Housing Prices

A Homerun For The Donald - Attack The Fed's War On Savers, Workers And The Unborn (Taxpayers)

"Indeed, the Fed is waging an insensible and outrageous war on savers, workers and future taxpayers - even as it pleasures the 1% with fantastic financial windfalls from the Wall Street casino. Now that is a rigged system. And that is a beltway evil that merits the Donald’s unrelenting attack on behalf of the citizens of Flyover America who have been left behind in their tens of millions."

Time To Get Real, Part 2: "We Need Their Drugs"

On the current path, the world is experiencing the largest artificial asset allocation in modern history, one that is driven by a misguided interest rate regime that has lost its efficacy and is producing more harm than good. Yet the fear of withdrawal pain is keeping central bankers from doing the inevitable: Quit. The response is predictable: "I need the drugs!"

Vancouver Home Sales Crash 23% In One Month As Prices Tumble

Confirming anecdotal evidence that the Vancouver housing bubble has burst, according to yesterday's real estate board data, Vancouver home sales fell 26% from a year earlier and 23% from July. The average price of a detached property declined 17% on the month, the lowest since September 2015. And this is just the beginning.

"All Eyes On Central Banks" In September, But "No Reason To Smile"

September will be quite a busy month for investors since there are around 30 major central banks meetings scheduled. Since the Bank of England’s last policy announcement, the total monthly amount in global official quantitative easing has reached almost $200 billion, which corresponds, for the purpose of comparison, to Portugal’s annual GDP in 2015. Long-rumoured and oft-discussed, QE infinity is now a reality.

Dispelling The Norwegian Housing Myth

Recently,an economist from DnB (Norway’s largest bank) stated that Norway is not in a housing bubble although conditions resemble one and prices can still fall. The article states that a socialist country with lots of benefits can handle higher debt levels than a capitalist one. It fails to acknowledge the impact of the eroding oil foundation on the long term economy.

Friday Humor? Palo Alto Planning Commissioner Quits Due To High Cost Of Housing

"Dear City Council Members and Palo Alto Residents, This letter serves as my official resignation from the Planning and Transportation Commission. My family has decided to move to Santa Cruz. After many years of trying to make it work in Palo Alto, my husband and I cannot see a way to stay in Palo Alto and raise a family here... no reason to keep serving the average Joe when the city is only affordable to Joe Millionaires."

"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.

"Champagne Supernova" - IceCap Asks What Happens When The Bond Bubble Finally Pops

Most investors today have no idea what is happening in the bond market today and have exposed themselves to incredible amounts of risk. Because a global crisis in the government bond market has never occurred in our lifetime – advisors, financial planners and big banks continue the tradition of telling their clients that bonds are safer than stocks. As a result, investors remain heavily invested in the bond market and are therefore smack dab in the middle of the riskiest investment they’ll ever see.

Weekend Reading: If I Was Janet Yellen

Unfortunately, for Janet, this is the 'trap'. The liquidity will dry up, the inventory restocking cycle will end, and the next “crisis” will be on the horizon with Ms. Yellen remaining stuck near the “zero bound.”  The past opportunities to “normalize” interest rate policy have come and gone. This opportunity will likely pass also and, as always, the Fed will realize far too late they are trapped. But by then, it won’t matter much to investors, or what’s left of them, anyway.

Here We Go Again - Stockman Warns Of August 2007 Redux

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy and elsewhere in Europe and the sudden trading suspensions by four UK commercial property funds. If this is beginning to sound like August 2007 that’s because it is. And the denials from the casino operators are coming in just as thick and fast.

Time To Take The Fed's Warning Seriously: CMBS Has "Greatest Ever Monthly Delinquency Increase"

15 loans totaling $221MM became newly delinquent in June. In total, 71 loans with a balance of $760.6MM were delinquent in June, resulting in a delinquency rate of 32bp. The $142MM month-over-month increase in the volume of delinquent loans was the greatest ever - it eclipses the $116MM increase in March 2016 and compares to an average monthly increase of $40.7MM.