Glenn Beck: Punished by a Baby

GLENN: Here's Barack Obama which I believe is your dream house, and I'll explain in a second. Here's your dream house, Barack Obama, talking about birth control.

SENATOR OBAMA: I've got two daughters, 9 years old and 6 years old. I'm going to teach them first of all about values and morals but if they make a mistake, I don't want them punished with a baby. I don't want them punished with an STD at the age of 16, you know. So it doesn't make sense.

GLENN: Hang on just a second. He doesn't -- Stu, he doesn't want you punished with herpes.

STU: No, definitely not, HIV. Chlamydia?

GLENN: Or a baby. Chlamydia or a baby, he doesn't want those punishments coming toward you.

STU: You know, I routinely will send out gift baskets to people when they get chlamydia.

GLENN: But they do it intentionally. They're like, we're trying to get chlamydia. You look at them and like, you're so cute, we've been out all weekend trying to get chlamydia. Eventually you come over and it becomes kind of awkward and the guy is like, trying to get chlamydia used to be fun. Now she's up with her legs in the air all the time and it's a nightmare.

STU: You want to start your own little --

GLENN: Honey, I think I'm really close to getting chlamydia. Now would be the time.

STU: Their own little family of STDs and I think that's the dream of every family.

GLENN: Sure you do. But hate to get yourself punished, trying to get chlamydia, have yourself punished with a baby. You know what I mean? What a nightmare that would be.

Okay. A lot of people will say, well, he just misspoke; you know what he means. Yes, I do know what he means. And let's just be very clear. I can only give people in Washington or want to be in Washington so many opportunities to misspeak. By the way, look it up. It's in the thesaurus. By the way, look it up. Misspeak, another word, interchangeable according to the thesaurus is lie. So I can only give you so many chances of misspeaking before I start thinking, there might be something more to this.

He doesn't want his child to be punished with a baby. This tells you all kinds of things. First of all, clear stance on abortion. What is his stance on abortion? I'm just assuming that he's wildly pro choice, but is he one of these politicians who says, "I want to make it rare but I want to make it safe. I want to make sure -- I want to do everything I can, you know, that jeez, if they happen to get pregnant..."

SENATOR OBAMA: I don't want them punished with a baby.

GLENN: I want to make it -- I value life.

SENATOR OBAMA: I don't want them punished with a baby.

GLENN: But I don't want them punished with a baby. Yes, Stu.

STU: Just so you are aware, I want to make sure you understand.

GLENN: Yes.

STU: Barack Obama's abortion platform.

GLENN: How accurate is my description?

STU: Well, he did support Roe versus Wade but he released this quote on the Supreme Court decision upholding the partial birth abortion ban.

GLENN: The partial birth abortion ban.

STU: Yeah.

GLENN: This is where you can be birthed to the head, just keep the head inside of the mother and then kill the baby.

STU: He strongly disagreed with today's Supreme Court ruling, end quote.

GLENN: Against partial birth abortion.

STU: Yeah.

GLENN: Well, because he doesn't --

SENATOR OBAMA: I don't want them punished with a baby.

GLENN: He doesn't want them punished with a baby. You know what I mean? So -- does he anywhere say, does he say that he wants to make it rare but safe?

STU: I don't see that yet. We're still looking.

GLENN: Well, then God bless him. At least -- then maybe you don't need this. Maybe you don't need this lesson of "Punished with a baby" because he's never saying, "But I want to make it rare." This is the amazing thing. This is what you can -- this is what you need to take away from Barack Obama on this. What you learned from Barack Obama in, you know, I don't want them punished with a baby is this: That he sees children as a punishment, not for everybody but for some children are a punishment. Others, children is a blessing. A child is a blessing because you are trying. You are trying to avoid it. So it's a punishment. The point is the baby becomes an "It." The baby is just it. So he doesn't see the sanctity of life is something that can punish you or bless you. I'm sorry but that's an abomination in the eyes of God as I would see it. I can't imagine how a baby could punish you. A baby is a gift at all times. A baby is the closest to perfection that we get at all times. We should be striving to be more like that innocent child than trying to just say, I don't want them to be punished by a baby.

So he doesn't understand. He sees it as either/or. Could be a blessing, could be a punishment. That should tell you something about the sanctity of life.

But it goes deeper than this. It goes into punishment. What is the problem with America? What is the phrase that I've been saying that we should be saying to each other more often, we should be saying out loud? You should be screaming it, and I know you do, screaming it at your television all the time when you watch the news: "Too bad! Sucks to be you! Guess you shouldn't have done that one, huh? Wow, who could have seen this mistake." Well, he's got a 9-year-old and he doesn't want them punished by a baby if they make a mistake. You know what? A baby is a natural consequence of your actions of having sex. It is a natural consequence. It is why your sex organs were created -- I'm sorry -- evolved from an extra foot, and it evolved into a sex organ. It wasn't there for your pleasure. Maybe that's what you should teach your kids. That our sex organs are not for pleasure. Oh, sure, that's part of it. There's a drive in you that says, yeah, that feels good. But the reason why you feel good is so -- it was God's insurance of making sure you do it and have more babies! Not so God could punish you but he could bless you and he could bless the Earth with having more children. It's a natural consequence. But see, the part of this that people like Obama don't understand is consequence.

Consequence is not necessarily a bad thing. For instance, if my child just so happens to put their hand on a hot stove, "I don't want them punished by a burn." Neither do I. I don't want my son or daughter punished by a burn by any stretch of the imagination. But do I think when they put their hand on the stove it's all a bad thing? No. It hurts them. It hurts me as I'm trying to heal their hand. It hurts me and it hurts them a lot. But you know what? They never put their hand there again.

Now, back to "I don't want them punished by a baby." Not only does it show you his stance on life but it also should show you where he stands on consequence. What do you think he's going to do with Citigroup? Citigroup, you failed. Wow, you made some bad investments. Sucks to be you. Too bad. Taxpayers not going to bail you out. Bear Stearns, wow, didn't work out for you, did it? Sucks to be you. Wow. You have how much in mortgage and you make what per month? Really? Looking like a bad idea to sign that loan, huh? Sucks to be you. The only ones that should be bailed out were the ones that were duped, the ones that were lied to. The consumers that were raped, hmmm. We should not bail our children out if they're punished by a baby. We should have a conversation with our kids beforehand. The natural consequence of having sex is having a baby. Do you think you're capable of having a baby at your age? No. Would you want -- do you know what your life, how your life will change? No.

Let me explain how your life will change and let me also explain before you even think about having sex that if you become pregnant and you're 12, you are not going to raise that baby because now we've made two mistakes. Now we've gotten pregnant and we've decided to wreck that child's chances by having them raised by a 12-year-old or a 15-year-old or a 16-year-old. No. So the family believes in not abortion but adoption because a baby is not a punishment. A baby is a blessing. Not to you. It's a natural consequence of having sex. But that baby is a blessing to somebody, and somebody will bless that baby for your mistake, period.

Now, which, which role is going to help the child more? A father and mother that understand and are not going to condemn their child to a life of hell because they made a mistake, a gigantic significant one, maybe hopefully the biggest one they will ever make in their life, one that will sit down and teach them that there are consequences to mistakes, and the bigger the mistake, the bigger the consequence and the more it's going to hurt. "You have this baby and you give it up, it's going to hurt for a very long time." How do I know it? Because the teenager is the reason I have my son Raphe. My son we prayed for for years trying to -- oh, yeah, she had her legs up and we were taking her temperature and everything else. It was ugly. Couldn't get pregnant, couldn't get pregnant, couldn't even get chlamydia. And a teenager made a mistake, and her mother was smart enough to say, you can't, you can't destroy this child's life, and she was smart enough to say, "I can't have an abortion, I can't kill this child" and so she did the hardest thing she probably will ever do. She allowed that baby to be blessed by others and allowed that baby to bless others. She wasn't -- what did Barack say again, Dan? I'm sorry.

SENATOR OBAMA: I don't want them punished with a baby.

GLENN: She wasn't punished with a baby. We were all blessed by a baby. Her blessing will take time, but in time she will realize she went through the hardest thing in her life and she survived. In time she will grow from the experience in a positive way. You are just witnessed yet another piece that shows you the inside, the inside workings of Barack Obama. You have to do a little math on it. It's not about, you know, I don't want you, you know, being -- what again, Dan?

SENATOR OBAMA: I don't want them punished with a baby.

GLENN: Yeah, don't want you punished by a baby. Has less to do with that and more to do with, let's give everybody trophies. Let's not have anybody feeling consequence. Let's not have anybody have any problems in the world. When those problems, when those punishments, to use his language, are natural. Let's stop nature.

Trouble ahead for the housing market

CHRIS J RATCLIFFE/AFP/Getty Images

Our good friend John Rubino over at DollarCollapse.com just released an analysis titled US Housing Bubble Enters Stage Two: Suddenly Motivated Sellers.

He reminds us that housing bubbles follow a predictable progression:

  • Stage One: Mania -- Prices rise at an accelerating rate as factors like excess central bank liquidity/loose credit/hot foreign money drive a virtuous bidding cycle well above sustainably afforable levels.
  • Stage Two: Peak -- Increasingly jittery owners attempt to sell out before the party ends. Supply jumps as prices stagnate.
  • Stage Three: Bust -- As inventory builds, sellers start having to lower prices. This begins a vicious cycle: buyers go on strike not wanting to catch a falling knife, causing sellers to drop prices further.

Rubino cites recent statistics that may indicate the US national housing market is finally entering Stage Two after a rip-roaring decade of recovery since the bursting of the 2007 housing bubble:

  • the supply of homes for sale during the "all important" spring market rose at 3x last year's rate
  • 30 of America's 100 largest cities now have more inventory than they did a year ago, and
  • mortage applications for new homes dropped 9% YoY

Taken together, these suggest that residential housing supply is increasing as sales slow, exactly what you'd expect to see in the transition from Stage One to Stage Two.

If that's indeed what's happening, Rubino warns the following comes next:

Stage Two’s deluge of supply sets the table for US housing bubble Stage Three by soaking up the remaining demand and changing the tenor of the market. Deals get done at the asking price instead of way above, then at a little below, then a lot below. Instead of being snapped up the day they’re listed, houses begin to languish on the market for weeks, then months. Would-be sellers, who have already mentally cashed their monster peak-bubble-price checks, start to panic. They cut their asking prices preemptively, trying to get ahead of the decline, which causes “comps” to plunge, forcing subsequent sellers to cut even further.
Sales volumes contract, mortgage bankers and realtors get laid off. Then the last year’s (in retrospect) really crappy mortgages start defaulting, the mortgage-backed bonds that contain their paper plunge in price, et voila, we’re back in 2008.

Rubino's article is timely, as we've lately been seeing a proliferation of signs that the global boom in housing is suddenly cooling. I've also recently encountered similar evidence that the housing market in my own pocket of northern California is weakening, and I'm curious to learn if other PeakProsperity.com are seeing the same in their hometowns.

The Global Housing Bubble

Housing, as they accurately say, is local. Conditions differ from region to region, making generalizations of the overall market difficult.

That said, the tsunami of $trillions printed by the world's central banking cartel since 2008 clearly found its way into the housing market.

The world real estate market is HUGE, over $200 trillion. That dwarfs the global debt and equity markets. So it's no surprise the central authorities did all they could to reverse the losses the GFC created for property owners.

As a result, many of the most popular locations to live are now clearly in bubble territory when it comes to home prices:

UBS map of global housing bubbles

The chart above displays the most bubblicious major cities around the world in red. But it's important to note that the merely 'overvalued' markets denoted in yellow, and even some of the green 'fair-valued' ones, are still wildly-unaffordable for the average resident.

For example, in "yellow" San Francisco, where the median home now costs $1.6 million, prices are well-above the excesses seen during the previous housing bubble:

And in 'fair-valued' New York City, the median household must spend 65% of its annual income on housing alone.

Is it any wonder that 70% of millennials who don't yet own a home fear they'll never be able to afford one?

Signs Galore Of Topping Markets

At the end of a speculative bubble, it's the assets that are most overvalued that correct first and correct hardest.

So we would expect that as the highest-priced real estate markets fare from here, the general real estate market will follow.

When we take a closer look at what's currently going on with the red-hot real estate markets noted in the chart above, we indeed see evidence supportive of Rubino's claim that the decade-long Stage One mania may now be ending.

Here's a spate of recent headlines about these cities:

Sure looks like Rubino's predicted Stage Two symptoms of rising supply and stagnating prices.

Local Signs, Too

As mentioned, I live in northern California, quite close to Santa Rosa.

Things here aren't as nuts as they are in San Franscico; but it's still a moderately-affluent region with lots of second homes. It's one of the semi-frothy areas I'd expect to see cooling off in first should there be a downwards turn in macroeconomic conditions.

Located less than an hour north of San Francisco, residential housing prices here have roughly increased 2x over the past six years as the Bay Area has boomed. Supply has been in chronic shortage, exacerbated by the loss of thousands of structures burned during last October's destructive Tubbs fire.

But recently, for the first time in many years, realtors here are beginning to talk of a softening they're seeing in the local housing market.

Median sale prices dropped from May to June, which is counter to previous years. And several towns are seeing year-over-year declines in median price -- something unheard of over the past 7 years.

Meanwhile, the days-on-market ratio for properties is beginning to creep up.

Of the greatest concern to the realtors in my area: bidding wars are no longer happening. Houses are selling either at or below asking prices now. That's a *big* development in a market where houses have routinely sold for $50-100K+ above the listing price.

In a similar vein, I'm hearing evidence of the softening rents down in San Franscico and the East Bay (Oakland/Berkeley). Wolf Richter has done a good job chronicalling the substantial volume of newly-constructed units that have recently hit the market threatening to depress rents, and I've heard from a multi-family unit owner down there how landlords in the area are now finding their rents ~$500 too high for the market to bear.

This is all early and anecdotal data. It's too little at this point to claim definitively that my local housing market has entered Stage Two.

But I'm curious to hear from other PeakProsperity.com readers. What are you observing in your local markets? Are you seeing similar signs of concern?

Please share any insights you have in the Comments section below. Collectively, we may be able to add clarity, in one direction or another, to Rubino's hypothesis.

Prepping For Stage Two

Whatever the timing, Stage Two is an inevitability for today's ridiculously-overpriced real estate markets. It's not a matter of if it (as well as Stage Three) arrives, but when.

Given the data above, I think Rubino is correct in his assessment. Or at least, correct enough that prudent action is warranted today.

This makes even greater sense when considered along with the current trends of rising interest rates and quantitative tightening. Remember, home prices and interest rates have a mathematically inverse relationship: as rates go up, home prices must go down (all else being equal). And as central banks start withdrawing in earnest the excess liquidity that inflated property values to their current nose-bleed heights, expect further downward pressure on prices.

To drive the urgeny home even harder, we haven't even yet talked about the damage an economic recession and/or a painful correction in the financial markets would wreak on the real estate market. With the current expansion cycle the second-longest on record and our all-time-high markets looking increasingly vulnerable, it seems very unlikely we'll avoid at least one of those crises in the near to mid-future.

Here are worthwhile steps we recommend at this point:

  • Consider selling: If you're a homeowner and are not committed to remaining in your property for the next decade+, do some scenario planning. If prices fell 20%, how much of a financial and emotional impact would that have on you? If you have substantial equity gains in your home, Stage Two is the time to protect them. If you have little equity right now, make sure you're fully aware of the repercussions you'll face should you find yourself underwater on your properity. What will your options be should you lose your job in the next recession? Whether to hold, or sell now and rent, is a weighty decision; and the rationale differs for each household -- so we strongly recommend making it with the guidance of your professional financial advisor.
  • Raise cash: The vicious cycle that begins as Stage Two transitions into Stage Three is deflationary. Lower prices beget lower prices. During this period, cash is king. By sitting on it, your purchasing power increases the farther home prices drop. And when the dust settles, you'll be positioned to take advantage of the resulting values in the real estate market. We've written at length about the wisdom of this strategy given current market conditions, as well as how, while waiting for lower prices, you can get 30x the return on your cash savings than your bank is willing to pay you, with lower risk. Our recent report on the topic is a must-read.
  • Educate yourself: Yes, real estate is overpriced in a number of markets. But it has been and will remain one of the best ways available to the non-elites to amass income and tangible wealth. And as mentioned, when the next Stage 3 brings prices down, there will be value to be had -- potentially extreme value. If you aren't already an experienced real estate investor, now is the time to educate yourself; so that you'll be positioned to take informed action when the time to buy arises. Our recent podcast interview on Real Estate Investing 101 is a good place to start.

In Part 2: The Case For Starting To Build A (Small) Short Position, we conduct a similar analysis into the overvaluation and growing vulnerability of the financial markets (which are highly likely to correct much faster, sooner and more violently than the housing market), including the details on a recent short position we've started building.

The tranquil "free ride" the financial and housing markets have had for nearly a decade are ending. The string of easy gains with little effort are over now that the central bank money spigots are turning off at the same time the "greater fools" pocketbooks are tapping out.

For a brief time, prices will waiver, as investors remain in denial and refuse to sell at lower prices. But soon that denial will turn to panic, and prices will plummet.

Make sure you're positioned prudently before then.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

It's a bad day when you've stepped in dog poop.

But it's an even worse day when you're stepping in human poop — especially when underneath the poop is a dirty needle. That's the glory that is San Francisco today.

The city doesn't know what to do. There's more human feces in the street than ever before. This is starting to look like human evolution in reverse. And I want to be a helper in this situation.

RELATED: What the 💩 is going on in San Francisco?

And so, as a helper, I've got an idea for San Francisco. And I'm going to share it with you — free — at absolutely no cost to you. This is a public service.

We made a little sign — "No Human Pooping" — because I think that's clear enough, even for those who may be high on heroin, to understand.

Feel free to download and print as many copies as you'd like, and post them on your property. Or click the buttons below to share on social media.

Something has got to be done about this 💩.

Click here to download your printable copy of the sign.

What the 💩 is going on in San Francisco?

Justin Sullivan/Getty Images

Finally, a beautiful Sunday in your picturesque bayside city. You paid good money to move here. Not cheap. The $150,000 range leaves you just about middle class. In Ohio, that'd buy you a small town. But this is better than Ohio, you tell yourself. Sure, the city isn't as scenic as the postcards, but here you are, at the YMCA fields. You're coaching your kid's soccer team. And today is the co-ed Under-8 soccer final. Really, it's their World Cup. You bought the good oranges and Capri-Sun—the special edition kind with cold-sensitive images on the front. You worked hard for this moment.

RELATED: Illegal Immigrant Hits Jackpot and Is Awarded $190K From San Francisco for Deporting Him

Your job is demanding. Sometimes, you're there 60, 70 hours a week. But somebody needs to coach this soccer team so here you are. And, what. What is that. Your son, he's dribbling past the kid shoving dandelions into the ant hill, and, is he going to score a goal? Yes. Yes, he is, but all of a sudden, right as your son's leg angled back to kick the ball, you hear an animalistic scream behind you. You turn around, and see a man shrieking as he squats over the sidewalk. What is he doing, you ask yourself quickly. Oh, God. You know what he's doing.

Following the death of Mayor Ed Lee, San Francisco Mayor London Breed inherited quite a mess. San Francisco is in shambles. Despite topping nearly every list of the nation's highest cost-of-living prices, San Francisco has been plagued by homelessness, often with unbelievable negative consequences.

I'd like to add that, the segment begins with footage of Mayor Breed walking around San Francisco, and as she passes a group of homeless people, at least one person is openly injecting themselves with a needle.

I shouldn't even have to say this, but helping disadvantaged people is a good thing. The Bible is very clear on the subject.

"Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the poor and needy." - Proverbs 31:8-9

San Francisco's approach to dealing with the poor is in fact detrimental to the poor.

"Whoever oppresses the poor shows contempt for their Maker, but whoever is kind to the needy honors God." - Proverbs 14:31

"Looking at his disciples, [Jesus] said: "Blessed are you who are poor, for yours is the kingdom of God. Blessed are you who hunger now, for you will be satisfied. Blessed are you who weep now, for you will laugh." - Luke 6:20-21

San Francisco's approach to dealing with the poor is in fact detrimental to the poor. Walk around the city and you'll see a lot of thousand-dollar tents that function as homes, gifts from good-natured but ultimately misguided people, who function more as enablers than rescuers. The city has set up injection sites, where homeless heroin addicts are provided with clean syringes and allowed to shoot up without punishment. May God bless them. And may we help them in a better way.

Revolutions are started by youth. And the left is desperate for young blood, or, worse, for fresh blood. They're turning on their own.

As reported by the Los Angeles Times, Sen. Dianne Feinstein is more often considered too radical. In a show of force, California Democrats have chosen Feinstein's opponent, Kevin de León, over her.

RELATED: 'I remember thinking liberals were the good guys': Dave Rubin on why he really left the left

Lynne Standard-Nightengale, a member of the Amador County Democratic Central Committee, said she wanted to "send a message."

I just think we need a younger, progressive person there. The Democratic Party in California has moved to the left, and he personifies those values.

Feinstein and de Leon will face each other again in November because California has an open primary system in which the top two finishers face each other, regardless of party.

The left is going hard left. When Dianne Feinstein is not left enough for you—where are the press reports of the extremists taking over? The trend is spreading. A growing number of Trump's base are former Democrats, who voted for Obama.

When Dianne Feinstein is not left enough for you—where are the press reports of the extremists taking over?

So, in response, Democrats are prowling after a new base, a new young base, who's never voted before.

Thankfully, many have predicted that the next generation of voters will be the most conservative generation since pre-WW2. I guess they've watched as their older siblings (or parents) have returned from college with pink hair, atheism, exorbitant debt, and infinite genders, only to decide that personal responsibility, a moral compass, and belief in God are preferable.