Confounded Interest – Anthony B. Sanders
Financial Markets And Real Estate
Housing and rental properties are simply unaffordable.
Freddie Mac Serious Delinquency Rate on Multifamily (Apartment) loans soared to highest rate since 2000. Since it is as of January 31, 2025, you can’t blame this on Donald Trump (although I am sure they will try).
Of course, home prices and rents soared under Biden. Home prices rose 37% under Biden and rents rose 25%. Simply unaffordable.
And The Fed will keep on printing money!
Credit has been deteriorating.
Apparently, we DID get fooled again. In February, there were 500,000 new homes for sale.
While new home inventory hit 500k, existing home inventory rose to 1.24 million homes.
Cause? Home prices are too damn high. Thanks to Powell and The Fed.
Mortgage originations have dwindled under Biden/Harris.
Jerome Powell and the Blackhearts.
New USDA data reveals a third consecutive week of price declines at supermarkets.
But the media is always willing to blame Trump for anything, including eggs prices.
Velocity of M2 Money is back to where is was when Trump left office the first time.
Eggs versus M2 Money.
Riding the Trump wave of economic optimism!
Thank God President Auto Pen is out of office!
Inflation? Lower real wage growth? Excessive personal loan growth?? All resulting in historic subprime auto loan delinquency rate of 6.6%.
Auto Loan 60+ Day Delinquency Index
German 10-year bond yields are trading above euro interest rate swaps for the first time in history (-12.62), a watershed moment for these markets that underlines just how much investors have soured on government debt.
Bund yields +30bps today – the biggest spike on record going back to 1990.
Is the US next?
The mortgage market is back! Time to polka!!
Mortgage applications increased 20.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 28, 2025.
The Market Composite Index, a measure of mortgage loan application volume, increased 20.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 22 percent compared with the previous week. The seasonally adjusted Purchase Index increased 9 percent from one week earlier. The unadjusted Purchase Index increased 12 percent compared with the previous week and was 2 percent higher than the same week one year ago.
The Refinance Index increased 37 percent from the previous week and was 83 percent higher than the same week one year ago.
Thank God the adults are in charge in DC instead of the children we saw at Trump’s speech last night.
Trump inherited a brittle economy from “The Fool” Joe Biden. And it is shown up.
The Trump Administration is fighting the remnants of Biden’s policies by cutting spending (DOGE) and deregulation.
All this has resulted in a soaring US Dollar.
Tarot cards have officially renamed “The Fool” card as “The Biden.” Although in Washington DC, there is no shortage of fools (see Maxine Waters (D-CA) and Rashida Talib (D-MI).
Former Federal Reserve Chair and Biden’s Treasury Secretary Janet Yellen was so in on Biden’s failed economic spending spree that she caused a fiscal disaster by refinancing Federal debt at the short end of the Treasury curve. Leaving Trump’s Treasury Secretary Scott Bessent a real mess. As in $9.2 TRILLION.
With interest rates rising, this is a planned disaster by Biden/Pelosi/Schumer.
The Fiscal 3 Stooges!
Elon Musk, who Democrats consider to be The Borg King, and DOGE have laid-off many Federal workers. Today’s jobless claims report revealed that over 2 million Federal workers filed for unemployment benefits.
DOGE has saved taxpayers over $143 BILLION thus far.
In appreciation of German conservatives winning in their recent election,
Citi’s economic surprise index fell to -7.80 in February. This is the remnant of Biden/Democrats horrible economic policies and fear of Trump’s tariff policies.
Gold, Bitcoin and the S&P 500 are doing quite well on the prospects for growth in the US under Trump.
The US economy like an aircraft carrier, doesn’t turn on a dime. Think of the Japanese carriers at Midway in WWII. Thanks Admiral Biden! And Rear Admiral Harris!
Confounded Interest - Anthony B. Sanders 
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