Suck it up

From the Record:

Is $500K the new $300K? What you’ll pay for a starter home in North Jersey

Newlyweds Joseph and Cheryl Petta just wanted to buy their first home in North Jersey.

It was a disheartening year and a half of house-hunting. Rockaway, West Milford, Midland Park, Wharton. They looked everywhere.

“We’ve looked close to 50, maybe more houses, and we made a couple offers on a couple houses, and we’ve gotten blown out of the water every time,” said Joseph Petta. “Not even considered.”

The Pettas budget is in the $400,000 range, and with uncertainty about how a recession could affect housing prices, they’re hesitant to go too far beyond that.

They may get shut out. Peruse Zillow, and you’d be hard-pressed to find a starter home listed below $500,000. 

It’s the new trend: $500,000 is the new $300,000 — what was once the typical asking price for a starter home before the COVID-19 pandemic. 

“This is definitely happening over the years, and obviously with Covid, back in 2020, when prices just skyrocketed,” said Andrew Gangi, a Woodcliff Lake realtor that serves the Pascack Valley region. “It just raised the prices of everything.” 

Added Steven Pescatore, a Wayne realtor, “it’s a lot harder for young people to get a starter home. Even if they’re looking for a condo, there’s not really a lot available. It used to be you get a nice condo for $150,000, $200,000, now it’s $350,000, $400,000.” 

This entry was posted in Demographics, Economics, Housing Bubble, New Jersey Real Estate. Bookmark the permalink.

197 Responses to Suck it up

  1. dentss dunnigan says:

    first

  2. Hold my beer says:

    First

  3. Hold my beer says:

    Doh

  4. dentss dunnigan says:

    I must go on spring break for a while …..enjoy

  5. Very Stable Genius says:

    BREAKING

    Prosecutors Signal Criminal Charges for Trump Are Likely
    The former president was told that he could appear before a Manhattan grand jury next week if he wishes to testify, a strong indication that an indictment could soon follow.

  6. Old realtor says:

    Showing homes to a newlywed couple in Bergen County tomorrow. Price range is $600,000 to $700,000. Small renovated homes in lower end communities or small homes in need of extensive updating in better communities. First step in home shopping for first time home buyers. Husband and wife both grew up in affluent Bergen County families. They are friends of my kids. Think they will be shocked by how little their money will buy.

  7. Fast Eddie says:

    It’s the new trend: $500,000 is the new $300,000 — what was once the typical asking price for a starter home before the COVID-19 pandemic.

    A 65% rise in price in two years. Plus the 30 yr. rate more than doubled as well. I can only imagine the disgust this couple above feels when looking at one dump after another. They probably started out somewhere around Midland Park, wound up in Wharton and then gave up.

  8. Phoenix says:

    No starter homes being built.
    Boomer, with her pension and millions, being extra greedy.
    Boomer, not being satisfied owning one house and possibly one vacation home-instead owning 5-10 or more private residences that are now off the market so someone else can purchase.

    It all comes down to one word- GREED.

    Capitalism at it’s finest. Poor kids just got caught in Boomer’s wake- have to overpay for a house, have to pay for the debt boomer charged ( just look at Murphy and Brain dead Joe), pay for the “weapons of mass destruction” bullstei war that gave boomer a hard on, have to pay boomers pension ( boomer never put money aside for that, just sent the IOU into the future).

    Oh, and Mitchy Mc Connell. Yeah, any one of us would have been sent home. Mitchy gets to hang in the hospital for days after bumpy in his noggin. Sorry suckers but you would have been discharged from the ER after a 4k cat scan, he gets put in penthouse with a spa visit paid for by you, the taxpayer.

    Enjoy.

  9. Old realtor says:

    Phoenix,
    I appreciate the Boomer hate. Boomers have profited from skyrocketing home values. Corporate home buying is the current villain. Whether it is buying homes for rental or flipping, these corporate buyers are driving prices higher for first time buyers.

  10. Phoenix says:

    Looks like they can now afford a starter home in Bergen county if they want one.

    Thanks, officer. Pony up taxpayer:

    Black mom and her two teenage daughters are awarded $8.25 MILLION after white Bay Area deputies cuffed and detained them for an hour on suspicion of being car thieves

  11. Phoenix says:

    Old Realtor,

    Agreed. According to Maslow, shelter is a basic human need.

    Corporations and greedy Americans exploit this, as they know you can’t escape having a roof over your head.

    Corporations should not be allowed to purchase homes they don’t live in. No reason a young couple should have to bludgeon their own parents for the downpayment on a starter home.

    It’s all greed. All of it. Go to church and cleanse your soul’s on Sunday- Oh, that won’t work as the greedy churches need money to pay off the lawsuits from the greedy pedo clergy they protected.
    Ewwwwwwwwwwwwwwwwwwwwwwwwwwww.

  12. grim says:

    Was there really ever such a thing as a starter home? Looking back at the 40s and 50s, there was far more homogeneity around houses. What was considered elaborate at the time really wasn’t all that far off from what was median. Sure, you always had the mega mansions, but those were outliers relative to the bulk of the housing stock being built. The variation in incomes were also narrower, which explains the consistency in housing stock at the time.

    The housing stock was newer back then, sure, but that’s an entirely different discussion vs. this concept of “starter homes”.

    I get it, we point back to Levittown and the Post-WWII boom as being highly indicative of “starter home” building, but again, this was entirely a one-off point in time.

    All of this discussion about some “starter home utopia” that existed in the past, I don’t know if I believe it anymore. It’s getting romanticized to no-end at this point.

  13. Phoenix says:

    Levittown.

    I have personally been around many parts of Jersey. Clifton has “Levittown” houses. Even seen them in Randolph.
    Many have been renovated, but some exist like they did in the past.

    Go ahead, to your building department. Tell them you want to build a 740k sq ft home with 2 bedrooms and one bath. Code won’t allow it. They don’t want you, you are riff-raff.

    Or what they will really think -SUB HUMAN.

  14. Phoenix says:

    One way or another, you are going to pay:

    Moment wealthy Florida man is robbed of his gun, sneakers and diamond-encrusted watch after taking two women home from Hard Rock Café for a night of ‘entertaining’

  15. Phoenix says:

    Guy should consider himself lucky. No lawyer’s fees, no false arrest, no fighting over “her” child (it’s never yours), no alimony payments.

    Just had a doc friend of mine asking me what to expect from a divorce. Been working with this guy for 20 years. Nice as can be.

    Sad to hear him. Tough as a bear, I respect the man. Didn’t sound tough yesterday.

  16. grim says:

    In places like NJ, it’s the zoning restrictions that impact home size more significantly than building code specs.

    Minimum lot sizes, subdivision restrictions, setbacks and sideyards.

    Given the cost of property in NJ, you’d be stupid not to build the absolute largest house you possibly could. Not only on the property side, but the construction side as well – price per square foot plummets the larger you build.

    Worse – there is a point at which you would be knowingly losing/wasting money in this calculation. You’d never recover your cost building a 1000 square foot house in NJ.

  17. grim says:

    Hell, I’d buy a nice beachfront lot on LBI, tear down everything. Put up some nice landscaping and a paver pad to park an Airstream on. Storm comes, just roll it out.

    Let the natural landscape flourish, pretty, eco-friendly, green, no obscuring the view of the beach and dunes. Maybe some solar panels to be able to run entirely off-grid.

    By any angle you evaluate this, it should be entirely permissible, even desirable. Probably have more curb appeal than 90% of the monstrosities there.

    But, it’s illegal, I can’t do it. Even if it was rolled off the lot for Fall, Winter, and Spring, I can’t do it. It would be easier to build a 7,000 square foot brutalist concrete cube that’s arms-length to every property line, and cover whatever remaining square inches that remain with rocks.

  18. Phoenix says:

    You zone for the “clientele” you want.

    5 acre minimums keep the riff raff out.

    “In places like NJ, it’s the zoning restrictions that impact home size more significantly than building code specs.”

  19. 3b says:

    Grim: The starter home label was started in the 80 s from what I recall. It was a standard 3 bed 1 bath,( maybe a half bath) . Of course you know this , but the idea was to start here and then work up from there to the dream house. These so called starter homes worked fine for people , but the new idea was start and move up from there. And I guess then the concept became if you stay in a starter house you are poor. People were not encouraged to pay off their mortgages like my parents generation.

  20. Phoenix says:

    Grim
    I agree.

    One word prevents what you proposed.

    Greed.

    And then these muppets build a house there, when a storm comes and damages it ask all other taxpayers to buy them a new home complete with granite countertops.

    Eff you, your house gets washed into the ocean, go grab your soggy underwear, your waterlogged tv, and your car turned boat and go buy a house farther inland. Don’t ask me, the taxpayer, to support your “dream” of becoming a beached whale laying in the sun.

  21. Old realtor says:

    I was building starter homes as late as the early 1990s in Bergen County. Used to build a 24 x 36 bilevel with 3 bedrooms, 2 baths, garage and central air and sell for around $180,000 in Teaneck and Englewood.

  22. Chicago says:

    Some revisions and strong number

  23. Chicago says:

    The 2 was north of 500 now 469.

  24. Phoenix says:

    3b says:
    March 10, 2023 at 8:27 am

    Grim: The starter home label was started in the 80 s from what I recall. It was a standard 3 bed 1 bath,( maybe a half bath) . Of course you know this , but the idea was to start here and then work up from there to the dream house. These so called starter homes worked fine for people , but the new idea was start and move up from there. And I guess then the concept became if you stay in a starter house you are poor. People were not encouraged to pay off their mortgages like my parents generation.”

    _______________________

    Dream house? Who’s dream? His or hers? Let’s answer that question. I guess if your goal in 20 years is to seize something from the person you marry you might as well go big or go home. Just make sure he is working as the judge will ask the basic questions in order to choose who gets evicted from said residence:

    Who takes the child to school?
    Who takes care of the child when they are sick since the other is working?
    Who takes the child off the bus?
    Who does the homework with the child, puts them to bed?

    If the answer is not you, then you will be ejected from the residence and pay. Your career and how hard you work will be the weapon used against you in a court of law.

    This is before the underhanded tricks begin. It’s only the foundation.

    At home, the majority of women (90 percent) still control the family’s purse strings, from stocking up on household items to having the final say on home and car purchases and health care.

    https://www.businessinsider.com/infographic-women-control-the-money-in-america-2012-2

  25. Chicago says:

    Market says 50 hike is 50% area

  26. Phoenix says:

    I was building starter homes as late as the early 1990s in Bergen County. Used to build a 24 x 36 bilevel with 3 bedrooms, 2 baths, garage and central air and sell for around $180,000 in Teaneck and Englewood.

    At what square footage does a “starter home” turn into a real one? I guess this is the group we should be asking, since it’s their decision.

    “At home, the majority of women (90 percent) still control the family’s purse strings, from stocking up on household items to having the final say on home and car purchases and health care.”

    IDK, that doesn’t sound like a “starter” home to me.

    Seems like a good portion of the general public have a bit too much Grey Poupon in their cupboards.

  27. Chicago says:

    Now 34%

    Chicago says:
    March 10, 2023 at 8:38 am
    Market says 50 hike is 50% area

  28. Chicago says:

    Ten 381

  29. Grim says:

    All over the place

  30. leftwing says:

    Too much noise on Ts with SVB to make any conclusions. FFS they stopped the shares what, three minutes after the data release and the 2s reacted immediately? Let the dust settle.

  31. leftwing says:

    Pumps, typed this last night and never hit post. No more time for DNA with markets doing market things. GL.

    Listen, my intention is certainly not to talk you out of taking long term, high return type investments.

    My sole point is to manage expectations on DNA. Do I believe it is going bankrupt? No.

    But the wild eyed internet theories by people with little knowledge or background posting demonstrably inaccurate facts with poor analysis and substantive missing background saying as one of the posts did that the stock should be in the high double digits are dangerous. And flat out incorrect.

    I have a real nice Morningstar piece on some sector players, can’t post it on imgur (won’t upload) and not sure where else to put it, I’m not adverse to dropboxing it somewhere…anyway any reasonable analysis of DNA factoring in all the risks and issues we discussed over the last few days while taking into account the upsides I can’t see this above three anytime soon absent some major change, similar to what I noted (eg, getting someone as a real corporate exec).

    Looking further out….the lotto ticket? It’s simply not there. Based on their own numbers and the structural issues (corporate org, corporate management, need for capital, missing their numbers, adverse selection on the residuals, etc).

    I’m posting this to be helpful to you…not to get you out of the shares – that’s your call – but to give you a realistic, accurate, and evidence and experience based evaluation of their prospects and valuation. And to remind you of sunk cost fallacy (holding something at a loss just to get even) and one of the most helpful pieces of advice given to me in investments – you don’t need to make it back where you lost it. In fact, most times you won’t. GL.

  32. The Great Pumpkin says:

    Lefty,

    Thanks. Appreciate it. If you have any long-term companies with growth potential….let me know.

  33. Libturd says:

    ULTA

  34. The Great Pumpkin says:

    This guy has been pretty on point….he is a trader. This is his opinion…

    “as a macro guy this is a pretty good jobs report for bulls. Wage inflation slowing down significantly, 311k added but slower than last month, unemployment rate now 3.6%! 25 pt hike incoming then a pause. Very happy I stayed long through the fuckery!”

  35. The Great Pumpkin says:

    Thanks.

    Libturd says:
    March 10, 2023 at 9:16 am
    ULTA

  36. Phoenix says:

    Picatinny Federal credit union? Any thoughts?

  37. Bystander says:

    Fixed it blumpy:

    “As a perma-bull, this is a pretty good jobs report. I would stay long..snicker (man, I hope these fools buy it. Oops, I typed that)”

  38. SmallGovConservative says:

    Old realtor says:
    March 10, 2023 at 7:51 am
    “Corporate home buying is the current villain…”

    Like many things, home prices and mortgage amounts used to be very easy to understand — easy for lenders, easy for home buys, easy for everybody. As a prospective buyer, and as this chart illustrates, you knew that you’d be looking for a home that was worth ~4 times your income, with a mortgage that accounted for what, a third of your monthly expenses? Look at the chart, home prices were 4x income forever, until no-doc, interest-only, and other nonsensical mortgage ‘products’ hit the market in the 2000’s.

    https://blueprinttitle.com/infographic-real-estate-trends-then-and-now-80s-edition/#:~:text=The%20higher%20the%20ratio%2C%20the,May%20of%20the%20same%20year.

    While Old knows the industry better than I do, I can’t help but think the biggest culprit now is the govt. Just as govt involvement in the student loan business has caused college prices and student loan balances to skyrocket, likewise, govt involvement in the mortgage business has caused home prices and mortgage amounts to skyrocket — just look at the preposterous Fanniemae loan limits for 2023…

    https://singlefamily.fanniemae.com/originating-underwriting/loan-limits

  39. The Great Pumpkin says:

    Yea, I am pretty confident bottom coming sooner than later. Either this year or next year. Anytime I see bank stocks take a beating like this…usually a sign. Maybe this time is different, but I doubt it.

    These guys (traders) still expect a run up in the short term.

    Bystander says:
    March 10, 2023 at 9:40 am
    Fixed it blumpy:

    “As a perma-bull, this is a pretty good jobs report. I would stay long..snicker (man, I hope these fools buy it. Oops, I typed that)”

  40. Libturd says:

    Bitcoin…

    Mwah mwah.

  41. leftwing says:

    “All of this discussion about some “starter home utopia” that existed in the past, I don’t know if I believe it anymore. It’s getting romanticized to no-end at this point.”

    Thank you. Post of the thread so far. Can we stop these sepia toned false memories of what did not exist in the past…I came out of school in the 80s…top of income scale, we all compared offer letters, my two housemates (EE and CS) and I (banking) were within a few hundred dollars of each other and a good 25% to 33% or better turn above grads going into other industries…result…no home for me, starter or otherwise. Needed 20% (yeah, good luck on that one without assistance and recall at that time assistance was not necessarily viewed favorably by lenders) and 3x or better coverage.

    What blew up house prices into the stratosphere, causing all the adverse effects including the zoning and construction size issues referenced which effects we are still dealing with today in most aspects of life? Yup, you guessed it…

    “…I can’t help but think the biggest culprit now is the govt. Just as govt involvement in the student loan business has caused college prices and student loan balances to skyrocket, likewise, govt involvement in the mortgage business has caused home prices and mortgage amounts to skyrocket.”

    Misguided government policy…it was the stated goal of the Feds to increase homeownership rates above the long term, very tight range of historical averages by making it ‘affordable’ to those who fundamentally could not afford it (please re-read that until enormity of the fallacy of that logic hits you as hard as it should).

    Don’t need to recount all the excesses, it’s the origin of how most of us ended up here. What does need recounting is the *obviously inevitable* adverse consequences of that macro social engineering policy gave us ZIRP, which effects we are still feeling and living with every day of our lives today and for the last two decades.

    So blame Boomer all you want but I know one thing…both sets of my grandparents, maternal and paternal, died in the first house they bought and raised their kids three generations later…among my parents generation (born 1930s and 1940s) there are 11 siblings, absent four geographical corporate relocations each of them is in the first house they bought…frequently, they made additions when needed (and if affordable), if not kids doubled in bedrooms until they graduated and moved on…

    Starter homes…..phhhhhtt…..never heard that term until I was looking for a home in NJ. I’m like ‘wtf do you mean, buy something you don’t want that you know won’t service your needs with the express intent and expectation of dumping it in the future?’. Seriously? The literal definition of a Ponzi scheme.

    Don’t even get me going on how all this flows through to your zoning and construction on the back of bad policy…

    You people are hamsters here. Voting and accepting self destructive policies that put you running full speed on a wheel, thinking you are making great distance, after which you collapse exhausted off that wheel covered in sawdust exactly where you started with maybe if you’re lucky a few drops of water in some container and a handful of pellets from a ‘benevolent’ being you allowed to cage you, and then you chirp loudly about the unfairness of the cage and wheel you freely entered. Fucking hamster brains.

  42. Boomer Remover says:

    Anybody paying attention to the regional bank run?

    Apparently PPP deposits were made to chase 2% yield, which is now unattractive but has not been marked to market, and is likely to be held to maturity. Deposits fleeing to treasury, and the regionals are in a bind.

  43. leftwing says:

    Regionals are in a bind because for the past way too many years they bought LT Treasuries at ridiculous prices (ie, ridiculously low rates) which are substantially underwater now. That is not necessarily a problem so long as they intend to, and can, hold them to maturity (HTM)…problem is when you sell something classified as HTM the entire portfolio gets marked to market and the massive embedded losses must be realized. If, like SVB, depositors get jittery and your only recourse to meet those demand withdrawals is to crack your HTM portfolio, well meet the Fed window and Jamie Dimon or Goldman Sachs calling to buy you at pennies on the dollar funded by government guarantees….

    2022: The year Wall Street discovers bonds can go down in value.

    2023: The year Wall Street discovers banks holding bonds can go down in value.

  44. Libturd says:

    Leftwing,

    I don’t disagree with a single thing you stated above in regards to what brought us here. But the bigger question is why? Why did we decide everyone needs to own a home? I think the easy scapegoat would be to blame it on the Dems trying to get votes from those they were trying to help. Though, my gut tells me, I think the real culprits (as usual) were the IBs who printed money for themselves through their CDOs backed by the subprime trash. Not to mention how much money the rating agencies made knowingly lying about the quality of the trash. And at the end of the day, Angelo didn’t even have to pay. Hmmmm.

  45. Chicago says:

    Lead story – Joseph and Cheryl Petta?

    They have a daughter Jessica, and she marries Thomas File.

    Jessica decides to hyphenate her last name so she is Jess Petta-File.

  46. leftwing says:

    “But the bigger question is why? Why did we decide everyone needs to own a home? I think the easy scapegoat would be to blame it on the Dems trying to get votes from those they were trying to help. Though, my gut tells me, I think the real culprits (as usual) were the IBs who printed money for themselves through their CDOs…”

    Not at all. Wall Street is a convenience sleight of hand to take attention away from where the real action occurs…I’m not blaming Dems…IIRC both Parties had a hand in this misguided social engineering policy (those wonderful, let’s-all-work-together-to-get-something-done Centrists that for some reason every seems to want despite them fucking up the country over the last four decades)…the Dems wanted to put people who demonstrably could not afford an asset in such asset, highly levered no less from the Leftist mantra of ‘helping’ the underprivileged, Repubs were there from the ‘social stability’ perspective of trying to produce behavioral outcomes by giving populations without the skillsets to manage their lives a ‘vested interest’ in their communities by handing them a highly levered asset.

    The issue is the unrelenting march of government social engineering…

    Wall Street doesn’t decide the game or write the rules…but once those are defined there is nothing physical, chemical, or mechanical more efficient, powerful, or relentless in executing in the game….

    If you let the lion out of the cage and it eats you for dinner, that’s on you, not the lion.

  47. BRT says:

    I know lefty understands the science, but do you? If they become what they have the potential to become, they will become “god amongst men.” Able to manufacture whatever they want “on scale.” Majority of the companies in the world will become a source of revenue for them. Talking trillion dollar market cap and some.

    I’m the only person on this board who has published articles in scientific journals on actual DNA strands and sequences.

  48. Chicago says:

    FYI Russell 2000 is heavy in regional banks. What you see is accurate.

  49. leftwing says:

    “I’m the only person on this board who has published articles in scientific journals on actual DNA strands and sequences.”

    No argument here.

    I have an educated laymen’s knowledge of the science, not the scientist’s perspective…what I do understand and where I have the experience is the need, and specifically how to, evaluate valuations and prospects of the businesses possessing and developing competing scientific claims against each other into functional businesses.

    The individual scientists do the hard stuff. I just get to look at their collective efforts, and then pick prospective winners based not just on the merits of the individual science but all the other considerations as well such as ability to execute.

    Candidly, I never got very deep into actual biotechnology because I knew that a CEO presenting why their molecule was the next statin could have something written on his white board that was a physical impossibility that would scream to another scientist and my eyes would not see it. I did a lot, however, in the tool, services, and products space around biotechnology (eg, DNA type companies) as I was capable without having high level specific scientific knowledge.

  50. leftwing says:

    And, btw, BRT I did a little LOL when I saw that comment, I’m familiar with your background.

  51. The Great Pumpkin says:

    Didn’t mean it in a negative way. Was just trying to point out their potential.

    BRT says:
    March 10, 2023 at 10:58 am
    I know lefty understands the science, but do you? If they become what they have the potential to become, they will become “god amongst men.” Able to manufacture whatever they want “on scale.” Majority of the companies in the world will become a source of revenue for them. Talking trillion dollar market cap and some.

    I’m the only person on this board who has published articles in scientific journals on actual DNA strands and sequences.

  52. The Great Pumpkin says:

    Speaking of DNA….looks like the squeeze is on. See if it holds.

  53. Bob says:

    So Wall Street doesn’t lobby the government, fund candidates, or participate in regulatory capture? Good to know. /s

    How cute. Your false earnestness reminds me of Pumps.

    ”Wall Street doesn’t decide the game or write the rules…but once those are defined there is nothing physical, chemical, or mechanical more efficient, powerful, or relentless in executing in the game….

    If you let the lion out of the cage and it eats you for dinner, that’s on you, not the lion.”

  54. Chicago says:

    The End Is Nigh

    Vinyl Records Outsell Compact Disks for the First Time Since 1987

  55. leftwing says:

    “So Wall Street doesn’t lobby the government, fund candidates, or participate in regulatory capture? Good to know. /s”

    Of course they do, with every other industry. Not the point, and near zero relevance to the topic which was the genesis of subprime loans.

    Wall Street was definitely NOT the origin of “hey let’s lend a whole lot of money to people demonstrably unable to pay.”

    That was 100% your politicians. Wall Street could give a flying fuck whether some welfare mom or unemployed Gen-whatever owns a home or not.

    Speak on topics you know…I can assure you Wall Street is quite agnostic on how they make money…sure they prefer an environment where higher margin products flourish (IPOs, M&A)…but at the end of the day they are intermediaries and make money on flows.

    They will eat well, regardless. As will the politicians that set the conditions for those flows no matter how destructive those policies may be. You, on the other hand…

    Blaming Wall Street for the financial crisis is like blaming your local realtor for high home prices or lack of inventory…they are both just brokers for current conditions dictated away from them.

  56. Libturd says:

    “I’m the only person on this board who has published articles in scientific journals on actual DNA strands and sequences.”

    For what it’s worth, I’m the only person on this board who has had his illustrations of actual DNA strands and sequences published in Scientific American.

  57. 1987 says:

    FDIC takes over SVB

  58. The Great Pumpkin says:

    Does this trigger a market collapse? Is this the start of it? Can’t stress it enough, bank stocks taking a bat to the head is usually the signal for when the market will take a bat to the head….looks like this year or next year, but it’s coming one has to think.

    1987 says:
    March 10, 2023 at 12:14 pm
    FDIC takes over SVB

  59. Juice Box says:

    Goota love Wikipedia.

    SVB is already updated to Defunct March 10, 2023; 0 days ago

    8,500+ now unployed.

  60. joyce says:

    Wall Street was definitely NOT the origin of “hey let’s lend a whole lot of money to people demonstrably unable to pay.”

    Yes

    Blaming Wall Street for the financial crisis is like blaming your local realtor for high home prices or lack of inventory…they are both just brokers for current conditions dictated away from them.

    Not entirely. In your opinion, who gets the ‘blame’ for the financial product innovation?

    PS. Right or wrong, remember that some people reflexively say “wall street” when they’re really referring to the financial sector as a whole and not necessary the traditional wall street firms.

  61. leftwing says:

    Perhaps the biggest immediate question re: DNA right now is SVB….

    Not just where are those $1.3B of cash balances held…although that would be the primary question (God bless them if they are on deposit with SVB). But basic stuff like payroll, etc.

    Last thing the employees there need, after seeing their RSUs evaporate, is for the biweekly to not hit on time, or at all….

    Have to imagine we’re going to see some spec-tech cos have issues next week…there were literally founders – CEOs – lined up before open to get funds out in certified form.

  62. leftwing says:

    Juice, they were hiring like crazy recently…mentioned I had a few linkedin feeds still alive…lots of hits there. Ooops. Hope those relo and sign-on bonus checks cleared.

    Oh, and although they took you out of your prior employer’s RSUs at par plus some, we are very sad to inform you your new RSUs have gone to zero….

  63. The Great Pumpkin says:

    This has to be the black swan that takes down the market….liquidity evaporating into thin air. Might take months to work its way through the system, but this is going to hurt.

    “Last thing the employees there need, after seeing their RSUs evaporate, is for the biweekly to not hit on time, or at all….

    Have to imagine we’re going to see some spec-tech cos have issues next week…there were literally founders – CEOs – lined up before open to get funds out in certified form.”

  64. Bystander says:

    Left,

    Sorry, this is bunk. They cared that you got a mortgage. I worked on automated underwriting system in early 2007 and had to implement multiple loan products from nearly every big bank. They had every type of NINJA, 1 year arm and balloon mortgage scam offering. Of course, they were overtly active regarding where money was being made and would run over own mother to keep hoax securitization churn moving.

    “That was 100% your politicians. Wall Street could give a flying fuck whether some welfare mom or unemployed Gen-whatever owns a home or not.”

  65. leftwing says:

    “In your opinion, who gets the ‘blame’ for the financial product innovation?”

    There is no “blame” for innovation, having a hard time wrapping my mind around the question even…It just is…are we ‘blaming’ Henry Ford now for global warming?

    Moreover, there was very little innovation on these products…CMOs, CDOs, CLOs and the like were around for decades. The pathways and risks were well known. And, there was full disclosure and the buyers were sophisticated institutions.

    The fundamental problem, again, were the new underlying ‘ingredients’ prompted by the government.

    Wall Street was a meat processor. They packaged some high end, exquisite jamon iberico, some Boar’s Head ham, some baloney. All accurately labelled. Government shows up with truckloads of snouts, feet, and intestines a few days old. Wall Street pours in as much salt and additives to make it barely palatable – labels the ingredients accurately – and sells them.

    You stock your refrigerator up on that garbage and get sick on it?

    If you’re looking for “blame”….

    We’ve had similar discussions before….if there is a culpable party in the entire process it is the ratings agencies…to continue the analogy they were the inspectors between the processor (Wall Street) and the retailers who not only slapped a “USDA Certified – Grade A” sticker on the meat, but put it right over the part of the label with the actual ingredients.

  66. leftwing says:

    “They had every type of NINJA, 1 year arm and balloon mortgage scam offering.”

    ByS, reading comprehension brother.

    Wall Steet are intermediaries. The sell what is the market…what the market wants, and what it is willing to pay. And, as per your background post and as I said, with ruthless efficiency.

    Back to the realtors….Those $800k shit shacks in 2006? Not their “blame” that they were between a willing seller and a willing buyer coming together and it worked out less favorably for one.

    Riddle me this….if the genesis of the subprime crisis weren’t government policies to put people into houses who specifically could not pay for those houses why did it only occur after the government intervened?

    We both agree Wall Street is a ruthless money making machine…if all these brilliant, money hungry, ill-willed bankers were the ones that came up with the idea of ‘screwing’ everyone and the system with bad mortgage product why did they wait until the 2000s when it became government policy?

    Waaayyyyy more opportunity to have been Dr Evil well before then….

  67. joyce says:

    I should have put air quotes around the word innovation in that question.

    I don’t question the role the government played, but I don’t think the financial services industry is blameless. The causes of the financial crisis and the extent to which various parties are to blame has been debated here a bunch. Not everyone here agrees on the root causes and that’s fine.

  68. Phoenix says:

    leftwing says:
    March 10, 2023 at 1:27 pm
    “why did they wait until the 2000s when it became government policy?”

    Cause they needed someone to open the vault.

    The Glass-Steagall Act was repealed in 1999 amid long-standing concern that the limitations it imposed on the banking sector were unhealthy and that allowing banks to diversify would actually reduce risk.

  69. BRT says:

    For what it’s worth, I’m the only person on this board who has had his illustrations of actual DNA strands and sequences published in Scientific American.

    hah, well, I made the graphics in mine too, but they looked like garbage in hindsight

  70. Phoenix says:

    Here it is. A thing of beauty.

    https://youtu.be/mJphsJYkfmE?t=416

  71. 3b says:

    Reinstate Glass Stegall.

  72. Phoenix says:

    BRT says:
    March 10, 2023 at 1:42 pm
    “For what it’s worth, I’m the only person on this board who has had his illustrations of actual DNA strands and sequences published in Scientific American.

    hah, well, I made the graphics in mine too, but they looked like garbage in hindsight”

    That’s great, but when I was just a wee lad I had my actual DNA strands and sequences stuck between pages of Playboy and Penthouse.

  73. Phoenix says:

    The lion is Wall Street.

    If you let the lion out of the cage and it eats you for dinner, that’s on you, not the lion.

  74. leftwing says:

    Glass Steagall had absolutely zero to do with the subprime crises. I know, I was sitting in my office for both. MBSs existed decades before Glass Steagall.

    Joyce, agree with everything you said which seemed to also include a conclusion to the discussion (which I will take).

    The only parting comment I have refers back to an earlier one…the search for “blame”. I don’t understand the meaning in this context. Blame to me is fault, proactive. Not inevitability.

    You jump out of an airplane without a parachute there is a highly predictable outcome. Neither gravity nor the ground is to ‘blame’.

    You mandate that people who can’t pay for things are given very expensive things on long term credit incenting and expecting the most efficient money raising machine in the world to enable it there is a highly predictable outcome.

    LOL, the same outcome as the dude in the air plummeting toward the ground, actually.

  75. Bob says:

    I just don’t like being called a hamster.

  76. leftwing says:

    “The lion is Wall Street…If you let the lion out of the cage and it eats you for dinner, that’s on you, not the lion.”

    Yes. That is the intention of the analogy.

    If you would like to make it more nuanced, put a politician [safely] on top of the cage pulling the latch and John Q. Public as the feeder in front of the door, approaching the opening cage with a bowl of food…

    Would make a good Daily News cartoon back in the day lol.

  77. Phoenix says:

    Had to buy a new car during the pandemic. Brought it today for it’s included 10k service- tire rotation, oil change, etc.

    The dealer, not Jiffy Lube.

    Muppets put the wrong oil in it. So, on my day off, just did my own oil change doing it the correct way. Dealer first said, paperwork wrong, right oil, it’s just for billing. However, it’s a warranty issue- next, dealer said, this oil is fine, so are a few other viscosities. Nope, not according to the manual.

    Everyone either sucks at their jobs, is lazy, doesn’t give AF. It’s just what we are now.

    40 ish co-worker last night when she heard my boss saying she might leave, good boss- ” Who is going to take care of us now?”
    My response ” You are a grown woman. Just do your job, is that so hard.”
    The puss on the face, you could feel the heat as the squirrel in her head started to run in its cage over the anger.

  78. Bystander says:

    Left,

    WS are the politicians, cmon now. They see a huge opportunity to make billions and bend (often break) the law at their will. They are not intermediaries. They are the activists. I agree on the rating agencies but I recall being a naive chap at Tavern on the Green party thrown by the due diligence legal divisions, with the ratings firm reps and WS mortgage execs all sipping wine together. That is a political machine of donors and lobbyists. All paid by each other to ignore what each other were doing.

  79. Phoenix says:

    America is losing it. Bankers calling the police on depositors. Hahaha.

    “Silicon Valley Bank’s Manhattan branch calls COPS on investors trying to pull their cash out ”

    https://www.dailymail.co.uk/news/article-11845495/Silicon-Valley-Bank-branch-calls-NYPD-tech-investors-tried-pull-cash.html

  80. Bob says:

    I do think Wall Street provided its stamp of approval to loosening credit and was complicit in putting in all the right backstops. Like Geithner. Complete and utter stooge.

  81. 3b says:

    Left: Understand, I just believe Glass Stegall never should have been repealed. If I remember correctly one of the reasons given by the banking industry was that without repeal they would not be able to compete with European banks. That’s a laugh.

  82. leftwing says:

    “Here it is. A thing of beauty.”

    Hard to tell where you land…my first post on this topic was that the ‘Centrists’ of both Parties that everyone seems to clamor to return were at the root of this crisis…

    …and there he is, third generation politician, Yalie, with a paternal great grandfather who was a railroad exec around 1900 and a maternal great grandfather who ran one of the largest private banks on Wall Street about the same time, and who had multiple Cabinet members up and down three generations of the family tree. Oh, yeah, and a Dad who was President too.

  83. Bob says:

    I must have missed the election where I was given the choice to bail out Wall Street or not.

    Trump killed me by capping SALT and giving too much money away during COVID.

    Biden kills me by pulling out of one war and immediately funding another.

    Anyone who thinks these policies are set by voting red or blue at the voting booth is a simpleton.

  84. Phoenix says:

    Easy to tell where I land.

    They are all full of so much shi te their teeth, eyes and hair is brown.

    A Dem repeals Glass Steagall, A repub claims “weapons of mass destruction” and bombs a country into oblivion with no proof, now a Democrap with 2 working brain cells is trying to start WW3

    Yeah, they all suck. I said it.

    A Texas elementary school principal has been arrested for allegedly bringing cocaine to campus, according to reports Wednesday.

    And teaching, it must suck so bad you need some coke just to get through the day:

    Maybe those fake “DARE” officers should be giving lessons to the staff

    Texas elementary school principal arrested after bringing cocaine to school: reports

    Jessica Sanchez is charged with possession of a controlled substance in a drug-free zone, KTRK-TV first reported. She was arrested after an employee found the drugs in a restroom at Travis Elementary in Baytown, Texas.

  85. The Great Pumpkin says:

    Truth…it’s bad out there.

    “Everyone either sucks at their jobs, is lazy, doesn’t give AF. It’s just what we are now.”

  86. Juice Box says:

    Re: SVB – Twitter user posted this today.

    Only 2.7% of Silicon Valley Bank deposits are less than $250,000.

    Meaning, 97.3% are over the bailout limit.

    Ouch.

  87. Phoenix says:

    To serve and protect: Don’t become homeless in America-this will be your reward:

    https://youtu.be/UtHYlDI1q2A?t=25

  88. Libturd says:

    “Anyone who thinks these policies are set by voting red or blue at the voting booth is a simpleton.”

    Now that’s the post of the day!

  89. Libturd says:

    I have a million right now in seven different banks and I still hardly feel protected.

  90. Phoenix says:

    Libturd says:
    March 10, 2023 at 2:50 pm
    “Anyone who thinks these policies are set by voting red or blue at the voting booth is a simpleton.”

    Now that’s the post of the day!

    “Anyone who thinks Pegasus isn’t being used to get insider trading profits is a simpleton.”

  91. Libturd says:

    Who needs Pegasus. You can pretty much do it in broad moonlight and daylight as the majority speaker of the house.

  92. BRT says:

    Phoenix,

    it’s rampant everywhere. When I had a fridge delivered, I offered the mexicans an extra 50 bucks to move one downstairs. They didn’t want anything to do with that, even though they had the equipment. They also refused to attach the fridge the waterline because the line was in inch below the floor.

  93. 1987 Condo says:

    The “Home Ownership” thing was a big Clinton push as well. Ideally it seems good, but the drawbacks were either not evident or purposely ignored. But it got votes!

  94. The Great Pumpkin says:

    Problem with “universal homeownership?” Not everyone is capable of taking care of themselves, never mind a property. You have to be a landlord to realize how f/ing helpless and lazy some people are out there. They are lucky there are landlords and the govt to take care of them.

  95. The Great Pumpkin says:

    WFH is a f’ing aberration that allows the useless to sit at home and get paid. Enough with this chit. It doesn’t mix at all with the current work ethic out there. You are going to destroy our society with this bs.

    “The so-called “woke” policies Republicans so vehemently oppose include:

    🖥️ Remote work options for people with disabilities
    💵 Living wages for federal employees and interns
    👩🏽‍🚒 Dignified work conditions for wildland firefighters” AOC’s twitter

  96. leftwing says:

    chi, Let’s Go Red!

    Think ESPN+ still streaming…6.99 for the month of games if you’re just pulling your wank tonight….

    hey brother, last time the 2Y moved 40bps in a day…?

    writing near term premium today on names I like with vol expansion…hit and run, I’ll take a quick small return Mon/Tue…hockey equivalent of not skating hard, no two way play, and just standing in front of the net weak side waiting for everyone else to to the hard work and get the puck to net….

  97. leftwing says:

    Ground control to Cathie Wood, ground control to Cathie Wood, check ignition and may god’s love be with you…..

    https://www.sec.gov/ix?doc=/Archives/edgar/data/0001428439/000142843923000010/wk-20230310.htm

    I don’t know how many times I’ve shorted this fucker…kind of like the chick in college you were disinterested in but somehow always woke up there on random Saturday mornings going ‘wtf am I doing’….should have hit this one, one more time….

  98. leftwing says:

    Anyone looking at the Dead & Co charity concert at Barton Hall in May commemorating that show from’77?

    Decent tix start around $500, closes tonight (lottery)…

  99. leftwing says:

    Alright, time to log off, close screens, and crack a few IPAs with way too high ABV…

    G’night all.

  100. brt says:

    That was quite a day in the market. VC’s begging for a bailout on their deposits. I’m told that the economy is still looking up. Was waiting for the crack to appear.

  101. Hold my beer says:

    In honor of Pumps investment in his favorite group of scientists, I give you a musical tribute from my favorite group of scientists.

    https://www.youtube.com/watch?v=HvZLEF0OoWg

  102. Juice Box says:

    George Santos is done now he was robbing the banks. Credit Card skimming operation.

  103. Juice Box says:

    Just back from the PM Pediatrics by me, my son fractured his pinky toe in soccer practice last night.

    In and out in 1 hour including x-rays!! No line to speak of appointment and documents all done online before I arrived.

    Seems he will miss the first and perhaps second game of the season. We are out for blood this year too, these kids have been training hard all winter.

  104. Juice Box says:

    Put your money in a safe place like behind Biden’s Corvette.

  105. BRRT says:

    DNA: Gingko says roughly 6% of cash, cash equivalents held in SVB accounts $DNA

  106. BRT says:

    Sangamo $SGMO – 11%, $34M exposed
    Rocket Lab $RKLB – 8%, $28M
    Roblox $RBLX – 5%, $3 BILLION
    Ambarella $AMBA – 8%, $17M
    Gingo Bioworks $DNA – 6%, $74M

  107. 3b says:

    If everyone just went back to the office 5 days a week, and things returned to what used to be, all would be fine. But no , these feckers destroying it all, while others are up and out busting their asses, it ain’t right! Feck them!!

  108. Grim says:

    Talked to a VC late this afternoon.

    SVB is a shitshow, everyone’s working capital account. Nobody making payroll on Monday. Everyone is scrambling to get a loan right now.

  109. Grim says:

    Bank failures…

    Just like old times.

  110. Grim says:

    Bought $300 worth of stuff from Camp for $100.

    Wonder if I get it.

    Bankrun is the promo code.

  111. phoenix says:

    What is all the fuss? Americans upset someone stole from them? Just get a lawyer and get your money back, it’s real easy, trust me.
    Don’t go there and try to take it, or even look at it, the police will arrest you as they and the courts will decide just if or how much you deserve. They get to decide your fate, not you.

    Hahaha.

  112. Phoenix says:

    Hahaha. Now that’s funny.

    3b says:
    March 10, 2023 at 8:26 pm

    If everyone just went back to the office 5 days a week, and things returned to what used to be, all would be fine. But no , these feckers destroying it all, while others are up and out busting their asses, it ain’t right! Feck them!!

  113. BRT says:

    Nobody is making payroll, but those job numbers were strong today

  114. Juice Box says:

    3B – Well done..

    But it’s arses…

    “Me father told me if they just got off their arses…”

  115. The Great Pumpkin says:

    You just don’t get it. You really don’t. WFH is a reflection of the new work ethic of soft generations that have had it too easy. It’s like a spoiled child that can’t follow in their hardworking parent’s steps. If you think the generations of americans that made America great would sit home all day, you are lost in the woods. Work ethic and quality of worker is almost nonexistent today. Our society is becoming soft, and only focuses their energy on complaining about how unfair life is with their woke bs. Wake up, 3b!!…wfh is an aberration and a reflection of how soft we have become. Home from work…not work from home. Get it straight.

    F’ing soft ass woke complainers crying about having to go to work. What a bunch of soft bitches.

    3b says:
    March 10, 2023 at 8:26 pm
    If everyone just went back to the office 5 days a week, and things returned to what used to be, all would be fine. But no , these feckers destroying it all, while others are up and out busting their asses, it ain’t right! Feck them!!

  116. BRT says:

    Where’s JJ at, I wanna know if he’s buying up SIVB bonds

  117. The Great Pumpkin says:

    Maybe the Fed jacking up rates at this pace will have some unintended consequences. This is the start…

    brt says:
    March 10, 2023 at 5:53 pm
    That was quite a day in the market. VC’s begging for a bailout on their deposits. I’m told that the economy is still looking up. Was waiting for the crack to appear.

  118. The Great Pumpkin says:

    Said it two days ago on this blog…the banks taking a bat to the head was a strong historical signal that the bat is finally coming for the rest of the market. It never fails…and looks like will hold true again this time. From 1929 to 2008…the bank signal never fails.

  119. Phoenix says:

    Anyone surprised? In other news, escaped criminals successfully lobbied against having to wear handcuffs while being arrested.

    REVEALED: CEO of collapsed Silicon Valley Bank successfully lobbied Congress against imposing extra regulations on his firm in wake of 2008 financial crisis

  120. ExEx says:

    President Donald Trump signed the biggest rollback of bank regulations since the global financial crisis into law Thursday.

    The measure designed to ease rules on all but the largest banks passed both chambers of Congress with bipartisan support. Backers say the legislation will lift burdens unnecessarily put on small and medium-sized lenders by the Dodd-Frank financial reform act and boost economic growth.

    https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rolling-back-some-dodd-frank-regulations.html

  121. The Great Pumpkin says:

    The Great Pumpkin says:
    March 8, 2023 at 5:53 pm
    Liquidity is everything. I was being dead serious earlier when I said I am starting to get scared that this might be a crash landing.

    Nomad says:
    March 8, 2023 at 5:32 pm
    Chi, thoughts?

    “WARNING: the Money Supply is officially contracting.
    This has only happened 4 previous times in last 150 years.
    Each time a Depression with double-digit unemployment rates followed.”

    https://twitter.com/nickgerli1/status/1633536085308366866

    The Great Pumpkin says:
    March 9, 2023 at 7:51 pm
    Boomer,

    What I do know, bank stocks took a bat to the head. Buckle up. Sooner or later, we are going down.

    The Great Pumpkin says:
    March 9, 2023 at 7:53 pm
    The signs are all there…all around us. They are going to pull the rug in the stock market sooner than later.

  122. The Great Pumpkin says:

    Blame regulations all you want. This is what happens when you raise rates this hard and this fast. They single handily took this bank down by raising rates so fast, it destroyed their entire bond position. Keep raising them rates…

    Phoenix says:
    March 11, 2023 at 8:07 am
    Anyone surprised? In other news, escaped criminals successfully lobbied against having to wear handcuffs while being arrested.

    REVEALED: CEO of collapsed Silicon Valley Bank successfully lobbied Congress against imposing extra regulations on his firm in wake of 2008 financial crisis

  123. The Great Pumpkin says:

    They already destroyed the housing market…can’t wait to see the repercussions to start showing up in the housing market. Buckle up!!!

  124. The Great Pumpkin says:

    Now all you need is for corporations to start a bank run by pulling all their money out on monday. Don’t think this will happen, but the risk is there now.

  125. Phoenix says:

    America is fighting hard to start WW3 with two superpowers.

    China is brokering peace deals in the Middle East. California is getting massive amounts of snow.

    That’s crazy talk!
    ———————
    Regional powerhouses Iran and Saudi Arabia agreed Friday to restore ties and reopen diplomatic missions in a surprise, Chinese-brokered announcement that could have wide-ranging implications across the Middle East.

    In a trilateral statement, Shiite-majority Iran and mainly Sunni Muslim Saudi Arabia said they would reopen embassies and missions within two months and implement security and economic cooperation deals signed more than 20 years ago.

    Riyadh cut ties after Iranian protesters attacked Saudi diplomatic missions in 2016 following the Saudi execution of revered Shiite cleric Nimr al-Nimr — just one in a series of flashpoints between the two longstanding rivals.

    Friday’s announcement, which follows five days of previously unannounced talks in Beijing, just after China’s president Xi Jingping was elected to a another five year term, and several rounds of dialogue in Iraq and Oman, caps a broader realignment and efforts to ease tensions in the region.

  126. Phoenix says:

    Poor California. Constant water shortages, now here comes there saving grace and it’s all going to Mexico now.

    8000 cu/ft per minute being released from the dam. That’s roughly 60 thousand gallons per minute that, if they weren’t so greedy, they could have built reservoirs to store that water.

    Have to build something on every inch and profit. Oh well.

    Their hands will be in my pockets soon, begging for my tax dollars to rebuild their homes on that unstable land. Well, it’s better than sending it to a foreign country I guess.

    And the Colorado river in Mexico will, for a short time, be slightly wider than my stream of urine this morning. Well, maybe not, since America put a dam before Mexico as you can’t give them a drop either.

    Guess Mulholland’s plan wasn’t so great after all.

  127. leftwing says:

    Life is so rich….LOL

    https://imgur.com/a/wYjgwIB

  128. Grom says:

    SVB bailout on Sunday…

  129. The Great Pumpkin says:

    “SVB in a nutshell:

    They lost more than a billion dollars every time interest rates went up 25 basis points
    +
    interest rates went up 450 bps last year
    +
    they had no interest rate hedges
    +
    deposit outflows as VC funding slowed down
    +
    attempt to raise equity triggered a bank run”

  130. The Great Pumpkin says:

    Post of the day….dead on. Greed is a sin. It carries a heavy cost. Keep building in Florida and pissing away valuable resources…and leaving the cost for everyone else. You hit them with higher building costs,while at the same time, leave them with the cost of rebuilding Florida over and over again.

    Phoenix says:
    March 11, 2023 at 8:56 am

  131. OC1 says:

    “You just don’t get it. You really don’t. WFH is a reflection of the new work ethic of soft generations that have had it too easy. It’s like a spoiled child that can’t follow in their hardworking parent’s steps. If you think the generations of americans that made America great would sit home all day, you are lost in the woods. Work ethic and quality of worker is almost nonexistent today. Our society is becoming soft, and only focuses their energy on complaining about how unfair life is with their woke bs. Wake up, 3b!!…wfh is an aberration and a reflection of how soft we have become. Home from work…not work from home. Get it straight.”

    LOL.

    “They [Young People] have exalted notions, because they have not been humbled by life or learned its necessary limitations; moreover, their hopeful disposition makes them think themselves equal to great things — and that means having exalted notions. They would always rather do noble deeds than useful ones: Their lives are regulated more by moral feeling than by reasoning …”
    – Aristotle, circa 350 BC

    Some things never change, I guess…

  132. Bystander says:

    Left,

    That is a tasty show. Sucks that Monday night.

  133. The Great Pumpkin says:

    “If the Fed cuts rates over the weekend, and backstops, the banks stocks and bonds would explode and a crisis temporarily averted . Big they’d be admitting they made another mistake and are incompetent. Big weekend for certain”

  134. The Great Pumpkin says:

    OC1,

    Some things never change indeed. Why do you think great civilizations constantly rise and fall? You have one generation that grew up having it tough, giving them grit and ambition to make their civilization great. Then new generations are born into this easy life created by prior generations. They no longer have the same grit or ambition to drive said civilization…then the downfall begins unless another generation comes to the rescue again.

    Don’t think for a second that we are any different than the romans or greeks….or any great civilization.

  135. The Great Pumpkin says:

    Holy chit! This is top tier comedy! Ripping the tech companies.

    Check out this video. Esp the 1:49 mark, where he rips WFH workers…exactly what i said-working 4 hrs if that.

    https://twitter.com/therealcorpbro/status/1634210020954099712?s=46&t=0eaRjeKWHSIY8WCyPT4KMg

  136. grim says:

    Fed cut this weekend? Absurd, why.

    Sell SVB to another big bank, Fed will open the window to lend dollars against securities, entirely resolving their liquidity issue.

    Whatever big bank absorbs them will get a fire-sale deal on them, with little risk.

    This is the way.

  137. BRT says:

    2008, Home prices never decline…it’s all good. 2022. Interest rates will fall forever, even when we area already at zero. ZIRP has consequences. We built a house of cards that cannot survive without low interest loans. There’s no easy way out of this.

  138. The Great Pumpkin says:

    Grim,

    Rates are too high. They raised it too hard and fast. Pain is now finally showing its face. SVB will get absorbed and it will seem like the crisis is averted, but this is just the beginning of multiple cracks being formed by the significant hike in rates in a short period of time. Not saying this is correct, just what I believe.

  139. Juice Box says:

    re: “survive without low interest loans”

    Nah SVB was not making loans. They took the deposits about 50% of them and bought bonds instead. Again they weren’t in the business of making loans to startups, they were just the Bank they all used in the business based upon having that reputation that you banked with SVB. A badge of honor built on a house of cards.

    Sell $21 billion slug of government bonds and take a loss of nearly 2 Billion on it was enough to take them down.

    Again why were they doing this? Well lending is a risky business when it comes to startups. Like many banks they did not lend money. Banks are sitting on trillions of excess reserves. Trillions in deposits, your money that they won’t lend that money out they instead buy UST and other instruments and go for the guaranteed money instead. Lending money? We are a bank we don’t want that kind of risk.

    All this began in 2008 folks…

  140. Bystander says:

    Ever come to conclusion that they lowered too fast Blumpkin..it is BS argument to me that they have raised too quickly. You are now 2.5 years into people paying 40-50% more for a home. The Fed should never have zirped in 2020. Absolutely no need as rates were already too low. They created the bubble and painted everyone into corner with zirp. ZIRP is not the answer now. Pain/reality..lots of it.

  141. Libturd says:

    It’s not like Powell and Clubber Lang didn’t warn us.

    https://youtu.be/lSPNQ82Sq4E

  142. Phoenix says:

    Ron DeSantisville- this video is amazing. Are the courts there messed up or is this guy connected to the local PoPo? His globe is polished.

    Be careful there, you never know:

    https://www.local10.com/news/local/2023/03/10/charges-dropped-against-man-arrested-for-road-rage-shooting-on-i-95/

  143. Phoenix says:

    Juice,
    Good post.

  144. Juice Box says:

    re: “Sell SVB to another big bank”

    There won’t be any more forced marriages of the banks. Washington Mutual & JPMorgan etc. I read somewhere Dodd Frank law prevents it.

    Why should they get any bailout from the Fed in any fashion? They bought UST they did not go under because of bad loans.

  145. Juice Box says:

    I can now see a scenario where some people are going to go short on a few banks that are mid tier and publicly traded, the news will blow up on social media again causing a stamped to the bank branches to get money out. There will be another takedown that someone is going to get very rich on.

    This is the way.

  146. Juice Box says:

    Whoops…

    Coin ain’t so stable anymore.

    Circle’s USD Coin, a stablecoin which is designed to trade exactly at $1, fell below 87 cents after the company said it had $3.3 billion tied up in the collapsed Silicon Valley Bank

  147. Libturd says:

    Not sure why a bank should be bailed out. I have no sympathy for anyone or any business that has more than 250K in a bank. Pay the FDIC and be done.

  148. BRT says:

    They didn’t realize that zero was the bottom of interest rates

  149. BRT says:

    Tens of millions in cash on hand, hire someone to assess counterparty risk. Tech bros forgot what risk management was for 15 years.

  150. The Great Pumpkin says:

    The inverted yield curve warned of what just happened. The Fed fighting the market is man versus nature. Nature is ALWAYS a big favorite. Though temporarily it can be postponed but never averted.

  151. The Great Pumpkin says:

    BREAKING: HARRY AND MEGHAN STAND TO LOSE MILLIONS IN COLLAPSE OF SVB BANK

    Sources tell iSN the couple set up accounts following the advice of friends in Silicon Valley.

    “This is a major blow,” said our source, “They had all of Harry’s money there.”

  152. The Great Pumpkin says:

    Not sure, if true, but this could get bad.

  153. Bob says:

    Pumpkin,

    My boomer father was able to buy a 4 Br home at 24, have a stay at home wife, and raise four kids on a single salary, all with no college degree. He also enjoyed a pension after retiring at 60.

    Show people where they can sign up for that today and they might decide not to be such soft woke bitches and go back to working in an office.

    We reap what we sow.

  154. Juice Box says:

    re: “They had all of Harry’s money there”

    Schadenfreude allowed over this? or No?

    You mean he is going to have to go back to the king and beg?

  155. Bystander says:

    Oh, no Harry and Meghan..except one paid interview and they make more than you make in ten years. Give up some exclusive dirt on royals and home in Malibu paid cash

  156. BRT says:

    Joseph Gentile is the Chief Administrative Officer at SVB Securities.

    Prior to joining the firm in 2007, Mr. Gentile served as the CFO for Lehman Brothers’ Global Investment Bank where he directed the accounting and financial needs within the Fixed Income division.

    0 for 2.

  157. 3b says:

    Busyander: I guess Harry and MeGan are going to get new friends!

  158. Libturd says:

    That’s what happens when you let a Gentile run a bank. Stick with us Jews. We’ve been around for a long time. The longest, supposedly.

  159. 3b says:

    Lib: Yeah, and you guys are good at it!! The Gentiles let you do banking stuff in the Middle Ages so you have lots of experience!!

  160. Libturd says:

    Jews understand risk. Except when it comes to salt intake.

  161. leftwing says:

    “Fed cut this weekend? Absurd, why. Sell SVB…Fed…entirely resolving their liquidity issue.”

    Absolutely. The idea that the Fed would alter a major domestic policy over literal pocket change is ridiculous. $2B is one percent of the assets of SVB and an infinitesimal amount to the Fed…literally, when JPow before a meeting rips a quick pass of gas $2B is what the Fed spends in that amount of time…I’m the biggest proponent of an ‘open’ internet of ideas but the crazy shit that gets posted and taken for truth is mind boggling sometimes….

    “Again they weren’t in the business of making loans to startups…Trillions in deposits, your money that they won’t lend that money out they instead buy UST…”

    As my middle schooler would say, no duh. Banks are not there to lend to startups and if they did they would go out of business literally overnight.

  162. Hold my beer says:

    Pumps

    Harry really is a genius. He should have kept the bulk of his money in t bills in his name.

    I guess they will have to go on another privacy tour.

  163. Hold my beer says:

    Went to CVS to pick up a different inhaler my new asthma doctor put me on.

    It was $551. With insurance. I gave them the discount card from the pharmaceutical company the doctor had given me. They ran it though with that. Came back $551.

    Will try getting it filled out a local place Monday. They tend to give better deals than the big chains on those pharmaceutical coupon cards

  164. The Great Pumpkin says:

    Problem is; economy is built on growth and capitalism. It takes debt to create growth. Therefore, cost must continuously go up to service said debt. As the economy ages and matures, costs go up to cover said debt till it all crashes and you do it again. Your father was fortunate to have grown up in a time of rapid population growth that fueled rapid economic growth. You are now living in the exact opposite conditions. Low population growth that leads to low economic growth combined with massive debt created from your father’s generation. Thank his generation for driving up the costs on you and leaving you with the bill. You can cry about it, or go bust your ass to try and overcome it.

    Bob says:
    March 11, 2023 at 1:58 pm
    Pumpkin,

    My boomer father was able to buy a 4 Br home at 24, have a stay at home wife, and raise four kids on a single salary, all with no college degree. He also enjoyed a pension after retiring at 60.

    Show people where they can sign up for that today and they might decide not to be such soft woke bitches and go back to working in an office.

  165. The Great Pumpkin says:

    The chinese were living like your dad the past 30 years. Now their kids will suffer like you as their population growth falls off a cliff combined with massive debt.

    That’s why civilizations and economies always die…so that you can start the game over again. There has to be a better way, but we haven’t found it yet. We ride capitalism and enjoy the ride till we you climb the debt mountain and fall off a cliff to reset it all again.

  166. ExEx says:

    Spending the day at UCSB for a “science Olympiad” (I’m club advisor)
    It’s a fine place. Kind of in the middle of nowhere by the airport. They do have a beach.
    Buildings are very typical and the campus while nice is relatively non-descript.
    If this school was in Toledo, it wouldn’t get much notice..,

  167. Bystander says:

    Hold,

    CVS in the devil incarnate. I hate them with every fiber. There is not one thing in that place not priced at gouge level. I am in same boat. I found out insurance won’t cover Redi-inhaler in 2023 and Dr. going to prescribe another. Can’t wait to see this one.

  168. Phoenix says:

    It’s capitalism. Embrace it. No democrap or repuke has ever tried to stop this from happening when they both have their finger deep inside it.

    Hold my beer says:
    March 11, 2023 at 3:31 pm
    Went to CVS to pick up a different inhaler my new asthma doctor put me on.

    It was $551. With insurance. I gave them the discount card from the pharmaceutical company the doctor had given me. They ran it though with that. Came back $551.

    Will try getting it filled out a local place Monday. They tend to give better deals than the big chains on those pharmaceutical coupon cards

  169. Phoenix says:

    HMB,
    I’ll bet Mitchey McConnell has every nickel of his hospital stay paid.

    No copay for him, not even for his complementary massages.

    You, being a regular Joe, well, breathing is optional. Don’t be greedy.

    Reduce your tidal volume by 30 percent, and be satisfied with an O2 saturation of 95%. It’s all you deserve you serf.

    Oh, and back to work for you. Not from home either.

  170. Juice Box says:

    Ho Hum contacted the Top Pediatric Orthopedist reccomended around here for my son. He won’t take my insurance. He just a broken pinky toe. I will go with the number 2 doc on my list.

  171. Juice Box says:

    Hold my beer

    Try Mark Cubans company.

    https://costplusdrugs.com/

  172. No One says:

    Today’s Levittowns are trailer parks. I notice there are a lot of them in Florida and hardly any in NJ. Not sure why, too hard to heat?

  173. Hold my beer says:

    Bystander

    Have you tried local mom and pop places? I remember I got a prescription from my dermatologist a few years ago. It was around $400 at Kroger with insurance. I had it transferred to a local compounding place and with the pharma company’s coupon it was $20. Hoping the inhaler is the same deal. Otherwise will be getting something different

  174. Hold my beer says:

    Juice

    Thanks. I checked and it’s not on that site.

  175. Juice Box says:

    UCSB – My wife is a grad. Go visit Harry & Megan in Montecito and see if they need a loan OR go to dinner down on State St for dinner.

  176. Juice Box says:

    What boardroom? They are done… FDIC-SVB Holding Co now.

  177. Phoenix says:

    My daughter and I are watching Suits on our weekends. Only in our second season. Meghan looks fine to me. I find her attractive. Based on the show that is.

  178. Phoenix says:

    HMB,
    If it’s not in your formulary, ouch.

    Not sure of the exact drug, but if you can, and it would work for you, get a different inhaler with a different medication. It may or may not be possible to switch.

    If not, sometimes manufacturers have a discount if you contact them. Sometimes they have financial restrictions you may need to meet. I’ve never done this.

    Or fight your insurance company. That might take some time.

    Or you could just move to Europe, where it would be covered.

    Or go to Mexico, Canada, or India, where, unlike capitalist America, you could buy the same medication for 1.49.

    Just keep saluting that flag, tell yourself how great it is here, and send your tax dollars to constantly fight wars in foreign countries. A dozen aircraft carriers and 800 military bases aren’t cheap to maintain.

  179. Phoenix says:

    Capitalism: In America, you get Hepatitis C the same way you get the treatment, up the pooper:

    “In early 2015, while facing severe backlash for a U.S. list price that equated to $1,000 per pill, Gilead formed manufacturing and marketing licenses that slashed the price to $10 per pill in India”

  180. Phoenix says:

    American dream downpayment act of 2003 George Bush:

    https://bit.ly/3Jy7HdO

  181. Juice Box says:

    Gotta love this..

    “It isn’t surprising that some banks would face distress amid a rapid rise in interest rates, said Steven Kelly, a researcher at Yale University’s program on financial stability.”

  182. Juice Box says:

    Again we will see a call for bailouts. Print more money….

  183. Juice Box says:

    Beer is not far from Mexico 360 miles.

  184. Phoenix says:

    Juice Box says:
    March 11, 2023 at 7:46 pm
    Beer is not far from Mexico 360 miles.

    Plenty of vacation forums where people basically plan a vacation in order to purchase medications at lower cost. Was on a cruise years ago, was surprised to see what controlled medications were easily available in other places that I needed access to a Pyxis in order to get for a patient.

    America is an anti-drug, anti-sex country. Put it is very Pro Violence.

    God forbid there is a nipple slip, the FCC will fine millions, but we love to watch shows on killing and bombing.

  185. Phoenix says:

    Juice Box says:
    March 11, 2023 at 7:43 pm
    Again we will see a call for bailouts. Print more money….

    Taxpayers will pay for this, Ukraine, everything else.

    But if one of our own needs an inhaler, its go FYS.

    Salute the flag, it really cares about you as much as you care about it. /s

  186. Phoenix says:

    If HMB is in Texas, and he steals that inhaler in order to breathe cause he is broke, the police will ventilate him permanently.

    Now you get air not just through the nose and mouth, but through the 9 sucking chest wounds.

    How dare you try to live. Your breathing issue is not our problem.

    Signed, American legal system.

  187. BRT says:

    A student of mine told me her aunt in New Zealand had a cancerous tumor that needed to be removed. They put her on a waiting list and told her it might be 2 years. Perhaps they don’t know how cancer works. She is a native of the Phillipines and went back there to get the surgery immediately. All of these 1st world countries are dysfunctional and resembling the third world each and every day, especially the US.

  188. Juice Box says:

    BRT – I had the conversation tonight with the actual doctor a recommendation from a friend who is in the business. I explained my son’s issue and my so called great insurance.

    I kid you not he said he is in plan but just decided not to take United Health anymore, just tired of their crap. Like I was some deadbeat lead or something. Young doctor too, sounded depressed. I wished him well and moved on. I kid you not top doc down here, it’s like someone shot his dog today was the vibe I got from him.

  189. WorldPrivacy TourLover says:

    The clip you want regarding the bank run is this one. The part of Peter Thiel is played by Bart Simpson https://youtu.be/Bzz8BvaQL9Q

    Juice,

    Realize that https://www.nephronpharm.com filed for bankruptcy and factory went standtill. Nephron is one of the two manufacturers in this country of bronchodilators and airway inhaled medications. All hospitals are experiencing a shortage of nebulized drugs and are replacing as much as possible with puff inhalers.

  190. Walking says:

    We are in the process of dropping united as well. The hoops they make you jump through for a $45 office visit payment is not worth it. Some surgeries at Phoenix hospital, we go in, get $200 payment. We have privileges there not part of their network. So you take an hour prepping and hour for the surgery and an hour making sure the patient is ok and followup with family. That works out to $66 an hour. Plus you have a staff sitting around waiting for u

  191. Juice box says:

    We have other choices.

    I JUST HATE THIS SYSTEM.

    I doubt I am anywhere near a minority on this. Prob like 90% against , what we have today.

    Anecdotal – I used to maintain for a few side bucks a person who ran a medical / coding business.. Cash on the barrels to be a lifesaver with some old tech., what a cluster fuck that is.

    NOW IT’s RAGE. THS SYSTEM SUCKS. MY DOC SHOULD prospect ME AS A MARK to get service.

  192. Juice Box says:

    I hope you fuckers understand.
    Powell opined on reserve currency.

    That means your kids of age are going in.

  193. The Great Pumpkin says:

    Exactly what I said. What do you think raising rates this fast and hard is going to do? …soft landing? Lmao.

    Juice Box says:
    March 11, 2023 at 7:41 pm
    Gotta love this..

    “It isn’t surprising that some banks would face distress amid a rapid rise in interest rates, said Steven Kelly, a researcher at Yale University’s program on financial stability.”

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