Mexico

Housing 2006 Redux - Mortgage Fraud And Speculation Come Roaring Back

Pervasive “occupancy fraud in lending” – purposely misidentifying “investment” properties as “second/vacation” for the purpose of obtaining prime, “owner-occupied”, low-down payment mortgages vs expensive “investment” property loans — is back in a big way and driving housing demand, based on NAR’s “2015 Investment and Vacation Home Buyers Survey”. It comes on the heels of a multi-year cycle of increasingly “bad” appraisals – a widespread problem — by the Appraisal Management Companies (AMC) that in Bubble 2.0 are similarly conflicted, as independent residential appraisers were during Bubble 1.0 . Both appraisal and occupancy fraud are primary features to a speculative, house-price bubble. This is an identical replay of 2005 to 2007 that nobody recognizes, expects, or is even looking for, which will present an opportunity at some point.

US June Trade Deficit Surges 7% To $43.8 Billion As Strong Dollar Slams Exports, Imports Rise

Dear Fed: behold another example of why your ludicrous rate hike ideas will crush the economy. Moments ago the BEA reported that the June international trade deficit spiked by 7.1% from $40.9 billion in May (revised) to $43.8 billion in June, as exports decreased and imports increased.  The previously published May deficit was $41.9 billion. The goods deficit increased $2.9 billion from May to $63.5 billion in June. The services surplus decreased less than $0.1 billion from May to $19.7 billion in June.

Frontrunning: August 5

  • Turkey says coalition to launch 'comprehensive battle' against Islamic State (Reuters)
  • Buffett’s Celebration Tempered by 50th Anniversary Stock Slump (BBG)
  • SEC Set to Approve CEO Pay-Gap Disclosure Rule (WSJ)
  • Greece wants full bailout, not bridge loan, ruling party says  (Reuters)
  • Stocks Rise Fueled by Strong European Corporate Earnings and Chinese Data (WSJ)
  • JPMorgan Reclaims Place Among U.S.'s Top 10 Biggest Stocks (BBG)
  • Eurozone retail sales fall sharply in June (MW)

Meet Solyndra 2.0: This US-Taxpayer-Subsidized Spanish "Renewables" Firm Is Collapsing

News that bonds and stocks of Abengoa SA - the Spanish renewable-energy company - plunged after a plan to shore up capital failed to reassure investors that it can stop burning cash is likely to have passed many by. But coming just one day after President Obama unleashed his Clean Power Plan, the fact that the company received over $230 million in US taxpayer subsidies in 2014 - despite two ongoing federal investigations - may raise an eyebrow or two as images of Solyndra's government-sponsored farce come to mind.

Layoffs Surge As Oil Price Outlook Remains Sober

Lately the leaders of some of the world’s biggest energy companies have been saying oil prices will remain depressed for some time – perhaps for the next five years – and now they’ve decided to cut their costs in the most painful way possible: massive job cuts.

The Population Bomb

Each person you add has to be fed from poorer land, drink water that has to be pumped from deeper wells or transported further or purified more, and have their materials sourced from other depleting resources. And so there is a disproportion there. When you figure that we are going to have to try and feed several billion more people and that the agricultural system itself, the food system supplies something like 30% of the greenhouse gases we put into the atmosphere. Those greenhouse gases are changing the climate rapidly, yet rapid climate change is the big enemy of agriculture -- you can see that we are heading down a road that leads to a bridge that’s out. And we are not paying any attention to trying to apply the brakes

Caught On Tape: Angry Mexican Crowd Attacks Uber Drivers

While everyone knows "you don't mess with Texas," it appears technologists worldwide just learned another truism, "you don't disrupt in Mexico." As the following disturbing clip shows, as WFLA reports, an angry crowd attacked Uber drivers and their vehicles with clubs and stones Tuesday outside the Mexico City airport.

Frontrunning: July 30

  • Second-quarter GDP seen rebounding on consumer spending, housing (Reuters)
  • China Stocks Fall as Traders Puzzle Over Sudden Late-Day Swings (BBG)
  • European 'alliance of national liberation fronts' emerges to avenge Greek defeat (Telegraph)
  • Thomas Cook warns on earnings over Greece (MW)
  • Largest Greek toy seller Jumbo warns of hit from capital controls (Kathimerini)
  • Chevron and Exxon Get the Plaudits, but Some Smaller Drillers Faring Well (WSJ)
  • Schäuble outlines plan to limit European Commission powers (FT)
  • UBS Deal Shows Clinton’s Complicated Ties (WSJ)

Top Factors Undermining Any Oil Price Recovery

Global oil prices have returned to a state of flux. This is hardly news to any who follow the oil markets closely and yet prices continue to drive international headlines. While oil prices are notoriously difficult to predict, it has failed to deter the speculators. There are those warning that the latest dip is a precursor for $40 a barrel, a catastrophe for oil markets in some minds. On the other end of the spectrum are the optimists betting on a return to $100 by 2020. The World Bank has taken a typically middle-of-the-road approach, with forecasts of $57 a barrel in 2015. That said, given Iran’s potential revitalization, Russia’s murky outlook, and U.S. shale supply limits uncertain, prices will be responsive to supply and demand trends; at least in the short to medium term.

Could Trump Win?

The American political class has failed the country, and should be fired. That is the clearest message from the summer surge of Bernie Sanders and the remarkable rise of Donald Trump. But can Trump win?

Deflation Is Winning - Beware!

Deflation is back on the front burner and it's going to destroy all of the careful central planning and related market manipulation of the past 6 years. Clear signs from the periphery indicate that a destructive deflationary pulse has been unleashed. After years of suppression, the forces of reality are threatening to overwhelm our managed global ""markets"'. And it's about damn time.

The Three Cs Keeping CFOs Up At Night: China, Commodities, Currencies

With two-thirds of companies still set to report, and as the second quarter earnings season continues and assures the first revenue and EPS recession since 2009, the question on everyone's lips is just how bad will/can it get. The answer will be determined largely by any/all of the following three "C"s which continue to define the ugly face of non-GAAP corporate earnings for the past 3 quarters which appear set to persist for the foreseeable future.