Real estate

Bill Gross Explains Why He Is Now Shorting Credit

"For over 40 years, asset returns and alpha generation from penthouse investment managers have been materially aided by declines in interest rates, trade globalization, and an enormous expansion of credit – that is debt. Those trends are coming to an end.... A repeat performance is not only unlikely, it  is impossible unless you are a friend of Elon Musk and you’ve got the gumption to blast off  for Mars. Planet Earth does not offer such opportunities."

Frontrunning: June 2

  • Global stocks struggle as ECB and OPEC meetings loom (Reuters)
  • Iran Resists Saudi Gesture for Unity as OPEC Fractures Reappear (BBG)
  • Clinton to blast Trump on North Korea, NATO in foreign policy speech (Reuters)
  • Hillary Clinton Shifts to California as Race Tightens There (WSJ)
  • Puerto Rico’s U.S. Rescue Won’t Come Soon Enough to Halt Default (BBG)

American Serfdom: Companies Offer Loans For Living Expenses To Destitute Employees

Share prices in America aren’t at all time highs because the country is doing well. Share prices are at all time highs because executives and shareholders are extracting a historically dangerous piece of the overall economic pie. If this trend continues, someone like Donald Trump will be the least of our concerns. It appears companies are coming to the realization that their employees are so broke they’re resorting to payday lenders just to survive. Rather than boost wages, many are resorting to offering loans.

OECD Warns Of "Disorderly Housing Market Correction" In Canada

The OECD is ringing fresh alarm bells over the frothy nature of the Toronto and Vancouver housing markets and high levels of consumer debt. “In relation to household incomes, both house prices and household debt are high." But the loudest warning was the OECD's assessment of a “disorderly housing market correction,” notably in Toronto and Vancouver, as the biggest threat to Canada’s economy.“

July Rate Hike Odds Rise As Beige Book Signals "Tight Job Market", "Modest Growth"

The Beige Book offered its ubiquitous modest, moderate, mummified growth outlook but added a few points that provide The Fed more ammo for hiking rates: Employment grew modestly since the last report, but tight labor markets were widely noted; wages grew modestly, and price pressure grew slightly in most Districts. The reaction was a further rise in July rate-hike odds (and easing of June and September).

Neocon Kristol Announces That "There Will Be An Independent Candidate" To Sabotage Donald Trump

It has long been our contention that the elite are more than willing to do whatever they have to do to keep Donald Trump out of the White House.  There are many forms that this could take, and one potential option just became a little bit clearer.  On Sunday, the founder and editor of the Weekly Standard, Bill Kristol, announced on Twitter that there “will be an independent candidate–an impressive one, with a strong team and a real chance.”

Here's Proof That The US Dollar Is Insanely Overvalued

Anyone who owns US dollars has an opportunity right now to trade overvalued pieces of paper for undervalued real assets... as long as you look abroad. From productive farmland in central Chile, deeply undervalued, profitable businesses in Australia, and real estate in Colombia; these are all REAL assets, and as long as central bankers continue to print paper money without restraint or regard for the consequences, it’s critical to own something real. Gold and silver are also real assets, and both are historically inexpensive relative to the US dollar.

Peak Insanity: This "Trophy Apartment" In Manhattan Is Going For A Cool $250 Million

In April we pointed out that due to an already abundant supply of condos on the market, luxury real estate developer Extell Development Co couldn't sell luxury condo's at its One57 tower, in the heart of New York's premier ultra luxury destination... and now, documents filed in April with the state attorney general's office reveals a "trophy apartment" for sale in the complex, with a price tag of a cool $250 million...obliteraing the previous $88 million high - "That $88 million sale triggered the sense that there was this yet-to-be-harvested, nine-digit New York housing market. We started to see a frenzy of $100 million listings – what I call aspirational pricing."

Things Are Thriving In The "Modern Hooker Economy"

Last year we exposed the growing trend among thousands of British students who were funding their college experience through "Sugar Daddy" websites, where "arrangements" were made to allow students to pay off student loans and other living expenses. It turns out that US students are now following this crafty debt repayment plan in the new "modern hooker economy."

Trickle-Down Crash? Trophy Assets Suddenly Tanking

One of the defining traits of the past few years’ “recovery” has been the torrent of money flowing from big banks to favored clients, and from there into trophy properties like high-end real estate, superyachts, and fine art. This might be the first financial bubble to completely bypass the 99%. And now it’s ending...

Another Real Estate Crash Looms: Sam Zell Dumps Holdings, Warns "The Fed's Deferred Reality For Too Long"

Everything seems to be booming again – easy money, easy lending, rising prices, and a bread and circused populous. But appearances can be deceiving and highly acclaimed billionaire investor Sam Zell isn’t buying the hype... noting the nearly 50 million Americans on food stamps, the six million millennials living in their parents’ basements, or the massive spike in business debt delinquencies.

The Global Bear Market In Freedom

Americans will be celebrating Memorial Day this weekend, to honor those who fought and died for the values they have traditionally cherished the most as a nation: life, liberty and the pursuit of happiness. The world has changed dramatically in recent decades. The geopolitical situation is much more complex, with rising powers challenging America's supremacy. The intractable war on terror seems interminable. Old foes appear to spring back to life even more powerful than before. And things at home look dicey in terms of politics and economics. As we reflect upon the ultimate sacrifice that others have made‎, it is an opportune moment to consider a very important question: is the US winning the fight for freedom?