Summary
Transcript
Lenders are desperately trying to buy back delinquent mortgages right now. Behind the scenes, because defaults are spiking, and if they do not get this under control, they lose the lenders, the ability to collect fees on these loans. I’m going to explain not only how big of a deal this is, how big of an opportunity is for you and for me, you and I. I always screw that up.
I got a story out of Yahoo that I’m going to go over and I’m going to put it into an easy to digest context for all of us. There is an implosion in the commercial real estate market that I warned about over two years ago that is now fully manifesting on Wall Street. It is affecting the insurance premiums on these debts. It is so much bigger than the mortgage-backed security fiasco and even though it is a commercial real estate implosion, I want you to understand how vital this understanding is that you have to get through your mind.
Just because it doesn’t have to do with your home mortgage or your ability right now to refinance your home mortgage, it is going to. Because this collapse in lending will filter through to all types of lending, whether it be auto loans or home mortgages. Because risk is about to go through the roof as what you’re about to see some analysts from JP Morgan noting what’s going on in the market.
This is out of Bloomberg. It says as delinquencies on multifamily mortgages pile up, lenders who have had bundled those borrowings into securitizations known as commercial real estate collateralized loan obligations or CLO are racing to stave off trouble. Now before I get a little deeper into this story, I want to remind you of the scenario because everyone looks at BlackRock. They think they’re the biggest, the baddest, they’re gonna never fail and I told you two years ago they’re gonna fail and a lot of people mocked.
Thank you so much automotive professionals and performance for the Super Chat. Really appreciate it. BlackRock is no different than any other business out there. They are susceptible to loss. BlackRock handed back and I did a story about this a while ago, about a year and a half ago, a year ago. They gave back, I handed the keys over of their massive downtown Manhattan headquarters building. They said you know what we can’t do this anymore and they gave it back.
They owed money on that building. BlackRock does not own anything. It’s all fake. It’s all built off of your pension fund. Okay I understand that they’re buying tens of thousands of houses and hundreds of thousands of houses and trying to make you renters. I get it. I get what you think you see but I’m telling you behind the curtain it might as well be the last part of the Wizard of Oz.
It’s a little old man pulling on strings, faking everybody out. They handed back the keys that building said eat it. It’s your problem now. They defaulted. BlackRock defaulted. Then the owner of that debt went crap. What are we gonna do? We loaned BlackRock a ton of money to go buy this place. They just handed it back to us so they had to go sell that debt for 50 cents on the dollar.
Now just so you know those losses that that company took trickled through the market and investors got less money back than they were first at first promised. Okay that’s how default cycles happen. Now this default cycle I’m gonna tell you about today is based on lenders. These are not banks okay but they make up such a massive, massive majority of the money out there. We’re talking about private private lenders, private equity and we’re talking about pension funds.
Hedge funds. These guys are so big. They’re holy cow they’re causing such a collapse it’s crazy but good news is you’re hearing about this first. It’s not on CNBC okay because the insurance for these type of loans is rising right now because the default rate is rising whether it’s bank defaults rising if it’s private lenders rising the insurance costs are going up which means underwriting is gonna get tighter for loans.
This is exactly the first phase not the first phase it’s like the third phase of real estate crash and that’s why so many people don’t see it coming because they are reactionary they react to what they hear in the news. I want to teach people how to be proactive to understand see all the cycle points hitting and going oh I can see this is the build-up blow-off top explosion dead cat bounce and then everything goes to crap and that’s when we pick up everything from pennies on the dollar.
So I explained the BlackRock issue to put into context what you’re about to hear, and then I’m gonna show you how you’re gonna crush it. So it says here to keep shares keep the share of bad loans from spiking too high, a development that would cut the issuers okay or the lenders off from the fees they collect on the CRE CLOs, or think about loan servicing.
Okay, so they get to collect these loans, but if they have these delinquency spikes, they no longer get the right to do that because someone else is gonna come in and take over for them. And so they’re gonna lose all those fees, which they’re desperately needing these fees because they’re imploding their business.
Imploding, it says they’ve been furiously buying them back, these delinquent loans the lenders acquired 520 million of delinquent credit in the first quarter of this year. That is a 210 percent increase in buybacks, delinquent loan buybacks as opposed to the first quarter of last year, that’s a massive increase.
Now in the latest, it’s the latest sign of strain among the 79 billion dollars of loan packaged into CRE CLOs, a market which grew in prominence in recent years as Wall Street finance syndicators who bought up apartment complexes with the intention of renovating them and boosting rents. When interest rates surged, many borrowers whose floating loan rates were bundled into the securitizations were caught off guard and began falling behind on their payments.
Yesterday, the Federal Reserve came out and did nothing, people asked me like why aren’t you watching the Federal Reserve, like why would I watch? I’ve already told everyone it’s gonna happen, they’re not gonna raise, but yet they announce that they’re gonna loosen up their quantitative tightening. Why? Because everything’s collapsing, so they’re trying just to push it off again.
I told you they’re trying to push it off till the election and then everything comes unwound. So at the same time that they’re not going to lower rates, they’re gonna lighten up on the quantitative tightening because the banks are imploding right now and they’ve got to give them just enough juice. But here’s the thing, they’ve got to do it at the proper time because we’re going to be watching the Fed’s balance sheet and we’re going to be watching if it expands.
If all of a sudden there’s the repo window and they’re having to hand out money just to keep banks liquid just to keep band-aids on this thing before it all falls apart. Because when they start to release their data what 30 days later, 60 days, 90 days when we start to see a pattern of things getting worse, then we go oh look it’s not who we voted for this time, it’s who’s running the country right now and the policies they’re putting out.
You know like the sprinkling, think about this, the sprinkling of debt forgiveness even if half the things that Biden says are gonna happen happen because he’s just trying to buy votes. Right, but he’s not, he’s bluffing, well if I had the power to do it I’d give everybody money, that’s gonna tell a bunch of morons to go vote for him. Then they’re going to because they’re morons because they don’t understand how the world works so he’s lying to you, right, he’s bluffing.
You then they go okay we got a little bit through, so we’re gonna sprinkle it out, hey I know somebody personally, it makes six hundred thousand dollars a year that got their uh their loans forgiven because of where they work and there’s ethnic issues whoa what no. Alright, so we’re going back to these loans right, sorry I digress.
Type one if you can understand my frustration and you feel it too because that’s the sad thing you can have a world full of of people that are uneducated if you just don’t educate people you can lead them off of a cliff. You can show them shiny flashy lures and if they’re not educated and they can’t think for themselves because critical thinking is not a skill that’s taught in our education system. That’s why I can barely make it through high school, me the ninja become wealthy early in my 20s be wealthier than anyone I know and then treated like a complete moron because I don’t pull up in a Ferrari even though I could buy one back then.
But I’m a complete idiot because of the old beater car that I run, but I tell them well if you want I’m gonna oh gosh, people are crazy but here’s the good news the ninja woke up one day and said you know what screw it. I’m gonna teach as many people as I can, wake up as many people as I can because this next crash ain
Norm, see this? This is the kind of stuff, these are the kind of morons we’re talking about. Let’s do this real quick, scared him, we have people that can’t think clearly, can’t act decisively.
Everyone say goodbye to Mr. Norm. I only want to attract people that have a, you know, you don’t have to think clearly, you just need to be humble enough to know that you don’t know everything.
Every day I wake up knowing I don’t know at all, and honestly, I go to bed sometimes going, “Why did you say that, you’re so stupid?” I always fight those thoughts, how many of you people have those thoughts, how many of you have those thoughts, how many of you have those thoughts?
Go to bed, why did I say that, you’re so stupid, you’re stupid, and I’m always trying to beat myself back from calling myself stupid and beating myself up and having enough grace to deal with the stupid stuff I do. But what I’m trying to do is humble myself, but I’m doing it the wrong way, so that I can continue to learn.
There’s so many things going through my head right now, I know this started out as a CLO video and it’s about real estate, but it’s so much more. All collapses and all booms are based off human emotion, and once you can get your emotions under control and look at me, I’m not a great example of that, you can really go and crush it in so many different aspects of your life.
Emotions control us so much every day, I wish I could tell you I haven’t been under control, but shoot, there’s so many things I can’t control about myself that I’m constantly trying to control. Once we can get to that point, we’re going to absolutely dominate it, and the thing is, is that the government and the federal reserve, and they’re very incestuous even though the federal reserve is not a government entity, they all work for each other, right?
It’s a big scheme, it’s a big money printing scheme, we watch congress people go and get elected, and a few layers later, they’re worth tens of millions of dollars, and you’re like, wait a minute, that doesn’t even make sense because you only make, you know, like 200, 250 thousand dollars a year. Well, it’s because they’re corrupt, and what happens is they turn each other against each other, and they get blackmail on them, and they do this kind of stuff on purpose because they have an evil organization.
Our country’s run by an evil organization, and I do know that there is, uh, what is it called, um, there is authority that we have as believers. You know what, man, I feel like a total, alright, stand by, I would like, here’s cool good news, I got a good news flash for you, you don’t need to believe in Jesus Christ, um, for this to work, alright, but but I believe in Jesus Christ and for everyone that does, um, and is willing to do something a little wacky right now, type five.
And, um, those that don’t believe in God, totally good, here’s the cool thing, there’s a law that was written, uh, at the same time gravity was created, it’s a law on this earth, it’s called the, the power of your tongue, right? We all know that when you speak positively, positive things happen, when you speak negative things, negative things sort of happen.
So this is what I’m gonna do, I’m gonna speak something out, and what I want you to do is type I agree, or or say something in alignment with what I’m talking about, okay so there, our country is ruled by evil people with evil intent, alright, they got these special little meetings they go to, and they’re always trying to attack people with good morals, good, uh, good conscience, um, uh, faith, people that are people of faith and just, you know, I’m I’m not a preacher and I’m not the best at this, but but I do know this, and I know how strong this is in the name of Jesus Christ.
I bind the spirits that are controlling congressmen and congresswomen, I command that spirit to loosen their grip, to where their minds can become their own, and they can think their own thoughts and start to realize how dirty this system is. I claim in the name of Jesus Christ the men and women, and I’ve met some of them, they’re part of an engine nation that have this urge to run for office, to stand up right now and start to run, start to act, start to move.
Now I will say to everyone that we won’t see this in the natural right away, but in the spirit realm, we will see it again. I want to thank God for giving me the opportunity to have a YouTube channel and to have a presence on the internet; it’s been very stressful, it’s been tough, but I just want to give God the glory, 100% 100%.
And again, I want to remind everyone that’s watching this, regardless if you believe in Jesus or not, if you want to help people, if you want to help this world, you need money. Money is a tool; it’s not the Lord over you, but you don’t feed people with good thoughts, okay, and the government is not here to help, the government is here to get bigger.
It’s a self-fulfilling sort of machine, it’s out of control and needs to be stopped, and so the only way that I can see that there are two ways: first off is prayer, but secondly is that you need to become wealthy. Okay, you actually owe it to your fellow man if you have a good heart, good conscience, and you feel that you’re striving to be right, which we never will be completely right.
You need to become wealthy, okay, so that you can help people. You watch, if you tithe 10% of a thousand dollars a month, can you imagine what it’s like when you’re tithing 10% of a hundred thousand dollars a month? I want you to comprehend that and once you get that inside of you, you’ll understand how big of a deal it is.
Sorry, this video went off the rails, but I’m also not sorry. Hope you have an amazing day, the Economic Ninja is out. Oh, last thing, if you wouldn’t mind checking out the email list, it would be great, just in case something happens, you never know, Economic Ninja is out.
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