Housing Bubble

China's Record Iron Ore Glut: Enough To Build 13,000 Eiffel Towers

"That's too much of stock" said Li Xinchuang, vice chairman at China Iron and Steel Association. "It will be very dangerous for the price. That's what's very worrying about it." One foreign trading sources said "we have a fleet of vessels on their way to China with no buyers. We're trying to find buyers."

China Manufacturing PMI Jumps To Five Year High

China's reflation story (on the back of a record amount of debt created last year) was put on display on Friday morning when both the Chinese manufacturing and non-manufacturing PMI rose more than expected, with the Manufacturing PMI rising to a level not seen since April 2012.

Six Graphs That Reveal Big Problems For Student And Auto Loans

A trillion dollars of housing debt has been replaced by a trillion dollars (or more) of student and auto loan debt. Delinquency rates are increasing for student and auto loans, while other loan types have seen a decrease in delinquency. Finally, the value of both the university education and the automobiles people are buying don’t seem to justify the amount being borrowed and spent.

It's Time To Get Painfully Honest: Banks Are Evil

"I've increasingly come to see the financial industry - with the big banks at its core - as the root cause of injustice in today's society." Whether it's social equity, the security of your job or retirement, your day-to-day existence, or the fairness of the laws we live under - our fate is currently in the hands of the banks.

Building Permits Plunge Most In 11 Months Amid Multi-Family Slump

Following January's 'Trump-bump', building permits in February plunged 6.2% MoM, the biggest drop since March 2016 (amid global recession fears), driven by a tumble in multi-family units. While housing starts rose 3% MoM, the annual growth slipped back to 6.2%, again fading Trump exuberance, despite a 12 year high in builder confidence.

Canada Flagged For Recession By BIS

As if Canadians needed more proof that the country’s real estate is in a bubble, and that this misallocation has spread to other sectors of the economy, the BIS latest quarterly report confirms what any critical observer can see: binging on debt is rarely a good idea.

Risk-Ignorance Reaches 23 Year High As Short Interest Hits Record Low

Investors are willing to pay more for a given level of risk than at any time since 1994 and short interest has collapsed to record lows... "if The Fed follows through on its convictions, look for a flat yield curve and a recession to wipe out 50% of equity prices for the third time in the past seventeen years."

Raising Interest Rates Can't End Well

"The economy looks to me like a type of Ponzi Scheme. It depends on both rising energy consumption and rising debt. Judging from the problems we are having now, it seems to be reaching its limit in the near term. Raising interest rates will tend to push it even further toward its limit, or over the limit. The world economy is operating at too close to 'stall speed'. The financial system is too fragile."

The Paradox Of Our Times: Record Assets, Record Debt, & Record Depression

"It is surely one of the primary reasons why many if not most people have so much trouble accepting the trouble the economy is in... despite asset price levels and even record debt, all those prove is just how disconnected those places have become from what used to be an efficient way to redistribute financial resources."