FDIC warns of $364 billion crisis in banks due to unrealized losses from bonds and commercial real estate, rooted in unsustainable federal debt.
Banks, as for-profit institutions, gambled with deposits by investing in long-term treasury bonds and commercial real estate, putting depositors at risk.
FDIC’s Deposit Insurance Fund covers less than 2% of insured deposits, potentially leading to money printing and inflation if multiple banks fail.
A potential currency reset could result in the dollar being pegged to gold or a digital currency, potentially reducing its value to one-tenth overnight.
FDIC chair cites inflation, market volatility, interest rates, and geopolitical uncertainty as ongoing risks, with unsustainable government spending as the root cause.
Over 50% of homeowners couldn’t afford their current home at today’s rates, signaling a historic affordability squeeze in the US housing market.
2023 was the worst year for existing home sales since 1995, despite industry forecasts predicting a rebound.
Sun Belt markets like Phoenix and Austin are experiencing a supply elasticity mismatch, with new construction causing builders to cut prices and adjust affordability.
Institutional investors like American Homes for Rent and Invitation Homes are now net sellers in Sun Belt markets, contributing to the affordability squeeze.
The short-term rental market has corrected, with Airbnb data showing declining daily rates and revenues dropping 14 of 16 months.
The multifamily housing market is nearing a peak, likely leading residential construction employment lower and potentially compressing builder margins.
Regional labor market downturns could lead to housing market downturns, even if the national unemployment rate remains stable.
Immigration policy changes, such as deporting undocumented immigrants, could significantly impact the housing market by reducing construction industry labor and consumer spending.
The “Left-Wing Moment” in global politics is ending due to weak economic growth and record immigration, turning the masses against a socialist and globalist Elite they no longer trust.
Left-wing governments have been ousted in Italy, Netherlands, Sweden, and Finland, while populist movements are gaining ground in Germany, Britain, France, and Spain.
Post-COVID government expansion has led to economic stagnation, with the US at 2% real growth per capita, the Euro area at 0.5%, and Germany shrinking at nearly 1% per year per capita.
The Left’s open border policy has resulted in unrecognizable neighborhoods in cities like Amsterdam and Stockholm, with millions of unskilled or criminal migrants from countries chosen for their inability to assimilate.
The Left’s “progressive dominoes” are expected to continue falling in 2023-2025, starting with Canada and more of Europe, as their cultural and identity politics have left them with limited options to win elections.
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