"Across numerous countries, including Australia, Britain, the Netherlands, New Zealand, Sweden and the United States, the percentage of people who say it is “essential” to live in a democracy has plummeted, and it is especially low among younger generations."
Following September's 9.3% MoM plunge in Aussie home approvals, hopes were high that October would see a bounce (expectations were for a 2% gain) as central bankers jawboned confidence higher. However, it didn't... Building approvals collapsed 12.6% MoM and a shocking 24.9% year-over-year decline is equal to the worst drop since Lehman. Ironically, just this month Aussie Treasurer eased restrictions on foreign buyers (otherwise known as bag holders it would seem).
"We are entering a very dark phase in this battle to retain our liberty," warns Armstrong Economics' Martin Armstrong, adding that "this is the most dangerous period we are heading into for governments will respond only to their own self-interest to survive."
The key economic releases this week are consumer confidence on Tuesday, ISM manufacturing on Thursday, and the employment report on Friday. There are a few scheduled speaking engagements from Fed officials this week. The Beige Book for the December FOMC period will be released on Wednesday.
Bail in risk - €4 Trillion Italian banking system at risk as referendum looms Sunday according to Financial Times. Italian banking system looks vulnerable to collapse whether the referendum is passed in Italy or not.
Debt reduction and the visible reduction of what is seen internationally as overbearing statism in the U.S. economy will be critical to building back long-term U.S. global capabilities. The U.S. has not seen such an opportunity for strategic reversal since the Reagan Administration. But only if the incoming Administration adheres to the principles which won it the election, and avoids the compromises which the bureaucratic base of government will attempt to force on it to avoid disruption of the status quo.
With a new administration coming into office in 2017, it might be useful to examine what potential policies will be enacted that may have an impact on housing. The market responded to the election results as if it were a Black Swan event. Most of the comments preceding the election almost assumed it was a foregone conclusion that Hillary Clinton was going to be the next President. Clearly that was not the case. The bond markets had an immediate sizable reaction. We still don’t have the full details on how things will change but there are some changes planned that may have an impact on housing. It is hard to see how rental Armageddon changes because of this.
After contributing $88mm to the Clinton Foundation over the past 10 years, making them one of the Foundation's largest contributors, Australia has decided to pull all future donations. But why would they stop funding now that Hillary has so much more free time to focus on her charity work?