ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Sep 20 14:26

Americans Haven’t Been This Down on Housing Market Since 1982

The last time Americans were this turned off by the U.S. housing market, borrowing costs were over five times the current rate.

Sep 20 11:49

Haven't we seen this movie before?

Sep 20 11:42

And Another: Shanghai-Based Property Developer Crashes 87% In Minutes Before It Is Halted

It's not just Evergrande that is about to keel over. Overnight, one of its smaller peers, Shanghai-based Sinic Holdings Group which focuses on the development of residential and commercial properties in China, was halted trading after it shares cratered in a freak 87% plunge on Monday afternoon. The plunge slashed the market value to just under $230 million, which is laughable for a listed developer in the city.

There was no reason for the selloff - an officer at the firm’s Hong Kong office said there’s no one to attend to media inquires which is probably not a good sign - which was attributed to the general panic resulting from Evergrande's imminent default, nor did the company give a reason for the trading halt in Hong Kong.

Sep 20 11:42

US Stocks Hit With 2nd Biggest Sell Program In History

As futures indicated, the US cash equity open was greeted by an avalanche of selling, breaking the S&P back below its 50DMA...

This was the second largest sell-program in history with TICK crashing to -2067 (record low as -2069 on 5/11/21)...

Sep 20 11:41

Futures Slide, Europe Tumbles As Evergrande Contagion Shockwave Goes Global

In retrospect, China, Japan, South Korea and Taiwan picked a great day to take a holiday, which as we noted last night hammered Hong Kong stocks more than 3%, slamming the Hong Kong property sector and sending Evergrande - which is expected to default within hours to a bank loan due Monday while crucial interest payment deadline on its offshore bonds looms on Thursday - to its lowest market cap ever (it closed down 10.2% just off the worst levels of the day) before the rout spread to European bourses and US equity futures as Evergrande's escalating liquidity - and now solvency - crisis spread beyond the sector.

Sep 20 11:40

Goldman Issues A Dire Warning On China's Property Sector

No matter how the Evergrande drama plays out, whether it culminates with an uncontrolled, chaotic default and/or liquidation which sparks a crash in real estate values, or with Beijing blinking and bailing out the core pillar of China's housing market, remember that Evergrande is just a symptom of the trends that have whipsawed China's property market in the past year, which has seen significant contraction as a result of Beijing policies seeking to tighten financial conditions as part of Xi's new "common prosperity" drive which among other things, seeks to make housing much more affordable to everyone, not just the richest.

Sep 20 11:40

Now That The American Dream Is Reserved For The Wealthy, The Smart Crowd Is Opting Out

Clueless economists are wringing their hands about the labor shortage without looking at the underlying causes, one of which is painfully obvious: the American economy now only works for the top 10%; the American Dream of turning labor into capital is now reserved for the already-wealthy.

As a result the Smart Crowd is opting out of the conventional workforce's debt-overwork-deadend-treadmill. What clueless economists, pundits and politicos don't dare acknowledge is that credentials and hard work are not a ticket to middle-class security; they're a ticket to impossible workloads demanded by global corporations and high-cost lifestyles anchored by student-loan debt, high rents and out-of-reach real estate.

Sep 20 11:39

Six Evergrande Execs Face 'Severe Punishment' Over Early Redemptions For Themselves

Six senior Evergrande executives are facing "severe punishment" for securing early redemptions for themselves on investment products which the imploding Chinese real estate giant told retail investors they couldn't repay on time.

According to the Financial Times, over 40 group executives had personally invested in its investment products - with six of them securing early redemptions. All six will return the money.

"All funds redeemed by the managers must be returned and severe penalties will be imposed," said the company, which has offered to repay investors with discounted apartments and parking lots.

Sep 20 11:20

Credit Default Swap on the U.S. Debt...

Sep 20 11:05

IT’S A FOURTH TURNING: WHAT DID YOU EXPECT?

Sep 20 11:04

Average NFT price down 99% today

Sep 20 09:54

Democrats Get Big Mad That Republicans Won't Do Their Dirty Work for Them

While much of the legislative attention has been on the bipartisan infrastructure deal and the far-left $3.5T reconciliation bill, a more pressing battle is taking shape. In order to avoid default and to pay for all the Democrats’ wildest dreams, the debt ceiling needs to be raised. Treasury Secretary Janet Yellen has already called Senate Minority Leader Mitch McConnell in a desperate plea to get Republicans to play along.

He was having none of it though, as McConnell let it be known that Democrats were on their own in their quest to further blow out the budget. Now, the media blitz is on to paint that move as some kind of national betrayal.

Sep 20 09:05

Riptide in the World Economy

Sep 20 08:14

Biden Administration Warns States Federal Debt Crisis Might Trigger Recession

The Biden administration has issued a warning that the pending federal debt crisis might trigger an economic recession that would affect economic growth and trigger job losses across the United States.

“Hitting the debt ceiling could cause a recession. Economic growth would falter, unemployment would rise, and the labor market could lose millions of jobs,” the White House said in a letter (pdf) to state and local governments that was released Sept. 17.

Arguing that Congress needs to raise or suspend the U.S. debt ceiling, the administration said the debt crisis may affect the country’s recovery after the CCP (Chinese Communist Party) virus pandemic. In July, Congress missed its deadline to suspend or raise the debt limit, prompting several recent warnings from Treasury Secretary Janet Yellen that her agency will exhaust its cash reserves.

Sep 20 07:25

Exclusive: Jared Kushner's Family Firm Set to Unleash Eviction Wave Amid Pandemic

Properties owned by former White House adviser Jared Kushner's family company have filed at least 590 eviction lawsuits since the start of the coronavirus pandemic and more than 200 in 2021 alone, putting "countless tenants" at risk of losing their homes in parts of the U.S. where Covid-19 transmission levels remain dangerously high.

That's according to a detailed analysis conducted by the government watchdog group Accountable.US, which examined public eviction filings submitted largely by properties under the control of Westminster Management, a subsidiary of Kushner Companies. In his 2020 financial disclosure, Kushner—former President Donald Trump's son-in-law—reported $1.65 million in income from Westminster Management, the only item listed in the "Employment Assets & Income" section of the filing.

Sep 20 07:24

The Latest Outrage Over Fed Presidents Trading Stocks Is Just the Tip of the Iceberg

Last Tuesday, Mike Derby reported at the Wall Street Journal that the President of the Dallas Fed, Robert Kaplan, had “made multiple million-dollar-plus stock trades in 2020, according to a financial disclosure form provided by his bank.” The individual stocks included shares of Apple, Alphabet (Google), Alibaba, Amazon, Chevron, Delta Airlines, Facebook, General Electric, Johnson and Johnson, Oracle, Tesla and numerous others. Kaplan previously spent more than two decades at Goldman Sachs, one of the largest trading houses on Wall Street, and, apparently, he thinks he still works there.

Sep 20 07:10

America's Infrastructure Crisis Is Growing Increasingly Dire

Despite promises of improved infrastructure and better disaster preparedness, governments and energy giants are failing to provide backup energy provisions to areas hit hard by extreme weather conditions again and again. As these events are becoming more frequent and stronger, how will the energy industry prepare for the future of energy provision?

The ongoing discussion over energy infrastructure resilience which is brought up year after year peaked in February in the U.S. as Texas battled against a severe winter storm that saw the electrical grid shut down and thousands of buildings lose power. Many across the state had to rely on generators to heat their houses to escape freezing temperatures for up to a week.

Sep 20 06:32

Bad for business: World Bank China rigging scandal rattles investors

Some investors and campaigners expressed dismay on Friday at revelations that World Bank leaders pressured staff to boost China's score in an influential report that ranks countries on how easy it is to do business there.

They also said the World Bank's subsequent discontinuation of the "Doing Business" series of annual reports could make it harder for investors to assess where to put their money.

"The more I think about this, the worse it looks," said Tim Ash at BlueBay Asset Management, adding that the reports published since 2003 had become important for banks and businesses around the world.

"Any quantitative model of country risk has built this into ratings. Money and investments are allocated on the back of this series."

Sep 20 06:32

IMF chief called out over pressure to favor China while at World Bank

World Bank leaders, including then-Chief Executive Kristalina Georgieva, applied "undue pressure" on staff to boost China's ranking in the bank's "Doing Business 2018" report, according to an independent investigation released Thursday.

The report, prepared by law firm WilmerHale at the request of the bank's ethics committee, raises concerns about China's influence at the World Bank, and the judgment of Georgieva - now managing director of the International Monetary Fund - and then-World Bank President Jim Yong Kim.

Sep 20 06:31

After apartment buildings are sold, many tenants can't afford new owners' rent jumps

Dwight Dixon's home is a three-story, 10-unit apartment building with a flat roof that looks like many other built in Columbus in the 1950s and 1960s.

Dixon, 61, has lived for three years in the building on North 21st Street, just north of East Broad Street in the King-Lincoln-Bronzeville neighborhood on the Near East Side.

Dixon would love to stay. He said he is on disability and does maintenance at the property, including cutting grass.

But in August, he received a letter from the building's new managers that his monthly rent will almost double beginning Nov. 1, from $500 to $950.

His neighbors' rent will also go up to $950 a month.

"They're trying to drive everybody out," Dixon said.

Sep 20 06:12

Racial Socialism: In Nearly 75% Black Birmingham, Alabama, Black Mayor Brags About Using State-Power to Create Black Millionaires (By Diverting City Contracts to Black Owned Businesses)

A parade of Birmingham mayors—Black mayors—has been criticized for a perceived dearth of Black millionaires in the city, a direct result, many believe, of a lack of intentionality in spending public dollars with Black- and women-owned businesses.

The oft-cited holy-grail is Atlanta, where former mayor Maynard Jackson threw down the gauntlet with local banks and businesses during historic tenure as the city’s first Black mayor in the 1970s and early 1980s and laid the foundation for a plethora of wealthy African Americans in the city.

In January, Birmingham revealed it spent $24.4 million with Black- and women-owned businesses in fiscal 2020. Last week, during a wide-ranging conversation with me about what he must accomplish before 2025 for his myriad promises to be fulfilled, Woodfin called that spending amount “unacceptable” and vowed to be more intentional—more Maynard Jackson-like—in his second term.

Webmaster's Commentary: 

More anti-white racism!

Sep 19 18:14

'Not unusual': No wind causes energy price hike in Europe

The Global Warming Policy Forum's Energy Editor Dr John Constable says Europe's sustained high electricity prices are an indication of an "underlying health condition" in the energy sector.

In Europe, the wind stopped, seeing electricity prices around the continent rise dramatically, with the UK hit particularly hard.

Dr Constable told Sky News host Andrew Bolt this event is "not that unusual".

"This is now quite standard for us," he said.

Sep 19 11:58

The Perfect Storm Makes Landfall

Sep 19 09:56

Looks a lot like 2008...

Sep 19 07:47

Soaring bills, empty shelves, used cars that cost MORE than new ones and NO toys for Christmas - how UK faces being crippled by 'perfect storm' of Covid, Brexit and soaring gas prices that will leave families thousands of pounds poorer

Millions of families are facing a 'perfect storm' of empty supermarket shelves and an imminent hike in the cost of living of around £1,500 a year, it emerged today.

A shortage of toys ahead of Christmas and soaring costs of used cars - to the extent that some are now more expensive than new models - is also contributing to what is set to be a difficult end to the year for many households.

Brexit, increased gas prices and the Covid pandemic have all contributed to the crisis, which will leave families substantially out of pocket over the coming months.

Sep 19 07:46

The Battle For Control Of East Mediterranean Energy

The history of oil and natural gas is marred by instability and conflict. The rise of the Eastern Mediterranean as a prolific energy region has increased existing tensions between certain littoral states while strengthening cooperation between others.

The ratification of the charter concerning the Eastern Mediterranean Gas Forum (EMGF) further cements the importance of gas exporting countries in general and Egypt in particular.

In a political and economic sense, Cairo has succeeded in strengthening the country's position as a major producer and exporter of gas while highlighting its role as an energy hub. Egypt’s large domestic market, significant production capacity, and strategic location make it an ideal candidate to host the EMGF’s headquarters in Cairo.

Sep 19 06:26

Aaron Basile: Did stocks just break down?

Sep 19 06:11

Nancy Pelosi Slams Capitalism on Trip Abroad: ‘Has Not Served Our Economy as Well as It Should’

House Speaker Nancy Pelosi (D-CA) said on Friday at an event in London at the Chatham House that capitalism has not worked as well as it could have in the United States and should be “improved.”

“In America, capitalism is our system, it is our economic system, but it has not served our economy as well as it should,” Pelosi said. “So what we want to do is not depart from that, but to improve it.”

“You cannot have a system where the success of some springs from the exploitation of the workers and springs from the exploitation of the environment and the rest, and we have to correct that,” Pelosi said.

Pelosi also slammed Trump and the Republican Party at the event.

Sep 19 06:10

The lights 'WILL' stay on this winter: Business Secretary claims Britain will avoid energy emergency in coming months despite warnings of 'black swan event' as Russia is accused of rigging gas prices

Business Secretary Kwasi Kwarteng has claimed Britain will avoid an energy emergency in the coming months despite warnings of a 'black swan event' after Russia was accused of rigging gas prices.

Kwarteng said he did 'not expect supply emergencies this winter' as he prepared for talks with chief executives of the UK's largest energy suppliers and operators to discuss the global gas situation today.

It comes amid warnings of a 'black swan event', an unpredictable episode with often severe consequences, after global gas prices surged due to high global demand, maintenance issues and lower solar and wind energy output.

Sep 19 06:09

This Evergrande Thing Is Serious

Sep 19 05:32

Social media recoils as Bloomberg praises Amazon’s warehouse-based exurban ‘factory towns’ as ‘the future of working class’

Amazon’s massive new distribution centers, soon to be surrounded by infrastructure built to serve workers, are being compared to Gilded Age company towns. While many are aghast at the idea, fellow billionaires are praising it.

The e-commerce empire founded by Jeff Bezos will offer the American working class a better option than scraping to get by in increasingly expensive cities, investment adviser Conor Sen wrote in a Friday oped for Bloomberg, the financial news outlet whose namesake is billionaire former New York mayor and failed presidential candidate Mike Bloomberg.

Sep 19 05:18

The Inflation Train Is Nowhere Near Top Speed

Sep 18 12:50

Ok, This is TRULY Horrifying!

Sep 18 06:22

WHAT INFLATION?

Sep 17 12:56

AOC Seeks Free Rent Bill For Good

Rep. Alexandria Ocasio-Cortez, a New York Democrat, is expected to propose a bill that would extend unemployment benefits for millions.

The congresswoman declared the bill Tuesday evening during a virtual town hall event. Her announcement comes as three federal aid programs died last week that was put in place during the onset of the pandemic.

Sep 17 11:54

Crumbling Global Economic House of Cards...

Sep 17 11:53

What could an Evergrande debt default mean for China and beyond?

China Evergrande Group is deeply in the red – to the tune of $300bn. And concerns are mounting that if it defaults on its debt, it could spell disaster for China’s property market and send shock waves through the world’s second-biggest economy.

A reckoning appeared even closer on Wednesday after Bloomberg News, citing people familiar with the matter, reported that the real estate developer may not be able to make the interest payments on some of its $300bn in liabilities next week and could also miss a principal payment on at least one of its loans.

Sep 17 08:12

Seasonal Stress Sparks Sentiment Swoon

Sep 17 07:59

Money printing is worse than bad sushi!

Sep 17 07:19

Biggest wealth drop so far...

Sep 17 05:55

Everyone Has A Foot Out The Door....

Sep 17 05:47

Why Are Food Prices Going Up So Rapidly?

For a long time I have been warning that global food prices would rise dramatically, and that is precisely what we have witnessed over the past 12 months. Unfortunately, global wages are not rising nearly as quickly as global food prices are, and so this has pushed millions and millions more people into poverty and hunger. Here in the United States, nobody is currently in danger of starving to death, but many Americans have been getting a severe case of sticker shock when they go to the grocery store. Not since the Jimmy Carter era of the 1970s have we seen prices escalate like this, and people are starting to get angry.

Since the beginning of the pandemic, global food supplies have been getting tighter and tighter. When I first started writing about this, certain individuals derisively dismissed what I had to say, but now the truth is becoming apparent to everyone.

Very tight supplies and growing demand have pushed global food prices 32.9 percent higher over the past year…

Sep 16 14:52

Biden goes after top 1 percent in defending tax hikes

President Biden on Thursday went after big corporations and wealthy Americans while promoting his economic agenda that congressional Democrats are working to get across the finish line.

“Let me ask you this, where is it written in that all the tax breaks in the American tax code go to corporations and the very top? I think it’s enough, I’m tired of it,” he said in remarks at the White House on the economy.

The president reiterated his calls for big corporations and the wealthy to pay their fair share in taxes, saying it's “long overdue.”

“I’m not out to punish anyone, I’m a capitalist. If you can make a million or a billion dollars, that’s great. God bless you. All I’m asking is you pay your fair share, pay your fair share, just like middle class folks do,” he said.

Sep 16 14:44

Biden’s vax mandate could collapse trucking supply lines, leading to instant shortages of food, fuel and medicines

The Joe Biden regime continues to threaten the health, livelihood and freedom of Americans. Biden’s seditious vaccine mandates could collapse the trucking industry and threaten supply lines across the Nation. Approximately 3.5 million truckers have been traveling the nation since the beginning of the covid-19 scandal, shipping valuable food, construction, agricultural and medical supplies. Just a year ago, these men and women were lauded as “essential workers” and praised for all that they do. Today, the Biden regime is threatening to put hundreds of thousands of truckers out of work, as the federal government prepares a coercive vaccine mandate on their bodies.

Sep 16 14:09

Corporate Welfare

Sep 16 12:41

Australia takes centre stage

Sep 16 12:20

Real Estate Coming Back Down to Earth...

Sep 16 11:30

New Plan Would Push Top Tax Rate to Almost 60 Percent In These 4 States

By Brad Polumbo

Successful residents of high-tax states are in for an ugly surprise if new tax legislation passes in Congress. Democratic legislators are currently proposing a multi-trillion-dollar tax hike to raise revenue for a massive welfare and climate change spending plan. Proposed tax hikes include raising the corporate tax rate, higher taxes on cigarettes and vaping products, raising the capital gains tax rate, and higher individual income tax rates.

On the last front, the proposed income tax increase would apply to income over $400,000 for an individual and raise the rate from its current 37 percent to 39.6 percent. The proposal also includes a 3 percent surcharge on all income above $5 million. The tax hikes could push Americans in states like New York, California, New Jersey, and Hawaii up to nearly 60 percent top income tax rates...

Sep 16 11:24

Europe energy prices spike as winds pause in stormy North Sea

Winds in the stormy North Sea stopped blowing, and Europe, which already lacks natural gas, found electricity markets surging. This sudden slowdown in wind-driven electricity production in the U.K. caused a sudden switch in the direction of regional energy markets as gas and coal-fired electricity plants were called to make up for the shortfalls.

Natural gas prices hit all-time highs and thermal coal, which had been shunned for its carbon emissions, has emerged from its long price slump as utilities are forced to use it to turn on their backup power sources.

This showed the precarious state that the region’s energy markets face, heading into the long European winter. The price increase was seen mostly in the U.K., which relied on wind farms to eradicate net carbon emissions by 2050.

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