Real estate

Bear Stearns 2.0? UK's Largest Property Fund Halts Redemptions, Fears "Vicious Circle"

In the summer of 2007, two inconsequential Bear Stearns property-related funds were gated and then liquidated, exposing the reality of the US housing bubble and catalyzing the collapse of the financial system. Fast forward eight years later when the UK's Standard Life has been forced to stop retail investors selling out of one of the UK’s largest property funds for at least 28 days after rapid cash outflows, due to fears over falling real estate values: "the risk is this creates a vicious circle, and prompts more investors to dump property."

Kyle Bass Shares The "Stunning" Thing A Central Banker Once Told Him

"I had a fascinating out of body experience meeting with one of the world's top central bankers in a private meeting about three years ago. it was one of those moments where I...it was one of those epiphanies almost, where it's something you and I knew, but hearing him say it, call it one of the four top central bankers in the world, it was a jarring experience for me..." - Kyle Bass

"Our Monetary Humpty-Dumpty Is Heading For A Great Fall" - Teetering On The Eccles Building Wall

So for the third time this century, a business cycle contraction will come without warning from the Fed. Once again the Kool-Aid drinking perma-bulls, day traders and robo-machines will be bloodied as they stampede for the exit ramps. But it is the main street homegamers, who have been lured back into the casino for the third time this century, that will suffer devastating losses yet another time. Indeed, if there were even a modicum of honesty left in the Eccles Building it would be warning about the weakening trends in the US economy, not cheerleading about fleeting and superficial signs of improvement.

The TARGET2 Chart Shows A Breakdown Of The Central Bank Narrative

Despite the alphabet soup of bail-out facilities provided by the ECB, people still do not trust the system. In our view, the TARGET2 chart is the best way to assess trust in central banks and as it clearly shows, the narrative is failing. It seems impossible for Draghi to reestablish monetary confidence.

Frontrunning: June 30

  • Brexiters at war as Johnson pulls bid to be PM (FT)
  • Soros Says Brexit Has ‘Unleashed’ a Financial-Markets Crisis (BBG)
  • World stocks poised for worst month since January (Reuters)
  • China to tolerate weaker yuan, wary of trade partners' reaction (Reuters)
  • China central bank criticizes media for publishing 'inaccurate information' on yuan rate (Reuters)

"You Want To Own Gold" Marc Faber Warns "Brexit Is The Excuse For QE4"

“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” warned a vociferous Marc Faber said in a Bloomberg TV interview today from Hong Kong. "In that situation, you want to own some gold..."

Is This Where All Those Companies "Leaving England" Will Go

As companies evaluate whether to depart the UK for France, they may want to consider scenes such as the following showing relentless local protests, now stretching for months, against the much maligned anti-labor reform.

Is A New Banking Crisis Imminent? Recent Rise In Delinquency Rates Is Shocking

In 2006 it was exactly twelve months after delinquency rates bottomed that the recession began. If the same period applies, we are due for a recession. In the first quarter of the Great Recession in 2008, delinquency rates were only 1.45%. We are already above that level. The fact that increasing loan delinquency coincides with mountains of debt maturing in 2016 and 2017 is a topic for next time.

The Crackdown Begins: Chinese Bank Sues To Seize Vancouver Real Estate Assets

China CITIC Bank Corp Ltd has launched a Canadian lawsuit to try to seize the assets of a Chinese citizen the bank claims took out a multimillion-dollar loan in China then fled to Canada. The defendant, Shibiao Yan, owns three multimillion-dollar properties in a Vancouver suburb and lives in a $3-million Vancouver home owned by his wife, according to court documents.