Was going to post this in the ongoing GOP back to inflation worry thread, but now that the inflation IS here and it is now really starting to metastasize, which is now highlighted with the US economy actually now shrinking. So, I wanted to make a new thread.
But as I mentioned several times in that thread, there was primary inflation for over a year now, starting with gas prices, along with raw materials, which then slowly goes to housing. Then slowly trickles in to grocery stores that initial just ate cost increases hoping it would be transitory, avoiding noticable increases in price. But then after food supply and whole salers can no longer hold out, it then comes to the service industry and other sectors that did not initially feel the inflation.
And as I posted in that thread a few weeks ago, even now, Producer Price Inflation was still exceeding Consumer Price Inflation, so naturally the rise is only going to continue to rise, if not accelerate.
Part of this was also being covered up last year, hiding how truly damaged the economy is. Keep in mind, there was a federal stay on Foreclosures. This ended in Sept of last year I believe, and now we are seeing a truly disturbing trend.
Just look at this headline from Bloomberg about foreclosures in January:
Foreclosure filings such as default notices, scheduled auctions or bank repossessions jumped 29% from a month earlier and more than doubled compared with January 2021, the report said. Lenders repossessed 4,784 properties in the month and started the process on another 11,854 homes.
https://www.bloomberg.com/news/arti...-rose-in-january-after-end-of-pandemic-freeze
Look how they call 11,854 homes a "surge". Fast forward to March numbers, and it is triple that.
Last month, 33,333 properties across the U.S. faced foreclosure, a 181 percent jump from March 2021 and 29 percent pop from February, according to a report by foreclosure tracker Attom. The first quarter saw 78,271 properties with a foreclosure filing, a 39 percent from the previous quarter and 132 percent from last year.
https://www.wfla.com/news/national/foreclosures-surge-181-to-highest-levels-since-march-2020/
What is even more so worrisome is that there was this freeze. So the people who were not having to pay mortgage payments during this time, well they were not making enough to save for when the freeze was lifted... why? Because of inflation.
Anyways, just like with the housing crash of 2008, a stock market crash coincided as well, and it seems after having a lot of volatility and being artifically propped up throughout COVID. Just a few months ago, the Dow was over 36500, now it is under 33000, dropping over 3500 points, in addition to the drop this past Friday. Perhaps not coincidentally, the sell offs are rivaling 2008
