The shape of things to come - probably pensions and more QE next.
London has started to crash
I came across these charts while trying to figure out the best places to hunt for houses in London on a value-for-money basis; I think they speak for themselvesâ¦ Slump in new buyer enquiries and the gulf in house prices has never been greater. These three charts seems to suggest that the sharp surge in London house prices over the last few months could be at risk of cooling or even partially reversing over the next few months, hard though it may be to believe at the moment!
Very surprising stats and some interesting conclusions
Economists warn on toronto bubble
Thought it was Interesting how similar this is to london/uk...particularly in the comments lots of talk about shortages etc but most telling was that in reality its super low interest Rates that make these prices affordable.btw Mark Carney caused this.as he was the canada bank Boss..so I thought it was relevent
Keiser does the housing super bubble!!
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the rentier rising from the dead, generation debt and harvesting the young with student debt. In the second half, Max interviews Ross Ashcroft about the housing super bubble in London and what it means to the rest of the economy to have a rentier class in charge.
The new rentier pradigm
Daily Kos: Housing Secretary: âthe worst rental affordability crisis that this country has ever known"
What if our economic crisis was not the start of a House Price Crash but heralded a new rentier economic paradigm in the west. Bringing back the days of serfdom between renters and house owners , BTL landlords and the new breed of corporate landlords we see in the states. Are the poorest and youngest to give half of their income straight to the landlord or banks' enshrining poverty unless your lucky enough to inherit a house. I am sure rentiers wish this to happen where landlords and banks pluck half the incomes from the majority of productive workforce, but could a system happen and could it be stable?
Here's your answer, Mr Weale (see lib's post)
Ex-BIS man says QE was meant to get seized-up markets going again but that aim has morphed into inflating asset prices to get people to spend (or is it to make the rich richer?). But QE doesn't tackle the excessive debt that caused the problem in the first place. The solution to that is write-offs, restructuring, recapitalisation. But QE is la la land where nobody needs to do anything while big problems stack up unseen - mainly zombies which suck the life out of the healthy parts of the economy. And it's worse than 2007 because emerging economies have been sucked in to the world of debt/liquidity-driven bubbles. And moral hazard is now worse among bankers. He says that Japan is in a particularly bad place and that "(with QE) housing tends to be the big thing that goes wrong".
Quantitative Easing destroyed Â£150bn from economy
Reporters are inanely stating that QE boosted the economy by Â£50bn without covering the other half of the equation. The government spent Â£200bn on QE to get Â£50bn growth. For that price, they could have eliminated corporation tax (Â£51bn) and income tax (Â£155bn) for a whole year, or slashed both by 10% for a decade, and guess what, that would have created TRILLIONS in growth, with almost every corporation in the planet moving to head quarter Britain. What actually happened was, that they destroyed the economy to give Â£50bn to their buddies. This is called artificial scarcity, or neo-feudalism.
Time to short GBP/USD?
Rates rose last year so, apparently, everyone jumped on the short term bandwagon and decided that the multi-decade trend had suddenly changed. Somewhat prematurely in our view. So the rate rose last year and the media and City pundits went wild announcing the death of the 40 year fall in rates and so, they said, we must expect higher and higher rates in the future. I have news for you: if rates rise then the Western economy is â to put it highly technically toast! So, if the rate at which the government borrows was to rise from, say, 3.5% to 4% â a mere 0.5% rise â this would increase the Governmentâs interest bill by Â£7 Billions pa. How would it pay for it? Â£7Bns of cuts? That would play well with the electorate just as we are entering the final year before the next Election.