Housing Bubble

"The Deals Are Collapsing" - Vancouver's Housing Bubble Has Burst

As a new dawn breaks in Metro Vancouver’s real estate market, realty companies are reporting the first anecdotes of deals falling through as foreign buyers forfeited deposits on binding deals rather than pay the new tax, while local buyers withdraw offers in expectation that the market will tumble. In short: the Vancouver housing bubble has burst.

The Car Bubble... And Cash For Clunkers II?

The economic backwash of too-expensive new cars and the reappearance in the marketplace of affordable alternatives (good used cars) is causing sales of new cars to wilt, probably precipitously, as invariably happens in a Boom Bust cycle. The car industry will squeal for help from Uncle Sam – just like back in the early 2000s. And Uncle will be happy to oblige, as he always is... But Uncle’s “help” always comes at a cost.

D-Day For Australia's Real Estate Bubble?

This rotting shack in Sydney and its tiny plot of land sold for nearly $1 million in May of 2014 – more than two years ago. Since then, house prices in Australia have increased even further. Yes, it is an insane bubble, no doubt about it... and now, it appears, the banks are finally realizing, and are pulling back.

There Is No Asset Bubble?

Does an asset bubble currently exist? Ask anyone and they will tell you “NO.” However, maybe it is exactly that tacit denial which might just be an indication of its existence.

Ron Paul: "Americans Are Going To Be Disappointed" In Election Outcome

Clinton does not understand that a policy of endless interventionism has brought us to our knees and made us far weaker. Does she really expect us to be the policemen of the world with $20 trillion in debt? Likewise, Republican candidate Donald Trump misses the point. He promises to bring back jobs to America without any understanding of the policies that led to their departure in the first place.

The FOMC Butterfly That Will Ruin The World

Imagine the financial crisis knocked you out and you did not wake up from the coma that followed until this day. Then, presented with the following three charts you were asked to guess where the federal funds rate was trading...

Corrupt Or Just Stupid? Markets Hand Corporations An Unlimited Credit Card

The crucial thing to understand about credit bubble dynamics is that borrowing money from people desperate to lend and using the proceeds to overpay for assets requires only monkey-level intelligence. So while a bubble is inflating it’s impossible for most of the media, banking and political communities to tell the legitimate operators from the hopelessly corrupt and/or extremely stupid. That’s the world we’ve created by handing monetary printing presses to governments, and by extension to corporate CEOs.

"Short Everything That Guy Has Touched" - San Fran's Lending Standards Put The Last Housing Bubble To Shame

The $0 down, 30-year, adjustable-rate, jumbo mortgage backed by illiquid stock options in tech start-ups, a loan which the San Francisco Federal Credit Union has coined POPPY (Proud Ownership Purchase Program for You), because "Steaming Pile of $h!t" just didn't seem appropriate and messaging really is everything when you're trying to dump loans overseas, has made a huge come back in Silicon Valley.  We know what you're thinking but it's probably fine.

The "New Housing Crisis" – Not Enough Rental Homes?

The real crisis is not a lack of homes for people to buy, just a lack of enough homes for people to rent. Which says more about the “real economy” than just about anything else. While there are many hopes pinned on the housing recovery as a “driver” of economic growth in 2013, 2014, 2015, 2016 – the lack of recovery in the home ownership data suggests otherwise.

The Essence Of Trump's Appeal To The Flyover Zone: "We Are Not Winning Anymore"

...Massive debts, no good jobs, faltering productivity, soaring entitlements, declining net investment and drastically shrinking household incomes add up to an unprecedented assault on America’s vaunted middle class. In fact, the middle class is shrinking markedly as an empirical matter and fading rapidly as an aspirational possibility. It is profoundly misguided Wall Street/Washington policy regime that has given rise to this massive economic failure. For more than three decades they have sown the wind. Trump is the whirlwind they are now reaping...