Posted on 06/20/2022 3:24:23 AM PDT by Browns Ultra Fan
How crazy was The Federal Reserve’s overreaction to the government shutdowns surrounding the Covid epidemic? While most analysts talk about California, I am going to discuss … Cleveland Ohio as an example of how The Fed can destroy markets.
The Case-Shiller home price index for Cleveland rose 31.5% since January 2020 just before The Fed unleashed its massive monetary stimulus on an unsuspecting city.
But as The Fed starts to tighten monetary policy after Yellen’s too loose for too long policies followed by Powell, foreclosure rates are soaring in Cleveland. In fact, according to Attom Data, 5 of the top 10 zip codes with the worst foreclosure rates in May 2022 were in Cleveland.
Of course, Cleveland is much like much of the rust belt (except Columbus Ohio). The rust belt is losing population along with heavy tax states like New York and Illinois. Destination states? Texas, Florida, the Carolinas and Tennessee.
Then at the national level, Atlanta Fed’s GDPNow real-time tracker fell to 0% growth.
(Excerpt) Read more at confoundedinterest.net ...
Looks like Cleveland is getting FUDGED. Cleveland is DEEP BLUE, so they are getting what they voted for. I believe 60+ years of voting Democrat, good luck.
In the 2020 election two-thirds of Cleveland voters voted Demonicrat. They brought it on themselves.
That "big cities" -- as a euphemism for those who would try to get others to pay for them in all things -- are in trouble not because of Fed loosening and tightening, nor inflation. The article mentions high taxes, but other forms of taxation occur as well. Non-producing loans default. If this, then that. Make a contract you intend to keep or not. The CDC's fake "moratorium" and other quasi-socialist dreams are at the heart of this. Free money was never free.
Did the nation vote for BiteMe?
Many judges have said yes, because we don't have standing to ask. /S
that voted Democrat. There are some Republican suburbs, so the stats for Cleveland itself were actually 80% for Biden.
Actually, in Cleveland County, I think Biden got 163% of the vote . . .
Ou ah, give me dat free rent.
Of course what happens is the owner got to make the payments. Most cannot cash flow non performing renters and the results will now come home to roost. On top of that, add in the soon to be escalation clauses for interest for those who were dumb enough to get adjustable mortgages and the rest will be history....2008 again?
Recently a home sold a few doors away. When I heard the price I could not believe it. In essence it sold for 33% above the last sale six months ago directly across the street. 500 per sq foot. This cannot be sustained as the price was ridicules. None of these homes sit on a diamond mine, not hardly. The impact of this nonsense is much higher real estate taxes and insurance costs for all.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.