Real estate

Meet America's New 'Renter Class': Baby Boomers

"Lowering living expenses, looking for a different lifestyle, less house-related work and overall less responsibility can be achieved by downsizing, so a lot of retirees opt to rent."

Frontrunning: October 24

  • Corker Tells Trump to Stay Out of the Tax Debate (BBG)
  • Food fight? After spats on Twitter, Trump’s having lunch with Senate Republicans (McClatchy)
  • As ‘New Era’ Dawns, Xi’s Party Stays Out of the Sun (WSJ)
  • China enshrines 'Xi Jinping Thought', key Xi ally to step down (Reuters)
  • U.S. Set to Resume Admitting Refugees but With New Rules (WSJ)

The 4 Possible Channels For A Chinese Financial Crisis

An analysis by Victor Shih of Merics lays out 4 plausible scenarios of financial crisis in China: household defaults, shadow banking panic, capital flight, and a sudden stop of international lending. It finds that China’s greatest vulnerability resides in its dwindling foreign exchange reserve and escalating external debt, which can trigger a confluence of maxi-devaluation, external defaults, and sharp asset price depreciation.

World Stocks At All Time Highs After Nikkei's Record Winning Streak; Euro Slides With Spain On Edge

In an otherwise quiet session, Sunday's convincing election victory for Japanese Prime Minister Shinzo Abe’s ruling coalition, which gave it another constitution-changing supermajority, pushed the Nikkei to the highest level since 1996, after a record 15 consecutive days of gains - the longest winning streak on record - and sent world stocks to new all-time highs on Monday.

The Global "Bubble Arms Race" Has Ushered In The Age Of Government Strongmen

"It’s all quite unsettling. Global finance has run completely amok. This has been unfolding for so long now that few are concerned... It has reached the point where these Bubbles have become part and parcel to global power, with countries not willing to risk being left behind. It’s as if it has become An Arms Race in Bubbles."

One River CIO "We’re Willing Participants In Our Own Demise"

China has banks. They lend money. But pierce the patina and you find a vast subsidy machine, with no cold-blooded allocation of capital. There are no defaults to speak of; just bailouts, no reckonings. "The appearance of a modern financial system allows western financiers to pretend one exists. We are willing dupes in this charade."

Crypto-Currency Calm Before The Storm

"This is the calm before the storm: the governments are studying it, and studying the masses to find the means to take control of it..."

Global Markets Shaken By Sudden Equity Sell-Off: Hong Kong Crashes, VIX Surges

Global markets have been shaken by a sudden wave of overnight equity selling as worst case scenario for Spain finally materialized, while a slide in Apple stock has spiked the VIX, which coupled with a plunge in the Hang Seng and several other notable macro events may have finally woken up from their comatose state.