The Biden family and its business associates created a complicated web of more than 20 companies, according to bank records obtained by the House Oversight Committee — a system, GOP lawmakers say, that was meant to conceal money received from foreign nationals.
Sixteen of the companies were limited liability companies formed during Joe Biden’s tenure as vice president, the committee said in a press conference on Wednesday. The Biden family, their business associates, and their companies received more than $10 million from foreign nationals’ and their related companies, the records show. These payments occurred both while Biden was in office as vice president and after his time in office ended.
In what Representative Nancy Mace called an act of “financial gymnastics,” many payments were routed from foreign companies to the Biden family’s business associates’ companies which then doled out payments to the Bidens in incremental payments to different bank accounts in an alleged attempt to hide the source of the funds.
At least nine Biden family members received payments, according to committee chairman James Comer. That includes Hunter Biden; James Biden; James Biden’s wife, Sara Jones Biden; the late Beau Biden’s wife, Hallie Biden; Hunter Biden’s ex-wife, Kathleen Buhle; Hunter Biden’s wife, Melissa Cohen; and “three children of the president’s son and the president’s brother.”
Much of the money came from Chinese nationals and companies with ties to the Chinese Communist Party. Multiple Biden family members received money after it passed through an associate’s account. Comer said of the countries the Biden family was influence peddling in, China is “the most reputable.”
The committee revealed Wednesday that records suggest the Biden family and its associates’ business dealings in Romania “bear clear indication of a scheme to peddle influence” from 2015 to 2017.
At the time, then-Vice President Biden spoke out against Romanian corruption while the Biden family received more than a million dollars from a company controlled by a Romanian national, Gabriel Popoviciu. Popoviciu, who has been accused of corruption, sent the money through a Biden family associate, according to the committee. Sixteen of the seventeen payments involved in the deal occurred while Biden was still in office. The money “stops flowing from the Romanian national soon after Joe Biden leaves the vice presidency,” Comer said.
The Bidens also received “millions of dollars from China,” with Comer saying it is “inconceivable that the president did not know” about the payments.
Comer said the information revealed Wednesday is the result of subpoenas to four different banks and stressed that the committee is still early in its investigation and believes there are as many as 12 banks with records relevant to its investigation.
Naturally, the mainstream media are doing their very best to ignore these revelations…
You might have noticed a meme floating around the media about how Britons could become “no better off than people living in Poland”. “If the UK continues with the same level of growth it has seen for the last decade,” writes Sam Ashworth-Hayes, “Poland will be richer than Britain in about 12 years’ time”:
It sounds like an absurd idea that in 2040 we might see complaints in the Polish press about a flood of British plumbers undercutting wages, or Brytyjski Skleps lining the rougher areas of Warsaw, but it isn’t beyond the realms of possibility.
This talking point has also appeared in the Telegraph, the Express and the Financial Times. It often comes with a sense of vague alarm and bewilderment. Poland? The post-communist place? Don’t they live entirely off vodka and potatoes? Don’t they have horses clippety-cloppeting down the streets selling women’s underwear pinched off a truck in Germany? Poland?
Having lived in Poland for nine years, I can say that I am not at all surprised by these projections. To be clear, that is all they are — projections. A lot can change in nine years, in Britain and in Poland.
Still, I think a lot of British people would be surprised by how much better things can be in the land of Lech Wałęsa and John Paul II. Equally, a lot of Polish people would be surprised by how much worse things can be in Britain — given that a lot of Poles of my acquaintance appear to think that getting rich in the U.K. is as easy as walking outside with a wheelbarrow and catching the banknotes that rain down from the sky.
Britain has had minimal economic growth for years. Poland has long been enjoying some of the highest economic growth in Europe. It even emerged from the pandemic better off than other European nations with, as Paweł Bukowski and Wojtek Paczos wrote for the LSE, “a relatively lax approach to economic lockdown and a bit of sheer luck”.
Institutions often seem to work better as well. I can generally visit a GP on the day I call. Britons often have to wait for more than a week. Maternal mortality is higher in the UK — and infant mortality is about the same, despite Britain being much richer overall. Actually, Polish life expectancy as whole is just a touch shorter than British life expectancy, despite the nation having a lot more smokers.
Polish kids have ranked higher on the PISA education rankings than British kids — ranking, indeed, the third highest in Europe in science and maths, and the fourth in reading comprehension. Poland is a more peaceful place than Britain, with murder and rape generally being rarer (granted, statistics in the latter case are famously difficult to trust). Terrorism, for reasons I leave to the reader, has been almost non-existent in Polish society.
Some Polish achievements are more difficult to quantify. In Britain, the 20th century was marked by a curious habit of ripping down beautiful buildings and constructing ugly ones. Poland, meanwhile, has been beautifully renovating and reconstructing many of its urban spaces, pursuing a philosophy of “preservation meets modernisation”. Warsaw and Kraków are famous enough, but travellers could also visit lovely towns and cities like Wrocław, Toruń and Gdańsk — or my own, Tarnowskie Góry.
Also, Poland seems to have actual conservatives who aren’t afraid to push for the right policies, instead of timid functionaries scared of their own shadow.
Last quarter, Disney+ lost 2.4 million subscribers. But this quarter is different! This quarter, Disney+ lost 4 million subscribers.
Related. “They got these ulterior motives, and you know, it’s about this this sort of political shit. And, yeah, I guess that’s part of it. But a lot of it is just these guys are just fucking stupid.”
House Speaker Kevin McCarthy has laid out the devastating results of runaway government spending on the middle class and why it’s so important to claw back lost ground for the average American, who has “received a pay cut for 24 consecutive months … as inflation has persisted.”
He also noted the average American family has lost the equivalent of more than $7,000 in annual income.
There is a direct link between spending, borrowing and printing trillions of dollars, and these disastrous results for Americans.
President Biden has spent trillions of dollars the nation didn’t have.
These unchecked costs drove the deficit to record highs and pushed the debt over $31 trillion.
A former Connecticut Planned Parenthood honcho took his own life days after police failed to arrest him on child pornography charges — botching the raid by knocking down the door of the suspect’s New Haven neighbor.
Tim Yergeau, 36, the former director of strategic communications at the Southern New England branch of Planned Parenthood, died by suicide on Tuesday amid a child pornography investigation in Connecticut last week.
The Biden administration on Thursday unveiled a proposal that would prohibit schools from instituting policies that “categorically ban transgender students from participating on sports teams consistent with their gender identity.” The policy would allow schools to implement certain limitations in the interest of fairness or safety, however.
The proposed rule, which would impact any school or college that receives federal funding, would expand Title IX protections to include gender identity. Under the proposal, a “one-size-fits-all” ban on transgender athletes playing on teams that match their stated gender identity would be a violation of Title IX. The rule, which is likely to face challenges, will face a lengthy approval process.
This is, in fact, the exact opposite of the text of Title IX, which provides special protection for biological women, not men pretending to be women.
Under the radar, a package of bills is ramming through sweeping changes that will reorient our public schools around a new paradigm — subordinating academic basics to an obsessive, politicized preoccupation with race and social justice activism.
“Critical Social Justice” ideology (CSJ) — the vehicle for manipulating our young people into adopting this worldview — is laced strategically through a variety of bills, including “ethnic studies” (HF 1502), “Teachers of Color” (HF 320) and now the House and Senate omnibus education bills (HF 2497/SF 2684).
Taken together, this legislation will inject reductive, racialized thinking into every classroom in Minnesota’s approximately 500 school districts and charter schools; change the fundamental mechanics of education in our state; and give the Minnesota Department of Education (MDE) and the Professional Educator Licensing and Standards Board (PELSB) broad new powers that amount to an end-run around our state’s hallowed tradition of local control.
Here’s a story I missed earlier: “Kazakhstan Impounds Property of Roscosmos Subsidiary.” That’s the Russian company that’s the main operator of Baikonur spaceport. Haven’t seen any resolution to this, mainly because Russia is so broke thanks to mismanagement, sanctions, and an illegal war of territorial aggression.
Jay Leno drives the 1,025 horsepower 2023 Dodge Challenger SRT Demon 170. I have an irrational desire to own something with a Hellcat engine, which I need like I need a hole in my head. Plus I like the look of the Shelby GT-500 Mustang better, and I’m not buying one of those either.
“Disney has proudly employed sex predators for years, and this act of aggression by DeSantis will force thousands of our proud pedo-American workers to leave the park to stay outside the 1,000-foot radius required by law,” said Disney CEO Bob Iger. “This is tyranny!”
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…
Happy Good Friday! The Biden Recession continues it’s downward spiral…
…a deep dive into how the Russian Conspiracy Hoax has corrupted institutions, Chicago doubled down on failure, and unions want to take your packages away. It’s the Friday LinkSwarm!
“Small Businesses File For Bankruptcy At Record Pace, Surpassing COVID Crash.” So much for a Biden presidency helping the little guy…
They could either keep doing what reporters had done since the beginning of time, confining themselves to saying things they could prove. Or, they could adopt a new approach, in which you can say anything is true or confirmed, so long as a politician or intelligence official told you it was.
We know how that worked out. I was never invited back, nor for a long time was any other traditionally skeptical reporter, while Nance — one of the most careless spewers of provable errors ever to appear on a major American news network — became one of the Peacock’s most familiar faces.
I don’t know Malcolm and don’t mean to get nasty about this, but: even before that January 2017 broadcast, he had an extraordinary record, one that should have scared away any retraction-averse producer. On August 20th, he went on with Joy Reid and said the Green Party’s Jill Stein “has a show on Russia Today.” This wasn’t true, as Stein quickly pointed out, but MSNBC refused to acknowledge the error. Media watchdog FAIR repeatedly asked for a correction, as did friend Glenn Greenwald at The Intercept, but they refused to budge.
This may not seem a big deal, but at the time it was still weird and something of a pioneering move for a major news organization to just refuse to fix a clear error.
Nance went on to make a lot more, some I would classify as important. A tweet of his in late 2016 was a major source for the pre-election misconception that the Wikileaks-leaked emails of Clinton campaign chief John Podesta were “riddled with forgeries” and “#blackpropaganda.” He would regularly make all sorts of claims without evidence, like that the K.G.B. had “been surveilling Donald Trump since 1977,” and that “little” comes from Trump’s mouth that isn’t “carefully planned to benefit the Russian Republic,” and all sorts of other nonsense.
I was quiet until he said Glenn “shows his true colors as an agent of Trump and Moscow,” “reports in to his masters in Russia,” and is “deep in the Kremlin pocket.” This was outrageous. I was shocked MSNBC didn’t fire him on the spot. Still, I voiced objections in a measured way I hoped might get through, either to Nance or to someone at the network. “I’ve been on the air with Malcolm Nance and he seemed like a nice guy,” I tweeted, “but this awful practice of calling people traitors and foreign agents based on no evidence has really gotten out of hand.”
Nance’s response was “Ok, you’ve convinced me. You need to be blocked. #Bye.” He remained a regular guest on the network, which didn’t cool on booking him until the Russia story fell apart with the release of the Mueller report the next year.
The Nance situation was symbolic of what happened at the network from the beginning of Trump’s term, really beginning in early 2017. It went from being a place where you had to be at least in the ballpark of demonstrably true to being a place where the factual standard was, “Whatever dogshit drops out of the mouth of any hack or spook.”
Moreover the network didn’t just re-report this stuff, it became the favored launching pad for all the most blatant blue-Anon disinformation, like California congressman Adam Schiff saying he had “more than circumstantial” evidence of collusion, or former Obama defense official Evelyn Farkas suggesting the Trump administration would try to destroy evidence if they “found out how we knew what we knew about the Trump staff’s dealing with Russians.” Farkas later testified under oath that she “didn’t know anything” about collusion.
Snip.
As we later found out, among other things via Jeff Gerth’s gigantic piece in the Columbia Journalism Review, the FBI said nothing about many stories it knew to be wrong, including the influential New York Times exposé, “Trump Campaign Aides Had Repeated Contacts With Russian Intelligence.” The possibility that officials can lie to us in this way — leaking, asking that attribution be limited to uncheckable “sources familiar with the matter,” then saying nothing as stories start taking water — is exactly why we don’t stick our necks out for such people.
Snip.
the network doubled down, seemingly hiring as contributors every unemployed prosecutor or natsec official they could find, especially from failed Russiagate probes. They’d already spent on names like ex-CIA head John O’Brennan, former assistant FBI counterintelligence chief Frank Figliuzzi, House Intel Director of Investigations and future congressman Dan Goldman (who met Adam Schiff in an MSNBC green room), and federal prosecutor Glenn Kirschner. Now, they added cadaverous Mueller sidekick Andrew Weissmann and, astonishingly, Weissmann’s deputy, the fired FBI lawyer Lisa Page. They also began bringing in Page’s lover, fellow FBI firee Peter Strzok, as a commentator.
America became familiar with Page and Strzok after their texts — referring to the Trump-Russia investigation as an “insurance policy,” and ripping “sandernistas,” among other things — became public. These were living monuments to press excesses of the Trump era. As Gerth wrote, Strzok quietly reported to bosses after the Times’s “repeated contacts” story came out, saying, “We are unaware of ANY Trump advisers engaging in conversations with Russian intelligence officials.” Strzok in other words was exactly the kind of person to whom Rachel might have been referring when she rhapsodized about FBI “not saying anything” to dissuade us from believing errors.
Page on April 10, 2017 got a text from Strzok, saying he wanted to talk to her “about [a] media leak strategy with DOJ.” This was a day before a Washington Post story that cited “law enforcement and other U.S. officials” in saying the secret FISA court found probable cause to believe former Trump aide Carter Page (no relation) was an “agent of a foreign power.” Whoever leaked this was sabotaging not just the Post, but every downstream media org picking up the story, because the story at its roots was wrong: Carter Page was not an “agent of a foreign power,” as the FISA court had been misled, by Steele and the FBI. MSNBC was one of the first outlets to regurgitate this thing.
When sources lie to you, you should be mad. At minimum, you should be ripping their names out of your Rolodex (or modern equivalent). MSNBC did the opposite, hiring seemingly everyone who’d helped them down this reputation-tarnishing path.
MSNBC bet everything on its switch in 2017, and though it paid handsomely at first — in spring of 2017 they became the first cable network in two decades to unseat Fox for the #1 spot, with Rachel owning the top-rated non-sports program on cable — the collapse of the Mueller investigation triggered a long, frankly earned, post-trout-fishing slide. No doubt the indictment of Donald Trump will reanimate things, but prior to that it was grim, as Fox was beating CNN and MSNBC combined by the end of January. The ratings picture for March showed that MSNBC’s top show was The Last Word with Lawrence O’Donnell, rated 11th, followed by The Beat With Ari Melber at 16th.
After all this, after throwing away all their standards, clowning themselves with years of wrong stories, doling out rice bowls to the procession of spooks who now clog their airwaves, and watching as their ratings predictably collapsed, now they want to give me a hard time. Not because I got anything wrong, but because they don’t like my opinions, or where things like the Twitter Files reports came from.
Stuck on stupid. “Far-Left Democrat Brandon Johnson Wins Chicago Mayoral Race.”
Johnson, 47, is a Cook County commissioner, a former social studies teacher, and a paid lobbyist for the radical Chicago Teachers Union. He ran as a decidedly far-left activist, and was backed by Bernie Sanders and the Democratic Socialists of America.
Johnson campaigned on promoting racial justice and uplifting the working class. He is an opponent of charter schools. In order to pay for a variety of new social programs, he has called for increased taxes on large corporations, wealthy residents, and suburbanites who visit the city. During his campaign, Johnson promised $1 billion in new spending.
Because Lori Lightfoot’s administration wasn’t enough of a disaster…
Speaking of unions behaving badly, the Teamsters are planning a UPS strike.
Yet another reason for the Trump charges to be thrown out. “The progressive daughter of judge presiding over Donald Trump’s hush money case in Manhattan who worked for Kamala Harris and Joe Biden…Manhattan Judge Juan Merchan’s daughter, Loren, 34, works for progressive digital strategies firm Authentic Campaigns. She was a digital director for Vice President Kamala Harris’ 2020 presidential campaign and has worked for a slew of other Democratic campaigns.”
Dispatches from the Soros-funded decline of New York City: “On Saturday, the New York Police Department announced that a man who shot a thief in self defense will be charged with attempted murder despite being shot twice and having to wrestle the firearm away from the thief.” (Update: Soros tool Alvin Bragg changed his mind.) (Hat tip: Ed Driscoll at Instapundit.)
“Texas Bill Would Create State-Issued Gold-Backed Digital Currency.” This would be a super-interesting story if I thought there was a snowball’s chance in hell of this passing and the Federal Reserve not quashing it.
The more I hear about the Silicon Valley Bank collapse mentioned in Friday’s LinkSwarm, the worse it sounds.
I saw a snippet of Gary Tan, CEO of startup fund Y Combinator, talking about how bad it is. I can’t find a video of the full interview online, but evidently it was excerpted on Bannon’s War Room podcast and there’s a transcript.
[Interviewer]: How many of these startups that have been through Y Combinator, for example, have their cash tied up at Silicon Valley Bank? And over this weekend, I’m gonna try to figure out how they’re gonna make payroll next week. Do they have to go to investors and say, can you front me some cash so that we can stay alive?
[Tan]: We have funded about 3,000 active startups right now. I would guess that this affects more than 1,000 startups. And about a third of those startups will not be able to make payroll in the next 30 days in the current configuration. As of this morning, RIPLING, which many startups use to manage payroll and benefits, transfers were not being processed by SVB for payroll.
And so that’s a really existential threat for companies broadly. These are founders who are texting me and calling me saying, do I need to furlough my workers next week? Because I do not have other bank accounts, you know, a Google or a Facebook or even companies farther along with a Treasury Department. They’re going to be able to weather this, but if SVB is your only bank, it’s actually an existential risk. You’re going to go out of business if you can’t pay payroll. And that starts Monday.
That transcript also has this sobering figure: “97% of the deposits at Silicon Valley Bank. 97% are not insured by FDIC because they’re in accounts over $250,000. These company accounts that would be $169 billion.”
So what was Silicon Valley Bank doing rather than properly managing their risk profile? Banks have Chief Risk Officers whose job is to make sure their risk exposure ratios don’t get out of whack. Well, guess what? SVB didn’t have one for some nine months. “SVB’s former head of risk, Laura Izurieta, who formerly performed a similar role for Capital One, left the bank in April 2022. She wasn’t replaced until January 2023 when the bank hired Kim Olson, formerly of Japanese bank Sumitomo Mitsui.”
But don’t worry: SVB had CRO for the bank in Europe, Africa and the Middle East who was entirely focused…on Social Justice and ESG.
Jay Ersapah, who acts as CRO for the bank in Europe, Africa and the Middle East and who describes herself as a ‘queer person of color from a working-class background’ – organized a host of LGBTQ initiatives including a month-long Pride campaign and implemented ‘safe space’ catch-ups for staff.
In a corporate video published just nine months ago, she said she ‘could not be prouder’ to work for SVB serving ‘underrepresented entrepreneurs.’
Professional network Outstanding listed Ersapah as a top 100 LGTBQ Future Leader.
‘Jay is a leading figure for the bank’s awareness activities including being a panelist at the SVB’s Global Pride townhall to share her experiences as a lesbian of color, moderating SVB’s EMEA Pride townhall and was instrumental in initiating the organization’s first ever global “safe space catch-up”, supporting employees in sharing their experiences of coming out,’ her bio on the Outstanding website states.
It adds that she is ‘allies’ with gay rights charity Stonewall and had authored numerous articles to promote LGBTQ awareness.
These included ‘Lesbian Visibility Day and Trans Awareness week.’
Separately she was also praised in a Facebook post by the group ‘Diversity Role Models,’ a charity which campaigns against homophobic, biphobic and transphobic bullying in UK schools.
Being in Silicon Valley, I’m betting that the entire company was whole hog backing DEI, ESG, Transwhatever and the entire rainbow of victimhood identity politics acronyms.
In a strong economy, you can get away with a bit of shareholder-value-destroying, virtue-signaling luxury goods as long as your core business is strong. But with rising interest rates, Biden Inflation, the Biden Recession and the gale winds of deglobalization, taking your eye off the ball to focus on anti-reality SJW garbage is a recipe for disaster.
And all the startups that relied on SVB for their banking are well and truly screwed.
Update: Uncle Sugar is evidently going to make all depositors whole at both SVB and newly insolvent Signature Bank. This relatively early intervention may indeed be the best move to prevent bank runs at other institutions, and may reflect a change in philosophy since 2008. (It’s a thorny subject.) But it does make me think that a lot of well-connected depositors were screaming in the ears of Washington to be made whole at the taxpayer’s expense. What do you think the odds are that the same consideration wouldn’t be given to, say, a Texas bank that specialized in underwriting oil and gas ventures?
As I’ve been expecting a glut of car inventory due to inflation, rising interest rates, and all the demand destruction of the Biden Recession, I’ve been paying more attention to the car market just in case dealers had to liquidate new cars at absolute fire sale prices and I could swoop in and take advantage. So far that hasn’t happened, and prices haven’t behaved the way I’ve expected. (Used care prices are rising because inventory is tight despite dealers overpaying in 2022?)
But one thing I have noticed: Pickup truck prices have gotten absolutely insane.
Pickups used to be the steady, dependable, unglamorous vehicles of ordinary blue collar Americans. Lately, car makers seem to have turned them into cash cows by pricing them like luxury goods for rich people.
As the Ford F-series is the most popular pickup truck, I though I would look at the prices there. The average selling price for a 2023 Ford F-150 is an eye-watering $82,395. Given the rule of thumb that you should never pay more than a maximum of 35% of your yearly income for a new car, which means that buyers should be making $235,000 a year to afford a new F-150. That’s not “HVAC Repairman” money. Hell, it’s barely “guy who owns his own HVAC shop” money. And this despite Ford having such quality control problems that they’ve issued a slew of recalls.
Assuming I was insane enough to buy a new Ford F-150 at the average selling price, and no down payment, I would be looking at $1,521 in monthly payments, or more than I was paying for my home mortgage until a few years ago. (Thanks to rising tax valuations and insurance, now it’s just a little more than that. My car has long been paid off.)
Ford and other auto makers are pricing their traditional customers out of the market by making pickup trucks luxury goods. Just as in the 1970s, American car manufacturers are pricing themselves out of the market and are inviting foreign manufacturers to swoop in and snatch market share from them.
Here Zach and Ray of Car Edge on how insane Ford’s pricing has gotten (and the F-150 is far from the only Ford vehicle that prices have soared on).
“What the hell is wrong with you people?”
“That’s not an average price for an average person!”
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 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.
Greetings, and welcome to a Friday LinkSwarm…on Friday! What are the odds?
More dispatches from the Biden Recession: “Homebuyers are GONE.” Home sales are cratering nationally, companies that bought up lots of properties are slashing prices, and the number of homes being built is also cratering.
From the same guy: The 10 locations housing prices will crash the most. #5? Austin. “This is a market in absolute free-fall.” I know prices in my neighborhood have probably lopped off a good $100,000 or so, forcing me to rely on my vast book holdings to remain a millionaire…
The other day, I saw on Twitter someone saying that they are a good liberal and all that, but they are really worried about what they’re seeing regarding the emerging culture of the medical and teaching professions encouraging children to transition to the opposite sex. “But,” said this person, “I don’t want to surrender to a moral panic.”
I submit to you that a moral panic is precisely the correct response to this egregious phenomenon. That is, what is happening is so hideous, and so widespread, and the reaction by most people to this point has been so muted to non-existent, that if you are not panicking, you are not paying attention.
Most people are not on Twitter, and if you’re one of these people, you may not be aware of the extent of the insanity. The media are not covering it, of course. It falls to badasses like Matt Walsh, Chaya Raichik (who runs the Libs Of Tik Tok account), Christina Buttons, and Chris Elston, the guy who runs the Billboard Chris website and Twitter account, to sound the alarm.
The things they document are not nut-picking (the practice of finding extreme weirdos, and falsely using them as an example of the whole). They are completely mainstream. These are things that, if we had a functional media instead of a Narrative-massaging industry, would be widely reported, and discussed intensely.
The Left’s agenda to groom your children has taken another turn. Various states across America have begun implementing laws and policies to allow children to make healthcare decisions without a parent or guardian’s consent — and the medical industry is promoting it. Many of these states are using these new laws to allow for drastic medical decisions to be made without parental consent including hormone therapy, gender reassignment surgery, and medicated mental health treatment.
In Washington, children as young as 13 are now allowed to undergo gender reassignment surgery and other questionable medical treatments without parental consent.
One Washington dad alleged in a viral TikTok video that a school gave his 15-year-old child antidepressants without informing him. Sounds completely insane and illegal, right? Well . . . it sounds that way, but it isn’t. Under Washington law, this is 100% legal and is allegedly being carried out by schools.
New York has hopped on the bandwagon of removing parents from the treatment room as well. New York-Presbyterian recently sent out emails to their patients explaining that accounts for 12-17-year-olds must be updated to reflect the adolescent’s personal email address as the primary contact as New York State law allows children “to keep their sensitive medical information private and to consent to some of their own medical treatment.”
Twelve-year-old children will now have the ability to be the primary decision-maker for many of their medical treatments and procedures. Children will also have the ability to completely revoke medical record access for their parents or guardians. 12-year-old children who can barely do their own laundry now have authority over their healthcare.
Snip.
One concerned parent in Kennebunk, Maine shared photos with us of a medical questionnaire for patients 12 years of age and older which read “To be filled out by patient only.” The questionnaire included questions about sexuality, asking children what gender they’re attracted to, and if the child has ever been in a romantic relationship or had sex. Separate questions ask the children if they’ve ever had questions about their gender identity and what their preferred pronouns are.
The parent spoke to me regarding the questionnaire and stated her child was given the forms right after he turned 13. Naturally, her son was uncomfortable and confused by the questions and asked his mom for help. However, the mom claims the doctor made her leave the room and refused to allow her to be present while her son was answering the questionnaire.
Why would a doctor need to secretly know the sexual preference and gender identity that a 13-year-old child claims without his mom present? Why would any child be required to share answers to all these invasive questions and bar any parental involvement?
It’s not just Maine, Arizona, New York, and Washington — the removal of parents from important decisions in their children’s lives is becoming a nationwide policy trend aggressively pushed by the Left.
Given how much Libs of TikTok has uncovered of the groomer agenda, it’s no wonder that Facebook has banned her:
JUST IN: Facebook permanently banned Libs of TikTok on Wednesday evening and gave absolutely no reason why https://t.co/m6F3wIdzlZ
“Austin Fire Department Chaplain Fired over Blog Post Objecting to Males in Women’s Sports.” No surprise to followers of Austin politics, given the way their union has been taken over by the radical left.
To the great consternation of liberal Democratic mayors in the northeast, the governors of Texas and Arizona continue to send busloads of illegal migrants to New York and Washington to lessen the burdens on their states and draw more attention to the Biden border crisis. This has put the municipal governments of these self-defined sanctuary cities in a bit of a tough position politically. They are supposed to represent bastions of hope for the migrants and freedom from the “oppression” of ICE and the Border Patrol. But now that the migrants are arriving in larger numbers and doing so in a very public way, it’s becoming clear that this is a problem that the mayors were not prepared to handle. As Charles Lipson explains in Newsweek today, these so-called sanctuary city claims were clearly more of a case of virtue signaling than anything else, but when the cost of invoking such policies began to rise, the backlash came quickly.
I still don’t understand Obama’s deep infatuation with Iran’s mullahs, or why he sent them pallets-full of currency, or why he desperately wanted to get nuclear technology to Iran. But I suspect his enthusiasm for providing nuclear technology to Iran was in equal proportion to his enmity toward Israel.
So how was the American left supposed to keep championing Mr. Rushdie when Barack Obama, their Lightbringer, was such a fan of the mullahs who wanted Rushdie dead? Barack Obama had taken American tax dollars and sent it to the mullahs so that they could then turn around and use that money to pay the bounty to whomever successfully pulled off the fatwa against Rushdie. To stay true to Obama, America’s liberal elites had to now ally themselves with the men trying to murder Rushdie.
Conservatives, of course, always supported Rushdie’s right to free speech and always decried the fatwa on him. But for those who matter most in elite society, the fatwa now reflected poorly on Rushdie, not those who imposed the fatwa.
Rushdie was abandoned by the left, because they were now aligned with the mullahs who wanted him dead.
Over in London, unions are working on their Winter of Discontent cosplay by launching a Tube strike.
Families are getting the hell out of north Portland due to the huge increase in drug-addicted transients ts infecting their neighborhood. This is your city on social justice.
Turkey’s wild and crazy president Recep Tayyip Erdogan continues his innovative “lower interest rates during hyperinflation” gambit. Result? The Lira has crashed to an all time low.
Remember San Angelo police chief Tim Vasquez, who accepted bribes via gigs for his Earth, Wind & Fire cover band Funky Munky? Well he just got sentenced to 15 years in the slammer. I guess he’s no longer a shining star…
Also on the crime beat: Charges filed in Whitey Bulger whacking. “Fotios Geas, Paul J. DeCologero and Sean McKinnon have been charged with crimes related to the murder of Whitey Bulger.”
More New York Times editorial judgment on display: “NYT Cuts Ties With Reporter Who Called For ‘Killing,’ ‘Burning’ Jews ‘Like What Hitler Did.’” The surprise is that they actually fired her. How do you think that conversation went? “Sure, lots of us have called for death to the Jews, but the ‘burning’ part just crosses the line…”
The Biden Recession picks up downhill speed, liberals are spending $160 million to seize control of elections, Biden wants to starve your children until you accept transgenderism, and another Soros-backed DA gets the heave-ho from voters. It’s the Friday LinkSwarm!
GDP shrunk by .9% in Q2, making the Biden recession official, no matter how much Biden Administration officials and their Democratic Media Complex toadies attempt to spin it otherwise.
Two big money liberal operations, ready to spend $80 million each, are trying to determine who controls elections and how in the years ahead.
“The overall objective of the political left is to change the way you conduct overall elections,” Jason Snead, executive director of the Honest Elections Project, which advocates clean elections, told The Daily Signal.
One of the two liberal groups, Run for Something, is a political action committee founded by a former Hillary Clinton campaign staffer. In the spring, Run for Something established its Clerk Work project with the goal of electing clerks, election supervisors, registrars, recorders, and other local officials charged with running elections.
The PAC says it will promote thousands of election administrators in the years ahead. But for 2022, it reports endorsing 11 candidates competing in races in California, Colorado, Illinois, Missouri, Nevada, North Carolina, and Tennessee.
Local election clerks generally are empowered to interpret and enforce state election regulations. They often have discretion on matters such as whether to count absentee ballots that come in after Election Day, how strictly to enforce voter ID or signature-matching requirements, and how closely poll watchers may monitor the ballot counting on Election Day.
According to the National Conference of State Legislatures, county-level election officials are elected in 22 states. In 10 states, elected officials appoint members to a local board of elections. Another 18 states divide election administration duties between two or more offices.
In any case, donating to specific candidates to oversee elections could directly or indirectly affect who holds these positions.
Some practices of local election administrators also could be guided by another $80 million effort by the U.S. Alliance for Election Excellence, a coalition of mostly left-leaning organizations financed in part by Big Tech executives to train local officials in running elections.
Snead and other critics say they see parallels between Run for Something and efforts to elect liberal prosecutors financed by liberal hedge fund manager George Soros. They also see strong similarities between the U.S. Alliance for Election Excellence and Facebook founder and CEO Mark Zuckerberg’s election administration grants in the 2020 election cycle.
“What we shouldn’t lose track of is they are playing the long game,” Snead said. “They are going to look for every possible way to impact elections, and they can make substantial changes in the long run through this kind of program that they wouldn’t have been able to make in 2020.”
When Soros-backed socialist son of convicted terrorists Chesa Boudin was recalled as San Francisco DA, the writing was on the wall. “Decarceration” is a disaster for everyone . . . except criminals.
Now another Soros-backed “decarceration” state’s attorney has lost her reelection bid. It’s not clear if the multiple crimes for which Marilyn Mosby has been charged are the impetus for Baltimore’s voters deciding it’s time to move on or if it’s the shocking crime rates in the city as a result of her radical anti-law and order agenda. Maybe both.
Mosby rose to national attention in the wake of the Freddie Gray riots and for her hyper-politicized botching of the prosecution in those cases.
Fox News reports:
Baltimore State’s Attorney Marilyn Mosby lost her reelection bid to defense attorney Ivan Bates in the Democratic primary after she was indicted by a grand jury on federal charges alleging that she used coronavirus hardship as a reason to take money out of her city retirement account.
The Associated Press called the race in favor of Ivan Bates, a defense attorney, on Friday night. Bates is a former prosecutor in Baltimore who served from 1996 to 2002 before becoming a defense attorney.
Mosby, a Democrat, directed her office to stop prosecuting offenses such as drug possession, prostitution, urinating in public, and more during the coronavirus pandemic in an attempt to stop the virus from spreading in jails and prisons.
In May, the Biden administration announced that any school that participates in the federal school lunch program (which is run by the U.S. Department of Agriculture’s Food and Nutrition Service) must allow students to use bathrooms, locker rooms, and showers and play on the sports teams aligning with their gender identity if they want access to funds for the program — effectively holding money meant for ensuring student nutrition in exchange for compliance on radical leftist gender ideology.
Now, twenty-two Republican attorneys general are fighting back by suing the U.S. Department of Agriculture over that new guidance.
“We all know the Biden administration is dead-set on imposing an extreme left-wing agenda on Americans nationwide,” Indiana Attorney General Todd Rokita said. “But they’ve reached a new level of shamelessness with this ploy of holding up food assistance for low-income kids unless schools do the Left’s bidding.”
According to the Washington Times, nearly 30 million students take advantage of the National School Lunch Program at about 100,000 public and non-profit private schools and residential childcare institutions. The Biden administration policy was seen as a direct assault on the 18 states with existing laws barring male athletes from participating in female sports.
The lawsuit argues that the Biden administration (again) violated the Administrative Procedures Act by issuing regulations without going through the rulemaking process and that Bostock v. Clayton, the 2020 Supreme Court’s 2020 decision on employment discrimination, doesn’t apply to Title IX as the Biden administration claimed when they announced the guidance.
“This case is, yet again, about a federal agency trying to change law, which is Congress’ exclusive prerogative,” Tennessee Attorney General Herbert H. Slatery III said. “The USDA simply does not have that authority. We have successfully challenged the Biden Administration’s other attempts to rewrite law and we will challenge this as well.”
The Biden Recession continues to wreck the pocketbooks of Americans, EU economies are sucking even worse than ours, more Bidens Behaving Badly, and unlimited abortion is not nearly as popular among the American public as it is among New York Times staffers.
Support for unlimited abortion is deeply unpopular:
New Harvard/Harris poll: Huge super-majority of Americans favor 15-week abortion bans in states. Women more likely than men to favor such restrictions; men more likely to support no limitations. Just 10% of respondents agree with federal Dems' 9-month-abortion radicalism: pic.twitter.com/wyOzUPg9uE
Democrats are just tired of Joe Biden and of having to explain away his poor performance. Since Biden was elected, the only thing that has gone right is that the Covid-19 pandemic effectively ended and the unemployment rate has remained low. Inflation is out of control, gas prices are at record highs, grocery bills are skyrocketing, the stock market is getting battered and people’s 401(k)s are shrinking, crime remains high, mass shootings keep bedeviling America’s public spaces, Russia’s invading Ukraine, there’s a global food and commodity crisis, and the Taliban is running Afghanistan and oppressing women again. Democrats are apoplectic that the Supreme Court struck down Roe v. Wade, a New York State gun law, and the EPA’s right to regulate carbon emissions without explicit approval from Congress. Parents are up in arms, the teachers’ unions look like callous fools who kept schools closed and harmed a generation of schoolchildren, and “abolish the police” looks like a suicidal public policy. Republicans notice that waves of illegal immigrants headed north shortly after Biden’s inauguration and haven’t stopped coming since.
You didn’t even mention the Social Justice insanity and all the transexual madness.
That New York Times poll found that 64 percent of Democrats want a different presidential nominee in 2024. Nobody’s willing to cover for this guy anymore; no one is inclined to avert their eyes when Biden or his wife blurts out something tone-deaf now.
There are some of us who would argue that Joe Biden has always been an insecure, abrasive, presumptuous, disingenuous, demagogic, insufferable blowhard who was largely protected by a cozy, all-too-friendly relationship with a press inclined to airbrush his glaring character faults, presenting him as a wacky neighbor or a kindly, ice-cream loving grandpa.
What we see now is what happens when much of the national media, the Democratic Party establishment, and liberal interest groups stop playing along with the narrative that Biden is a wiser, sharper, kinder, more energetic and sensitive man than he is. And the truth isn’t pretty.
Speaking of unwanted Bidens: “Hunter Biden could face prostitution charges for transporting hookers across state lines and disguising checks to them as payments for ‘medical services.'” I’ll believe Hunter Biden prosecution when I see it. Also, I’ve been treating the 4Chan “Hunter Biden iPhone leak” with a certain amount of skepticism. Certainly the Hunter laptop revelations were real, and Hunter is a big enough scumbag to do the the things alleged iPhone leak materials depict. But I try to be cautious about anything that fits too neatly into my preconceptions. (Hat tip: The Other McCain.)
“Left-Wing Nonprofit Scores $171.7 Million-$1 Billion Government Contract To Help Illegal Immigrants Avoid Authorities.”
A liberal non-profit group has been given a taxpayer-funded government contract worth at least $171.7 million — which could potentially reach just under $1 billion — for assisting illegal immigrant minors in avoiding capture or incarceration by U.S. Border Patrol and state officials.
The Department of the Interior was the awarding agency and “The Vera Institute of Justice,” based out of New York — which supports the “defund the police” movement and has lax views on immigration enforcement — was the beneficiary.
Thanks in part to a lack of zoning, Houston builds housing at nearly three times the per capita rate of cities like New York City and San Jose. It isn’t all just sprawl either: In 2019, Houston built roughly the same number of apartments as Los Angeles, despite the latter being nearly twice as large. This ongoing supernova of housing construction has helped to keep Houston one of the most affordable big cities in the U.S., offering new arrivals modest rents and accessible home prices even amid seemingly endless demand.
Houston is by no means a model for planning. Like every other Sun Belt city, it struggles with segregation and sprawl. Yet its continued success as one of America’s most affordable and prosperous cities reveals the workability—indeed, the desirability—of non-zoning. Houston is a profoundly weird place, resistant to seductive oversimplifications. But it provides insight into what comes after the arbitrary lines that have misshapen our cities—and how we might get there.
So why didn’t Houston adopt zoning like every other U.S. city? The answer comes down partly to process. Unique among major cities, Houston subjected zoning to a citywide vote. While most city councils had, historically, quietly adopted zoning after a few perfunctory public hearings, the Bayou City invited voters to decide on zoning in 1946, 1962, and 1993. Voters rejected it each time—a reality that calls into question the often-postulated popularity of zoning.
Zoning critics rightly dispensed with the comforting myths surrounding zoning—that its purpose was to merely rationalize land use—and zeroed in on its tendency to restrict new housing construction, limit access to opportunity, institutionalize segregation, and force growth outward. Far from being duped, Houston’s working-class residents exhibited a subtler understanding of the purposes of zoning than many contemporary planners and rejected it accordingly.
But the answer to why Houston remains unzoned also comes down to politics. Zoning proponents didn’t merely lose the referendums—they were also tactfully bought off by being allowed to have something resembling zoning in their immediate vicinity. Indeed, the dark little secret of non-zoning in Houston is that it depends on a system of land-use regulations known as deed restrictions, which empower certain communities—principally middle- and upper-class homeowners—to effectively “opt out” of non-zoning, writing their own land-use rules for their own neighborhoods. In exchange, Houston is able to protect the vast majority of the city from the types of arbitrary-use distinctions, density limits, and raucous public hearings that cause so much harm in every other U.S. city. That is to say, in exchange for respecting pockets of private land-use regulation, Houston is able to grow, adapt, and evolve like no other city.
Deed restrictions are private, voluntary agreements among property owners—typically the homeowners of a particular subdivision or neighborhood—regulating how they can and cannot use their land. These rules are literally tied to the deed, meaning that a property owner must agree to them as a condition of the sale. Since the failed 1962 zoning referendum, the city has enforced these agreements on behalf of the relevant parties, refusing to issue permits that run afoul of their provisions and bringing legal action against violators.
Is this system of publicly enforced deed restrictions “basically zoning,” as some might argue? On the one hand, deed restrictions—like zoning—demarcate specified areas subject to a distinct set of stricter land-use rules. Both zoning and deed restrictions in Houston are enforced by the government, principally with the aim of propping up home values and maintaining a certain quality of life. Many deed restrictions even have rules banning apartments and enforcing a strict two-and-a-half-story height limit.
Yet, the similarities end there, and Houston’s system of deed restrictions is a significant improvement over zoning. For starters, deed restrictions only cover an estimated quarter of the city, largely in areas with low-rise, detached, single-family housing. Industrial areas, commercial corridors, mixed-use and multifamily neighborhoods, urban vacant lots, and yet-to-be-developed greenfields are virtually never subject to their provisions. This means that roughly three-quarters of Houston—including its more dynamic sections—are largely free to grow without anything even resembling zoning holding them back.
Another key difference is that deed restrictions must be voluntarily opted in to. This serves to discipline deed restrictions in a way that is rarely true of zoning: If the rules are stricter than what prospective homebuyers might prefer, or not strict enough, or simply focus on the wrong concerns, this may translate into lower home values. This in turn nudges homeowners to think through the optimal form of land-use regulation to a degree that rarely happens with zoning.
After deciding to let drug-abusing transients use their restrooms, Starbucks is now closing 16 stores because of rising violence, and the fact that transients are shooting up in their restrooms. Golly, who could have possibly seen that coming?
Another Texas school superintendent has stepped down amid criticism from parents concerned about liberal indoctrination in their children’s classrooms.
At a special meeting Monday afternoon, Clear Creek Independent School District’s board of trustees accepted the retirement of Superintendent Eric Williams, effective in January 2023.
Conservative parents in the Houston-area district had complained that Williams, who started in early 2021, was subjecting their students to liberal ideologies he brought from his former job as superintendent of
