"Withdrawal of monetary accommodation would also accentuate the problem of a strong USD, uncover geopolitical complacency, and remove the lid from market volatility. In fact, our view is that further withdrawal of monetary accommodation would likely lead to turmoil in financial markets."
Interest rates on U.S. fixed-rate mortgages rose to their highest levels in more than two years, sending weekly home loan application activity to its weakest since early January according to the MBA and the braoder US housing market reeling.
"After a year in which reality has managed to surpass even seemingly unlikely calls, 2017 may be a wakeup call which sees a real departure from the 'business as usual'..." Will this be the year when China exceeds growth expectations, Brexit turns into Bremain, the Mexican peso soars and Italian banks turn out to the best performing equity asset class?
Because the debt lifestyle has been normalized, there now exists social stigma to live below one’s means. To not give the appearance of wealth one doesn’t have by purchasing – on credit – things one can’t really afford. That – as much as the regulatory burden of government – is what’s driving up the cost of life for all of us (including those still trying to live within our means).
"Geopolitical developments should be gauged from... non-traditional data sources (such as big data sentiment indicators, independent media outlets, etc.) given the failure of many traditional data sources to anticipate geopolitical developments this year."
Following September's 9.3% MoM plunge in Aussie home approvals, hopes were high that October would see a bounce (expectations were for a 2% gain) as central bankers jawboned confidence higher. However, it didn't... Building approvals collapsed 12.6% MoM and a shocking 24.9% year-over-year decline is equal to the worst drop since Lehman. Ironically, just this month Aussie Treasurer eased restrictions on foreign buyers (otherwise known as bag holders it would seem).
Almost exactly ten years after the last housing bubble burst, unleashing a dramatic crash in US real estate prices today Case Shiller reported that as of September, its Index covering all nine U.S. census divisions, surpassed the peak set in July 2006 as the housing boom topped out, and in doing so the average home price has now climbed back above the record reached more than a decade ago.
Ben Carson, the man who ran for president then said he wouldn't feel comfortable having a role in the Trump administration because he has no government experience, has been formally offered the position of secretary of the Department of Housing and Urban Development.