Economic News
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Home Sales Fell 4.9% in January, Extending Slump in Housing Market
High home prices and mortgage rates continue to weigh on sales activity
“…
U.S. existing-home sales declined 4.9% in January from the prior month to a seasonally adjusted annual rate of 4.08 million, the National Association of Realtors said Friday. Economists surveyed by The Wall Street Journal had estimated a monthly decrease of 2.6%.
In 2024, home sales fell to the lowest level since 1995 for the second straight year.
Real-estate agents are hoping that home-sales activity will pick up in the spring, which is typically the busiest time of year for home sales. Inventory is rising because some sellers need to move due to life changes and can’t keep waiting for affordability to improve.
Yet that might not be enough to get the housing market going again. Economists largely expect mortgage rates, which topped 7% last month and remain near there, to stay around current levels in the coming months. Rising home insurance and property tax costs are also adding to the cost of homeownership. …”
Mulberry Heel
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I'm sure that Trump will just put all the blame for the housing slump onto the Fed, and try to fire their Chairman. It's how they roll these days.
superrific
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Don't know if it's going to get better next year. Interest rates could hit 9%, which would put mortgage rates even higher.
When are you getting married?
superrific
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Y'all young kids with your eternal engagements. My first marriage was planned for about 9 months, but it was in India so there were some challenges. Second marriage was like a month and a half after engagement. Of course, engagement was March 2020 and after seeing what was going to be happening, we were like "fuck it, zoom marriage."
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I mean, if you step back, the two marriages part seems to undermine your critique of eternal engagements …
superrific
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I didn't critique anything. I was just poking a bit of fun. My first marriage fell apart because of mental health issues on both sides that emerged later.
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I was poking fun back.
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"It sounds too radical to even warrant a second thought. That President Donald Trump could force some of the US’s foreign creditors to swap their Treasuries into ultra long-term bonds to ease the country’s debt burden.
The idea of dramatically restructuring America’s debt load is part of the Trump team’s agenda to revamp global trade via tariffs, weaken the dollar and ultimately reduce borrowing costs, all with the goal of putting US industry on more even footing with the rest of the world, said Bianco, an over three-decade market veteran and founder of Bianco Research.
Other elements of the plan include the creation of a sovereign wealth fund — which Trump has already set in motion — and forcing America’s allies to shoulder a larger share of security spending.
......
Bianco stressed that this type of debt swap may not actually happen, and if the US were to pursue it, it would require significant international cooperation and could potentially impact global financial stability. Bond investors are so far showing little sign of concern, with trading in the Treasury market particularly calm in recent days.
Still, the point of discussing these ideas with clients is to emphasize the magnitude of the potential changes in store, Bianco said.
“Take them seriously, don’t take it literally,” he said referring to the debt swap idea and some of Trump’s more radical proposals in general. “If Trump is willing to blow up NATO, why wouldn’t he be willing to blow up the financial system?”
The idea of dramatically restructuring America’s debt load is part of the Trump team’s agenda to revamp global trade via tariffs, weaken the dollar and ultimately reduce borrowing costs, all with the goal of putting US industry on more even footing with the rest of the world, said Bianco, an over three-decade market veteran and founder of Bianco Research.
Other elements of the plan include the creation of a sovereign wealth fund — which Trump has already set in motion — and forcing America’s allies to shoulder a larger share of security spending.
......
Bianco stressed that this type of debt swap may not actually happen, and if the US were to pursue it, it would require significant international cooperation and could potentially impact global financial stability. Bond investors are so far showing little sign of concern, with trading in the Treasury market particularly calm in recent days.
Still, the point of discussing these ideas with clients is to emphasize the magnitude of the potential changes in store, Bianco said.
“Take them seriously, don’t take it literally,” he said referring to the debt swap idea and some of Trump’s more radical proposals in general. “If Trump is willing to blow up NATO, why wouldn’t he be willing to blow up the financial system?”
superrific
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Fair.
superrific
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From that article:
"A way to do so would be by swapping some of their Treasuries into 100-year, non-tradeable zero-coupon bonds."
"100 year non-tradeable zero-coupon bonds" is a euphemism for monopoly money. The actual value of a 100 year zero coupon bond is, to a first and second approximation, nil. You don't get a thing in return unless the USA is around for 100 years, and can still service that debt, and still cares to service that debt. NO. THANK. YOU. I would pay zero cents on the dollar for such a thing -- but apparently that wouldn't be a thing because they are non-tradeable.
So in essence, this is a fancy way of just canceling debt. It would destroy the financial system. It would not "remake it."
The concept of a 100 year non-tradeable zero-coupon bonds is mind-boggling. There's moronic; there's ultra-moronic; and there's this. I'd rather own a shitcoin.
"A way to do so would be by swapping some of their Treasuries into 100-year, non-tradeable zero-coupon bonds."
"100 year non-tradeable zero-coupon bonds" is a euphemism for monopoly money. The actual value of a 100 year zero coupon bond is, to a first and second approximation, nil. You don't get a thing in return unless the USA is around for 100 years, and can still service that debt, and still cares to service that debt. NO. THANK. YOU. I would pay zero cents on the dollar for such a thing -- but apparently that wouldn't be a thing because they are non-tradeable.
So in essence, this is a fancy way of just canceling debt. It would destroy the financial system. It would not "remake it."
The concept of a 100 year non-tradeable zero-coupon bonds is mind-boggling. There's moronic; there's ultra-moronic; and there's this. I'd rather own a shitcoin.
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That is why I highlighted the last line, where Bianco was honest about destroying the international financial system.
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Wow.
superrific
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I didn't take her as "being honest" so much as predicting Trump. I didn't read carefully though.
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Shitcoin, is that trumps crypto?
superrific
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There's the traditional economic indicators, but there's also just general degradation of the rule of law. Nobody wants to be invested in a fascist dictatorship run by an unstable idiot and a drug-addled anti-social weirdo. This won't show up immediately but it should still drag asset prices in general.
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The first major Trump shot at his adoring cultist MAGAts. This will hit them hard.
Hooters is preparing to file for bankruptcy. No idea if 11 or 7 at this point.
THANKS TRUMP!
Hooters is preparing to file for bankruptcy. No idea if 11 or 7 at this point.
THANKS TRUMP!
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Bosses are exerting their power. What Trump’s crackdown could mean for your job.
President Donald Trump’s crackdown on federal employees bolsters a trend revoking some workplace flexibility.“… More companies are expected to join the movement this year as they raise performance expectations and mandate workers return to the office full time, work experts say.
“All companies I talk to are really focused on driving productivity [and] lowering cost,” said Bradford Bell, a professor at Cornell University’s School of Industrial and Labor Relations. “It pushes things in favor of employers.”
The harder stance started in corporate America before Trump’s executive order, but the trend is expected to accelerate. Goldman Sachs, Amazon, AT&T and JPMorgan Chase have implemented strict five-day in-office mandates, noting that being in the office will help with collaboration and innovation.
In January, AT&T employees returned to the office full time to find a shortage of desks and parking spaces — a problem the company said it’s working to address.
Meta, which owns Instagram and Facebook, is“raising the bar” on performance and cutting 5 percent of its workforce as it gears up for an “intense year,” CEO Mark Zuckerberg said in a recent company memo.
Last month, Microsoft said it will cut staff based on job performance, even as it vowed to pour more money into artificial intelligence.
Dell is mandating that workers who live within an hour of the office return full time beginning March 3. And remote employees won’t be eligible for promotions. …”