Rebel Capitalist News WARNING: These Powerful Yet Unknown Economic Indicators Are Flashing Red
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Sep 22, 2025 Explore powerful yet obscure economic indicators that suggest looming trouble. Hear about homebuilder margins and the hidden risks in the housing market. An intriguing anecdote links eviction courts to consumer stress, highlighting informal financial struggles. Discover bizarre recession signals like boat fires and subprime auto liquidations, as investors chase yield in risky assets despite growing delinquencies. The discussion wraps up with insights on monetary conditions and a call to defend liberty and free markets.
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Lennar's Margin Squeeze Reveals Hidden Discounts
- Lennar reported squeezed margins after subsidizing buyer interest costs to avoid cutting list prices.
- That practice hides true comps and signals underlying stress in new-home demand.
Asset Prices Are Driving The Economy
- Home prices and stock valuations sit at nosebleed levels versus historical norms.
- Playing probabilities matters more than certainties when allocating capital in bubbly markets.
Comps Can Mask Real Housing Weakness
- Financial engineering like interest-rate buy-downs prop up comps and inflate homeowner equity signals.
- If builders stop subsidizing, comps and owner wealth could drop quickly and reduce consumption.