We never seem to learn. Over a decade ago, our leaders created the biggest housing bubble of all time, and when it finally burst the entire globe experienced great financial pain. So did they learn from their mistakes and fix the system?
No, instead they just created an even bigger housing bubble. Now that housing bubble is beginning to burst, and that is going to have very serious implications for all of us.
One thing that we learned during the Great Recession is that home values really matter.
When home values get low enough, many borrowers simply decide to walk away from their mortgages, and so the fact that U.S. home values have plummeted by 108.4 billion dollars should deeply alarm all of us…
Homeowners are sitting on a negative equity timebomb after losing $108.4 billion on their property values this year, experts say.
The average borrower saw their home equity plummet by $5,400 in the first quarter of 2023 compared to last year – with households in Washington, California and Utah worst affected.
The west coast is being hit particularly hard. For example, home values in Washington state have dropped by an average of more than $74,000 over the past year…
The cooling housing market is stripping more equity from homeowners in Washington than in any other state in the country.
On average over the last year, Washington homeowners lost about $74,300 in equity, a measure of the difference between how much a home is worth and how much the owner owes on the mortgage, according to the real estate data company CoreLogic. That 18% decline marked the largest drop in the country from the first quarter of last year to the first quarter of 2023.
Some homeowners in Washington state that bought their homes at the peak of the market now have mortgages that are underwater.
And according to an expert that was interviewed by the Daily Mail, this is starting to happen in certain areas all over the nation…
Zackary Smigel, founder of Real Estate License Wizard, told DailyMail.com: ‘The decline in property values across the US is posing significant challenges to homeowners – and it’s becoming a bigger issue in the real estate sector.
‘We are indeed witnessing some worrying signs of negative equity, especially in certain regions.’
The good news is that this is not happening everywhere.
So many people have been relocating to Florida that home prices have actually gone up substantially in that state. If you want to get an idea of what has been happening where you live, you can check out this map.
Moving forward, I think that home prices will not move uniformly.
In major cities and in blue states, I believe that home prices will tend to fall. In rural areas and in red states, I believe that home prices will be more stable.
Meanwhile, many commercial real estate loans all over the U.S. are already deeply underwater, and we are starting to see delinquency rates rise at a startling pace.
If you doubt this, just check out these numbers which come from Wolf Richter…
After blowing through the pandemic with no more than a squiggle, the delinquency rate of Commercial Mortgage-Backed Securities (CMBS) backed by office properties jumped to 4.5% by loan balance in June, up from 1.6% just six months ago in December 2022, according to Trepp, which tracks and analyses CMBS.
Office mortgages that had been packaged into CMBS went through a horrendous default cycle following the Financial Crisis, with the delinquency rate topping out at over 10% in 2012/2013.
But this current six-month 2.9-percentage-point spike from 1.6% to 4.5% is the fastest six-month spike in Trepp’s data going back to 2000.
We are still in the early chapters of this crisis, but it is definitely eerily similar to what we witnessed in 2008.
Corporate bankruptcies are also surging.
In fact, it is being reported that they were up 93 percent during the first six months of this year compared to the same time period of time in 2022…
In the first six months of 2023, there were 340 corporate bankruptcies, topping every other comparable span in 13 years, according to S&P Global Market Intelligence. This is up 93 percent from the same time a year ago and higher than in 2020, when there was a spike during the early days of the coronavirus pandemic.
When we keep getting numbers like this, I honestly don’t know how anyone can claim that the U.S. economy is moving in the right direction. There are so many signs of trouble all around us. For example, the number of searches for “pawn shop near me” just soared to an all-time record high…
Cash-strapped Americans are panic-searching “pawn shop near me.” The search trend spiked to a record high at the start of July and is an ominous sign the consumer might be pawning items or selling things that were possibly bought during the Covid boom to raise quick money amid the worst inflation storm in a generation.
Needless to say, people don’t pawn their possessions when they are doing well.
Searches for the phrase “is dumpster diving illegal” also just reached an all-time record high.
All over the nation, people are literally rummaging through dumpsters behind grocery stores because food has become so oppressively expensive. But don’t worry. Joe Biden says that everything is going to be okay.
If you have been following my articles on a regular basis, nothing that I have shared in this piece should come as a surprise to you. It was clear way in advance that the economy was heading into enormous trouble, and the long-term outlook is exceedingly bleak.
But that doesn’t mean that you should crawl into a corner and cry like a baby because things are going to get so bad. It is when times are the darkest that the greatest courage is needed.
You were born for such a time as this, and you can make a difference even in the midst of all the chaos that is starting to erupt all around us.
Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Article cross-posted from The Economic Collapse Blog.
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.
Apparently the current administration does not know what they are doing otherwise if we would still have the last admin running the show instead of stealing elections we would not be in the picadilly we are in.
I wrote comments over a year ago when the FED started to raise interest rates, that what is happening is exactly what happened in the collapse of 08. Back then both the gas price and home mortgage interest rates went up simultaneously, leaving those with TOXIC loans to have to make a bad decision on just where their monies were to go, and gas won out because they needed to get to work in their car. Thus they stopped making their monthly mortgage payments, by the tens of thousands and the collapse commenced.
Oddly enough many of the mortgage houses could not figure out what loans belonged to whom as the paper chace became bogged in litigation and down-right incompetence when they tried to repossess those homes.
You’re a little slow on the uptake Michael. I’m surprised you didn’t see this coming.
“We never seem to learn.”
Thanks for the fslse narrative spinning, Snyder! No wonder you never have any comments sections on your web sites!!!
Housing costs in Seattle [inexplicably] rose by 20%! While wages remained frozen or dropped —- yeah, yeah, yeah, dramatic increases in minimum wage but little effect with the assault on small business and so many closed due to the state lockdowns perpetrated by Gov. Xi Inslee!
The faux pundits blame it on high tech workers skewing things — but with all the tech layoffs that could hardly be the case —- but they NEVER remark on all those FOREIGN R.E. buyers whose identities are kept well hidden by Gary Locke’s firm he’s a partner with, DAVIS WRIGHT TREMAINE (same firm which represents Flannery Associates LLC in California, buying up all the land surrounding Travis AFB?!?!)!
Sure sounds like the CCP, or Chinese Communist Party, but then what do I know —– I just deal in tje facts!
The values in many places blew UP artificially during Covid and wfh. Now they are adjusting BACK in quite a few places. Please Show the difference against the PRECOVID values for better accuracy vs alarmism
And this is ONLY the beginning.