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And This Is How Central-Planning Broke Housing
First, they broke the capital markets. Then, the money-printing central-planners broke the housing market too. Here, in under 200 words, is a real-life case study of just how they did that.
The surge in home prices across Sydney has come even as the supply of properties for sale expanded, according to RP Data Pty. About 70 percent of homes that go to auction each week are sold, the researcher said in a Nov. 3 statement.
The boom, coming amid weakness in other parts of Australia’s economy, poses a quandary for the central bank. The nation’s unemployment rate was at 6.2 percent in October, the highest level since October 2002, and gross domestic product rose 0.5 percent in the three months through June, compared with a 1.1 percent gain the previous quarter, according to the statistics bureau.
“The housing recovery has come through even more quickly than we forecast, pulling some growth into 2014 at the expense of 2015,” Morgan Stanley economists led by Daniel Blake said in a Nov. 5 report, adding that the economy needs more stimulus from monetary or fiscal policy to avoid a recession. “The risk we see is that conditions almost certainly need to deteriorate before this will occur, given the corners that both monetary and fiscal policy makers find themselves in.”
"Cornered" is right, because there is no longer a way out.
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Bullish, right?
Bullish for bailouts?
World War Three is bullish.
https://www.youtube.com/watch?v=Q3WSku_lCXU
Simple. Package the mortgages. Sell them to pension funds. Bet on a downturn via derivatives. Get bailed out. Buy a yacht.
More than that LTER
It was a 'SCHEME' designed to be the BIGGEST LAND GRAB OF ALL TIME...
As it was unfolding, I was truly amazed & started to believe that they would actually 'pull it off'... [Basically becoming LANDLORDS, whereby, entities such as 'BLACKSTONE' actually succeeded to some degrees]...
But WEIRDLY, it all got somewhat derailed... I don't know how or why... But the 'dark' answer to that is actually why I believe that the 'unwashed masses' will actually BEAT the oligarchs before all is said & done...
Sure ... the elitist sociopaths cannot hire enough psychopaths to protect them from the angry mobs.
They are afraid... and they should be. They will be rooted out and torn apart. No one will hide them and their regular haunts are well known. They are a disease and nobody likes them, even their faux-friends.
My dream is this comes to pass.
Think the increasing people aware are past the "beating" stage. being a banker is not too cool.
Oh, just a note from Brisbane where the G20 is meetin--Da ta, all $$$ in your savings acct. are now capital assets are part of the banks capital and can be seized (apparently) by said bank and you are near the bottom of the totum pole.
Why a bank accout; why not hold cash instead?? Milestones
Hey Rand, what are your religious beliefs?
Pretty simple, really. When addressing such questions, I see myself as an ant contemplating the meaning of a foot. Raised Catholic, don't practice. I think organized religion is responsible for most of the problems facing us today. But I absolutely respect the right of people to disagree with me and think they know. Maybe they do. I'm wrong a lot but I don't want to kill anyone for my relligion, so I've got that going for me. I do get irritated with people who view Christianity as a Hedge. "if you're right, you go to heaven. If you're wrong, you're dead." That's fucked up.
Right on brother.
What timing. Just had this same conversation with my son tonight. Pretty funny stuff when you break it down to the notion that most groups of people think other groups of people are just fucked. Also reminds me of a documentary about two religions (muslim factions I believe) who differed only in the death of a martyr. Both believed the person was holy and great. One believed the persons life was to be celebrated. One believed that that death was to be mourned. Because they respect this person different on the same day they have been killing each other for centuries. Fucking nonesense. And watching how they indoctrinate the young (who are poor and have little outside influence to foster critical thinking) it is clear how organized religion can so easily guide behavior.
If they're right about that Christian God, he will see through them - zero hedge.
Jesus Confronts An American Believer
It was the future, and Jesus approached a believer in Heaven, and said,
I want to introduce you to my friend who was an atheist. He did not believe in me, but after he died, I gave him the choice to enter heaven, or to remain dead, and he chose to enter heaven. Everyone would know everything he had done, and he chose to be here.
You are angry. You thought only believers could enter Heaven, but belief only grants you the option. I do not grant this option to every atheist; whereas, I grant it to every believer.
You said you believed, so after you died, I fulfilled my promise. I gave you the choice to enter Heaven, or to remain dead, and you chose to be here.
You are still angry, but I gave him the option because he lived the life meant for every man. Even without my teachings, every man knows what is right and what is wrong, but unlike most men, he did not believe those who corrupted my teachings. He made personal sacrifices to do what is right. He believed that when he died, it was the end, and yet, when it mattered most, he sacrificed his life.
You know it was my right to offer him this choice, and you are satisfied now, but listen carefully. He saved many with his example – just as I saved many with my example; whereas, you saved no one with your example. Maybe he can save you too. If you call, he will come.
You are angry again, but you did nothing. You believed, and so you knew that if you did nothing, you would have eternal life. So you did nothing. You thought you could deceive me.
You told others to believe, but that was nothing. You thought of me as a narcissist who just wanted people to believe in me, so you did nothing. You thought I wanted to be glorified. You did not know me.
You wasted much energy supporting the Zionists, who did not believe in me. You believed the Zionists when they told you I could not return until they controlled Palestine. You thought of me as a racist real estate agent. You did not know me.
You allied with the Zionists because you believed them when they told you that whatever they did was my will, and yet as governments ratcheted up tyranny, when good people asked for your alliance, you said “Salvation is all that matters.” When others asked you for guidance, you taught them, “Salvation is all that matters.” You said that I would sort it out. So, you did nothing, and thus you helped to bring the eventual end for everyone who carried the soul of humanity.
Long after your death, those men who still carried the soul of animals had finally purged the earth of the soul of humanity. Those genes are gone. That was the end of humanity.
Like the majority of believers, you voted for the enemies of humanity when you had other choices. Like them, you chose to conform rather than follow my teachings. Your wife and children loved you, and so they believed you when you taught them to conform as well.
Like yourself, many in every generation irrationally believed the end would come in their lifetime, which was a myth crafted to persuade them to voluntarily stand down in the face of tyranny. Like them, you were wrong.
Like yourself, many believed the rapture myth of their day, which was crafted to persuade them to voluntarily stand down in the face of tyranny. Like them, you were wrong.
Like yourself, many believed the salvation myth of their day, which was crafted to persuade them to voluntarily stand down in the face of tyranny. Like them, you were wrong.
Like so many other believers, you earned your gold with your honest labor, but then, like many of them, you hid in your home with your gold to wait for the end. Like them, you helped to bring the eventual end of humanity.
You said you believed, but you did not live according to my teachings. You did not believe me. You believed those who corrupted my teachings. I let them corrupt my teachings because, like every man, you already know what is right and what is wrong.
Everyone in heaven knows what you did. Everyone in heaven pities you for the sickness in your soul, and those who were atheists pity you most.
Your pain is unbearable, but at any time you can choose to be dead or to become sincerely repentant, and yet, you lack the strength to choose either. Even now, you will continue to follow others who tell you what you want to hear.
You can stay here with everyone as I promised. Hell is not a place. Hell is a choice, and Hell continues to be your choice.
the editor is broken so I had to put the link here.
I read it. Good stuff and great message, even if we disagree on some things.
What a bunch of shit, you moron. Some guy that has to decide whether u get into the fags club in the clouds. I love it. Why don't you go work on your nascent pedophilia?
I do get irritated with people who view Christianity as a Hedge. "if you're right, you go to heaven. If you're wrong, you're dead."
Nice. And such people won't realize it until it's too late and they find out that hedges don't work in that market...
It is pretty simple, really. There are three kinds of humans- the sheep, the sheep dogs and the wolves. The sheep dog protects the sheep from wolves using power like government and religion. The sheep are preyed upon by wolves in guises of sheep dogs using power like government and religion. In human history wolves have destroyed most of humanity. Wolves using government have destroyed physically most of humanity and wolves using religion have destroyed mentally the remaining. In this age the wolves are winning…
i'd sure like a yacht
Yellen has your answer. Go to Princeton, Yale or Harvard on your parents' dime, and build some wealth by skimming off the top. Easy peasy.
I hear that name universities these days expect applicants to document many hours of community-oriented volunteerism; it's "required" - that way they know they're admitting top-flight humanitarians, as opposed to manipulative cynics.
And the top Ivies give a strong preference to youngsters who were raised by wolves.
Yep.
Central Banking is evil, period.
Sure there is a way out. Spit in the face of the people and do whatever the hell they want for their own benefit. Then, use the propaganda box to send out the message that it was all done for the benefit of the public. Those who ask questions are crazy conspiracy theorists or simply too stupid to realize that it was all for their own good. /sarc
And this is how _________ broke housing.
It was all the central planners fault and the banksters got away with making huge profits and bail-outs and bonuses but they had nothing to do with it. They just got lucky, I guess.
When it comes to real estate low interest rates at some point becomes a double edge sword, that effects both the value by making it easier to purchase thus driving up prices, and at the same time allowing more building to take place and increasing the supply. Often we reach or exceed demand, this eventually has a dampening effect on rents and people stop buying it as an "investment".
Prices must rise or the income derived from a property must be large enough to offset the natural depreciation from the wear and tear from age or the main driver for owning real estate vanishes. Oversupply is the bane of real estate and crushes the value of this hard and expensive to maintain commodity.
http://brucewilds.blogspot.com/2013/12/super-low-interest-rates-disservive-to.html
"Oversupply is the bane of real estate and crushes the value of this hard and expensive to maintain commodity."
assuming that Blackrock and the rest of the hedge funds that rushed in to buy repos and build wood frame and stucco termite buffets will spend dwindling capital on upkeep which we all know the answer to that question, so yea.
Where has Bruce Krasting disappeared to?
He had nothing left to say?
I wonder what would actually happen if the Fed's discount window were opened to Main Street? Say that the inflationary effect was tempered by the closure of the Fed's window to Wall Street and perhaps a per capita limit on borrowing? Trillions of dollars in the bank's dollar carry accounts or trillions of dollars available at close to 0% to main street to pay down debts and acquire capital? Perhaps, with the Fed's window closed to them, the banks might actively court depositors again by offering them a real return on their savings account? Is throwing money from a helicopter such a bad idea?
You can thank the chinese buyers hiding their ill gotten gains for the sydney price explosion. They should just flat-out not allow foreigners to own residential property, be in a new build or otherwise.
Central planning creates bubbles... nothing complicated about that.
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...