Real estate

Big Names Are Bailing

The list of heavy hitters who are saying bad things about this world and its financial markets - while acting aggressively on their pessimism - is growing to alarming proportions.

This Is What The Unprecedented Chinese M&A Scramble In America Looks Like

The level of Chinese cross-border M&A chasing after US targets is literally off the charts. Notably, China has accounted for 26% of global cross-border activity YTD, which is nearly 3x higher than the next highest year. At $28 bn YTD, US-inbound deal flow from Chinese acquirers is already a record level and nearly 2x last year’s volumes

Royal Mint Allows British Pensioners To 'Save' In Gold Bullion

Given the current uncertainty surrounding Brexit, the news this week that Britain's Royal Mint will join the current providers of gold to self-invested pension savers in the UK (SIPPS) - allowing British pensioners a tax efficient way of investing in bullion - is fascinating. While gold bullion has been allowed in SIPPs since 2006, this is the first time the Royal Mint has allowed its higher-quality bullion to be bought for pensions.

How Fascism Comes To America

We're now well into what I call The Greater Depression. A lot of people believe we're in a recovery now; I think, from a long-term point of view, that is total nonsense. We're just in the eye of the hurricane and will soon be moving into the other side of the storm. But it will be far more severe than what we saw in 2008 and 2009 and will last quite a while – perhaps for many years, depending on how stupidly the government acts.

What Could Possibly Go Wrong?

So we have a booming market in opaque, complicated financial instruments involving layers of risk, leverage and maturity mismatches.  We have unsophisticated investors and issuers, both seeking to avoid government regulations and expecting to be bailed out in the worst case. We have cross-holdings and backdoor exposures to regular credit channels.  We have all of this taking place in an environment of booming credit expansion, a deteriorating economy and financial repression. We hate to repeat ourselves, but really... WHAT COULD POSSIBLY GO WRONG?

The Pension Bubble: How The Defaults Will Occur

Millions of Americans and Canadians who are counting on pension benefits to fund their retirements risk being severely disappointed. Ironically, as experts worry about stock, bond and real estate market excesses; the biggest challenge facing government bureaucrats and private fund administrators has nothing to do with paying back pensioners. They have known for some time that would not be possible. Their key challenge, will be to ensure that shortfalls occur on someone else’s watch.

Oversupply And Slumping Demand Is Crushing UK Developers

As we first pointed out back in April, due to slumping demand for luxury apartments in the UK, desperate developers had started to offer significant discounts in an indication that the UK real estate bubble had officially burst. Today, we receive further confirmation of that fact.

Yes, There Are Safe Havens (If You Want Them)

What we have now is pedal to the metal front-running of central banks and the nagging fear that when the fun ends there won’t be a bid anyway, so why bother being prudent.

Pity Poor China: There's No Easy Fix To The S-Curve

This decline is inevitable in fast-expanding economies that depended on export growth and investment booms. Everything that worked so well for 30 years is only making the economy more precarious.

Bank Of Canada Warns Of "Higher Possilbity" Of Housing Downturn, Sees Vancouver, Toronto Prices Unsustainable

Just a few days after the OECD warned of the risk of a "disorderly housing market correction" in Canada, moments ago the Bank of Canada also chimed in and warned that the "potential" for home price downturn in some areas has increased, and that Vancouver, Toronto home price gains likely unsustainable.  Which is curious because the vast majority of price gains in Toronto and Vancouver have been driven by the outflow of the trillion in Chinese inert deposits, which promptly find their way into Canadian real estate (and lately bitcoin). In other words, is the BOC assuming that China will crash soon?