Real estate

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?

Next Banking Scandal Explodes in Spain

The Spanish investment group Blackbird claims that Banco Popular bank is offering customers dirt-cheap loans or refinancing deals, at an interest rate of just 2.5%, as long as they use some of the funds to purchase the bank’s new shares. 

These Are The Bonds The ECB Is Now Buying

Today is a historic day for the corporate bond market: with the launch of the ECB's CSPP, Mario Draghi is now directly buying European investment grade non-financial bonds. This means that no longer will European corporate bonds trade based on their fundamentals, but purely on expectations of frontrunning future ECB purchases, such as the following...

Bernie Sanders' Last Stand: A Preview Of Tonight's Primaries

This evening holds primaries in six states for the Democrats (California, Montana, New Jersey, North Dakota, South Dakota, and New Mexico), and five states for the Republicans (California, Montana, New Jersey, South Dakota, and New Mexico). Of course, all eyes are on Bernie in California, where despite the media manipulation overnight, polls show it too close to call with Hillary for now.

It's Official: Hillary Clinton Wins The Democratic Presidential Nomination

An Associated Press count of pledged delegates won in primaries and caucuses and a survey of party insiders known as superdelegates shows Clinton with the overall support of the required 2,383 delegates. Now the presumptive nominee, she will formally accept her party's nomination in July at the Democratic National Convention in Philadelphia.

Hispanic Congressman Tears Into Trump: "You're A Racist, Take Your Border Wall And Shove It Up Your Ass"

"I will not presume to speak on behalf of every American of Mexican descent, for every undocumented worker born in Mexico who is contributing to our country every day or, for that matter, every decent citizen in Mexico. But, I am sure that many of these individuals would agree with me when I say: ‘Mr. Trump, you’re a racist and you can take your border wall and shove it up your ass.’"