I want to submit this post to my few readers who can remain objective enough to make informed financial choices.
In other words, the domestic housing “crisis” is going to get much worse before any solution is offered.
To wit, I pass along this Numbeo housing market snapshot with the detailed table data presented below, which shows that house prices here in the United States are still relatively affordable for its residents. While the historical data over the longer term may ostensibly indicate a stretched housing market with lack of affordable housing, I definitely differ on this lopsided consensus of impending market doom.
In the post-QE world and with a nation of wide open borders, the sky will ultimately be the limit, regardless of prevailing mortgage rates. Moreover, home sales continue to struggle, because it’s just getting too expensive to sell. After reviewing the actual transaction costs or finding out their home’s rent potential, many home sellers decide to stay put. As home prices rise, transaction costs just become too expensive and these potential costs can be used to upgrade an existing home rather than lining a Realtor’s pocket or filling the coffers of a tax jurisdiction.
With this said, according to the table data presented below, we can easily determine how relatively affordable house prices are in the United States. Domestic SFR investors should also take heart, as rental yields here in the States are much higher than anywhere else in the Western Hemisphere, and even the world.
There are plenty of opportunities domestically and the pros definitely outweigh the cons, even under the upcoming Harris regime.
The cons of SFR investing under the Harris regime:
- Potential rent regulations;
- Higher mortgage rates from profligate deficit spending that the MSM dishonestly insists will be lower under a Harris regime.
- In an attempt to suppress house price and rent growth, we could see Internal Revenue Code rollbacks that have been designed to benefit all real estate owners. These rollbacks could even include the repeal of the capital gains exclusions afforded to owner-occupied homes as well as certain tax deductions on mortgage interest.
The pros of SFR investing with a Harris regime;
- The acceleration of domestically-oriented fiscal deficit spending will provide a floor to the price and rent inflation growth
- The promotion of massive illegal immigration, which under the Biden regime could be as high as 25-30 million,
- The global nation-state spending in preparation for WWIII later in the decade will continue to crush wage earners. Under these scenarios, it will always pay to be the landlord.
- The dollar”s standing will continue to erode in global trade as other countries seek dollar alternatives. Overseas dollars will continue flowing back in search of assets to buy as the Fed will be less successful sterilizing extra money flows from deficit spending.
In other words, the domestic housing “crisis” is going to get much worse before any solution is offered.
Click each header to sort
From a high of $2.4 trillion, down to $286 billion. The reverse repo window continues to shrink. I wonder how much longer it will take before the synagogue manufacturers a crisis that will allow their Fed to start adding Treasuries to its balance sheet once again? The Fed cannot rely on elevated overnight rates to absorb all this extra treasury issuance forever. Hmm… Stay tuned…..
Buffet’s AAPL share sale timing was terrible. He sold his shares in the 170s. AAPL just closed at a new ATH 233 and traded as high as 237.
Fed’s Kashkari Says Private Credit May Lessen Systemic Risk
(Bloomberg) — The rise of the private credit market may lead to less systemic risk in the US financial system despite a lack of political appetite for increasing bank capital requirements, Federal Reserve Bank of Minneapolis President Neel Kashkari said.
“It’s scary at some level, because it’s exploded to a trillion dollar plus market fairly quickly,” Kashkari said in Buenos Aires on Monday. “But as I’ve examined it, a bank in the US today — a big bank — is levered roughly 10 to one, 10 times as much assets for their equity. These private credit vehicles are typically levered one to one, so it’s much less leverage.”
Private credit — which generally refers to loans from non-banks — has been surging over the past few years, offering investors attractive returns versus other fixed-income products in an environment of rising interest rates. For borrowers, it’s become an alternative source of funding that does away with many of the more stringent requirements that are typical in bank lending.
Kashkari, said private credit vehicles may also introduce less risk because they typically lock in capital for longer compared to banks, which need to provide overnight liquidity.
“So where does systemic risk come from? The intersection between leverage and maturity transformation. So on both those dimensions, these private credit vehicles look like they’re much lower risk than banks,” he said during a Q&A session at Torcuato di Tella University.
“While I wish we had tighter regulation on the banks, I’m actually cautiously optimistic that some of these market developments might actually lead to less risk — at least less systemic risk — in the financial system,” he added.
Regulators around the world have increased their scrutiny of the burgeoning $1.7 trillion private credit market in recent years. While many have dismissed concerns that the industry poses risk to the financial system, some have called for increased transparency and reporting.
A billion square feet of new housing space to emerge in cities as America’s office market faces a major crisis
https://nypost.com/2024/10/14/real-estate/a-billion-square-feet-of-offices-could-become-housing/
Check out OKLO. It seems clear that the large tech and AI driven firms are gearing up for increasingly bigger electric grid problems and reliability issues and are working to build out electricity self sufficiency. Mini nuclear reactors could be the way to go in a post-economically collapsed and post-world War environment.
I received an email from a reader with a Rumble video link. I don’t have any opinion on it, but offer it to the reader….
U.S. Gov’t Has A List Of Americans To ROUND UP In Case Of War! – w/ Whitney Webb
https://rumble.com/v57sub9-u.s.-govt-has-a-list-of-americans-to-round-up-in-case-of-war-w-whitney-webb.html
Very informative video. I believe the government is monitoring everything we do to get a profile on us so they can round up people who are most likely to question the narrative in an emergency.
Basically, what this article says is that anyone who wishes to receive the Nobel prize in economics must advance the objectives of the Jew synagogue and globalism. The nation states that go along with this global agenda of democracy receive the synagogue funding from the Central banking institutions. These nations then can then be propped up by the synagogue’s own candidate choices….
Nobel Prize Hails Prosperity Research by US-Based Academics
(Bloomberg) — Three US-based academics including a former chief economist of the International Monetary Fund will share the Nobel Prize in economics for research into institutions and how they affect prosperity.
Daron Acemoglu and Simon Johnson, along with James A. Robinson, will receive the 11 million-krona ($1.1 million) award between them, the Royal Swedish Academy of Sciences in Stockholm said in a statement Monday.
“Reducing the vast differences in income between countries is one of our time’s greatest challenges,” Jakob Svensson, chair of the academy’s Committee for the Prize in Economic Sciences, said in a statement. “The laureates have demonstrated the importance of societal institutions for achieving this.”
In the panel’s description, research by the three academics showed how the path for prosperity can vary partly because of structures established in colonized countries, as a result of the contrasting approaches taken by the different empires built up by Europeans around the world.
Of the three winners, Johnson is probably best known for his stint at the IMF. While brief — lasting only from March 2007 until August 2008 — it coincided with the onset of the global financial crisis.
He is a professor at the Massachusetts Institute of Technology along with his colleague Acemoglu. They co-authored a book published in 2023 called Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity.
“Broadly speaking the work that we have done favors democracy,” Acemoglu said via phone at the press conference after the prize was announced. “Countries that democratize starting from non-democratic regime do ultimately grow, in about 8-9 years, faster than non-democratic regimes, and it’s a substantial gain. But democracy is not a panacea. Introducing democracy is very hard.”
In an interview with Bloomberg published earlier this month, Acemoglu cast doubt on the chance that artificial intelligence will live up to its hype, predicting that “a lot of money is going to get wasted.”
Robinson, the third winner, is a professor at the University of Chicago. He and Acemoglu co-authored Why Nations Fail: The Origins of Power, Prosperity, and Poverty, a book first published in 2012.
The prize, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by the Swedish central bank. It complements annual prizes for achievements in physics, chemistry, medicine, literature and peace, which were established in the will of Alfred Nobel — the Swedish inventor of dynamite who died in 1896.
Last year, Claudia Goldin received the accolade for her research into gender pay gaps, and the year before, former Federal Reserve Chairman Ben Bernanke shared the award with Douglas Diamond and Philip Dybvig for research on banks and financial crises. Other laureates include Friedrich Hayek for work in the theory of money and economic fluctuations, William Nordhaus for integrating climate change into long-run macroeconomic analysis and Paul Krugman for his analysis of world trade.
The Nobel Prizes, awarded since 1901, are famously unequal, reflecting how women have been overshadowed by men in science for centuries. Only three women have received the economics award, which makes its roster of laureates the second most male-dominated, after the prize in physics.
I guess DEAGEL.COM was just disinfo. It’s almost 2025 and the population of misfits and illegals continue to rise. The US now up to 335 million. The streets are as packed as ever with people unable to control their spending. This is all exciting news for the asset owners.