Real estate

Frontrunning: June 16

  • Russia may have killed ISIS leader Baghdadi (Reuters)
  • About 4,000 more US troops to go to Afghanistan (AP)
  • Insurers Look to Ramp Up Premiums in Health Law Exchanges (WSJ)
  • U.N. envoy urges North Korea to explain why freed U.S. man is in coma (Reuters)
  • Wal-Mart Offers a Refuge for Sellers Tired of Amazon  (BBG)

Valuations: It Is Different This Time

"Stock investors have been waiting on the Godot of growth for most of this century and one can’t help but wonder at what point they’ll get up and leave the theater..."

Peak Economic Delusion Signals Coming Crisis

"The question is not “when” we will enter collapse; we are already in the midst of an economic collapse. The real question is, when will the uneducated and the biased finally notice? I suspect the only thing that will shock them out of their stupor will be a swift stock market drop, since this is the only factor they seem to pay attention to. This will happen soon enough."

A New Chinese Threat Emerges: Net Bond Issuance Crashes Most On Record

China just suffered a record collapse in net corporate bond financing, the latest and far more "tangible" threat to China's debt-fuelled economy. In May a quarter trillion yuan in corporate bonds matured, or were repaid, or defaulted, resulting in the biggest corporate debt drain in history.

The Disturbing Trend That Will End In A Full-Fledged Pension Crisis

"Right now, millions of Americans are hard at work believing their pensions will be their saving grace for retirement. But the predicament pension funds across the United States find themselves in does not just spell trouble for the distant future... The crisis is happening as we speak."

Is This The Scariest Chart For Central Banks?

"Monetary policy has left the allocation into risky assets stretched at very high prices in a modest recovery with major structural issues still unresolved. The efficacy of existing policy tools in the future seems greatly diminished."

Core Producer Prices Rise At Fastest Pace In 3 Years, Above Fed Mandate

For the first time in 3 years, Core Producer Prices have risen at a faster pace than The Fed's mandated 2% target. May PPI (ex food and energy) rose 2.1% year-over-year, the highest since May 2014, as goods prices tumbled (gasoline, motor vehicles, fresh fruit) while services costs (retailer and wholesaler prices, and residential lending) jumped.