Now you have to assume a lot of income growth from here for affordability to remain the same with house prices at those levels. Or you’d have to assume much lower interest rates. That would be a stupid assumption, though, given that interest rates are headed up at the moment…
January 25th, 2010 | Dan Denning | 292 comments | ContinuedAll Posts Tagged With: "housing bubble"
The Fight Between Greed and Fear, Boom and Bust, Expansion and Contraction
This is a fight that goes on all the time. But it is usually kind of a ‘cold war.’ Years go by without much activity. Stocks meander. A few companies go bust. A few boom.
January 12th, 2010 | Bill Bonner | 1 comment | Continued
Gold in the Next Stage of a Bull Market
Gold is on track for its best monthly performance in a decade. The money metal reached $1,180 earlier this week, another all-time high.
November 30th, 2009 | Addison Wiggin | 1 comment | Continued
The Long Emergency
The reason behind this mass delusion is not hard to find: it’s based on wishing, especially the wish to retain all the comforts, conveniences, luxuries, and leisure that had become normal in American life. These are now ebbing away in big gobs for most of the population…
August 5th, 2009 | James Howard Kunstler | 2 comments | Continued
American Banking System is a Branch of the Federal Government
You probably know the old Chinese curse, “May you live in interesting times.” I heard it first 30 years ago from an economics professor – my mentor, in fact. He was lecturing about the problems Austrian economic models predict when banking is controlled by government.
July 8th, 2009 | Patrick Cox | 1 comment | Continued
The Failed Intervention: A Morality Play in Three Parts
LS (Unwitting Speculator #1) is closing on a house the following day. Mere hours stand between her and the single biggest financial transaction of her young life. Can those stalwart pessimists (Renters #1, #2 and #3) lash her to the mast in time to save her from the Siren’s tantalizing tune? We shall see, dear reader… below…
April 20th, 2009 | Addison Wiggin | 0 comments | Continued
Lower Bond Yields by Any Means Necessary
The benefits of merely mentioning the strategy started showing up right away. Yields were down and prices were up as traders loaded into U.S. bonds. All aboard the Fed’s Bond Yield Express! Destination Zero! You can see below that the current yield curve is more of an on-ramp. And the only reason it looks moderately curvy is the scale on the y-axis. Read on…
December 17th, 2008 | Dan Denning | 0 comments | Continued
The housing bubble caused big increases in nominal GDP
A correction is always equal and opposite to the claptrap that preceded it. The housing hallucination was a whopper…
August 6th, 2008 | Bill Bonner | 4 comments | Continued
Wiping the World’s Greatest Credit Bubble From History
One action alone won’t solve it – not even if that one action does come from Warren Buffett. Or the White House. Or the Federal Reserve. But altogether? And what if we throw in an extra $3.3 trillion of foreign government finance, pouring out of the oil- and export-rich sovereign wealth funds of Arabia and Asia? Might that be enough to wipe the world’s greatest-ever credit bubble from history?
February 14th, 2008 | Adrian Ash | 3 comments | Continued