BIG SHORT ll

[errolanderson]

All is not well in the world of real estate. U.S. mortgage rates plunging . . . . Signs of 2008

[Rareearth]

So usa interests rate at banks are dropping for mortgages, ahead of increasing Fed rates to be announced later in july?

[errolanderson]

So usa interests rate at banks are dropping for mortgages, ahead of increasing Fed rates to be announced later in july?

Mortgage demand is slumping. Lenders also in-a-pinch. For central bankers . . . no words.

[furrowtickler]

Mortgage demand is slumping. Lenders also in-a-pinch. For central bankers . . . no words.

Well great reset in full swing
They decimated all disposable income from the working class …. Let the fall out commence

[errolanderson]

Crude oil is now in bear market country with WTI oil losing more than 20 percent since March highs.

Economy has clearly hit-a-wall . . . .

[checking]

Will it be "brief" this time?

Feeling punchy this morning, even though the crop is wow.

[Old Cowzilla]

Waiting for some fire sale prices on a new or slightly used 1/2 ton. Still waiting ! Clear gas was still over 2 bucks yesterday guess local guy didn't get memo about oil price drop. Wife's little trip with Air Canada changed overbooked ???? Think she's flying BUSHWACKER airways now

[Austrian Economics]

The marginal potential home buyer is saying "no bid" to mortgage rates at the moment. Since banks earn their income from things like mortgages, they need to lower their rates in order to get cash flow.

The problem arises when central banks are pushing up short term rates as they are doing today, into an environment where business and consumer demand for credit is actually getting soft.

Banks earn their income from a spread between what they pay depositors and what they loan that money out for. Most borrow short and lend long, as that is where the biggest spreads can be found. Now that spread is shrinking.

As long as central banks keep pushing up short term rates, that spread is going to continue to shrink as the yield curve tips into inversion. Then the fun begins.

If this keeps up, it will mean more than increased joblessness. It can mean bank failures as well.

[Old Cowzilla]

Banks earn there money from banks fees ,service charges that's where the big money is today. Charging people for depositing and withdrawing their own money . Don't worry about any banks going broke any time soon. Oh and best part is the customers are doing most of the work themselves. Its such a scam.

[Kraut]

With Rogers outage affecting pay systems across Canada today, there are reports from different areas of banks running out of paper currency except for $100 bills. $100 bills are really just the new $50 bill anyway. Good old run on the bank like its a wonderful life.

[errolanderson]

Phoenix housing market flooded with FOR SALE signs. Crash appears to have begun . . . .

[errolanderson]

Housing crisis now hitting lenders hard. Layoffs beginning. China mortgage fallout as well impacting commodities. Copper down 10 percent this week, 25 percent collapse in past month. And even the Saudis can’t keep oil prices up.

Cash is king (IMO) despite all the media advice to-the-contrary . . . .