Bond Bubble Conundrum

By Michael Pento – Re-Blogged From Silver Phoenix

Wall Street shills are in near perfect agreement that the bond market is not in a bubble. And, even if there are a few on the fringes who will admit that one does exist, they claim it will burst harmlessly because the Fed is merely gradually letting the air out from inside. However, the fact that we are in a bond bubble is beyond a doubt—and given the magnitude of the yield distortions that exist today, the effects of its unwinding will be epoch.

Due to the risks associated with inflation and solvency concerns, it should be a prima facie case that sovereign bond yields should never venture anywhere near zero percent—and in some cases, shockingly, below zero percent. Even if a nation were to have an annual budget surplus with no inflation, it should still provide investors with a real, after-tax return on government debt. But in the context of today’s inflation-seeking and debt-disabled governments, negative nominal interest rates are equivalent to investment heresy.

Continue reading

Advertisements

Home Sellers Are Slashing Prices At The Highest Rate In At Least Eight Years

By Michael Snyder – Re-Blogged From Freedom Outpost

The housing market indicated that a crisis was coming in 2008.  Is the same thing happening once again in 2018?  For several years, the housing market has been one of the bright spots for the U.S. economy.  Home prices, especially in the hottest markets on the east and west coasts, had been soaring.  But now that has completely changed, and home sellers are cutting prices at a pace that we have not seen since the last recession.  In case you are wondering, this is definitely a major red flag for the economy.  According to CNBC, home sellers are “slashing prices at the highest rate in at least eight years”…

Continue reading

Housing Market Collapse 2.0 Accelerates Rapidly!

By David Haggith – Re-Blogged From Great Recession Blog

Just ten days ago, your Lone Ranger here laid out why one should see the barely beginning downturn of the housing market in Seattle as the bellwether for a national housing market bust. Naturally a snowflake or two of criticism landed on my nose to say I knew nothing about real estate. That being the case, look at how the world has changed in so little time to catch up with me. An idea that you may have read here first is now mainstream news in every housing fact being reported across the nation and around the world.

Continue reading

Seattle Proves that Government is Always the Problem – Never the Solution

By The Common Constitutionalist – Re-Blogged From iPATRIOT

You may have heard of the new tax being levied on companies in the Seattle area. IBD reports that the Seattle Politburo (city council), “unanimously passed a ‘head tax’ of $275 per full-time worker on any company in the city that makes more than $20 million in gross revenues. The city says the $48 million in new taxes will go toward affordable housing and providing emergency services for the city’s swelling homeless population.”

Continue reading

London House Prices Are Falling

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

London house prices fall in September: first time in eight years

– High-end London property fell by 3.2% in year

– House sales down by over a very large one-third

– Global Real Estate Bubble Index – see table

– Brexit, rising inflation and political uncertainty causing many buyers to back away from market

– U.K. housing stock worth record £6.8 trillion, almost 1.5 times value of LSE and more than the value of all the gold in world

Continue reading

I Know What the Economy Did Last Summer Part 2: The Real Estate Rollover

By David Haggith – Re-Blogged From Great Recession Blog

In fact, I knew what the economy did last summer before summer even began. Since the beginning of the year, I have been writing that it appeared housing was reaching a new bubblicious peak and that the real estate market was getting ready to roll over. Just before the start of the summer, I confirmed that prediction by saying that it looked like that process had begun. I anticipate it will be a slow turnover at first, just as it was in 2007, which did not reach free fall until late in 2008. Likewise, I anticipate the present decline will not reach free fall until 2018.

While housing played out about as I expected this summer (see below), the more obvious collapse right now is developing in metropolitan commercial real estate, particularly in retail space due to the retail apocalypse. Even longtime commercial real-estate mogul Sam Zell warned last week that he would not consider investing any capital in retail real estate. In Zell’s words, the real estate landscape looks “like a falling knife.”

Continue reading

Did The Sub-Prime 2.0 Bubble Just Burst?

By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com

We’ve been tracking the sub-prime auto-loan industry closely.

Our view is that this industry represents the worst of the worst excesses of our current credit bubble, much as the subprime mortgage industry represented the worst of the worst in excess for the Housing Bubble.

For this reason, we refer to sub-prime auto-loans as Subprime 2.0.

Continue reading