Market Watch

[CloverKnollFarms]

CNH is making cuts now due to lack of demand.

 

[milkman636]

They aren't buying tractors.

401(k) hardship withdrawals are surging as high inflation squeezes Americans

More Americans are making hardship withdrawals from their 401(k) retirement plans to cover emergency expenses as they struggle with chronic inflation.

www.foxbusiness.com

That’s part of my thesis why the stock market will continue to decline. If each one of these withdrawals was only 10,000 that would still be over $180 million in underlying assets that were sold irrespective of price or fundamentals.

After these withdrawals are exhausted there likely will be a corresponding climb in repos and foreclosures.

 

[CloverKnollFarms]

180 million is pretty small compared to the market as a whole. I do see it as a sign that the economy is on the verge of a real dump.

 

[2manyrocks]

Student loan repayments are now supposed to resume, and I understand that the mortgage forbearance program is now ended. My assumption has been that once the residential real estate market finally tanks, the rest will tank.

 

[milkman636]

180 million is pretty small compared to the market as a whole. I do see it as a sign that the economy is on the verge of a real dump.

I agree. That was just a 3 month sample from their pool of accounts. I think it’s indicative of a larger trend that will persist, and one that probably involves significantly more dollars than the guesstimate I threw at it.

 

[milkman636]

Student loan repayments are now supposed to resume, and I understand that the mortgage forbearance program is now ended. My assumption has been that once the residential real estate market finally tanks, the rest will tank.

I just read an article stating that there is something like $4 trillion sitting in combined cash on the sidelines right now with investors and companies waiting to redeploy. A significant part of that was held by just 13 companies.

It makes me wonder if there won’t really be a financial crisis, just a large transfer of discounted assets and retirement savings to some of the bigger collectors.

 

[newbury]

There has been so much talk of gloom and doom over the last several years that many of us are keeping our powder dry waiting for another 2009 buying chance.

 

[2manyrocks]

There has been so much talk of gloom and doom over the last several years that many of us are keeping our powder dry waiting for another 2009 buying chance.

The potential danger in that for all of us is whether Powell will jump back into trying to "rescue" the economy and do even more damage or whether he has to toe the line to hold down inflation whether he likes it or not.

An indirect measure of the health of the economy is to look at Google trends to see what people are now searching. "Give car back" is currently one of the leading trends, I suppose for people who overpaid for cars the past couple of years.

 

[two_bit_score]

I suppose for people who overpaid for cars the past couple of years.

All the tote the note dealers I know get their money out of the car in the first transaction. Everything else, if any, is just extra profit.

 

[CloverKnollFarms]

Deere stock dips on missed outlook, equipment sales decline

Shares of Deere & Company (DE) tumble on Wednesday after the heavy machinery manufacturer's guidance has not lived up to previous estimates. While experiencing a pullback in farm equipment sales, Deere says it expects lower demand from farmers as crop prices decline. Yahoo Finance Live breaks...

finance.yahoo.com