The United States housing recession started in December 2022 and is now 17 months along. Whazzat? Huh? Who says so? Times are truly different this time. With an ongoing housing recession, manufacturing recession, and labor recession that started in September, and the inverted yield curve ongoing for 1-1/2 years, an overall economic recession for the US is guaranteed. Not anymore. It's different this time, Kids. Glastonbury, what fun.
Price discovery and financial markets have been destroyed by the Federal Reserve and other global central bankers over the last 15 years. The four horseman of the world's financial apocalypse are the BOJ (Japan), ECB (Europe), PBOC (China), and the Fed that is riding in on its pale green horse. Today, the PBOC pledges billions to help save China's overheated property market. It is hilarious that Western and communist nations alike resort to bailing-out their sick corruption and cronyism.
The long 7-year housing recovery from 2012 into 2019 was fueled by boatloads of Federal Reserve easy money focused on making America's wealthy filthy rich. Don't you love the crony capitalism system? Fear not since it is on its last legs. It is interesting that the US housing sector rolled-over in 2019 forecasting troubled times ahead.
The COVID-19 pandemic hits in late 2019 and early 2020 an epic tragedy killing over 1.1 million Americans (1 in every 300 people) during its 3 years of misery. Interestingly, due to America's dirtbag crony capitalism system, zero financial pain is felt by citizens. Instead, the Federal Reserve prints money like madmen and Congress along with both corrupt President's Trump and Biden, working with compromised Dr Fauci, release mountains of fiscal stimulus encouraging people to stay home and not work. Sickening. This is not capitalism, folks, it is the opposite of capitalism; call it crapitalism.
Thus, a 3-year housing boom begins in 2020 fueled by obscene easy money but even all that free dough could not stop the housing recession that started 12/20/22. Not only are the parameters of a recession different (semiconductors and the new AI hype are the kingpin of the economy now with housing, manufacturing (autos) and labor taking a back seat), but the internal working of parameters have adjusted. Let's take a deeper dive into the housing mess.
This brings us back to the first paragraph where many folks will say, "what housing recession?" They say they want a puff of what Keystone is smokin' because he must be seeing things. The US stock market is making new all-time highs on a daily basis so all is fine, no? Housing stocks have been stellar performers. However, housing inventories remain low since any home coming on the market is snatched up faster than the last slice of pizza.
Hedge funds have been buying up available existing homes for several years looking forward to charging high rents to generate high rates of return. This behavior takes away homes available to the first-time homebuyer. Instead, young family Carlos and Carmelita, with a baby on the way, are forced to rent for many more years as the wealthy cheer the crony capitalism system fleecing the young couple for every cent. Carmelita, hold me tighter, I think I'm sinking down.
The US southern border is in crisis under President Biden that maintains an open border policy because the democrats believe the migrants will all vote in their camp in the future. Isn't the crony capitalism system enough to make you vomit? It is guaranteed that drug cartels are buying up a lot of existing homes for nefarious reasons.
And do not forget communist China. The filthy CCP (Chinese folks are cool like everyone else on Earth; they just want to be left alone by government and allowed to make an honest living; however, the 90 million pieces of human filth, the CCP, the Chinese Communist Party, that worship murder, led by scumbag Dictator Xi, control the 1.4 billion Chinese folks that have no choice but to obey the CCP; if they do not they are imprisoned or shot in the head; how do all you young twits like communism now?) are buying up existing real estate especially houses and land available next to US military and intelligence facilities.
It is easy to understand why the US and world economies are upside-down and inside-out. Welcome to the American crony dream where you cannot buy a house anymore if you are a young couple because the corrupt government and institutions want to make more money.
Human greed destroys everything folks. It is the most powerful force in humanity stronger than love, hate or fear. If there was a tightrope to cross where your love was on the other side, but if you fall you would die, what would you do? You would wave to your honey and say, "forget it, sweetheart." Same if you have a dislike for someone. You would never risk you life for the sake of getting back at someone. And the same with fear. The fear of falling to your death prevents you from attempting to cross the tightrope. But Keystone places a million dollars in bags of money on the other side. Many people would try to cross the tightrope. Most would fall to their deaths but some would succeed and then live lives of leisure and comfort. There is no more powerful human force than greed.
America's crony capitalism system failed for two reasons; Human greed (corruption) and non-transparency. It does not get any simpler than that. Humans have not changed in 5,000 years that is why no government or country lasts forever. They all fail regardless of whether the system is communism, fascism, Naziism, socialism, Marxism, dictatorships, or crony capitalism.
The shame about the United States is that as the end game occurs for crony capitalism over the next few years, a real capitalism system could never be implemented again. Americans will never trust or believe in capitalism again, at least for many decades forward. People will mistaken claim that capitalism failed but in reality it is/was a crony capitalism system that failed and not capitalism. People will have a misplaced hatred for the capitalism system when it was never in play. America is/was a dirtbag crony capitalism system. Oh well, greedy humans always ruin everything for eternity.
Capitalism does not exist. If you accept this fact, you will better understand the modern-day mess in the United States. America's financial system is best described as a faux free market crony capitalism system now in its final throes. Everything is corrupt from top to bottom throughout government. Federal Reserve bankers and staff promote dovish money-printing policies to enrich the wealthy class under the guise of protecting the financial system. The Fed members are then rewarded by the Wall Street investment banks once they leave public office with lucrative speaking gigs at token luncheons. Isn't crony capitalism enough to make you puke?
The last few years have shed light on the rampant corruption at the FBI, CIA and other institutions that secretly monitor Americans. It is both the management and rank and file that are corrupt; they are rotten to the core. During the pandemic, our eyes were opened to the crony corruption at the NIH, FDA, CDC, AMA, WHO and Teachers Unions. The WHO lies in bed with the communists (red China) as was proven in late 2019 and early 2020. You cannot trust anything these compromised organizations tell you anymore.
Americans are at fault, too. They cheer and pledge allegiance to one or the other corrupt political tribes placing that crony agenda above what is good for America as a whole. Are you an a-hole worshipping the rupublocrat and demopublican scum? It's over folks. It is Our Destiny. Crony capitalism is a cancer without a cure.
The Housing Starts in June must tag 1.8 million for the housing recession to be stopped. That is a tall order and would be a record number. The 1.80 million units was teased back in 2022 but it is unlikely that next month would report such a dramatic increase from yesterday's 1.36 million units number. Thus, the odd housing recession will likely continue and it is expected to lead into an overall economic recession in the United States. Do you understand what is going on or do you choose to be an American Idiot? In studio. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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