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.

Sinic Holdings Officially Defaulted..OOPPS

 Hi readers 

How good are the markets around the world, there all at record highs and why would you be worried.

Sinic Holdings has officially defaulted and the government has blamed management for it.

Sinic Holdings has defaulted on US Bond holders to the tune of $694 million, which isn't much when you think about it but Evergrande grace is just about up and by Friday we will know if they to have officially defaulted. There amounts are in the Billions and we know who is holding the majority of the paper there.

Should that become official, bond holders can call in administrators to seize assets and liquidate the firm.

Most of you think that's no big deal its in China so who cares, well the issue is Evergrande has construction in Sydney, Melbourne, London, New York, Chicago, California, San Francisco, Hong Kong, Auckland and in Canada just to name a few. If I was to put every construction site believe me this post will be massive.

What that tells you is that construction sites world wide are about to get a shock of there life.

Jobs will stop people will be sacked and down payment deposits will be lost.

As many don't seem to get it, the Chinese government wants this to happen to cut the gambling of property purchases. People over there buy and hold, don't rent them out only to sell them at a higher prices in a couple of years time.

Similar attitudes have been happening in the western world, Melbourne has 694,022 empty house/apartment properties while Sydney is 912,031. 

The reason we know these properties are vacant is there is no water or power charges going to the properties.

On a  funny note in the last post I missed the sales numbers of property in China by 3 hours.

So here they are from August 1st to September 30th property values in China have fallen 35.12% yep in 2 months. Property sales numbers are down over 90% from a year ago. So what does that say about the property values in your area.

Central Banks have open the inflation box and its running away from them, they know it but are hoping  the FED start the ball rolling first before they do.

The EU is coming out with hollow words and the Bank of England are prepared to go at it alone.

Germany is making there concerns know to the EU and its just a matter of time before they move. The deflationary dog wont come until middle to late next year so in the mean time inflation will power higher. What the reserve bank does here in Australia is keep talking, they wont want to act until the FED moves first and then they will be the escape goat, as not to take blame for it come election time 2022.

In the stock markets the gambling continues, there are more option trades in dollar value going through than stock purchases. What does that tell you?

In the Crypto space we are seeing long term holders of bitcoin selling and riding this belief that the ETF's will own bitcoin.

For those who aren't aware the ETF's that have been approved will be holders of the derivative (futures contract) not the actual bitcoin itself. So just be aware of it.

The one thing I have learnt about the crypto market is that it can stay up much longer than you might think as the world trades it. But once it falls then it can really fall.

For those concerned about my previous posts learn to live with it, simply based on astrological aspects and how I interpret it, if you don't agree that's your choice.

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

The above is based on astrological aspects.

I'm not a financial advisor, I am a financial Astrologer.

Seek your own professional advise on the above 

Chinese alarm bells are ringing but Who cares

 Hi Readers

I'm a happy camper today my multi got up on the NFL and yes the icing on the cake was the Packers.

Also today we saw that China has no intention of bailing out the property developers and while the US market and traders seems to be ignoring whats playing out little do they realize that there shadow government Blackrock and Vanguard are going to take the brunt of the international losses.

The other interesting development which I saw today was import costs for China have risen over 12% for the month of September, and while China basically manufactures almost everything these costs haven't been past on as yet but for how long will they wait.

Some are asking big deal so what! well if China starts exporting inflation on the already growing inflation at the present time around the world what will that do to current levels, last I checked that's fuel to the fire.

Biden Last week made all these stupid comments about working 7 days a week 24 hours a day at ports, but what he doesn't realize is because the guy has dementia is, its been happening for the last 4 months. Its nothing new but its a media beat up that he's doing something about it..Which is a joke 

Joe Biden is a puppet killed the countries energy industry in a week and now the people are going to suffer for it.

Oh by the way before I start getting emails about what/who are the shadow governments of the world please do this little exercise. Any country around the world the top Banks, Pharmaceutical, Energy, Mining, Infrastructure, Media or Property builders in the top 5 investors you will see Blackrock or Vanguard on there register lists. This is how they are able to paralyses governments into submission to get what the want or choose. Refusal will have serious ramifications for the government.

As the old and true saying goes "follow the money".

Chinese cant be bought which has screwed them and therefore they are playing the other side of the market at the present time. Until Powell get confirmed the market won't collapse as some think it will, sure it can fall but not collapse, once this is done then you need to be careful.

The other thing that I found interesting is that Chinese property prices have fallen 22% in the last 4 months to September and for the 12 month period its 31%, current sale prices look like this is going to get worse so what does that say for property prices around the world?

In Crypto's we saw a nice $3k move on Bitcoin over the weekend which would of made some grocery money.I think once these ETF's get the go ahead we might see some slowdown in the volatility of Bitcoin. 

As always the above is based on Astrological aspects

I'm not a financial advisor, I am a financial Astrologer.

Seek professional advice on more on the above.

The above information should be used as an indicator to your own work.

General comments

 Hi Readers

Markets are hoping along the yellow brick road without a worry in the world.

While the Chinese property market is collapsing in front of our eyes the western world doesn't give to shit about it. Last I check China was the engine room of the world and if the Chinese aren't going well neither is the world.

But I guess everyone still is of the belief that the FED will keep buying everything, but now the market is finally realizing that the FED purchases are causing inflation, nothing new just a realization to economics. For those who want to know yes this will increase the US Dollar also which will be bad for precious metals, and will catch crypto currencies along the way. But timing is everything and when you have the FED buying like a drunken sailors, events are delayed.

Astrology shows the way and the event that has to play out, but the timing for the last 2 years has been blown apart by the magnitude of purchases the FED makes, that's how distorted the financial markets really are at the present time.

When astrological aspect isn't allowed to play out then it just continue to build up like a pressure tank. Once the pressure is too much it doesn't just explode, the bolts shoot off and then the tank pierces the weak points and then you have the explosion.

Evergrande isn't going to pay the overseas bond holders I'm sure of it nor are the other property developers, Blackrock and Vanguard are going to wear significant losses which will freeze the lines of credit up. Now when does this take place is the key question I cant answer it as the FED has the own road of self destruction at the present time.

Yes deflation will come but not until end of 2022 early 2023 then you have to look at gold not before.

In Melbourne today what can you say!!!

It's so sad what is happening at the present time, the people are being forced to be vaccinated or risk loosing there employment. Little do people realize that they are the ones with the power to dictate terms. If you want proof of it have a look at what is going on the the US, Pilots, police, truck drivers nurses and the list goes on are walking off the job, refusing to get jabbed. 

If Australians for that matter had the same attitude then the country would simply stop until the demands of the people are met not the demands of politicians and there communist friends. Australian people aren't violent and yes the population is unarmed but that doesn't mean they are powerless. Americans are armed yet no bullets have been shot, people have simply refused to work under the conditions of no jab no job.

Yes I heard the stories of I have a mortgage blah blah but the truth is banks need the people more than the people need them, unfortunately the education system has taught everyone to obey and do as your told, its no wonder that the majority of millionaires/billionaires never finished year 10 high school. They think outside the box, not what they are told nor do they have blinkers. Think about it readers. There comes a point where you have to say what the hell is going on and to make a stand. 

Personally I've come to the conclusion that both countries I have residency are stuffed and I'm considering Northern Europe. All we need is a laptop and an internet connection and we are all good.I'm not prepared to live in a communist country called Australia, so sad of what its become.

For the traders out there the 15th of October could be a nasty day for the markets and in particularly the crypto markets, use caution and if it backs your own work use your judgement. 

 

 

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

The above is based of Financial astrology only and is not financial advise.

Ask your financial advisor on more on the above

 

General comments

 Hi readers 

How good are these markets at the present time.

In China the property developers can't find anyone to lend them money even offering 18% on a 5 year bond, and no Blackrock or Vanguard taking it up, oh that's right they haven't been paid yet, there the 2 suckers who lost there interest payments. Obviously they thought that China is the US and the too big to fail policy is universal. 

Inflation well now we know or should I say we accept that its not transitory.

The FED is full of shit and they knew it all along but the financial media puppets kept on spinning the  transitory crap and that annoyed me so much, the fact they don't do there own research nor do the question aggressively FED Chairman Powell. This is all there doing, its out of control and there not doing anything about it. 

We have become a society of gamblers wanting immediate returns, my worry is that 2% of traders really understand inflation and markets are in for the shock of there life, the longer this keeps going with no action to kill it.(inflation)

Yes we see deflation in 2023 and beyond but until then how high does inflation go will be the killer of economies. People are actually loosing there wealth right now and they don't even know it, what happens when people realize it, all hell will break.

To my gold bug friends, geez I love you guys, you think every reason is a reason to buy gold.

Once again yes broken record time, gold goes up on a deflationary environment not inflationary, therefore yes gold will trade sideways to lower, yes in can go to $1000 or lower but I'm not interested until I buy it then I'll tell you what the astrology is showing for it. 

Have you seen the prices of energy, softs and grains keep climbing, they are the commodity needs of people to survive.

Lumber has slumped in prices and that's because mills that had been shut reopened and people refused to build and waited for prices to fall. Can people wait to eat or keep warm on a cold winter which is coming? 

For the Bitcoin traders careful on the 15th could be a nasty down day. That's what the astrology is showing so if that lines up with your own research then watch it play out.

Remember the more indicators that are showing you the same thing the more probability the trade will be right.

I'm hanging to rip into the Reserve Bank of Australia, but I'll save it for another time, the generation error which is occurring is criminal.

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

Ask your financial advisor on more on the above.

I am a Financial Astrologer and the above is purely based of Astrological aspect only. 

Inflation is ready to run again

 Hi Readers

Firstly I'd like to say a big thank you to everyone who put there views across, everything has been taken on board and I will try to accommodate.

So markets are showing signs of stress, and while many don't want to believe it, the shit will seriously hit the fan next year.

For the time being we will see shocks that will send the market down only to buy the dip.

But all bet are off after January when the market wont have the luxury of accommodating FED.

Indeed the current inflation rate is rolling around 12% regardless of the media number at the present time(5.6%).

This number excludes rents which are up some 20% in some areas while the medium rate is up 34%.

Put that into the equation and all of a sudden you get the real number not used car prices which the good old US accounting put in the equation of inflation.

The FED taper is bullshit, even if they wanted to they can't, the whole financial system would collapse, and they know it.

FED has no bullets left but to raise rates now in a stagnant economy which is contracting and inflation is burning up peoples purchasing power.

In Australia we have seen in the space of a week the treasurer do a back flip on lending rates and put the squeeze on lending practices.

( from allowing banks to lend 90-95% LVR to now tightening oversight of up to 80%).

Another great lot of data came out today and that's to do with deferrals.

I find it fascinating that they always divide the numbers by the total amount which is a joke rather than just saying straight out there is $13.4 billion worth of deferrals mortgages which is 157,240 customers, who have defaulted twice at the present time.

Instead they give us this shit from .46% its gone up to .83%. When you divide the numbers by the total amount of mortgages then yes the numbers are that but mortgages on property are around $2.1 trillion.

I guess looking at the .46% rate makes people feel more comfortable, but as the saying going the piper wants his money back, and his just warming up. We hear that people have good buffers on the mortgages but that's banks talking crap. 

Yes property Houses have increased in price, but apartments and condo's have fallen 25-30% and still no buying, I know this for a fact as readers have sent me there prices paid and prices selling.

So please don't believe the crap that's coming out of the media.

To the Melbourne people your leader Dan Andrews who has sold you out to the Strong Cities Network which is as corrupt as the NSW leader who quit. He wont be premier after March2022 that I can assure you, his astrology doesn't look good at all. While the people are suffering with all these restrictions, his living it up in Queensland. Every dog has his day and his time is up, it wont surprise me if he doesn't see 2024, as the likelihood of an assassination is very real, yes I know that's a little confronting but that's what the astrology is showing.

Market will have a difficult time in the next 3 weeks as there is a lot of aggressive astrology coming which will put the fear of god into them, then it will move on and market will try and make some sort of recovery until January.

We already see the shortages in Europe and we are seeing the cargo ships lining up to be unloaded in the ports in the US. Chinese companies are cutting back production we are told because of power restrictions but this isn't true, companies cant export there goods as ships are stuck waiting to be unloaded. Every warehouse in China is full of goods waiting to be shipped out once ships arrive.

So what does this mean? Australia stick your metals and minerals up your ass we don't need them, America plough your soybeans into the ground we don't need them, we are buying them from south Africa and next year we will buy them off Afghanistan. As the Taliban gave China some of the military hardware which the Americans left as a sign of good faith.

So yes inflation is running for at least another 21 months more deflation will follow.

To all the gold and silver readers, as I said to you before gold goes up in a deflationary environment not inflationary, if it did then gold should be $8000 by now, stop listening to people who are pushing there own agenda's, whether you buy it or not I don't care, but don't complain when its dropping in price, more coming.

Grains and soft commodities different story,  Wheat, Corn, Coffee and OJ are all required, your seeing energy prices explode not because of supply but because of transportation, so its all been planned to occur and the problem is once the inflation beast is released very difficult to be put back into the box without serious pain which we will feel.

But the excuses are being prepared, it will be the crypto's then it will be China's growth, then it will be companies not paying staff. Every excuse except looking at what they did wrong.

As always The above is based on Astrological aspects, and is not financial advise.

Please ask your financial advisor on more on the above.