Here is another post dedicated to the banksters, the shadowy cabal that acts in concert, globally, as if part of a hive mind, to screw with us, the common working folk. When we decided to adbicate the sovereignty over the most important factor in our economy, the price of money, to these unelected people, I don’t know, pretty sure we didn’t have an attendee at Jekyll Island. These banksters, are dishonest, accident prone, rarely get it right, and charged with the task of fixing the problem of their own creation using the same tools that screwed it all up to unwind it. They are unlikely to unwind anything without the severe stress fractures. We have the Yen, Euro, Pound, Rupee and Asian basket all in the trash. Worse are the bad actors like Argentina, Turkey and others experiencing crazy interest rates (75%), and matching inflationary spiral. Among this backdrop we are supposed to carry on making decisions, working, building assets, financing businesses (and houses), as if these headwinds don’t exist. Looking back just a few short months to Q1 2022, the absurdity of the exuberant market, its participants and the biggest cheerleader group, the realtors, deserve the greatest scorn. Buyer beware, and do your own diligence is realtor double speak for ‘we are not accountable for anything’, but this should be rephrased to ‘don’t believe anything I say’.
My part in all this mess, is I have been so conditioned to the banksters showing cowardice and political motivation first, and having the government aid them in downplaying real inflation, I never believed they’d actually do it (raise rates enough to create a recession). Who would ever authorize a small group of people to impose a recession on the global population? Just like who would ever authorize a small group of people to create an asset bubble and pretend not to see it until it was too late to manufacture a soft landing? The solution has to be to allow the market to set rates, the natural mechanism of the market would have feedback loops that temper the boom bust cycle. Instead we get what we are facing now, punishingly high rates that are going to utterly rugpull the early 2022 home buyers in the bubble markets.
What is the Calgary market like? I am hearing flat, lots of buyers on the sidelines waiting to see what happens. This is less than ideal for the spec builder. Imagine building diligently all year long, paying absurdly inflated wages and material prices, and then you finish the house and try to sell it when interest rates, which started out at 1.5%, are now at 6%. That has to impact value. Fortunately I am not building any spec homes right now, but I do have a few planned to start. Rental market does seem strong, with in-migration, and lots of jobs available. Past cycle experience tells me to start building houses when market sentiment is at its worst, as the market tends to rebound well from low points. This time seems different?
The current year crop has yellowed, while the growth that started in spring is thriving and will produce a great crop of berries next summer. The raspberry patch seasonality unfolds similarly to the bankster manipulation of the market into highs and lows, should we worship the bankster elite like the sun god?