Housing Bubble

Loonie Spikes After Bank Of Canada Raises Rates For The First Time Since 2010... As Expected

Heading into today's meeting with a smorgasbord of 'relatively' good data recently, Governor Poloz had the perfect excuse to raise rates (for the first time since 2010) and tamp down the firey bubble in home prices. Not a total surprise, given hawkish comments from BOC officials in recent weeks, but the Loonie is surging on the hike but CAD stocks (which were rallying into the decision) are limping lower.

Why The Fed Will Fail Once Again

"The Fed’s bungling should come as no surprise... The Federal Reserve has done almost nothing right for at least the past twenty years, if not longer."

China 'Rescues' Bond Market In Symbolic Move But Yield Curve Remains Inverted

For the 10th day in a row, China's bond yield curve remains inverted (the longest in history). However, in a very symbolic move overnight, China's Ministry of Finance bought 1.26 billion yuan of 1-year bonds for the first time in history via the secondary market. While yields tumbled on the rescue attempt, the curve remains inverted...

Moody's Cuts Aussie Bank Ratings Due To "Tail Risk" Concerns

"Whilst mortgage affordability for most borrowers remains good at current interest rates, the reduction in the savings rate, the rise in household leverage and the rising prevalence of interest-only and investment loans are all indicators of rising risks."