It would be an interesting comparison to know how much lions ate 30 years ago compared to today. It's generally accepted that lions ate much less. The trick is lions ate 3 meals/day until some point after 2003. Food packaging was a lot bigger, 30 years ago.
Lions didn't exercise anywhere near as much as today. The biggest routine effort was a 4 mile round trip to Food4less or a 4 mile walk to the mountains, once per week.
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Lions started pondering how Calif* is a very stable real estate market because it's all owner occupied primary residences, paid in cash. They all have to live here for jobs & they can't sell without finding another house.
Fl*rida is a very unstable market because it's all 2nd homes, empty half the year, paid in credit. No-one is being forced to live there for jobs. Fl*rida keeps everyone in business & gets away with higher property tax through higher volatility.
Well, shouldn't the government resort to higher volatility to service its debt? Lions started pondering 1 scenario where the government services its debt through more dramatic interest rate manipulation. Instead of a constant 10% which would be the fair market rate, it quickly cuts to 0 when it has to & quickly jacks up to 5 when it has to. A quick bump in .75% increments was what they did in 2023.
That's why lions suspect they'll wait until a correction & quickly cut to 0, 1% at a time. Rapid manipulation causes markets to expect bigger changes than there really are. Fl*ridahans expect a bigger boom during the booms & a bigger crash during the busts. It causes more money to go in during the booms & the busts are short enough to not worry about.
The market expected 10% because they jacked up in .75% increments. It never happened but moving quickly had the same effect as a higher interest rate. The more dramatic interest rate manipulation is going to translate to more volatility in real estate. As government debt goes to 4x & 5x GDP, interest rates aren't going to go up but they are going to get more volatile & real estate & bonds may not be the stable alternatives they were 40 years ago.
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Lions believe Southwest will be bought out. Their problems show no sign of abating. Whether or not the media is over hyping the problems, lions believe they have a training, management or a culture problem. The adventure might have begun with the fan explosion & passenger getting sucked out of a window, in 2018. Problems began long before the 737 Max, covid, or anything else. The buyout will probably happen when they finally have a major loss of life & the stonk goes to 0.
The near miss of a control tower was inches away from killing thousands of people on the ground. It was under 170ft AGL in zero visibility.
There's always a chance the buyout will happen sooner & send the stonk to infinity.
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