Exposure at Hedge Funds has skyrocketed by 24.5% in the span of just one year to $28,579,000,000,000 🔥

Japan’s Nikkei Posts Biggest 2 Day Drop In History, Enters Bear Market As Global Equities Continue To Plunge

>However, the cost to be paid will be steep. Recall that after the last two decades of zero interest rates and yield curve control, Japanese public debt to GDP stands at a whopping 263% and the private debt to GDP north of 120%. If the BoJ actually wants to normalize rates with the Fed, their federal government would be paying 13% of their annual GDP alone in interest expense.

>13 PERCENT.

>The market reactions have already been severe. 

>On Friday morning, the benchmark Nikkei Stock Average was down 4.0% at 36,588.75 after dropping as much as 5.3% earlier. In the past five years, the index has seen a daily drop of more than 4.0% only at the start of the Covid-19 pandemic. The Nikkei 225 closed a massive 5.8% lower, marking its biggest daily drop since March 2020.

<div class="md"><blockquote>
<p>However, the cost to be paid will be steep. Recall that after the last two decades of zero interest rates and yield curve control, Japanese public debt to GDP stands at a whopping 263% and the private debt to GDP north of 120%. If the BoJ actually wants to normalize rates with the Fed, their federal government would be paying 13% of their annual GDP alone in interest expense.</p>

<p>13 PERCENT.</p>

<p>The market reactions have already been severe. </p>

<p>On Friday morning, the benchmark Nikkei Stock Average was down 4.0% at 36,588.75 after dropping as much as 5.3% earlier. In the past five years, the index has seen a daily drop of more than 4.0% only at the start of the Covid-19 pandemic. The Nikkei 225 closed a massive 5.8% lower, marking its biggest daily drop since March 2020.</p>
</blockquote>
</div>

Godzilla Returns

>Selling off a big chunk of its Apple holdings was the quarter's biggest news — Buffett once called the company's stake in the iPhone maker a pillar of Berkshire’s business that he intended to hold indefinitely. The other major investment moves Buffett made during the quarter included continued cuts to its investment in Chinese EV maker BYD and selling off some of its Bank of America stock.

Is Buffet transitioning to cash to be ready to buy stocks after they crash? Why now?

>Warren Buffett once said that it's wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.”

https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp

<div class="md"><blockquote>
<p>Selling off a big chunk of its Apple holdings was the quarter&#39;s biggest news — Buffett once called the company&#39;s stake in the iPhone maker a pillar of Berkshire’s business that he intended to hold indefinitely. The other major investment moves Buffett made during the quarter included continued cuts to its investment in Chinese EV maker BYD and selling off some of its Bank of America stock.</p>
</blockquote>

<p>Is Buffet transitioning to cash to be ready to buy stocks after they crash? Why now?</p>

<blockquote>
<p>Warren Buffett once said that it&#39;s wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.”</p>
</blockquote>

<p><a href="https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp">https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp</a></p>
</div>

Warren Buffett surprises by slashing Berkshire Hathaway's longtime Apple stake in second quarter

AI’s future in grave danger from Nvidia’s chokehold on chips, groups warn

Markets sink on weaker-than-expected jobs report as fears rise of a slowing economy | CNN Business

>In 2006, the hulking office building at 135 W. 50th St. in midtown Manhattan sold for $332 million. Tenants occupied nearly every floor; offices were in demand; real estate was booming.

>On Wednesday, it changed hands again, in an unusual online auction — for $8.5 million.

>The staggeringly low sale price of the 23-story glass behemoth that was once the headquarters of Sports Illustrated is the latest and perhaps most surprising sign of how the pandemic has upended the state of office buildings in New York City, home to the largest central business district in the United States.

97.5% discount. In Manhattan. Not Cleveland. 

<div class="md"><blockquote>
<p>In 2006, the hulking office building at 135 W. 50th St. in midtown Manhattan sold for $332 million. Tenants occupied nearly every floor; offices were in demand; real estate was booming.</p>

<p>On Wednesday, it changed hands again, in an unusual online auction — for $8.5 million.</p>

<p>The staggeringly low sale price of the 23-story glass behemoth that was once the headquarters of Sports Illustrated is the latest and perhaps most surprising sign of how the pandemic has upended the state of office buildings in New York City, home to the largest central business district in the United States.</p>
</blockquote>

<p>97.5% discount. In Manhattan. Not Cleveland. </p>
</div>

This 23-Floor Manhattan Office Building Just Sold at a 97.5% Discount

>The number of smaller banks that had buckled as of June 24 is four times the number that shuttered in the whole of 2023. The trend is only expected to accelerate as restructuring picks up pace, financial news agency Yicai Global cited industry insiders as saying.

<div class="md"><blockquote>
<p>The number of smaller banks that had buckled as of June 24 is four times the number that shuttered in the whole of 2023. The trend is only expected to accelerate as restructuring picks up pace, financial news agency Yicai Global cited industry insiders as saying.</p>
</blockquote>
</div>

China Reels From Banking Crisis

The end is near. Do not be fooled. This is the perfect excuse for them all to sell their positions at ALL TIME HIGHS without consequences while taxpayers pick up the pieces. This is one step closer to MOASS. Buckle Up🚀🚀🚀

The Apocalypse Already Arrived: R.I.P. America (1776-2008)

SNB's Jordan blames Credit Suisse bosses for bank's crash By Reuters July 5, 202411:13 AM EDTUpdated 19 hours ago

What do y'all think of /r/collapse?

>A new report from Food Banks Canada(opens in a new tab) says 25 per cent of Canadians are experiencing a poverty standard of living, compared to the official Statistics Canada poverty rate of 10 per cent.

>The report(opens in a new tab) cites the ‘Material Deprivation Index’ (MDI) using Canadian data, and finds that a quarter of the country cannot afford two or more household essentials.

<div class="md"><blockquote>
<p>A new report from Food Banks Canada(opens in a new tab) says 25 per cent of Canadians are experiencing a poverty standard of living, compared to the official Statistics Canada poverty rate of 10 per cent.</p>

<p>The report(opens in a new tab) cites the ‘Material Deprivation Index’ (MDI) using Canadian data, and finds that a quarter of the country cannot afford two or more household essentials.</p>
</blockquote>
</div>

More Canadians are living in poverty than previously thought, says report

>But supply has since bottomed out, and inventory is showing slow signs of recovery. Despite this, buyers aren't coming back as expected, with both new- and used-vehicle loan originations tumbling through 2023. That suggests sales have plateaued.

Quite a few dealerships seem to be overstocked. I'm seeming some pictures of large fleets of new unshipped vehicles parked in temporary locations. 

<div class="md"><blockquote>
<p>But supply has since bottomed out, and inventory is showing slow signs of recovery. Despite this, buyers aren&#39;t coming back as expected, with both new- and used-vehicle loan originations tumbling through 2023. That suggests sales have plateaued.</p>
</blockquote>

<p>Quite a few dealerships seem to be overstocked. I&#39;m seeming some pictures of large fleets of new unshipped vehicles parked in temporary locations. </p>
</div>

Car prices are finally falling. Here's why people still aren't buying.

Bank Term Funding Program Alert! As of May 31, 2024 the total outstanding amount of all advances under the BTFP was $107,946,342,000. The amount of interest paid to live another day? $6,951,197,000 (so far...)

>"I think we're going to see the S&P go down 86% from the top, and the Nasdaq 92%. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98%. Boy, this is over," Dent stressed. 

<div class="md"><blockquote>
<p>&quot;I think we&#39;re going to see the S&amp;P go down 86% from the top, and the Nasdaq 92%. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98%. Boy, this is over,&quot; Dent stressed. </p>
</blockquote>
</div>

Economist Harry Dent predicts stock market crash worse than 2008 crisis: The ‘bubble of all bubbles’

Data Analysis: More Banks at Risk of Failure as CRE Loans Reprice

>More than that, about $52 billion, or 31%, of all office loans in commercial mortgage bonds were in trouble in March, according to KBRA Analytics, up from 16% a year ago. The assessment includes both single-asset single-borrower and so-called conduit CMBS wherein mortgages are pooled together. Some cities are facing more stress than others, with 75% of CMBS office loans in Chicago and 65% in Denver in jeopardy, according to the firm.

>“Values have plunged because of the combination of rising interest rates, which means increasing investment return requirements, as well as decreasing cash flow,” said Harold Bordwin, a principal at Keen-Summit Capital Partners, which specializes in renegotiating distressed real estate. “The consequence is equity will have significant losses and secured debt holders, their investment is impaired.

<div class="md"><blockquote>
<p>More than that, about $52 billion, or 31%, of all office loans in commercial mortgage bonds were in trouble in March, according to KBRA Analytics, up from 16% a year ago. The assessment includes both single-asset single-borrower and so-called conduit CMBS wherein mortgages are pooled together. Some cities are facing more stress than others, with 75% of CMBS office loans in Chicago and 65% in Denver in jeopardy, according to the firm.</p>

<p>“Values have plunged because of the combination of rising interest rates, which means increasing investment return requirements, as well as decreasing cash flow,” said Harold Bordwin, a principal at Keen-Summit Capital Partners, which specializes in renegotiating distressed real estate. “The consequence is equity will have significant losses and secured debt holders, their investment is impaired.</p>
</blockquote>
</div>

Losses Pile Up in Top-Rated Bonds Backed by Commercial Real Estate Debt

>Burnett Cherry Street LLC, a New York-based entity of Opal Holdings LLC, had purchased the tower in 2021 for over $137.5 million. However, Pinnacle Bank Texas claimed that Burnett Cherry Street defaulted on a $13 million loan, leading to the foreclosure auction.

If this sale is indicitve of actual market prices of commercial real estate, there's a lot of nearly worthless collateral out there. 

<div class="md"><blockquote>
<p>Burnett Cherry Street LLC, a New York-based entity of Opal Holdings LLC, had purchased the tower in 2021 for over $137.5 million. However, Pinnacle Bank Texas claimed that Burnett Cherry Street defaulted on a $13 million loan, leading to the foreclosure auction.</p>
</blockquote>

<p>If this sale is indicitve of actual market prices of commercial real estate, there&#39;s a lot of nearly worthless collateral out there. </p>
</div>

The Tallest Building in Fort Worth Just Sold For a 91% Discount in Just 3 Years

>There are bigger issues at stake than Blackstone's bottom line. It's worth remembering, as Chilton notes, that private funds like BREIT were among "the biggest losers" during the global financial crisis of 2008. But that lesson seems lost on today's investors, who have once again flocked to private real-estate funds in a time of extreme market volatility. In the two years after the pandemic hit, private funds like BREIT raised $67 billion — far more than they drummed up in the two years leading up to the Great Recession. "While the tombstones may have different names on them," Chilton observes, "the reasons for the demise of private equity real estate players are going to rhyme, and possibly mirror those from the global financial crisis."

<div class="md"><blockquote>
<p>There are bigger issues at stake than Blackstone&#39;s bottom line. It&#39;s worth remembering, as Chilton notes, that private funds like BREIT were among &quot;the biggest losers&quot; during the global financial crisis of 2008. But that lesson seems lost on today&#39;s investors, who have once again flocked to private real-estate funds in a time of extreme market volatility. In the two years after the pandemic hit, private funds like BREIT raised $67 billion — far more than they drummed up in the two years leading up to the Great Recession. &quot;While the tombstones may have different names on them,&quot; Chilton observes, &quot;the reasons for the demise of private equity real estate players are going to rhyme, and possibly mirror those from the global financial crisis.&quot;</p>
</blockquote>
</div>

Veteran analysts say the world's biggest private-equity firm could be in big trouble

>Business insolvencies surged 87.2 per cent year-over-year in the first quarter of 2024, while consumer insolvencies rose 14 per cent. 

>Data from the Office of the Superintendent of Bankruptcy released Friday shows business insolvencies totalled 2,003, with 1,599 of those being bankruptcies. 

>The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) said that's by far the largest year-over-year increase in business insolvencies in 37 years of records. 

<div class="md"><blockquote>
<p>Business insolvencies surged 87.2 per cent year-over-year in the first quarter of 2024, while consumer insolvencies rose 14 per cent. </p>

<p>Data from the Office of the Superintendent of Bankruptcy released Friday shows business insolvencies totalled 2,003, with 1,599 of those being bankruptcies. </p>

<p>The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) said that&#39;s by far the largest year-over-year increase in business insolvencies in 37 years of records. </p>
</blockquote>
</div>

Business insolvencies spike in first quarter, consumer insolvencies also rise

Requiem for the American Dream with Noam Chomsky

A 2015 movie which is currently streaming on prime, is an interesting big picture look at how the economy works. I have heard of Noam (Captain Fantastic), but this was my first exposure to his logic. 

It's a well done short movie. Near the middle he speaks about ***regulatory capture***.

>The business that is being regulated is running the regulators. 

This will likely be the message in some of the future movies made about the pending crash. 

<div class="md"><p>Requiem for the American Dream with Noam Chomsky</p>

<p>A 2015 movie which is currently streaming on prime, is an interesting big picture look at how the economy works. I have heard of Noam (Captain Fantastic), but this was my first exposure to his logic. </p>

<p>It&#39;s a well done short movie. Near the middle he speaks about <strong><em>regulatory capture</em></strong>.</p>

<blockquote>
<p>The business that is being regulated is running the regulators. </p>
</blockquote>

<p>This will likely be the message in some of the future movies made about the pending crash. </p>
</div>

Requiem for the American Dream with Noam Chomsky

Today’s Financial System is “Dangerously Unstable”. The only lasting and meaningful way to reform the Wall Street megabanks is to restore the Glass-Steagall Act via Congressional legislation and permanently separate federally-insured banks from the trading casinos on Wall Street.

The Fed has been losing money on a consistent basis since Sep 22’ with losses above $162.9 billion. A crippled Fed with these ongoing losses, and negative capital itself under GAAP accounting, might have a tough time justifying more Wall Street bailouts to Congress. 🔥

IMF has gloomy outlook for world economy: ‘Without a course correction, we are indeed heading for ‘the Tepid Twenties”

The Return of Magic in Times of Economic Collapse: A Deep Dive into Our Shifting Reality

For the First Time in History, the Fed Is Reporting Billions in Losses Weekly; It’s Still Paying High Interest Income to the Mega Banks on Wall Street 🔥 

[The suspension of Country Garden's shares came as the Hong Kong stock market reopened after the Easter weekend.

>Also on Tuesday, shares in Chinese state-backed property developer China Vanke fell to a record low.

>On Friday, the firm reported a fall of more than 50% in its annual profit and told investors that it aimed to boost its cash flow by slashing debt over the next two years.

<div class="md"><p>[The suspension of Country Garden&#39;s shares came as the Hong Kong stock market reopened after the Easter weekend.</p>

<blockquote>
<p>Also on Tuesday, shares in Chinese state-backed property developer China Vanke fell to a record low.</p>

<p>On Friday, the firm reported a fall of more than 50% in its annual profit and told investors that it aimed to boost its cash flow by slashing debt over the next two years.</p>
</blockquote>
</div>

China property firm Country Garden suspends shares

Americans will eventually learn about Wall Street’s chicanery in commercial real estate the same way they learned about Wall Street’s subprime residential mortgage scams after the 2008 financial collapse. 🔥

Banks Set To Crash Over Commercial Real Estate Collapse! w/ Paul Stone

Dedicated to the Great Recession II (2020 - TBD)

<div class="md"><p>Dedicated to the Great Recession II (2020 - TBD)</p>
</div>

<div class="md"><p>Dedicated to the Great Depression II (2020 - TBD).</p>

<p>Related subreddits:
<a href="/r/collapse">r/collapse</a></p>
</div>

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