Tag Archive: Real Estate
Housing’s Echo Bubble Now Exceeds the 2006-07 Bubble Peak
A funny thing often occurs after a mania-fueled asset bubble pops: an echo-bubble inflates a few years later, as monetary authorities and all the institutions that depend on rising asset valuations go all-in to reflate the crushed asset class.
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Where There’s Smoke…
Central banks around the world have colluded, if not conspired, to elevate and prop up financial asset prices. Here we'll present the data and evidence that they've not only done so, but gone too far. When we discuss elevated financial asset prices we really are talking about everything; we're talking not just about the sky-high prices of stocks and bonds, but also of the trillions of dollars’ worth of derivatives that are linked to them, as well...
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Bi-Weekly Economic Review
It wasn’t a very good two weeks for economic data with the majority of reports disappointing. Most notable I think is that the so called “soft data” is starting to reflect reality rather than some fantasy land where President Trump enacts his entire agenda in the first 100 days of being in office. Politics is about the art of the possible and that is proving a short list for now.
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Don’t Confuse Immigration With Naturalization
As the immigration debate goes on, many commentators continue to sloppily ignore the difference between the concept of naturalization and the phenomenon of immigration. While the two are certainly related, they are also certainly not the same thing. Recognizing this distinction can help us to see the very real differences between naturalization, which is a matter of political privilege, and immigration, which simply results from the exercise of...
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The VIX Will Be Over 100 due to Central Bank Created Tail Risk
We discuss the manner in which Central Banks have destroyed financial markets, and have the stage for what I label as the Red Swan Event in this video. When the Swiss National Bank holds risky Tech stocks in its portfolio, we are in unchartered territory!
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Risk Reward Analysis for Financial Markets
We focus this video regarding the potential upside for stocks versus the considerable downside risk for investors. All Technical Analysis is flawed and backward looking, it is a Critical Thinking flaw to extrapolate the future from the most recent past. I want to know the next market move, and not still be stuck on the most recent market move. And the most important fact of all is valuations, stocks are in a bubble right now due to Central Banks...
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A Biased 2017 Forecast, Part 1
A couple weeks ago I was lucky enough to see a live one hour interview with Michael Lewis at the Annenberg Center about his new book The Undoing Project. Everyone attending the lecture received a complimentary copy of the book. Being a huge fan of Lewis after reading Liar’s Poker, Boomerang, The Big Short, Flash Boys, and Moneyball, I was interested to hear about his new project.
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Moody’s & Reserve Bank of Australia Warn of Increasing Mortgage Arrears and Looming Apartment Defaults
Moody’s & Reserve Bank of Australia Warn of Increasing Mortgage Arrears and Looming Apartment Defaults. Last Wednesday Moody’s reported that mortgage arrears continue to rise across Australia, particularly in the mining states of WA & NT:
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D-day for Australia’s Real Estate Bubble?
Unknowable Degrees of Bubble Insanity Back in February, we brought you an update on the truly insane real estate bubble in Australia (see: “Australia’s Housing Bubble – In the Grip of Insanity” for details) in the wake of Jonathan Tepper of Variant Perception reporting on an eye-opening fact-finding tour in Sydney.
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Jim Grant Puzzled by the actions of the SNB
James Grant, Wall Street expert and editor of the investment newsletter «Grant’s Interest Rate Observer», warns of a crash in sovereign debt, is puzzled over the actions of the Swiss National Bank and bets on gold.
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Australian property bubble on a scale like no other
Bubble trouble. Whether we label them bubbles, the Australian economy has experienced a series of developments that potentially could have the economy lurching from boom to bust and back. In recent years these have included: The record run up in commodity prices and subsequent correction. The associated boom in mining investment and current reversal. Record low bond yields. The boom in housing construction. Specifically apartments, that was spurred...
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Negative Rates and The War On Cash, Part 1: “There Is Nowhere To Go But Down”
As momentum builds in the developing deflationary spiral, we are seeing increasingly desperate measures to keep the global credit ponzi scheme from its inevitable conclusion. Credit bubbles are dynamic — they must grow continually or implode — hence they require ever more money to be lent into existence.
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The Helicopter Mortgage
Medical vs. Financial Engineering. I broke my elbow a month ago, pretty badly as I was told. The surgeon screwed the pieces back together, using a steel alloy bracket and six screws. Two hours later, I left the hospital with no cast, a bandage (just to cover a very ugly scar), a prescription for painkillers and therapy started a week later.
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Stockman Rages: Ben Bernanke Is “The Most Dangerous Man Walking This Planet”
Ben Bernanke is one of the most dangerous men walking the planet. In this age of central bank domination of economic life he is surely the pied piper of monetary ruin. At least since 2002 he has been talking about “helicopter money” as if a notion which is pure economic quackery actually had some legitimate basis.
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Yahoo Finance Editor “We’re Suffering Of Too Much Democracy”
Following James Traub's mind-numbingly-elitist rebuttal of the democratic rights of "we, the people" in favor of allowing "they, the elite" to ensure the average joe doesn't run with scissors, "It's time for the elites to rise up against the ignorant masses."
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