Here’s our old friend Frank Giustra, writing in the Vancouver Sun about the savings destruction of US and Europe
December 6th, 2011 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "housing"
Zombified Government Spending
The growth of the last 30 years came from the government spending money we didn’t have. In Europe, the government spent it. In America, households spent it. In Britain, both spent it.
December 6th, 2011 | Bill Bonner | 0 comments | Continued
Attachment “G” is Too Dangerous to Be Seen
There may be a simple economic explanation for the best September on Wall Street in 71 years. No double dip recession…improving labour market numbers…rebounding house prices. Except none of that is true. So what is left? Well, as near as we can tell, everyone seems to be front running central banks. Is the Fed buying stocks? Not yet.
October 1st, 2010 | Dan Denning | 3 comments | Continued
When Gold Goes Up
“Gold is saying something,” writes Bloomberg columnist Mark Gilbert. What’s it saying? Nobody knows. Well, at least nobody who works at The Daily Reckoning. We listen. We hear. But we still don’t know what the hell gold is talking about. The yellow metal is speaking in riddles.
September 27th, 2010 | Bill Bonner | 25 comments | Continued
Why Central Bankers should keep you up at night
Another day, another elegantly crafted article assuring you that the central planners have it all under control. This time it’s Ian Verrender at Business Day explaining how central banks can now save our economy from another 2008 style crash. (The one they caused.) He concludes it won’t work…
September 24th, 2010 | Nickolai Hubble | 0 comments | Continued
US Real Estate Market Sits in the Waiting Room
…Maybe. We will leave the question dangling…and turn to real estate. Let’s imagine that Ben Bernanke succeeds. Let’s imagine that he nudges consumer price inflation upwards. What happens to mortgage rates? Well, they go up too. Then, what happens to the housing market?…
September 10th, 2010 | Bill Bonner | 87 comments | Continued
The Needs Justify the Ends
Remember back in the good old days? Back when there was no government in Canberra and stocks rallied because investors knew there wouldn’t be any moron law makers to pass moron laws? Ah yes…the good old days. Sigh. If there’s a deal that puts a Labor/Greens/Independent government in place, you might expect that to be a negative for shares, inasmuch as it could mean mining tax and, down the track, some kind of carbon tax.
September 7th, 2010 | Dan Denning | 3 comments | Continued
Fed Vows to Maintain Public Financial Health
Extend and pretend…That’s the government’s way of handling the crisis. Extend credit and cash to those who don’t deserve it. Then, pretend that everything is okay…But the problems don’t go away. They just get stretched into the future…What did the feds do for GM? They took over the company.
September 6th, 2010 | Bill Bonner | 8 comments | Continued
Misguided Gratitude for Government Stimulus
In New York, markets enjoyed some brief respite from the blizzard of weak data as reports on the US housing market and consumer confidence proved better than feared. The Conference Board’s index of consumer confidence climbed to 53.5 last month from 51 in July…
September 2nd, 2010 | Bill Bonner | 0 comments | Continued
The Idiots Guide to Repairing an Economy
Stocks went down early in the summer. We thought that was the beginning of the big “second shock” we’ve been waiting for. But we were wrong. The stock market rebounded. But now it is back at its July lows…and appears ready to keep going down. Why? Because small investors are leaving the stock market.
August 26th, 2010 | Bill Bonner | 1 comment | Continued
Turning Against the Stock Market
The Fed has already said it will leave its key interest rate at a very low level for a very long time. The US Treasury has already announced a budget with more than $1 trillion of fiscal stimulus in it. “Cash for clunkers” …first time homebuyer tax credits…TALF – the “recovery” programs have all pretty much run their courses.
August 25th, 2010 | Bill Bonner | 1 comment | Continued
No Doubt About the Road Ahead
Another week gone by. Nothing has been learned. Nothing has been proven. Nothing has been decided.In the markets, we mean. It looks like the stock market is finally rolling over. After a big drop on Wednesday, the Dow followed up with a modest drop yesterday – down another 58 points. Is the market really headed down?
August 16th, 2010 | Bill Bonner | 0 comments | Continued
Demanding Demand
What about here in Australia, though? The amount of money being lent for housing fell by 3.9% in June according to the Australian Bureau of Statistics. It was the lowest amount for housing finance since February of 2001, which was over nine years ago. What does that tell you? It tells you that the largest factor on “underlying demand” for Australian housing is the price of money. When the price of money is cheap, the demand for housing goes up.
August 11th, 2010 | Dan Denning | 42 comments | Continued
Nine Meals From Barbarism
It’s always a fun week when the big banks report earnings. This week it’s Commonwealth Bank (ASX:CBA), with NAB to give a trading update later in the week. What will CBA’s results tell you? Over the next month you’ll get to see how much the banks are actually hurt by higher funding costs, whether bad debts are rising, and if the housing market is causing them any trouble (loan losses).
August 9th, 2010 | Dan Denning | 12 comments | Continued
Dysfunctional Price Signals are Distorting the Housing Market
The price of anything, whether it is a cake of soap or a jumbo jet, is meant to convey a whole bunch of information to an investor, producer or consumer. Prices send signals up and down the supply chain and these signals determine the ultimate supply and demand of any product or service.
August 6th, 2010 | Greg Canavan | 95 comments | Continued
