Real estate

Too Orange To Jail? US Government Drops Suit Against Countrywide's Mozilo

U.S. prosecutors have abandoned their case against Angelo Mozilo, the over-tanned character at the center of the risky subprime mortgages that fueled the financial crisis, after a two-year quest to bring a civil suit against him. As Bloomberg resports, The Justice Department has decided not to sue Mozilo, according to people familiar with the matter, ending a decade-long hunt for someone, anyone to jail over what happened.

The Fed Has Brought Back "Taxation Without Representation"

So, Wall Street banks control the boards of directors at the Fed banks. The Fed bank boards of directors appoint the committee members who set monetary policy. And the monetary policy they set ends up being a gigantic tax... a transfer of wealth from the middle class to a tiny group of beneficiaries, including the US government and the banks themselves. This is an unbelievable scam... and it truly is taxation without representation. Unelected bureaucrats impose their will over the entire financial system in a way that benefits a handful of people at the expense of everyone else.

The Last Castle To Fall: Can The Narratives Behind The S&P's Resilience Be Sustained

In the last few years, several markets/asset classes have shown signs of weakness, if not outright implosion: EU banks, EU stocks, Base Metals, Energy Commodities, Japan stocks, EM stocks and currencies. The bubble built in them by the excess liquidity provided by Central banks, as they were busy fighting structural deflationary trends (and crowding the private sector out of bonds), has deflated in most parts of the market, except two: US equity and G10 Real Estate.

Housing Bubble 1.0 Vs. Housing Bubble 2.0 - The Culprit Is "Shadow Demand"... Again!

"If 2006 was a known bubble with housing prices at “X”, affordability never better, easy availability of credit, unemployment in the 4%’s, total workforce at record highs, and growing wages, then what do you call today with house prices at X+ 5% to 20%, worse affordability and credit, higher unemployment, weakening total workforce, and shrinking wages? Whatever you call it, it’s a greater thing than “X”."

First Treasuries, Now China Is Also Liquidating US Stocks

As it turns out, China wasn't selling only Treasurys. According to a Bloomberg analysis when peeking deeper at the TIC data, while China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines as Beijing proceeds to liquidate a substantial portion of its US equities: China's stash of American stocks sank about $126 billion, or 38%, from the end of July through March, to just $201 billion. That far outpaces selling by investors globally in that period.

How Wall Street Is Strangling The Economy

The “financialization of America” - the trend by which finance and its way of thinking have come to reign supreme - is perpetuating Wall Street’s reign over Main Street, widening the gap between rich and poor, and threatening the future of the American Dream...

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.