Written by Bryan Lutz, Editor at Dollarcollapse.com:
Every Sunday morning I send out three thoughts…
Sometimes these thoughts are on the economy, life, or hard assets.
If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…
So, here we go.
Here are three Sunday morning thoughts for you:
1. Multifamily Housing delinquency rates as high as 2011. The “House of Cards” is falling. What now Powell?
The pressure is building for the Fed to lower rates.
Families are behind on payments, even those with rental spaces and apartment buildings.
And that adds up to delinquencies as high as the 2011 top…
Except we’re looking delinquencies rising again.
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This is important because most Americans have built their standard of living on debt.
The banks Americans owe are built on debt.
And the American economy is built on debt.
If payments are delayed, or payments stop coming…
Especially like the unrealized losses from Commercial Real Estate many banks are experiencing right now…
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Then the “House of Cards” falls.
What now Powell?
What now…
2. Bitcoin decoupling from the NASDAQ is not a big deal. It could be leading to an interesting “flip-of-the-table.”
From what I understand, Bitcoin and the NASDAQ have a parallel relationship.
Where the NASDAQ moves, Bitcoin follows.
It’s been that way for the past year, see below…
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The chart above shows Bitcoin over the past year.
You can look, but I’d say the NASDAQ’s parallel relationship with Bitcoin has been that way since 2017.
Now there seems to be a sharp divide.
Bitcoin is going down, while the NASDAQ continues to the moon.
But wait, take a moment to remember what’s inside the NASDAQ index.
Nvidia?
The Magnificent Seven…
And other tech stocks.
All those stocks are already contributing to the massive “dot com”-like bubble, today.
Yet, Bitcoin seems to be doing the same thing it does after every halving.
After every halving, production value drops. It costs the same amount to produce half the Bitcoin.
So the value of Bitcoin miners, and the rest of the industry supported by Bitcoin drops for several months until there is a supply shock.
Then the price jumps up.
Combined with a planned release of supply from Mt.Gox, an exchange in Tokyo, Japan, seems to be pushing the price down.
But here’s something interesting…
What if, because of the AI Bubble, this the time when the NASDAQ starts to follow Bitcoin?
What if this is part of a transition to Web 3 blockchain technologies, Bitcoin, and new AI technologies.
It could be an interesting “flip-of-the-table,” but also excellent proof of value for the Bitcoin narrative.
3. Tariffs and Anti-Trust Laws Are Made When Others Can’t Compete. Example: Chinese Vehicles… Here’s Why.
America can’t compete with Chinese car manufacturers.
They’re thinking of everything and more, for less than Americans sell them for…
Other than demonizing the Chinese, that’s one reason for the tariffs.
Here’s what that looks like:
For example, in this video a women enters the back of an SUV…
She presses a button, the door opens.
She presses a button, the door closes.
She presses a button, a tray folds down with a cup holder and a wireless smartphone charging station.
At the rear of the center console is a small refrigerated compartment to store your cold drink.
Then you use your voice to activate the rest of the SUVs features.
Black out screens slide down on the sides of the windows…
The lights dim…
The single chair she is sitting in leans back…
And then the 32″ TV screen rolls down behind the front seats.
Now that’s low-cost luxury.
It is also the reason competing companies make monopoly and anti-trust lawsuits…
And even part of the reason countries create tariffs.
They can’t compete.
The economics are too good.
Make cars for less…
Get more customers…
Keep said customers…
Which equals no market for your competitors.
