Watch Evergrand not Zillow. oh no, Subprime baby

 Hi readers 

Some companies/people never learn.

Early 2021 a company by the name of Zillow in the US bought up to $7 billion dollars worth of homes around the United States. For the Australian readers Zillow is like a realestate.com portal.

Zillow with there AI data was able to see what home buyers where looking at and in which suburbs, the type of homes and in which states.

So the idea was they buy the homes do them up and then sell them off at a higher price, in theory.

Well renovations to these homes cost a lot more due to material shortages, trades men cost more due to Covid and all of a sudden the profits didn't stack up.

They got the media spinners going say housing shortages and prices are exploding and just like that they thought they cornered the market?

US buyers are not dumb ass Australian home buyers running to the bank of mum and dad and telling them to put there house up as security so they can buy there own home.

US home buyers simply couldn't pay these prices and walked away from the market. (this is June)

September comes along and Zillow has to start making payments on the $7 billion loan it got from Bank of America. Start of October Evergrande issues have started and everyone is looking at China yet Zillow starts putting the properties it bought at the start of the year for sale lower than what they bought them at to dumb there inventory.

The houses which got a small $20k makeover got put on the market at cost and no buyer.

Last week of October and Zillow was selling homes at $40k under cost from February no makeover and still no buyers. 

Homes which got an $75k makeover sold for the prices they got bought at in February, but those without the makeover are still on there books. Current losses are already mounting to $400 million and rising, so another sub prime ? maybe worse stock prices in June was at $125 and is currently $95.It won't surprise me if the stock runs to $50 or lower.

Hard to valuate the losses until the homes are sold, but repayments are due and money ain't coming in, beware cap raises or bond issues.

As always use the above as an indicator to your own research.

The above is based on Astrological aspects and is not Financial advise.

Please seek out your own financial advise on the above .

I am a financial astrologer

RBA interest rate moves from 2024 to 2022

 Hi Readers

What a big difference a week makes.

For those who don't know the Reserve Bank of Australia just got taken to the cleaners on its idea on yield control, Yield control is where the bank buys all the debt from government and lends out money at .10% to banks so they can lend to there customers.

The Reserve Bank took a leaf out on the Fed's book by threatening to buy everything until the day dot, Basically similar bull shit to what the Fed has been saying to the bond market. We even got told 2 months ago that the next rate move won't come until 2024.

Well on Friday the 29th of October the shit hit the fan and the RBA couldn't buy the 1 year rates which basically exploded higher.

It actually started from the 15th at .052 and today its closed at .316.

The Reserve Bank at the present time is holding an unrealized loss of about $14.02 billion, hence why they are giving up on yield control and now a rate move next year is expected.

For those who don't understand how this is meant to play out and how its backfired a quick example.

RBA buys debt (Bonds) floods the banking system with money, this is meant to devalue the dollar.

Ideally the dollar should be in the low 60 cents to the US dollar.

10 billion at a face value of 65 to the US dollar and all is sweet.

Now in theory whats meant to happen is that money gets taken up invested into projects and jobs,people spend and everyone is happy. But it hasn't this time around. Its been used to manipulate housing prices to con people into taking larger mortgages and increase the idea that they are wealthy.

So what the RBA is meant to do know is tape off and the dollar value increases and puts pressure on bond yields.

Its not meant to cost the bank anything as the increasing value of the dollar tends to cancel out 40% of the debt over the year maturity, therefore cost the bank 60% less than what it was issued for. Dollar runs to 85-90 cent to the dollar and that's how the RBA makes money for the government.

Problem its got is that the dollar is far to high at the present time 75 cents to the US dollar. So for it to break even we will need to see the Aussie dollar above even to the US dollar or the losses will be realized and the tax payer will need to fork out for the stupidity of the reserve bank.

Then we have the other sleeping beast which has awaken from the depths of extinction, yes the word inflation, for many decades governments and central banks have been subtracting things that have caused it to rise for there own agendas. Well we are at the point now where everything is going up and its going to get worse before it gets better.

Had we used the same dynamics at 1990 today inflation in Australia would be 13.4%. Yes inflation devalues your spending dollar power, your just not meant to know this. Government's around the world are using the so called pandemic to hide the truth of what they are trying to achieve, bankrupt the middle class. When I say bankrupt them I mean enslave them to a life of paying off mistakes they have made.

Also Bond traders have seen what's going on with New Zealand and Canada and are picking off one central bank at a time, its a wonderful strategy as it paralyses the Central banks into submission. What I don't understand is that Australia is a commodity exporting nation why would the central bank even attempt to go down this road from the beginning. 

For those of you who have money be prepared fire sales of property are coming.

Ive been waiting for years but I tell you it will be worth the wait.

 

 

As always the above is based on Astrological aspect.

Its not financial advice so seek your own advise.

I am a financial astrologer.