Elon Musk takes over Twitter

FYI. ... What I was saying about the defaults that are starting. ... Twitter is not alone, as it is hitting San Fran across the real estate sector across the board. Veritas, which is big into residential real estate in San Fran, defaulted on loans tied to 62 buildings last month.

Major office landlord defaults on $1.7 billion in loans tied to two S.F. buildings

This is just the beginning. ... interest rates are still negative in real terms and we are already seeing stress. If they actually went shock and awe to deal the inflation problem (what needs to happen to really address it) or if the market wrestles control away from them. ... there will be trillions of dollars of defaults, enough to make 2008 look quaint.

The Fed is going to raise another 25 basis points at their next meeting, but it is too little, way too late, and they are past the point where they know they are playing with matches near a gasoline tank. The bond market has been bailing them out by keeping rates lower than the plac the Fed has pushed them, because the signal *it* is sending (and it leads the Fed, not the other way around) is that there is no way they can raise rates to where they need to go to properly tame demand (and tame inflation) without a credit crisis, so the Fed Funds futures have consistently been pricing in a complete pivot by them, creating a theater of the absurb where the Fed has been projecting rate increases well beyond what the bond market is telling them they are actually going to do. The yield curve is massively inverted, meaning you get way more yield to lend for 6 months or 2 years than to lend for 10 years. It's backward ass, and it has never not forecast a recession.

There are two choices now, both suck: 1) High prices are here to stay, and will keep inching up higher, killing a lot of Americans who are struggling to get by and are running up huge debts right now, or 2) They address the monetary / debt imbalance they created, which is going to require a serious deleveraging (with a lot of debt imploding), and we suffer an economic hit that is going to devastate people.

We didn't need to be here.

As for Elon Musk. ... The actions that put us into this situation are what made him fabulously wealthy, and the fact that he didn't understand that is why his hubris led him to make an insane bid for a company not worth even a quarter of what he paid for it (at the time; it's worth even less today), at what might have been the absolute peak of a monetary-induced bubble for the ages.

On the rent that's due. ... He could reach into his own pocket and pay that rent if he really wanted to, but he is into so much money that he is never going to see back on the shitshow he walked into, and I am certain Twittter itself is not generating the cash to be able to pay its rent. If he had never bought the company, they'd probably still be able to pay rent, because 1) They wouldn't have a mountain of debt weighing down the company the way it does now (along with a looming $1 billion+ intrerest payment), and 2) Even though the company would have taken an advertising hit without Musk (Google, Facebook, etc. are all seeing ad revenues decline as the economy softens), his antics have obliterated what was the only source of actual revenue the company had.

 

I don't use Twitter much, when I do check in there, 95 percent of the time it is on the web, not in phone app.

I went on yesterday and this morning. ... and the website has felt sluggish to me. Like it takes me into my account, but there is a lag while it tries to access their server. Am I imagining it, or is anyone else noticing something like that?