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Perhaps the “recovery” is a Mind Trick played on the weak-minded. by Charles Hugh Smith, Of Two Minds: Those with vested interests in the Status Quo tout data that supports the claim the “recovery” is now “self-sustaining,” meaning that the economy is now expanding fast enough to fuel new growth. In this view, the Federal Reserve’s extraordinary policy interventions (zero interest rate policy, $23 trillion in support provided to the global banking system, 3.4% [...] In the meantime, property developers continue to rally as maybe the government is done rolling out new market dampening measures. From Bloomberg: China’s home sales transaction value dropped 14.5 percent in July from the previous month as the government vowed to maintain curbs on the property market. The value of homes sold fell to 454.4 billion yuan ($71.5 billion) from 531.3 billion yuan in June, based on the difference between the National Bureau [...] telegraph.co.uk All key indicators of China’s money supply are flashing warning signs. The broader measures have slumped to stagnation levels not seen since the late 1990s. By Ambrose Evans-Pritchard, International business editor 6:32PM BST 13 May 2012 Narrow M1 data for April is the weakest since modern records began. Real M1 deposits – a leading indicator of economic growth six months or so ahead – have contracted since November. They are shrinking faster that at any time [...] By Howard Gold NEW YORK (MarketWatch) — Stocks are hitting post-crisis highs, unemployment is falling and even housing sales are putting up their best numbers in years. On Wall Street, however, it’s still the winter of their discontent. The giant firms that were instrumental in causing the financial crisis (they had plenty of help, of course) were saved from themselves by taxpayers’ money and zero interest rates, courtesy of [...] BEIJING – Prices for new residential apartments in Beijing are estimated to have dropped by11.3 percent year on year in 2011, as the government’s policies to cool the sizzling propertymarket took hold. The average price of a new apartment in the Chinese capital dropped to 13,173 yuan (2,091U.S. dollars) per square meter in 2011, when about 78,000 units were sold, the Beijing RealEstate Association reported. China’s housing market slumped after the government [...] Another Blow For America’s Banks (And Bank Of America) After California Kills Robosigning Settlementby ZH Anyone exiting the third quarter with a Bank of America (or Wells, or JPMorgan, or Citi) short on their books will be delighted to learn that the “other” mortgage fraud scandal, not the putback litigation which is sure to cost Bank of America billions in incremental legal fees now that that particular settlement appears to be challenged and banks even across the Atlantic are [...] Gary Weiss, The Street The stock market, as measured by the S&P 500, rose almost 3% yesterday, perhaps pleasantly surprised that the Northeast doesn’t resemble the Gulf Coast — Katrina-cable-TV hype notwithstanding. So as traders picked their way across tree limbs and flooded roads on their way to work Monday, perhaps they overlooked a commonplace sight that was even more prevalent than clogged waterways: for-sale signs on [...] LONDON (AP) — Oil prices jumped above $112 a barrel Thursday to near the highest level since 2008 amid signs U.S. demand remains robust despite rising fuel costs. Benchmark crude for June delivery was up 62 cents at $112.07 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. In London, Brent crude for June delivery was up 67 cents to $124.53 a [...] by Charles Hugh Smith from Of Two Minds Phase Shift: The Next Leg Down in House Prices Housing has supposedly “hit bottom.” Perhaps it will drop abruptly in a phase shift to much lower valuations. Way back in August 2006, near the top of the housing bubble, I suggested a two-part scenario for the housing bust: it would take eight more years to play out, and the declines would occur [...] by TK My new housing sales to employment ratio – note that the housing market CREATES jobs, and the JOBS create the housing market. NEITHER is CREATING ANYTHING: Year …. Ratio …. Total (1,000) …. Emp (1,000) by TKWallace Note that the last three years the labor pool has not grown at all – never before happened, the worst three years of new housing sales are the last three, and the ratios have plummeted after 9 years above average. I track this for two reasons – one, the market for new homes is the labor force, and if they are buying, things are going [...] by Jan Paul quote And now taxpayers own [...] 1) UCLA business school to end public funding “A leading business school in the University of California system is preparing to forgo public funding amid increasing uncertainty about the state’s economic health and California’s ability to pay for higher education. The UCLA Anderson School of Management plans to fill the funding gap with money from private donors, bolstering a roster that includes business figures such as Larry [...] As I’ve been saying all along, nothing is solved until the DEBT SATURATION is resolved. Depressions move in 3 waves, A down, B up, C down. The psychology of each wave is different – wave A equals “oh no!†Wave B equals “we’re saved.†And wave C equals real change is forced to occur – no fooling around this time. You [...] |
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