Nothing much to talk about in the markets yesterday. We had been expecting a bigger sell-off in the price of gold. The metal went down, about $300 if we recall correctly, but not as much as we expected. In the last major bull market in gold, in the ’70s, the price declined by about 50% before going on to set a new record.
October 17th, 2011 | Bill Bonner | 3 comments | ContinuedReal Estate
Commentary on real estate and the worldwide bubble by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
No Return on Government Investments
The news was good yesterday. Investors heard that Europe had its problems under control. Then, Obama told them that he was going to give the economy a jolt.Investors breathed a little easier. The feds were on the case. The Dow rose 183 points. Meanwhile, bonds went down, with the yield on the 10-year note rising to almost 2%.
October 10th, 2011 | Bill Bonner | 4 comments | Continued
Lower Lows in the Cat-Like Real Estate Market
Cash is still king. Cash is king because non-cash is a commoner and a loser…it’s losing its value. An article in yesterday’s Financial Times, for example, tells that: “US inflation expectations at lowest point in year.” Cash on the barrel…cash in hand…cash and carry. You got cash?
September 30th, 2011 | Bill Bonner | 0 comments | Continued
No More Bringing Forward
–If you want to know what we think about Europe’s dire situation, please take a look at the note we sent out on the weekend. It’s a short explanation of what a “Permanent Portfolio” is and how it might be able to help you protect your wealth in the coming Euro wipeout.
–Before we get to Europe, remember all that nonsense a few years back about “bringing forward demand” for housing with the First Home Buyer’s Grant?
September 26th, 2011 | Dan Denning | 15 comments | Continued
Operation Dumber
It’s a plan so dumb you have to have to Ph.D. to believe it will do any good. Quantitative easing was dumb. This is dumber. They are calling it Operation Twist. The Federal Reserve will buy $400 billion of long-dated Treasuries, financed by selling bonds with three years to go or less.
September 26th, 2011 | Chris Mayer | 1 comment | Continued
When Economic Growth is a Thing of the Past
We think we’re onto a big story. A BIG story. This correction is aiming high…it’s going to take down the entire capital structure of the world’s developed economies. Stocks…bonds…real estate — watch out…they’re all going down. The dollar…the pound…the euro — look out below!
September 21st, 2011 | Bill Bonner | 2 comments | Continued
Bernanke de la Mancha and the Synchronisation of Business Cycles
Will you remember where you were when the German Constitutional Court ruled on Europe’s bailouts? Daily Reckoning editor Greg Canavan will. With only minutes to go before the ruling he sent this message to the office: Im locked out of my house. So i might miss all the action.
September 10th, 2011 | Nickolai Hubble | 2 comments | Continued
The Dark Side of the Boom
We’ve never seen a boom that has caused so much angst. Aren’t you meant to just sit back and enjoy it? It’s like people are scared that it will go away before we have reaped the benefits.
Yep, the mining boom, like the US Constitution, is ours only if we can keep it.At least that’s the verdict of Mike Smith, CEO of ANZ. The bank commissioned a report to look into the challenges of managing the benefits of the mining boom that will, apparently, last for decades to come.
September 9th, 2011 | Greg Canavan | 4 comments | Continued
Real Estate and its Trend-line
That leaves real estate. That’s why people want to put money in real estate. It’s priced at fair value – statistically. So, you can buy it without worrying too much about it going down. And it’s not like gold. You can get income from it. Everybody is looking for rental properties with a decent stream of income.
September 7th, 2011 | Bill Bonner | 1 comment | Continued
The Inevitability of Reality
The housing gloom virus is spreading to mainstream newspapers. And property spruikers are revising their ‘property always goes up’ rallying cry. Now the market is ‘steadying’, faces ‘stabilisation’, feels ‘softer’ and prices are ‘flat’.
September 3rd, 2011 | Nickolai Hubble | 6 comments | Continued
Distortions and Imbalances
Yesterday’s Daily Reckoning left off with the claim that BHP’s strategy of growing earnings through its energy assets may not be enough. Enough what? Enough to make up for the loss of earnings from falling iron ore and coal prices when China’s property bubble deflates.
August 30th, 2011 | Dan Denning | 5 comments | Continued
The Other Edge of the Inflation Sword
There are only a few ways a company can grow the actual – or intrinsic – value of its business. It can reinvest earnings to increase assets and shareholder equity, while maintaining profitability. Or it can increase profitability by becoming more efficient.
August 26th, 2011 | Greg Canavan | 0 comments | Continued
The Monkey King’s Journey to the West
We’re going to take a break from the European Union/US Dollar death watch today to focus on something closer to home: China. And we’ll begin with a simple observation: Central planners are definitely no fun. China’s National Development and Reform Commission (NDRC)-the bureaucracy responsible for planning China’s economy and implementing its five-year plans-has recently forbidden the construction of big new theme parks in China.
August 24th, 2011 | Dan Denning | 3 comments | Continued
Bottoms up… Or Tops down?
Both inflation and joblessness increased in the US – something that is impossible in textbook economics. In the world of models, graphs, twisted logic and econometrics, there is a trade-off between employment and inflation.
August 20th, 2011 | Nickolai Hubble | 7 comments | Continued
For Every Boom There is a Bust
There are two ways you can look at a financial crisis. You can despair at the wealth destruction, uncertainty, fear and changes it brings about; or rejoice in the fact it will upset the existing power structure and force accountability on those responsible.
August 18th, 2011 | Greg Canavan | 1 comment | Continued
