by FATKEDLUVSCAKE
As you all know the world is in one massive housing bubble. We have all seen the massive Evergrande completely collapse. Institutions like Charles Schawb jacked to the tits on mortgage back securities to the tune of 180 billion plus. These CDOs that they could have sold but didn’t, proves they have been too fat for too long. The money Schawb just raised is going to get them till September until interest rates rise leaving Schawb FUBAR.
TD Bank with 53% of their mortgages having variable intrest rates plus a dash of money laundering just to spice things up. Canadians cant afford bread meanwhile the average house there costs 550k USD. Consumer credit bubble following right behind that disaster for the good ole 1 2 punch in the nutz.
If i have learned anything from 2008 is that it’s usually 20x worse than the public is told. No one can predict how long it will take for the house of cards to collapse but i predict by December. I will be buying puts next week on Schawb and TD expiring January.
Below is a chart of the US money supply.
Since 2020, the US has printed nearly 80% of ALL US Dollars in circulation.
To put that in perspective, at the start of 2020 we had ~$4 trillion in circulation.
Now, there is nearly $19 TRILLION in circulation, a 375% jump in 3 years.… pic.twitter.com/M6F62wa3W5
— The Kobeissi Letter (@KobeissiLetter) August 27, 2023
— Win Smart, CFA (@WinfieldSmart) August 27, 2023
Circling back to one of my favorite macro tweets of all time from @FinanceLancelot
“Scarcity is an illusion created by excess liquidity”
We have enough houses—they’re being misallocated as mini hotels
For many, this ends soon t.co/2V2pXKoqsl
— Amy Nixon (@texasrunnerDFW) August 27, 2023
Housing Bubble 2.0 is bursting worldwide