Housing Market

Speculation Grows Japan Will Tighten Next

One of central banking’s most aggressive easers—the Bank of Japan—may soon have to think about tightening for the first time since 2007. According to the WSJ, "the latest buzz in Japanese monetary-policy circles is that the BOJ may have to lift the 10-year government-bond target from a recently set zero."

Frontrunning: December 7

  • Futures rise for third day in a row (Reuters); Banks Lead Stock Rally as Bonds Gain With Hopes Pinned on Draghi (BBG)
  • Monte dei Paschi bolsters European stocks, ECB looms (Reuters)
  • Finding Risk in All the Wrong Places as Trump Era Begins (BBG)
  • Goldman Tells Stock Pickers to Rejoice as Correlations Decline (BBG)
  • Trump’s ‘Wall’ at Mexico Border Vanishing as GOP Lawmakers Bolt (BBG)

The New American Dream - A Life In Hock

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).

JPMorgan Tells Investors: Ignore Mainstream Media

"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."

Frontrunning: November 30

  • Oil soars on OPEC hopes, dollar renews its surge (Reuters)
  • Oil Rallies on OPEC Optimism, Spurring Gains in Energy Producers (BBG)
  • Saudis say to take 'big hit' on oil output for OPEC deal, Iran can freeze (Reuters)
  • Leaner and meaner: U.S. shale greater threat to OPEC after oil price war (Reuters)
  • an the U.S. Become an Energy Superpower in 2017? (BBG)
  • RBS Fails Toughest-Ever BOE Stress Test, Boosts Capital Plan (RBS)

Aussie Housing Market Collapses: Building Approvals Crash 25%

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).

US Home Prices Rise Above July 2006 Levels, Hit New Record High

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.