Only the Shadow Bank knows what Evil lies in the hearts of men.

https://www.cnn.com/2023/04/06/business/non-banks-shadow-banks-risks-explainer/index.html

Banks are in turmoil but a bigger financial crisis may be brewing elsewhere

RE

Buy Low, Sell Lower.

https://markets.businessinsider.com/news/commodities/us-housing-market-unaffordable-mortgage-rates-home-prices-inventory-demand-2023-4

Housing is so unaffordable that banks are losing money for each mortgage they finance for the first time ever

RE

Quote from: RE on Apr 10, 2023, 03:14 PMBuy Low, Sell Lower.

https://markets.businessinsider.com/news/commodities/us-housing-market-unaffordable-mortgage-rates-home-prices-inventory-demand-2023-4

Housing is so unaffordable that banks are losing money for each mortgage they finance for the first time ever

RE

We are going to have to get a new furnace and I was conversing with a couple of estimators.  Home prices came up.  I said I don't know where people who can pay money for the houses in my neighborhood come from.  Houses are worth over a million here.  Can you believe it?

One of the dudes said it was Amazon and tech workers.  I added that the Chinese like the neighborhood.  Then I added but there are only so many tech workers and Chinese ex-pats though this is their preferred place.  Not enough to define a market.  People pumping slurpies at 7-11s and such at minimum wage have to outnumber people who can plop a million down on a cash offer by a mile.

I think it is time for the nonsense to end.  The guy I was talking to did not get my point about the numbers of rich people not being enough to support a market of a million for an average home. 

I looked into things.  Median net worth for Americans was only about $120K in 2019 and home equity accounts for a good chunk of that.  Meaning Americans don't really have a median worth of $120 K.

Average net worth is very high.  The 1% makes me look like a pauper compared to the national average but in reality, ignoring inflated house values, I'm close to the median worth for my age.

I think the housing market should have collapsed long ago.  Collapsed when it became unaffordable for average Americans.

Quote from: K-Dog on Apr 10, 2023, 06:13 PMI think the housing market should have collapsed long ago.  Collapsed when it became unaffordable for average Americans.

The wonders of a free market know no bounds?

Quote from: FarmGirl on Apr 10, 2023, 09:03 PM

Quote from: K-Dog on Apr 10, 2023, 06:13 PMI think the housing market should have collapsed long ago.  Collapsed when it became unaffordable for average Americans.

The wonders of a free market know no bounds?

Free Market?  What planet do you live on?

Housing prices have been propped up since 2008 by Hedge Funds and other non-bank shadow capital looking for investments to park basically free money they could access from da Fed at artificially low interest rates.  You hadda be a big player to access this funny money, it was hardly a free market with open access to all.  Anybody who thinks this was/is a free market is a few cans short of a six pack.  Said funny money is drying up as da Fed tries to get control over the inflation problem, thus the housing prices will start to fall, thus rendering insolvent investors who went heavy into the RE market.  Look for bailouts to follow, another sign of a tightly controlled market.  Think AIG on steroids.

RE

Yes.  Jamie Dimon is spitting out Hopium & Lies as usual.

https://www.cnn.com/videos/world/2023/05/01/exp-first-republic-collapse--fst-050108aseg1--cnni-world.cnn

Is the U.S. witnessing a banking crisis?

Who's Next?


RE

Quote from: RE on May 02, 2023, 01:23 AMYes.  Jamie Dimon is spitting out Hopium & Lies as usual.

https://www.cnn.com/videos/world/2023/05/01/exp-first-republic-collapse--fst-050108aseg1--cnni-world.cnn

Is the U.S. witnessing a banking crisis?

Who's Next?

RE

A little perspective: Collectively, the three big banks that have collapsed in 2023 had more inflation-adjusted assets than all 25 banks that collapsed in 2008.  Unfortunately, the banking collapse of 2023 is far from over.  More banks are currently teetering on the brink of disaster.


The Banking Collapse Of 2023 Is Now Officially Bigger Than The Banking Collapse Of 2008 Was
http://theeconomiccollapseblog.com/the-banking-collapse-of-2023-is-now-officially-bigger-than-the-banking-collapse-of-2008-was/

QuoteIs the U.S. witnessing a banking crisis?

The question caused me to Jump on Zero Hedge.  The wind is blowing in bad news.  Chartists are in a kerfuffle.  I browsed five articles, and there are two themes.  Banks are in trouble, and if you need a job invest in a squeegee and some 'Windex' (the cheap imitation). 

Find a busy intersection.  Feed some birds.  Wash windows.  It is the only kind of job out there now.



'Labor Market In Freefall As Job Openings Slide, Quits Tumble To 2 Year Low' is one of the articles over there.  Zero Hedge.

I remember being surprised during 2008 primarily by the stock market drop. I remember some folks talking about housing values drop, of course peak oil 2008 was all the rage at the time and peak oiliness interest might have been at its own peak. Someone once said that these kind of financial shakeups show up every 5-10 years for a reason, the reason being financial "innovation" is how he put it. As opposed to recognizing that some new form of thievery and game theory with other people's money came along, and then awaiting the next bailout when it goes bad.

Would seem prudent to stay out of the markets during this times I guess. And not to quit one's job.

 

Quotepeak oil 2008 was all the rage

Only in our extended coffee klatch has it ever been the rage.

Quote from: K-Dog on May 02, 2023, 12:45 PM

Quotepeak oil 2008 was all the rage

Only in our extended coffee klatch has it ever been the rage.

Oh, that isn't true. There are still UK dedicated peak oil sites up and running, there were plenty of other forums up and running pre-2005, the ROE alt.forums, peakoil.com is still trucking along, although it appears to be more economically oriented, with random conspiracy stuff thrown in to keep it entertaining. Reddit even came up with a peakoil forum 5 years or so back. POB didn't even start until like 2015, and TOD was doing fine until it imploded under the weight of, you know, disappointment. ASPO began near the turn of the century, and took nearly 15 years to tuck tail and run away. Plus all the cool books on the topic back then, it made the front page of USA Today above the fold in like 2005! I just watched the video on how Cuba survived Peak oil from 2006, the nostalgia is strong in that one. The Diner started when? 2006-07-08?

Quote from: FarmGirl on May 03, 2023, 09:25 AMThe Diner started when? 2006-07-08?

I started writing on the econ topics on the peakoil.com website in 2007.  Eventually I joined Jim Quinn writing on TBP in 09, and started a ReverseEngineering Forum on Yahoo.  We launched the Diner in February of 2012.

RE

An answer to the Who's Next question.

https://www.thestreet.com/banking/is-pacwest-the-next-u-s-bank-to-collapse

Is PacWest the Next U.S. Bank to Collapse?

RE

Yup.  Pac West headed down the toilet.  Jamie Dimon as usual is full of shit.

https://www.youtube.com/watch?v=3P_R1g801do

RE

"This not the end.  It is not even the beginning of the end.  But it is the end of the beginning." - Illuminati Scumbag Winston Churchill

https://dailyhodl.com/2023/05/07/us-banking-turmoil-now-bigger-than-2008-financial-crisis-but-real-storm-hasnt-hit-yet-economist-peter-st-onge/

US Banking Turmoil Now Bigger Than 2008 Financial Crisis – But Real Storm Hasn't Hit Yet: Economist Peter St Onge

RE