Half a year gone already. This week: The debate confirmed that pretty much everything Republican said about Biden being old and out of it was true, people can’t afford housing anymore, the Supreme Court reigns in the administrative state, a whole bunch of layoffs come down the pike, two sorta, kinda coups, fake meat doesn’t pay, and we say farewell to a Texas original. It’s the Friday LinkSwarm!
President Joe Biden looked old and disoriented during Thursday’s CNN debate with Donald Trump. He spoke in a quiet and hoarse voice, made some incoherent answers, and often stumbled over his own words.
It was a lackluster performance that played directly into Republican depictions of the 81-year-old president – the oldest president in American history — as too old and frail to serve another four years in office. Trump said as much during the debate.
“He’s not equipped to be president,” Trump said. “You know it and I know it.”
The debate was a highly personal affair between two men who made little effort during their nearly two hours on stage to contain their disdain for one another.
Biden called Donald Trump a “loser,” and a “whiner” with the “morals of an alley cat.” Trump accused Biden of turning the United States into a “third-world nation” and of being the “worst president in history by far, and everybody knows it.”
Trump turned in a spirited performance, hammering Biden on inflation and the immigration crisis under his watch. But Biden’s struggles seemed to be the major takeaway for CNN’s post-debate panel, which reported that senior Democrats are in an “aggressive panic” over their party leader’s apparent frailty.
Speaking about improvements he’s claiming at the border, Biden at one point seemed lost, saying: “I’m going to continue to move until we get the total ban on, the total initiative relative what we’re going to do with more border patrol and more asylum officers.”
“I don’t really know what he said at the end of that sentence,” Trump replied. “I don’t think he knows what he said either.”
At another point, Biden got visibly lost when talking about his plan to raise taxes on the wealthy to wipe out the debt, saying he wanted to make sure “that we’re able to make every single solitary person eligible for what I’ve been able to do with, with, with the Covid, excuse me, with dealing with everything we had to do with, look, we finally beat Medicare.”
“Well, he’s right,” Trump said, “he did beat Medicare. He beat it to death.”
He stammered. He stumbled. And, with fewer than five months to November, he played straight into Democrats’ worst fears — that he’s fumbling away this election to Donald Trump.
The alarm bells for Democrats started ringing the second Biden started speaking in a haltingly hoarse voice. Minutes into the debate, he struggled to mount an effective defense of the economy on his watch and flubbed the description of key health initiatives he’s made central to his reelection bid, saying “we finally beat Medicare” and incorrectly stating how much his administration lowered the price of insulin. He talked himself into a corner on Afghanistan, bringing up his administration’s botched withdrawal unprompted. He repeatedly mixed up “billion” and “million,” and found himself stuck for long stretches of the 90-minute debate playing defense.
And when he wasn’t speaking, he stood frozen behind his podium, mouth agape, his eyes wide and unblinking for long stretches of time.
“Biden is toast — calling it now,” said Jay Surdukowski, an attorney and Democratic activist from New Hampshire who co-chaired former Maryland Gov. Martin O’Malley’s 2016 presidential campaign in the state.
In text messages with POLITICO, Democrats expressed confusion and concern as they watched the first minutes of the event. One former Biden White House and campaign aide, granted anonymity to discuss the matter, called it “terrible,” adding that they have had to ask themselves over and over: “What did he just say? This is crazy.”
Sales of previously owned homes are sitting at a 30-year low and didn’t move much in May as prices hit a new record and mortgage rates remain high.
So-called existing home sales in May were essentially flat, down 0.7% from April to a seasonally adjusted, annualized rate of 4.11 million units, according to the National Association of Realtors, or NAR. Sales fell 2.8% from May of last year …
The median price of an existing home sold in May was $419,300, a record-high price in the Realtors’ recording and up 5.8% year over year. The gain was the strongest since October 2022. Prices gained in all regions.
The Realtors noted in a release that the mortgage payment for a typical home today is more than double what it was five years ago.
It’s almost as though the Biden Recession, constrained supply (a great deal from blue locale regulation that prevent housing from being built), and high interest rates mean that no one wants to buy or sell.
According to a new report, the average renter can’t afford a typical U.S. apartment.
According to Redfin, the typical U.S. renter household earns about $54,712 per year, which is 17.3% less than the $66,120 needed to afford the median-priced apartment at $1,653 per month. This means that 61% of renters can’t afford their housing without significant financial stress.
Snip.
Inflation, which has surged during Biden’s presidency, certainly exacerbates this issue. Rising costs for essentials like food, gas, and utilities leave renters with even less disposable income to cover their housing costs. Despite promises to address affordability and economic inequality, the Biden administration has doubled down with claims that inflation is going down and that wage growth has outpaced it — which isn’t true. Biden has made it more difficult for Americans to achieve financial stability.
Pixar (part of Disney) (175 people, 14% of the company, who must have been thrilled to get a pink slip and then see unwoke Inside Out 2 go on to be Disney’s biggest movie of the year)
The Supreme Court on Friday issued a ruling overturning the 1984 Chevron v. National Resources Defense Council case, striking down a previous decision that granted federal agencies immensely broad power to draw up regulations without congressional approval.
The Court ruled in both Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce — two nearly identical cases — that regulatory agencies will no longer be able to fill in the blanks of vague legislation in 6-2 and 6-3 decisions, respectively. Justice Ketanji Brown Jackson recused herself from the first case because she sat on the federal appeals court that had previously heard the case.
In his majority opinion, Chief Justice John Roberts wrote that it is not the place of agencies to clarify ambiguous legislation.
“Perhaps most fundamentally, Chevron’s presumption is misguided because agencies have no special competence in resolving statutory ambiguities,” he wrote. “Courts do. The Framers, as noted, anticipated that courts would often confront statutory ambiguities and expected that courts would resolve them by exercising independent legal judgment.”
Writing a concurrence, Justice Neil Gorsuch argued that the concept of Chevron deference “undermines” many of the principles on which the United States was founded.
“It precludes courts from exercising the judicial power vested in them by Article III to say what the law is,” he wrote. “It forces judges to abandon the best reading of the law in favor of views of those presently holding the reins of the Executive Branch. It requires judges to change, and change again, their interpretations of the law as and when the government demands.”
This is a huge blow to the unchecked administrative state and a key decision in helping reign in untrammeled executive regulatory power.
This looks like it will put a crimp in Biden’s amnesty plans: “SCOTUS rules 6-3 that there’s no constitutional guarantee for non-citizen spouses to be admitted to the US.”
Russia’s newest S-500 air defense system has been deployed to Crimea to defend against ATACMS strike. Result? It was destroyed by an ATACMS strike. “This is a big embarrassment for Russia, that its newest and best missile system has had its clock clean by 30-year-old missiles.”
“War crimes arrest warrants issued for top Russian officials. The International Criminal Court (ICC) has issued an arrest warrant for Russia’s former defence minister, Sergei Shoigu, and the chief of general staff, Valery Gerasimov.” It would make one hell of a Dog The Bounty Hunter episode…
Andrew Cuomo (D-isgrace) admits that the bogus Trump hush money kangaroo trial should never have been held. “If his name was not Donald Trump and if he wasn’t running for president. I’m the former AG in New York. I’m telling you, that case would have never been brought. And that’s what is offensive to people. And it should be!” Broken clock, twice a day.
Federal judges in Missouri and Kansas issued separate rulings on June 24 blocking key sections of the Biden administration’s Saving on a Valuable Education (SAVE) program, which is designed to lower student loan payments and forgive debts.
A new version of the program that would reduce payments and shorten maximum repayment periods was set to take effect in July.
U.S. District Judge Michael Crabtree for the District of Kansas ruled that the Republican states were likely to succeed in their claim that the department lacked explicit congressional authority to enact this portion of the program.
“Defendants have offered colorable, plausible interpretations of the Higher Education Act that could authorize the SAVE Plan, but those interpretations fall short of clear congressional authorization,” Judge Crabtree, who was appointed under President Barack Obama, wrote on Monday.
However, he declined to block the program entirely, expressing concerns about the practicality of reversing parts of the plan that had already been implemented. He also said that Republicans’ delay in filing their lawsuits undermined their arguments that there was an immediate need to halt the entire program.
In a separate decision on the same day, U.S. District Judge Judge John Ross for the Eastern District of Missouri, also a President Obama appointee, blocked the department from forgiving “any further loan[s]” under SAVE until he decides the full case. His order said that such actions would likely strip state loan operators of revenue.
Judge Ross also suggested that the SAVE program might have exceeded the authority of Education Secretary Miguel Cardona and that Missouri would likely be harmed by the program.
Just imagine if a Republican judge got a chance to rule on it…
“Kenya Protesters Storm Parliament, Police Fire Live Rounds, After Lawmakers Unleash Eco-Austerity.” Seems like $2.7 billion in taxes to serve nebulous “green” goals is unpopular in a country where the per capita GDP is $2,099. Thanks, IMF…
And an attempted coup in Bolivia evidently failed. President Luis Arce is a bit of a socialist scumbag, so it remains to be seen if he intends to follow in Venezuela’s footsteps to economic ruin.
Not only are the massive crowds a problem, but this year the Saudi city is under an excessive heat warning, with highs at times having reached between 110 and 115°F during the day, and 100°F even at night. This has resulted in what could be a record amount of heat injuries and deaths by the pilgrimage season’s end. On Monday the Saudi weather service recorded a temperature of 125 degrees Fahrenheit at Mecca’s Grand Mosque.
Many of the dead were “unauthorized pilgrims” who hadn’t paid their Hajj fee. “This group was more vulnerable to the heat because, without official permits, they could not access air-conditioned spaces provided by Saudi authorities for the 1.8 million authorized pilgrims to cool down after hours of walking and praying outside.”
More accused perverts in classrooms. “Former Denton ISD Coach Arrested for Online Solicitation of a Minor. A mother from another school district says she tried to warn Denton ISD of an inappropriate encounter her daughter had with district employee Justin Wallace Carter.”
“A Uvalde County grand jury has indicted former school district police Chief Pete Arredondo and another former district officer on charges of child endangerment, the first criminal charges brought against law enforcement for the botched response to the deadliest school shooting in Texas history, the San Antonio Express-News reported. Arredondo and Adrian Gonzales face felony charges of abandoning or endangering a child.” (Hat tip: Dwight.)
A fun edition of What’s My Line featuring America’s most decorated war hero.
Kinky Friedman, RIP. He was a Texas original, an entertaining musician, a successful author, and the last interesting Democrat in Texas. Dwight already posted “The Ballad of Charlie Whitman,” so I direct you over there. I have an inscribed (not to me) first of A Case of Lone Star, and I should probably read that next.
Greetings, and welcome to a LinkSwarm so large I had to start working on it Wednesday! Unemployment rises too much to rig it away, home sales crash to Carter levels, Europe’s voters rise up to throw out the left, Hunter is guilty guilty guilty, another blow to the Biden Administration’s tranny Title IX rewrite, Israel rescues some hostages and smokes a Hezbolli terror master, and California continues to do California things.
Every so-called “strong” jobs report has been a disaster if one puts in even a little work to dig below the pristine, if fake, surface. And while we expected this charade to continue indefinitely, and certainly at least until the November election, at which point suddenly all the truth about the ugly labor market would be revealed to usher in the new president amid an economic crisis, we were shocked when none other than the Fed chair admitted today that the Biden admin was rigging jobs data.
In response to a question from a Bloomberg journalist during the post-FOMC presser, asking the Fed chair to comment on the state of the labor market, the Fed Chair said that two years ago the labor market was “overheated” and has since gotten back to “normal”, largely thanks to “supply from to immigration” – translation: illegal aliens have been the main reasons for the increase in employment and the drop in wages and thus, overall inflation, which as we discussed recently, is the narrative that is being pushed out to mitigate demands by most Americans to halt illegal immigration.
Where things got very interesting, however, is when Powell was discussing the demand-side of the labor market: here, he addressed the dropping quits level, the decline in job openings and wages, but more importantly, the rising unemployment rate – from 3.4% to 4.0% which clearly goes against the narrative of red hot payrolls – all of which the Fed chair summarized as strong job creation, yet caveated by saying that “there is an argument that [payrolls] may be a bit overstated.”
Note: he didn’t say “understated” because the “-stating” always goes in just one direction: the one that makes the resident of the White House look good.
In other words, the jobs – like so many things about this Potemkin economy – are a lie, and while Powell immediately realized what he had said, and tried to couch it by adding that payrolls are “still strong”, suddenly the entire narrative of a strong labor market imploded in front of our eyes, because if the Biden admin will lie about a “bit” of the jobs report, it will lie about any part of it.
And, as we have shown above and every month this year, lie is precisely what the Biden administration has been doing, month after month, year after year.
And the biggest stunner, as Edward Snowden put it so eloquently, is that he’s “not sure I’ve ever seen the chairman of the Federal Reserve publicly accuse the White House of cooking the books on employment numbers, but here we are.”
Speaking of which: “Initial Claims Surge To 10-Month Highs As California Joblessness Soars.” “Did we suddenly get a peek at economic reality? The number of Americans applying for jobless benefits for the first time surged last week to 242k (up from 229k and well above the 225k exp). That is the highest since August 2023.” And California, which just happened to implement a minimum wage hike, led far and away with the most claims…
Home sales have dropped so far during the Biden Recession that they’re now back to 1978 levels.
The recession in the U.S. existing home sales market has been so deep that we’re back to late ‘70s levels—despite us now living in a much bigger country:
April 1978: 4.09 million U.S. existing home sales print
April 2024: 4.14 million U.S. existing home sales print*
1978: 223 million U.S. population
2024: 341 million U.S. population
The reason, of course, is that housing affordability has deteriorated so much that many buyers and sellers alike have pulled back from the market. Many homeowners who would otherwise like to sell and buy something else are staying put rather than trading in their 3% mortgage rate for a 7% mortgage rate.
The bad news?
According to a forecast published this week by Goldman Sachs, the recovery for existing home sales could be a slog.
1978: Jimmy Carter was still President, the Bee Gees dominated the music charts thanks to Saturday Night Fever, and a brand new comic strip about a lasagna-loving cat named Garfield debuted. And the average price of a home was somewhere around $56,000. (Yet, somehow, home sales were still stronger during the 1981-82 interest rate hikes than under Carter in 1978…)
A jury of Hunter Biden’s peers found him guilty on all three felony charges on Tuesday after a six-day trial that demonstrated that the first son lied on a federal gun-purchase background-check form when he claimed not to be a drug addict.
The verdict was reached after the jury deliberated for three hours, beginning Monday afternoon with the conclusion of closing arguments. Hunter was surrounded by family members, including wife Melissa Cohen Biden and his uncle James Biden, as the verdict was read. First lady Jill Biden missed the verdict announcement and rushed to greet Hunter afterward.
Hunter was found guilty on two charges for lying about his crack-cocaine addiction on federal gun paperwork when he bought a Colt Cobra revolver at a sporting-goods store in Wilmington in October 2018. He was also found guilty on a third charge for possessing the firearm while he was using crack cocaine.
The first son faces up to 25 years in prison, though he’ll likely receive a lighter sentence as a first-time, nonviolent offender. Judge Noreika, who presided over the trial, said that a sentencing hearing will be held in September.
Though Hunter Biden still has a pending tax trial, don’t hold your breath about him going to trial for his role as the Biden crime family’s bagman…
I’ve pointed out time and again (including yesterday) that Biden Justice Department AG Merrick Garland’s “special counsel” appointment of Biden Justice Department Delaware U.S. Attorney David Weiss in the Hunter Biden case is a fraud on the public.
In a pretrial ruling denying the younger Biden’s motion to dismiss the case, Judge Maryellen Noreika has confirmed that Garland’s appointment of Weiss did not comply with federal regulations for appointing special counsels. That, however, was not a basis to dismiss the case — particularly with Garland and Weiss quietly citing the last special-counsel regulation, §600.10 (of Title 28, Code of Federal Regulations), which provides that no one may hold the Justice Department accountable for flouting its own regulations.
To be clear, I have never contended that Garland lacked the authority to assign Weiss, or whoever he wanted to assign, to investigate the Biden case. As Judge Noreika correctly explained, federal statutory law — in particular, §§509, 510, 515, and 533 — vest attorneys general with sweeping power to run the Justice Department as they see fit, including power to designate any DOJ lawyers they choose to run investigations anywhere in the country.
Weiss, for example, is now prosecuting Hunter Biden in Los Angeles, on the tax case scheduled to begin trial on September 5, in addition to the gun case in Weiss’s own Delaware district. That’s because Garland doubled-down in assigning the investigation of the president’s son to the same prosecutor — Weiss — who had just schemed with defense lawyers on a failed sweetheart plea deal that was designed to make all conceivable cases against said son disappear (and only after Weiss had consciously dithered as the statute of limitations steadily eviscerated serious criminal offenses).
Garland is the attorney general, and he has that power. It is power he wields with no fear that Congress will slash the DOJ’s budget, censure him, impeach him, or do anything else but caterwaul over how he abuses it. My point is that Garland has been engaged in a nearly four-year fraud — trying to con the country into believing the Justice Department is neither protecting its boss nor trying, to the extent politically feasible, to protect the president’s son.
The AG refused to appoint a special counsel for the Biden investigation, despite the president’s (and other Biden family members’) being implicated in Hunter’s malfeasance, particularly crimes arising out of his peddling of his father’s political influence for huge pay days from agents of corrupt and anti-American regimes.
Europe’s ruling center left just got smashed in European elections.
Early projections of the EU-election results show that the continent’s right-wing parties have made significant advances as voters signal their dissatisfaction with illegal immigration and inflation. Formerly powerful left-wing parties seem to have been routed, while centrists stayed the course.
This antiestablishment sentiment was expressed most strongly in Germany and France, two of the European bloc’s most powerful countries.
The French results prompted President Emmanuel Macron to dissolve the French parliament in preparation for snap elections on June 30 and July 7, as his party lost badly to Marine Le Pen’s National Rally, which is part of the Identity and Democracy coalition in the European Parliament.
Before crowds in Paris, Le Pen responded to Macron’s announcement: “This historic vote shows that when people vote, people win. . . . We are ready to exercise power, to end mass migration, to prioritize purchasing power, ready to make France live again.”
In Germany, Chancellor Olaf Scholz and his Social Democrats were trounced by a combination of support for the right-wing CDU/CSU and Alternative for Germany (AfD). The left-wing Social Democratic Party (14.6 percent) and the Greens (12 percent) underperformed. Katarina Barley, speaking for the Social Democrats, called it “a bitter evening.” “I am very disappointed.” The AfD, having won 14 percent as of this reporting, is intent on carrying its EU wins to the national elections in October 2025.
Italian prime minister Giorgia Meloni was the only leader of a European power to see success, with the right-wing politician’s allied faction, European Conservatives and Reformists, placing first in Italy.
In Spain, the conservative People’s Party took 34.2 percent of the vote, a rejection of socialist prime minister Pedro Sánchez and his Socialist Workers’ Party, which received 30.2 percent. Two other right-wing parties, Vox and Se Acabó La Fiesta (The Party’s Over), received another 14.2 percent between them.
The Greens ceded more ground than any other party in the EU, losing more than a quarter of their seats.
For decades, the ruling Euroelite have insisted that there is no alternative to their high tax, high spending, high debt, high regulation, high immigration, environmental leftist EU superstate. Voters seem to have finally grown tired enough of it that they’re willing to embrace Marine Le Pen if that’s what it takes to make their voices heard.
In his opinion, Thomas wrote that, though a bump stock does increase a rifle’s rate of fire, it does not turn it into an automatic weapon.
“A bump stock does not convert a semiautomatic rifle into a machinegun any more than a shooter with a lightning-fast trigger finger does,” Thomas wrote. “Even with a bump stock, a semiautomatic rifle will only fire one shot for every ‘function of the trigger.’”
Justice Samuel Alito wrote in his concurrence that, while the ATF’s interpretation of the Firearm Owners’ Protection Act was an incorrect reading of the statute, there are legislative remedies for the issue of bump stocks.
“The horrible shooting spree in Las Vegas in 2017 did not change the statutory text or its meaning,” Alito wrote. “That event demonstrated that a semiautomatic rifle with a bump stock can have the same lethal effect as a machinegun, and it thus strengthened the case for amending §5845(b). But an event that highlights the need to amend a law does not itself change the law’s meaning.”
“The Lies and Fall of Ibram X. Kendi.” “This man gave America the simplest, most easily applicable binary solution to all of our racial problems. It didn’t matter that it was stupid, at least not from the perspective of his personal enrichment. For a while, it sold…What we lived through in 2020, during the Floyd meltdown and its aftermath, was a onetime necrotic bloom during which the first carrion-feeders on the scene were able to fatten themselves up to spectacular proportions on the collapsed body of American progressive racial and political angst.”
The US has broadened its sanctions on Russia, including a fresh crackdown on banks dealing with sanctioned entities.
It expands a December programme to target foreign banks deemed to be aiding Russia’s war effort in Ukraine.
The US also placed sanctions on the Moscow stock exchange, leading to it halting trading in dollars and euros.
It also moved to try to restrict Russia’s use of technology, including chips and software.
US President Joe Biden signed an executive order in December that imposed sanctions on banks dealing with about 1,200 individuals and companies deemed to be helping Russia’s war machine.
Those measures, which expose banks to the risk of being cut off from the US financial system, have now been expanded to about 4,500 entities.
The US will also target gold-laundering.
Peter Harrell, a former White House senior director for international economics, told the Reuters news agency that the US “is shifting towards something that begins to look like an effort to set up a global financial embargo on Russia”.
As part of this effort, the US Treasury announced that it would impose sanctions on parts of Russia’s financial system, including the Moscow Exchange, which is one of Russia’s main stock exchanges.
The stock exchange, which is Russia’s largest foreign exchange market, said the sanctions had forced it to stop trading in dollars and euros.
The US also focused on technology. Chips and other technology made in the US have been found in downed Russian equipment on Ukraine battlefields, including drones, radios, missiles and armoured vehicles.
The sanctions aim to make it more difficult for companies to supply that tech.
The US will target shell firms in Hong Kong selling chips to Russia.
There are YouTubers saying “Russian economy is crippled” etc., but I remain skeptical. The chips going into Russian drones aren’t anything special, they’re COTS stuff and EPROMs you can get almost anywhere.
“Israeli Military Rescues Four Hostages from Gaza.” Naturally this is good news for decent human beings everywhere and a tragedy for the radical left.
“Lebanon: Israeli Airstrike Kills One Of Hezbollah’s Most Senior Terror Commanders. The Israel Defense Forces (IDF) on Tuesday night eliminated one of Hezbollah’s senior-most terror commanders operating in Lebanon. Sami Taleb Abdullah, who headed Hezbollah’s Nasr terrorist force, and three other Hezbollah commanders were killed in an Israeli airstrikes on a terrorist base located in southern Lebanon.” Good. Remember how commentators have repeatedly opined on the possibility of Hezbollah opening up a “second front” while Israel settles Hamas’ hash? They seem to have done very little but the usual pinprick terror attacks. With all the terror money Iran is sloshing around to Hamas and the Houthi’s, one wonders if they’re stretched to thin to send much Hezbollah’s way…
Western District of Louisiana Chief Judge Terry Doughty in an order Thursday declared that Title IX, a federal education law that bars sex-based discrimination, “was written and intended to protect biological women from discrimination.”
“Such purpose makes it difficult to sincerely argue that, at the time of enactment, ‘discrimination on the basis of sex’ included gender identity, sex stereotypes, sexual orientation, or sex characteristics,” Doughty, a Trump appointee, wrote. “Enacting the changes in the Final Rule would subvert the original purpose of Title IX.”
Of course the U.S. Women’s basketball has left Caitlyn Clark off the team. Because we all know queer identity trumps winning a medal for your country…
On the upside, also not competing: “Lia” Thomas. Turns out the Olympics don’t want men competing in women’s swimming. Who could have possibly seen that coming?
“In Hindsight Fans Realize They Were Too Quick To Call The Holiday Special The Worst Star Wars Project Ever…After watching the latest Disney Star Wars offering The Acolyte, however, many fans admit they might have been too harsh to call the holiday show the worst thing to come out of the franchise.”
How bad does housing suck if you’re poor and live in Shanghai, China? This much:
“Shanghai’s landlords are quite ingenious, managing to convert even the smallest spaces into rentable rooms at high prices.”
Bathroom with a ladder to a crude loft above it? 600 yuan. (Exchange rate is currently running just above 7 yuan to the dollar.)
At least that had air-conditioning. For 300 yuan, you can get a room barely big enough for a small bed with two holes punched in the wall for ventilation.
For the same price, you can get a bathroom with a bed in the crawlspace right behind the toilet. “After using the toilet, the smell lingers in the room. Also don’t turn the shower head [over the tiny sink] on too high or it’ll soak the bed.”
One room is a twice-coffin size crawlspace off a balcony for 1,500 yuan.
But wait! For a mere 50 yuan, a guy rented a 0.3 square meter crawlspace he can’t fully lie down in. “Some local netizens from Shanghai commented that a closet could not be rented for 50 yuan, the price being at least 120 yuan.”
“This design is really thoughtful! Knowing you’d have to squat to cook noodles, they smartly place a toilet right here, complete with a door!”
“Here’s another place for 500 yuan rent combining living room, bedroom, kitchen and bathroom all in one!” Complete with cardboard box bed in the entry. “There’s a simple induction cooker for cooking, but it’s a tight squeeze for anyone a bit larger, though there is an exhaust fan. This stove is too far from the toilet. It’s inconvenient to cook while you are using a toilet, but when you shower you can easily stir fry at the same time.” No AC, but the landlord said they could add it for 200 extra yuan rent…
Of course, those exciting bed-in-toilet apartments are only available to people who can afford to pay any money for rent. Many can’t. “There are also groups known as Knights of the Bridge Underpass. In big cities, you can deliver food without renting a place. We found a bridge where several delivery guys and girls live.”
We’ve covered problems with youth despair in China before, including both the “lie flat” and “let it rot” movements.
“How do you deal with water and electricity?…First you can use water from public toilets, but this water is only for washing and laundry, not drinking.” To be fair, they show sinks in public toilets, so I imagine that’s where they’re getting their water, but it’s China, so who knows?
“Drinking water is bought from villagers nearby.”
“Electricity can be sourced from the batteries of delivery ebikes, which are rented for 300 to 400 a month. You can swap many each day, then connect an inverter to the battery you get 220 volt household electricity, and that solves that problem.” (220 volts was evidently standardized by the nationalist government in 1930.)
There’s a video blogger who lives in his solar equipped van, and he seems much better off than any other housing option covered in this video.
“It’s not just Shanghai. Nearly all major Chinese cities host these workers, often labeled as a low-end population. These include delivery workers, ride share drivers, factory or construction site laborers, or college students from out of town.” During America’s industrial boom, working in a factory allowed you to buy a house. Thanks to China’s factory boom, factory workers can enjoy living under a bridge.
“Working odd jobs, they hustle in every corner of the city, typically working over 10 hours a day without a single day off. The city’s prosperity doesn’t touch them. Their daily focus is simply on earning more money.”
The situation is slightly better in Beijing, which has 3 square meter apartments for 2000 yuan, and Shenzhen offers “urban villages” (I think we’d call them apartment complexes) with 1 bedroom apartments for 700 yuan a month.
In Guangdong, the so-called “Shango Gods” have completely given up on life and just live under bridges.
“The unemployed crowd together both men and women in an area filled with unbearable odors.”
“They work one day and rest for a week. A day’s pay can be 200 yuan, enough to sit in an Internet cafe for a week. They eat steamed buns, buy three or four to last the day.”
“In many cities, there are many of these so-called Shango Gods who have completely given up on life. ‘Already seeing no hope. This kind of life is actually pretty good. Wherever you go, just find a place to lie down and don’t think about anything, because no matter how hard you try, without connections it won’t work.'”
America is hardly free of homelessness or tiny apartments. But America’s homeless population is overwhelmingly mentally ill alcoholics and drug addicts living off handouts whose plight is catered to by a Homeless Industrial Complex that rakes off graft pretending to help them, not able-bodied young people willing to work but unable to afford even the meanest accommodations. And the smallest New York City apartments you can find on YouTube all look lightyears better than the horrors seen in Shanghai.
Communists have long bragged about working for the proletariat, but in Communist China, the actual proletarians have been reduced to living under bridges.
Israel’s Iran strike is shrouded in mystery, California is shockingly “permissive” on sex trafficking children, Warhammer goes woke, and a new Doom speed-running record. It’s the Friday LinkSwarm!
Senior US military sources:The target of the Israeli strike was an Iranian military base in Isfahan near Natanz, not the nuclear facilities themselves. “The Israelis hit what they intended to strike,” The targets within this strike included Iranian air defense systems at the air base including those used to protect their nearby nuclear facilities. It was a message to the Iranians, “We can reach out and touch you.” The Russian made air defense systems were shown to be ineffective. There was one target but multiple strikes within that target. The Israelis used missiles and unmanned aircraft – in other words no manned aircraft (F35’s or others) were used as part of this strike
Both Israeli and Iranian sources are being cagey about what actually was hit. Right now it’s looking like it was a very limited strike, almost just a “See? We can hit them if we want to” strike to satisfy the Biden Administration’s endless calls for “restraint” while they continue to pound Hamas into a fine red paste. But it does offer a certain amount of support for the Kayfabe theory of Middle East politics…
The penalty for the equivalent of child trafficking in “progressive,” “forward-thinking,” “compassionate” California is a maximum penalty of a year in jail, and a minimum of two days in jail, plus a $10,000 fine which may or may not be paid depending on sentencing details.
Plenty has been said in recent years about soft-on-crime policies in states led by Democrats, and with good reason. Perhaps it should come as no surprise that political movements that believe the execution of preborn children is morally and legally permissible would also enforce such loose penalties for child endangerment and exploitation. But this seems, even for liberals, unconscionable.
Thankfully, it’s not that way everywhere. Other states with right-leaning leadership handle child predation, shall we say, “differently.”
But California especially loves setting sex offenders free if they’re illegal aliens.
It turns out that Katherine Maher is no ordinary ascendant progressive media executive. No, this woman’s social-media history reveals her to be the Kwisatz Haderach of white wokeness, presumably bred through generations of careful genetic selection to be the supernaturally perfect embodiment of Affluent White Female Liberalism. (As many have noted, she not only acts but looks like Titania McGrath.) It’s vaguely unreal: If there was a trendy progressive take floating around on Twitter and popular within media circles, then you can reliably bet she was there to voice it in the most preeningly insulting way possible.
(Hat tip: Ed Driscoll at Instapundit, who also offers lots of choice Chris Rufo commentary on tweets from Maher.)
“Texas Congresswoman Beth Van Duyne (R-TX-24) has taken out a full-page advertisement in the New York Post in an effort to recruit law enforcement from New York City, encouraging them to ‘escape New York and move to Texas. Sadly, the corrupt and crumbling Empire State is so purposefully anti-law and order, that you should no longer put your careers and lives in the hands of politicians who couldn’t care less about you or your families,’ the advertisement states.”
I’ll take “Headlines You Don’t Want To Read At Breakfast” for $400: “New York Suffers Record Rise in Potentially Deadly Disease Caused by Rat Urine. New York City has seen a record jump in the number of human leptospirosis, a disease caused by rat urine that can cause kidney damage, liver failure, and even death.”
“A far-left extremist that firebombed a pro-life office in Wisconsin in 2022 has been sentenced to 7.5 years in federal prison, along with three years of supervised release and a $32,000 fine.”
Republicans aim to use ballot initiatives to overturn unpopular Democratic Party policies. “Republicans in Washington are moving to get three major ballot initiatives passed. These measures will repeal Democrat-passed policies that are becoming unpopular among locals. The three changes would repeal the state’s sanctuary status for illegal immigrants, end an attempt to ban natural gas, and a change to the laws to strip squatters of their rights.”
You’ll need to click Show More for this one:
i remember in feb and march of 2020 being astonished by this lockdown idea and loudly yowling "do you have any idea what shutting down the world for 2 weeks would do to global supply chains and economic function?"
Has Warhammer gone woke? “I can’t help thinking that you finally started to bow to pressure from ‘Modern Audiences,’ and you were almost certainly encouraged to do this by a sudden infusion of investment money from BlackRock.”
The moment you make any concession, no matter how tiny, you’ve already given the game away. You’ve made it known that you’re prepared to bow down to their demands if they put enough pressure on you. And so, inevitably, their demands are never going to end. They’ll literally never be happy because there’s always going to be some other thing, some other piece of problematic lore, some other rule or exclusionary detail that has to be altered to comply with their constantly evolving demands, and all in the name of inclusion and diversity.
Because these people don’t care about your hobby, they don’t care about integrating into a community of like-minded individuals. All they care about is that the community bends and reshapes itself to suit them, until eventually they bend it so much that it breaks. People like that are complete and utter poison for any hobby, any fandom, any franchise. All they ever manage to do is stir up conflict, resentment and division, driving people away and turning fans against the very company that tries to pander to them, because their very reason for existing is to undermine and destroy the thing they claim that they’re trying to save.
And if you’ve got any common sense whatsoever or any love for the fandom that you’re so passionate about, you’ll think very carefully before bending the knee to them.
How severe? How about $105 billion drop in loans in just two weeks.
“This credit crunch greatly increases the chances that America is going to have a deflationary recession or depression at some point in 2023. And, in fact, we could already be in it.” Ya think?
“We’re going to see the unemployment rate start to spike in America in the second half of 2023, In fact, we’re already seeing a big increase in unemployment claims data from the Federal Reserve shows that continued unemployment claims has surged since September.”
“We’re seeing a big surge in mortgage defaults right now across America, particularly on what’s called FHA mortgages. FHA mortgages are these first-time home buyer loans that the US government sponsors and allows people to only put three to five percent down. Well, these loans now have a 12% default rate in the most recent month of February 2023.”
Debt-to-income ration is now higher than it was at the pre-subprime meltdown peak in 2008.
“The Biden Administration has been very aggressive in wanting to expand mortgage access to low-income borrowers who can’t afford these mortgages. And they do this under the guise of expanding the benefits of home ownership to everyone, but really what they’re doing is they’re saddling at-risk economic households with a lot of debt near the peak of a housing bubble.”
“When banks tighten the belt and businesses can no longer get loans, businesses have to shut down, or what businesses have to do is, they have to start liquidating their holdings and taking whatever cash they have and use it to pay expenses. This is actually a concern of mine.”
“This bank credit crunch which is occurring right now could cause even more bank runs in the future” as people pull money out of the bank to cover expenses.
Quantitative tightening is back on.
“Mortgage application demand is on par with what we saw basically in the worst of the last housing crash in 2008, 2009, 2010, and so, no, there is no recovery.”
“The regular home buyer is still out of the housing market and is not returning.”
“The money supply in America is contracting…every other time in history it contracted, which was four times, we had a depression, a panic and a banking crisis.”
Cheerful enough. But if you’re a car dealer, things are even worse:
Banks are cutting off backing loans and providing credit to dealerships.
Not just used car dealers, but even national brand, nameplate dealerships.
This all started back in 2020, when banks started lending way too much money on cars that simply aren’t worth it, to consumers that simply couldn’t afford these payments, and shouldn’t have got the car in the first place…Let’s fast forward to 2023. We’re seeing record high repossession rates, and we’re seeing record high portfolio sell-offs, where people are just liquidating their paper because they don’t want to take on the risk of all these really bad auto loans, because they owe too much money. People are not making payments and they see the value of cars going down.
The fewer banks dealers can pit each other against for loan terms, the higher the interest rate consumers have to pay.
Dealers (not the banks) are also the ones who get screwed if a customer misses their first through third car payment.
Texas car dealer: “He was floored because he sells a lot of trucks between $45- and $65,000 trucks. Four of his banks told him that they’re no longer lending over twenty five thousand dollars.” (Previously.)
“I promise you this: it’s only gonna get worse.”
But wait! It gets worse!
“Capital One is going to start pulling their floor plans from dealers.”
“Floor plans” are the lines of credit dealers use to purchase cars to populate their lots, even the big nameplate dealers.
“Dealers are overexposed right now. They have paid way too much for their inventory and now they are having a hard time selling it.”
“It is so much harder now than it has been in the last two years to get people approved for loans to be able to sell these vehicles.”
“[Banks] do not want to get stuck holding the bag on these cars.”
“Dealers have been stupid. They have overpaid and they have too much inventory right now.”
“Some of these dealers, if they’re having cars 60, 90 days and maybe they’re getting a little bit behind on their payments [the] floor plan company will actually go to these dealers lots and they will take these cars that have been sitting too long, they’ll take them to the auction.”
“If they didn’t have the cash, the liquidity, to begin with, then they have to start liquidating cars, and they have to liquidate them fast to be able to pay their flooring lines…if they lose these flooring lines, they might as well not be in business, they don’t have the cash to be able to buy more inventory to be able to sell it to make more money.”
Banks pulling their floor lines could potentially crash the whole car market.
Things are going to get worse for car dealers before it gets better, and six months from now might be a great time to buy a car, assuming you’re not too busy shooting starving looters trying to steal your canned goods…
If you can remember all the way back to pre-Flu Manchu 2020, housing prices were soaring and there were a raft of articles decrying how commercial investors were snapping up housing as fast as they possibly could, pricing ordinary Americans out of the market.
Now, some two years later, it’s evident that a lot of those commercial investors kept buying right up through the peak of the market, and are now proceeding to lose their shirts on those deals thanks to the Biden Recession.
Take, for example, OpenDoor, the company that sends out those endless “We want to buy your home” letters. They promised investors they were going to use the Internet to revolutionize home-buying by flipping homes at scale and cut out the middle man. How well did they succeed?
Now that they’ve had a while to run their system, the answer is: Not so well.
Takeaways:
One thing I was unaware of: Commercial investors in residential real estate fund their purchases through variable interest rate debt.
OpenDoor’s outstanding debt balance “has ballooned from $271 million to $6.1 billion.”
Every point rise in interest rates costs OpenDoor $40 million more in interest rate payments.
“OpenDoor is truly a modern day house of cards. The company’s revenue grew from $1.8 billion in 2018 to over $8 billion in 2021. To grow they scaled, going from 18 markets to 44 markets in the U.S. In those four years, the company went from flipping 7,000 homes a year back in 2018 to now flipping 21, 000 homes most recently in 2021.”
“Despite OpenDoor’s top-line growth, the company has incurred loss after loss after loss, each bigger than the last, even in a strong rebound year in 2021. Where the company sold a record number of homes, OpenDoor incurred a record loss of over $600 million.”
Some math snipped. “OpenDoor would need to sell roughly sixty thousand homes a year just to break even with how much it costs the company to exist in its current burn rate. Every time the interest rate goes up a single point, OpenDoor needs to sell an additional 2,000 homes in order to offset that additional $40 million.”
The end of the video touches on how Zillow lost $881 million by trusting an algorithm that had them paying above-marker prices. We covered that briefly here some nine months ago. Here’s a video with more details:
But it’s not just OpenDoor and Zillow. Here’s a video that explains why all the large-scale commercial buyers of residential real estate (including those buying to rent it out rather than flip) are screwed by rising interest rates:
Takeaways:
The Fed “is now committing to not only continue increasing interest rates, they’re committing to keeping interest rates elevated for the foreseeable future.”
“These real estate investors are going to be losing money in the housing market on their investments, and that they are going to have to fire sale their portfolio as a result.”
“Over the last year, the investor profit or the cap rate in America is about 4.5%, which was pretty good in 2021, when interest rates were zero, but now that interest rates are projected to go to 3.8%, we can see that investors who buy real estate in America are basically getting very little premium over buying a short-term government bond.”
“As this investor demand continues to go down, home prices are also going to continue to go down in America, because in many markets investors were quarter of the demand, a third of the demand for homes over the last of couple years, and in some neighborhoods investors were 50—60% of the demand.”
“A lot of people think [commercial buyers pay] cash, but folks, it’s never cash, it’s always a bank in the background giving these hedge funds and private equity funds money to buy single-family homes.”
“They’ll give these hedge funds maybe 70—75% percent of the money to go do it, like a normal loan. The thing is, the loans that these Wall Street investors use to buy homes are often adjustable rate loans, where every time the fed hikes interest rates, the Wall Street investor has to pay more in debt service and interest on their existing portfolio.”
“We’re gonna get to a point soon over the next six months where these Wall Street investors are having to pay more to their bank and their warehouse lender than they’re going to receive in income and rent from their tenant. Like, literally, these Wall Street investors not only are going to see the value of their property going to go down, they’re going to begin losing money in terms of cash flow.”
So not only will investors have to sell, but frequently they won’t have any choice.
Because their lender, their bank, is going to do something called a margin call. At a certain point, they’re gonna say “Hey Wall Street buyer who I’m giving money to, the value of the homes has gone down and now you can barely afford to pay interest. You’re gonna have to now just pay us off, or pay us down,” and when the bank does that margin call, these investors are then going to be forced to sell off their portfolio, because they’re going to need the cash, causing a massive, widespread dump of inventory onto the U.S. housing market.
He doesn’t mention Austin by name in this video, but he does in another pegging it as the #5 market most likely to see price drops. “This is a market in absolute freefall.” “In the span of just five months, the number of homes for sale in Austin has increased from 1460 and February to nearly 8 000 in July.” He thinks home prices could go down by 40%. Naturally, as an Austin-area home-owner, I think that’s way too much, but I do expect significant retreats from the highs reached early this year.
He also thinks inflation is going to get worse (which is probably a good bet).
(In another video covering some of the same ground, he mentions BlackRock, one of the biggest boogeymen in public perceptions of buying residential real estate. Guess what? “BlackRock is not a big player in terms of owning, managing and buying real estate in the U.S.”)
Like the fear of Japan buying everything in the late 1980s, fear that institutional investors will make owning a home impossible for ordinary Americans turned out to suffer from the same recency bias, assuming that what is going on right this minute will continue for the foreseeable future.
Like assuming that the giant ants are unstoppable, or that Hispanics will always vote for Democrats, assuming that housing prices will always go up and that credit will always be cheap are categorical mistakes that the market will eventually punish you for making, and the companies that made it are now bleeding red ink.
People who sold during the bubble made out like bandits, and people who bought during it got screwed, but what can’t go up forever won’t. Bubbles pop. Absent government distortions of the market*, supply and demand have a way of adjusting.
Anyway, if you need to buy a house, nine months from now is probably going to be a great buyer’s market…
*And yes, lots of cities and states try their damnedest to prevent new housing from being built. I’m looking at you, California.
