The Real Reasons for the Bubble
Preface: In Part 1, we showed that mortgage applications are down, and it is really institutional investors driving the housing boom. Part 2 explains why.
Housing prices have boomed because:
(1) Lenders are artificially keeping vacant houses off of the market
(2) The Obama administration has thrown all sorts of artificial incentives at institutional investors to pump up prices
Artificially Suppressed Housing Inventory
Naked Capitalism reported last August:
Two trends are apparent. One is that [...]
In today’s video, Christopher Greene of AMTV investigates the real reason behind the Benghazi cover-up.
In recent weeks, a chorus of big-name investors have taken to the media to rage against the “loose money” policies of the Federal Reserve and Ben Bernanke.
Bernanke, these investors rant, is ruining the country.
Benanke’s policies are debasing the currency.
Bernanke’s policies are creating class warfare.
Bernanke’s policies will lead to runaway inflation.
Bernanke is creating a “fake” stock-market rally.
And so on.
To listen to these Wall Street big shots, you’d think that some of the [...]
Moments ago the market jeered the announcement of DB’s 10% equity dilution, promptly followed by cheering its early earnings announcement which was a “beat” on the topline, despite some weakness in sales and trading and an increase in bad debt provisions (which at €354MM on total loans of €399.9 BN net of a tiny €4.863 BN in loan loss allowance will have to go higher. Much higher). Ironically both events are complete noise in the grand [...]
By THOM SHANKER
Published: April 18, 2013
WASHINGTON — The Defense Department is expected to finalize a $10 billion arms deal with Israel, Saudi Arabia and the United Arab Emirates next week that will provide missiles, warplanes and troop transports to help them counter any future threat from Iran.
A weeklong visit to the region by Defense Secretary Chuck Hagel will culminate a year of secret negotiations on a deal that Congressional officials said will [...]
Its all about money.
BRICS developing an equivalent World Bank and global currency to counter the IMF.
US dollar will no longer be the global reserve currency.
All part of a thesis / anti-thesis development backed by the Illuminati and Vatican.
This is tied with the new Pope.
US using N Korea as a pretext to stage military for a China conflict.
Stay tuned for updates.
China Development Bank grabs chance for aggressive global loan expansion
China Development [...]
BEFORE YOU READ THIS- LOOK UP THIS _ ( WIKI OR GOOGLE OR ANY SEARCH ENGINE)
NORTHERN COMMAND !
then go over this info, with that in mind !!
because i think it might be important to many here.
its safe to say military build up in the usa has been rising over the years, and some say foreign troops also, in the millions and only a few people in the world have been [...]
February 24th, 2013
At a recent meeting of the American Economic Association a vote was held about whether or not the United States should back its currency with gold. Not surprisingly, 100% of mainstream economists educated by our most prestigious universities were against such a measure.
From the top down, there is a cult-like belief that our paper monetary system is absolute and infallible.
Yet, as we have seen throughout history, and especially [...]
Waistband feeling a bit tighter, or buttons straining after Christmas?
While it’s easy to blame your appalling willpower or TV-inspired lethargy, according to a respected U.S. obesity expert, weight gain might not be your fault at all.
In a fascinating new book, Robert Lustig, a professor of clinical paediatrics at the University of California, expounds a whole new scientific theory.
He argues that the urge to overeat and lounge around doing nothing is [...]
Despite a massive desire to cut spending, the Congress never gets tempted by it.
Even today, the “sequester” has been delayed another 2 months. That’s not ideal (it should be eliminated entirely) but there’s a chance it could be delayed even more when it’s fought over again.
So although the Congress is awful, it’s the Congress’ unwillingness to cut that keeps the recovery going.
December 23, 2012
South Korean defense officials say they have evidence showing a recent North Korean missile launch was to test an intercontinental ballistic missile (ICBM).
South Korean navy divers have recovered more than three tons of debris from the first stage of a missile Korean analysts say was fueled by a type of nitric acid developed in the former Soviet Union over 40 years ago for firing missiles with warheads [...]
‘To maximize profits and to hide its weakness during the crisis.’
Very short clip from earlier today.
UBS Libor Traders Face U.S. Criminal Charges
Speed Read: The Juiciest Bits From the UBS LIBOR Settlement
In 2006, when I began writing my book on the coming economic collapse, I didn’t know what the Fed would do regarding liquidity. At the time, whether the Fed would raise or lower interest rates was a soon-to-be multi-trillion dollar question.
In the past, central banks walked a tightrope between higher and lower interest rates. Raise rates too high and economies would slow and/or contract. Keep rates are too low and [...]
The following is an excerpt from a recent issue of Private Wealth Advisory. We are reprinting it here because no one is addressing the real reason why Europe is such a huge problem for the financial system. You need to know this.
If you’ve looking for investment ideas on how to profit from this collapse (the gains will be even bigger than those produced during the 2008 Crash) Private Wealth Advisory [...]
by Phoenix Capital Research
Over the last week I’ve introduced the concept of collateral: the basis for the entire financial system. We’ve also addressed why any EU sovereign default would bring about an epic meltdown as EU bonds, particularly those of Spain and Italy are the collateral underlying hundreds of trillions of Euros worth of trades for EU banks.
Again, the most important issue for the financial system is the search for high [...]
Expect weak earnings to roil markets in the near future, with the fiscal cliff or Greek debt woes having a less noted effect, said economist Marc Faber, publisher of The Gloom, Boom & Doom Report.
Stocks could lose as much as 20% of their value after a sell-off runs its course, Faber told CNBC.
“I don’t think markets are going down because of Greece, I don’t think markets are going down because [...]
Don’t live anywhere near the path of Hurricane Sandy? Figure you dodged The Bullet? Maybe, but most likely not. Sandy has taken out key and vital infrastructure especially New Jersey shipping ports, trucking terminals and refining infrastructure. Not like the tonnage and container cargoes processed there will easily be diverted elsewhere on the Atlantic Seaboard. What’s the nautical steaming distance to New Orleans or Houston? About 2,000 miles? Not much [...]
From Liberty Blitzkrieg:
Need a laugh? Al Gore went on television and blamed Obama’s horrific performance during the debate last night on the altitude! This is epic.
So according to Al Gore we should be very concerned should Obama negotiate any deals with any leaders in the capital cities of La Paz, Bolivia (11,942 ft); Quito, Ecuador (9,350 ft); Bogota, Columbia (8,612 ft); Mexico City, Mexico (7,350 ft) and Nairobi, Kenya (5,889 [...]
•Islamists claim their bloody siege of the U.S. Embassies in Cairo and Benghazi on the eleventh anniversary of the 9/11 attacks was catalyzed by an “anti-Islam” movie
•Experts say the real reason for the onslaught was not a movie mocking Islam, but part of a concerted “ten year plan” to make slandering Islam unlawful on an international scale
•U.S. administration’s hair-trigger reaction was to first apologize for offending Islam, rather than meet [...]
From The PERColator:
… For most of the 20th century, the United States was a single market for gasoline. Today, we have a series of fragmentary, regional markets thanks to dozens of regulatory requirements imposed by the federal Environmental Protection Agency (EPA) and state regulators.
That’s a problem because each separate market is much more vulnerable than a national market to refinery outages, pipeline problems, and other disruptions…
The role of regulators in fuel [...]
From Peter L. Brandt:
The article below from Bloomberg speaks for itself. Eric Holder should be put up on criminal charges instead of being Attorney General.
“There’s an old saying in journalism that there are no new stories, only new reporters. The revelation that U.S. Attorney General Eric Holder’s old law firm used to represent the bankrupt brokerage firm MF Global Holdings is a great example.
“Here’s the lead paragraph from an article [...]
From Mark J. Perry’s Carpe Diem:
A few days back, I suggested that maybe if the London police weren’t arresting so many people for “ticket scalping,” entering into voluntary ticket transactions, perhaps there wouldn’t be so many empty seats at the Olympics.
Tim Worstall provides some related commentary in The Daily Telegraph article titled “Of course there are empty Olympic seats: our Victorian government is arresting anyone who tries to sell them,” [...]
Despite NBC promising more than 3,500 hours of live video from the London 2012 Olympics, American viewers will still not be able to (legally) watch the opening ceremonies live, even online.
And despite a lame excuse from NBC, the real reason is that they are making a ratings grab.
Instead of being shown live on one of NBC’s six networks, two specialty channels, one 3-D channel or streamed online, the opening ceremonies will be [...]
I try to read all sides of the economics blogosphere, and try and grasp the ideas of even those who I would seem to radically disagree with.
One thing that the anti-Fed side of the economics blogosphere seems to not fully appreciate is the depth of disappointment with Ben Bernanke from the pro-Fed side. For every anti-Fed post bemoaning Bernanke’s money printing, there is a pro-Fed post bemoaning Bernanke for [...]
For men who roll over and nod off rather than engage in pillow talk, it’s the perfect excuse.
They really do need to sleep after sex because the male brain is designed to switch off at that point, scientists claim.
They scanned men’s brains before and during orgasm, and found that the cerebral cortex – or ‘thinking’ area – shuts down.
Straight afterwards, two other areas, the cingulate cortex and amygdala, tell the [...]
In the near future, human development can potentially be dictated by corporate America, through the Bill & Malinda [sic] Gates Foundation and their $8.3 U.C. Davis grant.
The following is certainly not a scientific assessment of Gates’ project but it is clear he is intending to genetically engineer milk and is looking at altering immunity itself.(WASHINGTON DC) – Monsanto’s head of the FDA’s food safety division is threatening to get rid [...]
I would like to offer some statistics, that hopefully will give a little perspective to the coming 2012 Presidential Election. I had a theory pop into my head this morning, and once I looked up the data behind it, I was amazed at the outcome.
Back during ’07, when the campaigning for ’08 was in full swing, it was an extremely difficult time for anyone opposed to Obama as President.
I know [...]
WASHINGTON — As the nation’s capital prepared Wednesday for the Supreme Court’s long-awaited ruling onPresident Obama’s healthcare law, the White House was unusually quiet.
The ruling on Obama’s biggest domestic accomplishment could be among the most consequential events in his presidency, but he will learn about it at the same time as the rest of the nation, receiving no advanced warning as he does for such government actions as the release of unemployment [...]
On Friday, President Barack Obama spoke about why the economic recovery has been so slow. People are focusing on his gaffe – saying “the private sector is doing fine” – and Ezra Klein admonishes us to focus on the president’s substantive point, which is that job losses in the public sector have undermined the recovery overall.
Unfortunately, Obama didn’t mention a major barrier to job growth in the public sector [...]