing reporting around the holidays and what is there is usually cheery stuff. This year was no different and yesterday I saw in my searches mucho crater in lots of places. My quick guess is these papers, media had crater stories planned but waited til now to let loose.
‘We were given a gas fireplace but there’s no gas in the neighborhood. So we have a beautiful fireplace under our TV’
Tacky.
I always thought that the TV niche above the fire place is weird. You have to lean back and look up at the TV. I guess it works if you have recliners, which I do not.
The TV-over-the-fireplace question is a yuuuuuge debate in the land of YouTube interior design. There are several schools of thought:
Grandma Greatest Generation option: put the 1960s-era TV cabinet in a separate room from the formal living room. Probably won’t work if you have kids.
Boomer/GenX option: Mount the TV over the fireplace, tilt the screen downward, and effing live with it.
Rich Millenial option: install a long and low ornamental gas flame — the kind with the colored glass — so the TV can be mounted lower down.
Poor Millenial option: Put the TV on a TV stand against the wall where it gets glared by the window because there’s no other place for it.
Gen Z/Alpha version. Bah, just watch stuff on your phone… while you’re crossing the street of course.
TV preferably in family room vs living room and not over a fireplace.
Agreed. Apparently I went with the “poor millenial” option
Better to be permanently temporary rather than temporarily permanent.
I know I’m late to this thread, but that really should have been a red flag for the buyers.
no gas in the neighborhood
That’s what a propane tank is for.
‘deals in the first nine months of 2023 totaled 58,000, down 36% from the corresponding period of 2022 and down 46% from the same period in 2021, which was a record year for Israeli real estate’
Minor respiratory illness.
I think I used to own that Ray Charles 45 What I Say.
Ray Charles — Ray Charles – Let’s Go Get Stoned:
https://m.youtube.com/watch?v=yccugqORTz0&pp=ygUfcmF5IGNoYXJsZXMgbGV0J3MgZ28gZ2V0IHN0b25lZA%3D%3D
Otis Redding — Papa’s Got a Brand New Bag (Live at the Whisky a Go Go, 1966):
https://m.youtube.com/watch?v=7jurGECQz_w&pp=ygUeb3RpcyByZWRkaW5nIHBhcGEgbGl2ZSB3aGlza2V5
James Brown — Super Bad (Live At The Olympia, Paris / 1971):
https://m.youtube.com/watch?v=RB-F3NV54G8&pp=ygUmamFtZXMgYnJvd24gc3VwZXIgYmFkIGxvdmUgcG93ZXIgcGVhY2U%3D
Jimi Hendrix — Message To Love (Live):
https://m.youtube.com/watch?v=2KzHTrUzEGA&pp=ygUcamltaSBoZW5kcml4IG1lc3NhZ2UgdG8gbG92ZQ%3D%3D
Is California undergoing a shift in property rights policy?
California
Police clear Berkeley’s historic People’s Park in surprise midnight operation
In latest move by University of California, Berkeley, law enforcement agencies arrested protesters and erected barrier
Maanvi Singh in Oakland, California
Thu 4 Jan 2024 15.21 EST
In a midnight operation, hundreds of police officers descended on People’s Park in Berkeley, California, to clear out the activists and unhoused campers occupying the area, to make way for the construction of a housing complex for students.
By dawn, the park that was once the centre of the 1960s antiwar and counterculture movement was walled off with shipping containers and surrounded by police.
The University of California, Berkeley’s $312m plan to build student housing on the site has been repeatedly delayed and ensnared in legal disputes. Police arrested seven protesters for trespassing, according to the university. They were cited and released.
Law enforcement dispatched to the park included police from around the University of California and California State University systems, as well as from the California highway patrol, Alameda county sheriff and San Francisco city and county sheriff, according to a UC Berkeley spokesperson, Dan Mogulof.
…
https://www.theguardian.com/us-news/2024/jan/04/uc-berkeley-peoples-park-police-operation
Finance ·Real estate
Boomers won the housing market and millennials got screwed, BofA says. ‘Everyone locked in 3% mortgage rates, except millennials’
BY Alena Botros
October 26, 2023 at 10:08 AM PDT
An older man and a younger man are sitting on sofa together
Boomers locked in pretty good mortgage rates while millennials didn’t, BofA says.
Getty Images
The unlucky (and sad) millennial housing story may be getting tedious and repetitive, but maybe millennials have reason to be upset. Just consider this: They’re constantly getting crushed in the housing market, and boomers keep coming out on top. Even one of the biggest investment banks on Wall Street thinks so.
There’s been a “massive wealth transfer from the public to the private sector,” Bank of America Research strategists led by Ohsung Kwon wrote in a new note, resulting from two things: From 1980 to today, government debt has risen from 31% of the gross domestic product to 120%, and 10-year Treasury yields have gone from 12% to 4.6% at the time of writing. (The 10-year Treasury was sitting at 4.9% as of press time.) Add it all up and household wealth increased from $17 trillion to $150 trillion, a record high.
The winners of this great wealth transfer? Baby boomers—and they especially won the housing market. They and the “traditionalist” generation hold two-thirds of total net worth, BofA said, and boomers alone hold more than half of all wealth, the majority in financial assets, including real estate.
Boomers locked in the best rates, and millennials missed the boat
To be sure, when boomers were entering the housing market in the 1980s, mortgage rates were extremely high, peaking at roughly 18% as Federal Reserve Chair Paul Volcker attempted to lower inflation, which was raging at 14%. But boomers have had by now many years to refinance their mortgages as rates fell, and they did just that, leaving the vast majority of them with mortgage rates below the current market rate.
In a replay of sorts of the 1980s, inflation hit a four-decade high in June of last year, and the Federal Reserve has since raised interest rates several times as Chair Jerome Powell has adopted a Volckerian strategy. With that, mortgage rates that were hovering around 3% throughout the pandemic-driven housing boom skyrocketed, reaching 8%, a more than two-decade high. Currently, the 30-year fixed rate is just below 8%. This means, BofA notes, that as before mortgage rates escalated, many homeowners locked in low rates—just not millennials.
“Everyone locked in 3% mortgage rates, except millennials,” the bank said. “On the cost side, most boomers locked in low mortgage rates, where the effective mortgage rate remains below pre-COVID levels. The only group that took out mortgage debt meaningfully since 2021 is millennials, seeing a 20% jump.”
Nearly all outstanding borrowers have below-market mortgage rates, fueling the so-called lock-in effect or the golden handcuffs of mortgage rates. To put it simply, would-be sellers aren’t selling, in fear of losing their low rate. That’s putting a strain on supply, which is already tight given the housing market is underbuilt. With that, existing-home sales have already fallen to their lowest level since 2010, by one measure, and could fall further to their lowest level since the early 1990s, according to a separate forecast.
Rates of homeownership and affordability are down significantly
So, consider this: A mortgage rate shock, limited supply, and home prices that rose substantially during the pandemic-driven housing boom have all left millennials in likely the worst position than any other generation so far.
For one, homeownership is much lower for younger generations. Those under 35 make up less than 40% of homeownership by age group; those 35 to 44 make up over 60%; those 55 to 64 make up over 70%; and those older than 65 make up slightly below 80%.
Additionally, affordability has decreased significantly since 2021, Bank of America said, citing the National Association of Realtors’ affordability index. It’s clear that the jump in mortgage rates in such a short period of time coupled with home prices that are still high, and in some markets are continuing to rise, has deteriorated affordability to levels worse than at the height of the housing bubble.
Boomers are either not as impacted—or they’re thriving
“Boomers have certainly not felt the impact of higher rates as much, and we believe many wealthy boomers are actually benefiting,” the bank wrote.
They’re definitely spending. Bank of America’s data, strategists wrote, show that boomers and traditionalists (also known as the Silent Generation) are the only groups that are increasing their consumption; they also make up 40% of total consumer spending.
“Boomers typically spend less on big-ticket items (housing and autos), but spend more on health care, home improvement, and slightly more on entertainment,” Bank of America said. “As ultra-low rate mortgages incentivize people to live in their homes longer, we could see increased home-improvement spending by wealthy boomers.”
Meanwhile, younger generations are bearing the brunt of higher interest rates, given their spending has fallen and their credit card delinquency has risen, the note read. Younger millennials, ages 30 to 39, are the only group with higher credit card delinquency today versus pre-pandemic levels. Still, millennials as a whole are spending more on housing—potentially because of increased housing costs, although we could be in the midst of the next great wealth transfer.
“Housing could struggle given higher rates, but the wealth transfer from boomers to millennials is supportive, especially for luxury housing,” the bank said.
…
https://fortune.com/2023/10/26/millennials-screwed-boomers-won-housing-market-bank-of-america-mortgage-rates/
It must suck to be a debt donkey in this era of higher-for-longer interest rates.
Live TV
India
Profit
Trending
Latest
World
Video
Opinion
Cities
South
Feature
Offbeat
Education
Science
People
Weather
Photos
TV Schedule
Trending Stories
1
Houthis Ignore US’ ‘Final Warning’, Detonate Drone Boat In Red Sea
2
“People Called Me…”: Narayana Murthy On Backlash Over “70-Hour” Advice
3
Cargo Ship With 15 Indians Hijacked Off Somalia, Navy Keeps Close Watch
4
“Fake Tests Scam” Hits AAP: The Mohalla Clinic “Fraud” Explained
5
South Korea Orders Evacuation After North Fires Over 200 Artillery Shells
6
Gautam Adani’s Net Worth Soars, Overtakes Mukesh Ambani As India’s Richest
7
Epstein Files Part 2 Released, Ghislaine Maxwell Recruited Dozens Of Girls
8
India Remains Fastest-Growing Large Economy: UN Economic Report – 10 Facts
9
US Teen, Who Killed Fellow Student At School, Was “Tired Of Being Bullied”
10
What Unsealed Jeffrey Epstein Documents Say About Stephen Hawking
View More Stories
NewsFeature’Rich Dad, Poor Dad’ Author Robert Kiyosaki Says He Is $1.2 Billion In Debt
‘Rich Dad, Poor Dad’ Author Robert Kiyosaki Says He Is $1.2 Billion In Debt
Robert Kiyosaki said, “If I go bust, the bank goes bust. Not my problem.”
ADVERTISEMENT
Feature Edited by Anjali Thakur
Updated : January 04, 2024 7:10 pm IST
Mr Kiyosaki again admitted to having been in debt of a billion dollars.
A bestselling personal finance author and entrepreneur Robert Kiyosaki recently shared that he is more than $1 billion in debt but it’s “not my problem”, he claims.
In an Instagram reel, Mr Kiyosaki talks about his debt philosophy, highlighting a critical distinction between assets and liabilities. He explains that many people use debt to buy liabilities but he buys assets. Citing an example, he shared that his luxury vehicles, like a Ferrari and a Rolls Royce, are fully paid off, categorising them as liabilities, not assets.
In the video, Mr Kiyosaki voiced doubt about the act of saving cash, pointing to the US dollar’s detachment from the gold standard during President Richard Nixon’s tenure in 1971. Rather than saving cash, he opts to store gold and convert his earnings into silver and gold. Mr Kiyosaki credits this strategy for amassing a debt of $1.2 billion, an amount he openly acknowledges.
…
https://www.ndtv.com/feature/rich-dad-poor-dad-author-robert-kiyosaki-says-he-is-1-2-billion-in-debt