Housing Bubble

Chinese Economic Data Beats Across The Board After Record Credit Injection

Overnight China reported a barrage of economic data for March and Q1, that not only showed the first back to back GDP acceleration in seven years, but beat across the board as investment picked up, retail sales rebounded and factory output strengthened, following record credit growth and a fresh rebound in China's property markets which defy Beijing's attempts to taper the country's newest housing bubble.

Why The Bank Of Canada Should "Cease And Desist"

“The BoC should cease and desist with talk of possible further rate cuts, which simply fuel the sense that rates are never going higher, and instead start warning that rates will someday rise.”

UBS Reveals Who Was Responsible For The Global Reflation

"For a spell in Q4 2016 the US was certainly the flag bearer of the reflation trade. However, before and since it was China at the epicentre of the most significant positive growth shock for the global economy."

David Rosenberg: "This Is A Bubble Of Historic Proportions"

"This bubble is on par with what we had in the States back in ’05, ’06, ’07. We have to actually take a look at the situation. The housing market here is in a classic price bubble. If you don’t acknowledge that, you have your head in the sand."

Toronto House Price Bubble Goes Nuts

Residential property sales in Greater Toronto soared 17.7% year-over-year to 12,077 homes, according to the Toronto Real Estate Board (TREB). New listings jumped 15.2% to 17,052. Prices for all types of homes, based on the MLS Home Price Index Composite “Benchmark,” soared 28.6%. The “average” selling price soared 33.2%!

Productivity Myths Shattered: Is Productivity Rising Or Falling? Why?

Those who are baffled by productivity never bothered to put their theories to rudimentary tests. Greenspan is correct that social benefits crowd out genuine investment; thus, those proposing some sort of guaranteed minimum living wage are totally off base. Entitlements are already a massive problem, let’s not make them worse.  Massive handouts have never solved any economic problems, and never will.

The American Dream, Twice Removed

"The demise of America comes in small steps. But it’s unstoppable. The same is true for every other housing bubble. When no-one can afford to buy a home anymore but a bunch of Russians and Chinese, rental prices surge. And then shortly after that the whole thing goes up in smoke."

How Chicago's Largest Pension May Run Out Of Cash In As Little As 4 Years

The risk associated with America's pension ponzi schemes have largely been overlooked by investors to date because so long as they can meet annual benefit payments then plan administrators can just continue to 'kick the can down the road' and pretend that nothing is wrong.  Of course, that strategy ceases to work when the pensions actually run out of cash...which could happen sooner than you think...

American Healthcare - A Racket Of Rackets

"If you thought banking in our time was a miserable racket - which it is, of course, and by 'racket' I mean a criminal enterprise - then so-called health care has it beat by a country mile, with an added layer of sadism and cruelty built into its operations."

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.