So much information and so many ideas come to us daily in the financial press. We’re able to fill up our trash basket in just minutes. In The Financial Times, for example, Larry Summers recently offered a solution to America’s housing debt problem.
October 28th, 2011 | Bill Bonner | 0 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.
Saving Money in a Debt-Soaked Economy
Last time we looked, yesterday, stocks were falling. We’re on a plane bound for Madrid this morning. So, we’re just going to forget the markets and move directly to the economy that supports them. Both The International Herald Tribune and The Financial Times signal that the American economy has hit a bad patch.
October 27th, 2011 | Bill Bonner | 2 comments | Continued
The Natural Course of the US Empire
Nothing much from the markets yesterday. The Dow fell 72 points. Gold went down $5. Meanwhile, the Occupy Wall Street (OWS) movement goes on in America. And 70,000 Greeks “clash with police,” say the news headlines. People are upset. They know something is wrong.
October 21st, 2011 | Bill Bonner | 4 comments | Continued
Man vs. Universe
–Well this should be interesting. The Germans have brought the stock market rally to an abrupt halt with their Teutonic realism. “Dreams that everything will be resolved and dealt with by next Monday cannot be fulfilled,” says Angela Merkel’s spokesman Steffen Seibert. The S&P 500 fell by 1.94%. Crude oil was down 1.53% and copper down 2.02%.
–You wouldn’t want to play poker with the Germans, would you?
October 18th, 2011 | Dan Denning | 1 comment | Continued
Giving Up on Gold
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 | Continued
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
