2 Year vs 10 Year Inversion - July 6, 2022 to August 28, 2024

That inversion that I've been prattling on and on and on about for what I'm sure feels like an eternity has finally ended.  

R.I.P. Covid-19 Treasury Yield Inversion.

...but don't get too comfortable just yet.  Those inversions have a bad habit of climbing out of their graves.

Quite Possibly Worse Than 2008

 

I blame the "Yellowstone Effect" - every hayseed and bumpkin with a few acres surrounding their home now thinks of it as "a ranch".

Yesterday, I had a "conversation" via text with a friend who lives in Waller County, Texas.  It is a far flung suburb of Houston with small acreage homes and some tract suburban homes with "better than Houston school districts" (like that is saying much - sort of like an average, normal kid getting into the special Olympics and beating the hell out of all of the retarded children or a biological man getting into the boxing ring and beating the shit out of a bunch of biological women).

My Waller County friend is convinced that her very modest home (manufactured double wide that is in need of either serious repair or replacement...like 10 years ago) which sits upon 20 acres of open cow pasture is somehow worth roughly 16 million dollars.  Her rationale is that at some point, someone paid $40,000 per acre for Waller County dirt and her cow pasture is worth millions.

I am new to Texas so, what do I know???  Maybe it's different here?  Maybe it's different this time?  Maybe it's different here this time?

I have a phrase for this - Texas booms big and it also busts big.  Everything is big in Texas, right?

Just for grins and giggles, I "mosey'd" on over to Zillow to check out the number of listings in Waller County, Texas and OMG do they have an absolute cow shit load of listings.  There is a whole haystack of homes with asking prices well over $400,000 that have been on Zillow for well over three months.  There are quite a few with "new price" or "price reduced" in their descriptions as well.

I don't think this ends well for the debtors or the debt holders who are signatories on all of that mortgage paper.

The Burns Bungle Part Two

 

Powell is on the cusp of fucking up (again).  That "transitory inflation" he yapped about a few years ago is proving to be a real boo-ga-loo.

Easy Peasy Lemon Squeezy

The Lower Slobovians of American Society have been feeling the pinch for quite a while now.  Up until now, the latte drinking beautiful people have remained untouched.  But, make no mistake, the squeeze comes for all eventually.

When the Hoi Polloi are out of credit and can no longer buy the "gee-gaws" that the Beautiful People import from their slave labor fed factories in the Far East, even the Beautiful People will know what it is like to run out of juice.

The comical aspect for observers like your old Uncle Kenny is that many of them will blame anyone and everyone (except themselves) for their situation.

A Minor Set Back, I'm Sure

 

I wonder if that got anyone's attention.  It's hard to say in this topsy turvy new world order.  Sometimes, bad news is good news and good news is bad news.  It's Mad Hatter World.