Stagflation Threat: JPMorgan Chase's CEO, Jamie Dimon, expressed a cautious outlook on the U.S. economy during the Q1 earnings call despite current favorable conditions. He highlighted several risks, including geopolitical tensions, persistent inflation, and the delayed effects of the Federal Reserve's tighter monetary policies. Dimon suggested that the real estate sector could face a "worst-case" scenario of stagflation, a condition not seen since the 1970s, which combines low growth with high inflation. This scenario, he warned, could have severe repercussions throughout the entire economy, reminiscent of the challenging times following the Global Financial Crisis. (Yahoo! News)

Unaffordable Homeownership: Darren and Lori Gondry, who paid off their mortgage in 2021, have seen their home insurance costs rise by 63% in two years, along with increases in property taxes, utility costs, and homeowners’ association fees. Homeownership affordability fell to its lowest level since the 1980s in 2023 due to a 23-year high in mortgage rates and record-setting home prices. Non-mortgage costs, including property taxes, maintenance, utilities, and insurance, make up over half of homeowners’ overall costs, according to a 2022 Fannie Mae analysis. Home insurance premiums rose by over 10% on average in 19 states in 2023 due to large payouts for natural disasters and increased movement to disaster-prone areas. (WSJ)

Swindler Unsettlement: Nightingale Properties CEO Elie Schwartz has failed to make the second $3M payment as part of a settlement agreement to repay hundreds of crowdfunding investors he allegedly swindled out of $50M on two failed real estate deals. The deadline for the payment was March 31, with a 10-day grace period. As of April 12, the payment had not been received. Over 600 investors had invested in Nightingale's campaigns on the real estate crowdfunding website CrowdStreet. Schwartz could now be in default of the settlement, which allows the investment entities to place liens on all of his assets. Nightingale had raised $54M from investors to acquire an Atlanta office complex and $9M to renovate a Miami Beach office building, but neither deal closed. Schwartz had allegedly siphoned millions into his own account and gambled $12M on First Republic Bank stock and options before it failed. (Bisnow)

Bank of America says we might hit stagflation, with slow growth and high inflation. That’s the economic version of a diet where you eat nothing but salad but somehow gain weight. Thanks, economy, I hate it. Let’s go!