Diesel ban, NEW Housing Bill Proposed, Bond Market's Cracking | ZFS 107
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Three things on the table today. The bond market that keeps threatening to crack, a brand new Senate housing bill that would put $50,000 in first time homebuyers pockets, and a proposed 90 day ban on American diesel exports that would ripple across the entire globe.
We start with a Bloomberg clip where an analyst says 7% rates are historically normal and consumers just do not want to buy this market. Both statements are technically true and completely disconnected from reality. In June 2001 we had these same rates. The national debt was $5.8 trillion, the median home was $150,900, and 38% of median income went toward shelter. Today the debt is $40.2 trillion, the median home is $406,000, and 45% of median income goes toward shelter. Same rate, completely different world.
Then the amortization math that should make you sick. On a median home today, your payment is $3,168 and only $297 of that goes toward principal. The rest goes to the bank. Over 30 years that $406,000 home costs you just under a million dollars.
We break down the Homeownership Promise Act from Ron Wyden and Jeff Merkley. A 5 to 1 federal match up to $50,000 for first time buyers, limited to homes under the local median price. I read the actual bill, explain what it could do for builder incentives, and where I think it falls short.
And we close on diesel. The White House is reportedly preparing a 90 day export ban ahead of the midterms. Russia just extended its own. Together that is 30% of global seaborne diesel exports off the table. Mr. Global breaks down exactly why that would drop US prices briefly and then break supply chains worldwide. Meanwhile Ukraine has now hit three Russian refineries in a week, which is why I do not think diesel is done going up.
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Three things on the table today. The bond market that keeps threatening to crack, a brand new Senate housing bill that would put $50,000 in first time homebuyers pockets, and a proposed 90 day ban on American diesel exports that would ripple across the entire globe.
We start with a Bloomberg clip where an analyst says 7% rates are historically normal and consumers just do not want to buy this market. Both statements are technically true and completely disconnected from reality. In June 2001 we had these same rates. The national debt was $5.8 trillion, the median home was $150,900, and 38% of median income went toward shelter. Today the debt is $40.2 trillion, the median home is $406,000, and 45% of median income goes toward shelter. Same rate, completely different world.
Then the amortization math that should make you sick. On a median home today, your payment is $3,168 and only $297 of that goes toward principal. The rest goes to the bank. Over 30 years that $406,000 home costs you just under a million dollars.
We break down the Homeownership Promise Act from Ron Wyden and Jeff Merkley. A 5 to 1 federal match up to $50,000 for first time buyers, limited to homes under the local median price. I read the actual bill, explain what it could do for builder incentives, and where I think it falls short.
And we close on diesel. The White House is reportedly preparing a 90 day export ban ahead of the midterms. Russia just extended its own. Together that is 30% of global seaborne diesel exports off the table. Mr. Global breaks down exactly why that would drop US prices briefly and then break supply chains worldwide. Meanwhile Ukraine has now hit three Russian refineries in a week, which is why I do not think diesel is done going up.
Support the show
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