All the ingredients are officially in for hot blowoff top summer!

They’re turning on each other now…

BidenEcon102:

Subsidize housing demand AND reduce needed tax receipts when we have a housing shortage and are running a budget deficit

Summary of today’s housing data:

WEAK.

➡️ Housing starts rose less than expected after downward revisions to prior months

➡️ Permits for Single Family Home Construction have now dropped for 3 straight months

Combined w/the recent slump in US Homebuilder sentiment ⬇️

😬

Zillow now giving Prosper, TX a slightly NEGATIVE one year price forecast:

Worth Noting.

Not much oversight in this market

If you’re looking to make the “it’s 2008 again” argument, this is likely where systemic risks are hidden—and not only in residential mortgages

Successful Basel III outcome could shine a flashlight in the shadows

But it’s early

The Market really liked the decaf CPI this morning ☕️