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    10/21/2014 - 18:16
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Housing Bubble

Tyler Durden's picture

Why Chinese Growth Forecasts Just Crashed To A Paltry 3.9% - And Are Going Even Lower - In One Chart





Sadly for China's social instability, Chinese growth is going not only to 3.9% but much, much lower. The reason? Quietly, over the past 5 years, China raked up an epic debt load, which by 2015 is expected to hit a whopping 252% of GDP, or a 100% of GDP increase in debt, just to keep its growth dynamo running. A dynamo which has now fizzled, as can be seen best in the Chinese housing bubble which as we have reported previously, has now burst, and China is desperate to keep imminent hard landing, as controlled as possible. Here is Exhibit A...

 
Tyler Durden's picture

Mind "The Asian Dollar Short" - Another Ticking Time Bomb Gifted By The Central Banks





Not everything is as it seems. While the PBOC may be taking a stand on monetarism and its character, it has been very curious that the yuan has not fully participated in the dollar turmoil marking so many other “dollar” dependent nations. While the yuan’s appreciation trend may have been altered, that has not led again to the kind of disorder that marked the currency earlier in the year. Maybe that is due, at least in part, to these expectations that the PBOC will eventually relent on its new approach, but we also think that the PBOC is at least looking the other way on some of the “old tricks” that supported the Chinese version of the dollar short.

 
Tyler Durden's picture

The IMF And Austrian Theory





Nobody in the economic intelligentsia is implying that the IMF is staffed by paranoid cranks. They continue to ignore and belittle the Austrian school. This pompous and undeserved behavior will go on until it’s too late. In the process, the ivory tower disciples of Keynes will only further prove their intellectual bankruptcy. The average person never trusted them to begin with. And things certainly won’t change now.

 
George Washington's picture

Obama Appoints Lobbyist/PR Flack As Ebola Czar





What’s He Going To Do … Lobby To Convince Us that Ebola Is Not That Big A Risk?

 
Tyler Durden's picture

Homebuilder Sentiment Slides, Biggest Miss Since Feb As Buyer Traffic Plunges





Surprise! Having been fooled twice before in the last housing bubble by the NAHB's persistent optimism in the face of dismal realities, it appears October was the beginning of a breaking point in realtor confidence. The headline sentiment index dropped to 54, missing extrapolated expectations of 59, led by a collapse in prospective buyers traffic (from 47 to 41). The headline 54 level is below the lowest estimate of 56 from 52 economists surveyed. Both present and future sales sub-indices also dropped but have no fear, as the NAHB notes, "while there was a dip this month, builders are still positive about the housing market," as cheaper borrowing costs may help draw more prospectiev buyers into the market (umm yeah that hasn't worked).

 
Tyler Durden's picture

This Time 'Is' Different - For The First Time In 25-Years The Wall Street Gamblers Are Home Alone





The last time the stock market reached a fevered peak and began to wobble unexpectedly was August 2007. Markets were most definitely not in the classic “price discovery” business. Instead, the stock market had discovered the “goldilocks economy." But what is profoundly different this time is that the Fed is out of dry powder. Its can’t slash the discount rate as Bernanke did in August 2007 or continuously reduce it federal funds target on a trip from 6% all the way down to zero. Nor can it resort to massive balance sheet expansion. That card has been played and a replay would only spook the market even more. So this time is different.  The gamblers are scampering around the casino fixing to buy the dip as soon as white smoke wafts from the Eccles Building.  But none is coming. For the first time in 25- years, the Wall Street gamblers are home alone.

 
Phoenix Capital Research's picture

This is a Recipe For a Crash





The systemic risks underlying the Financial Crisis are in no way resolved. 

 
Tyler Durden's picture

Why Is the Put-Call Ratio (Fear Gauge) Higher Than In The Lehman Collapse Of 2008?





The rising fear may reflect a shift in sentiment from faith in the omnipotence of central banks to skepticism.

 
Tyler Durden's picture

Understanding Asset Bubbles





The recent years of money printing by the world's central banks has NOT ushered in a “permanent plateau of prosperity”. And, as with all bubbles, symmetry indicates the downslope after the bursting will be steep, swift, and likely quite scary.

 
Tyler Durden's picture

Inside September's "Born Again" Jobs Report





The September jobs report was greeted by a flurry of robo-trader exuberance because another print well above 200k purportedly signals that growth is underway and profits will remain in high cotton as far as the eye can see. But how many years can this Charlie Brown and Lucy charade be taken seriously - even by the headline-stalking talking-heads who inhabit bubblevision? For the entirety of this century they have actually been gumming about little more than “born again” jobs, not real expansion of labor inputs to the faltering US economy.

 
GoldCore's picture

Silver “Particularly Cheap” as “Blood On The Commodity Streets”





Relative to stock market indices, broad commodity indices are now at their lowest levels since the late-1990s dot com boom. Key commodity price ratios, such as those between precious and industrial metals, are already at levels associated with financial crises such as that of 2008. In other words, there is already ‘blood on the commodity streets’, presenting investors and commodity traders with potentially attractive opportunities.

 
Phoenix Capital Research's picture

What Will Trigger The Next Round of the Financial Crisis?





Today, we now have a financial system that is even more leveraged than in 2007… backstopped by even less high quality collateral. So when the panic hits, the selling pressure will be even MORE extreme.

 
Phoenix Capital Research's picture

The Economy is Busted and Stocks Are In a Bubble. End of Story.





We continue to be told that the US economy is in recovery and stronger than ever. The press trumpets heavily massaged data (GDP growth and the unemployment number) while ignoring data that clearly indicates the US economy is in the toilet (labor participation rate, median income, etc).

 
 
Tyler Durden's picture

America's "All Important" Housing Market Flashing Red After Bad Data Double Whammy





The ultra high end of US housing is now sliding fast, and that unless some other central banks steps up and resumes the injections of some $100 billion in outside money into inflating asset prices such as stocks and billionaire mansions, then all bets are soon off.

 
Tyler Durden's picture

China Housing Bubble Bursts: Q3 Land Sales Crater 50%





China may be doing everything in its power to divert attention from the simple fact that its housing bubble, the largest in the world in terms of both assets comprising it as well as divergence from fair value, has burst. But while there is no clear threshold of what constitutes a bursting bubble when it comes to housing, the latest data out of Soufun, China's largest real-estate website, which said that land sales have dropped a massive 22% to 1.7 trillion Yuan in 2014 so far, is likely as clear an indication as any that Beijing is about to panic. And if that was not enough Bloomberg adds that land sales in 300 cites followed by Soufun fell almost 50% Y/Y to 415.9 billion yuan in 3Q, while residential land sales declined more than 50% to 265.3b yuan in 3Q.

 
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