Keyword: bubble

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  • Economist Andy Xie: Chinese Real Estate Prices Will Drop By 50% In 3 Years

    05/20/2011 7:46:10 AM PDT · by SeekAndFind · 8 replies
    Business Insider ^ | 05/20/2011
    Independent Economist Andy Xie has been a China bear for some years now, so long that as if there is no one who wants to listen to him again. Well, at least I will still first read about what he said before dismissing him. In the Lujiazui forum, he told Sina finance that real estate prices will drop by 25% by the end of this year, and 40-50% in three years. Yet he thinks the banking sector will not be hurt much even with 50% of drop. This now echoes the view by Guo Shiping, a professor in Shenzhen University,...
  • Housing Crash Is Getting Worse: Report

    05/09/2011 10:25:16 AM PDT · by Justaham · 59 replies
    MarketWatch ^ | 5-9-11 | Brett Arends
    If you thought the housing crisis was bad, think again. It's worse. New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse. Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow. And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high. Zillow now predicts prices will fall about 8% this year and says it no...
  • Rare Earths Seen Growing Less Rare

    05/07/2011 7:16:50 AM PDT · by TigerLikesRooster · 11 replies · 1+ views
    Nikkei ^ | 05/06/11
    Friday, May 6, 2011 Rare Earths Seen Growing Less Rare SYDNEY (Dow Jones)--Demand for rare earth elements that has driven up prices more than tenfold since 2009 is likely to be met by a surplus of supply by 2013, as Western companies start up new mines to compete with the Chinese firms that now dominate the market, Goldman Sachs analysts predicted Thursday. The forecast calls into question the sustainability of the current boom in rare earths, a suite of 17 elements used in products from high-powered magnets, and fuel refining to energy-efficient light bulbs and mobile phone screens, as well...
  • The Business School Tuition Bubble (Could it follow the Housing Collapse?)

    05/06/2011 7:18:15 AM PDT · by SeekAndFind · 4 replies
    Business Insider ^ | 05/06/2011 | Michael Ryall, Harvard Business Review
    Following the collapse of housing prices, a growing number of people have voiced concerns over a looming collapse of higher education tuition. Initial apprehensions were expressed at least as early as 2009 in places like The Economist and The Chronicle of Higher Education. Today, there is a wikipedia page devoted to the topic and, in the last week alone, articles about this issue appeared here, here, and here. As Glenn Reynolds, a faculty member at the University of Tennessee law school, points out, higher education shares some salient features with the pre-collapse housing market. (And Mark Perry, a professor of...
  • Panic in the Pits: Silver Plunge Spreads to Oil, Copper

    05/06/2011 4:31:26 AM PDT · by Perdogg · 41 replies · 1+ views
    cnbc ^ | 05.05.11
    A cascading crash in commodities beginning with silver a week ago spread to oil and copper as exchanges took steps to rein in speculation, economic data pointed to a global selloff and big name investors took profits.
  • 6 Huge Problems For Silver Investors (The Price of Silver has Tanked Spectacularly)

    05/05/2011 11:54:08 AM PDT · by SeekAndFind · 56 replies
    Business Insider ^ | 05/05/2011 | Joe Weisenthal
    Silver is now threatening to fall below $38/oz, which would mark a nearly 22% decline from its bubblicious highs last week. It's obviously spectacularly volatile, and we don't know how this will end up, but we can think of several threats to silver bulls. * As the lady in the Lind Waldock (commodities broker) commercials always says, commodities are all a price play. There's no hard metric for anyone to know whether something has gotten cheap or not. There's no P/E level that makes silver a must buy. * Big, smart money is selling: Soros, Carlos Slim, etc. * Margin...
  • Silver prices keep tumbling retreat.

    05/05/2011 8:08:13 AM PDT · by babble-on · 40 replies
    LA Times ^ | May 5, 2011 | Tom Petruno
    (summary deck only) Silver futures contracts fall $3.19, or 7.5%, to $39.38 an ounce, their third consecutive decrease since hitting a record $48.58 on Friday. Most other commodities also retreat.
  • Is There Really a ‘Gold Bubble’? Maybe Not.

    05/05/2011 6:59:36 AM PDT · by SeekAndFind · 11 replies · 1+ views
    Hotair ^ | 05/05/2011 | DirectorBlue
    Brett Arends, writing at MarketWatch, refutes the notion that gold is in a speculative “bubble”. He does so by comparing the current spike in gold prices with other speculative run-ups in recent history. Gold is in a bubble. Anyone will tell you that. They’ve been saying it since gold was about, oh, $500 an ounce.But it’s a funny kind of a bubble. It’s the only one I’ve encountered where so few people seem to own the asset in question… During the dot-com bubble, you met lots of people with tech stocks. Taxi drivers told you what dot-coms they owned.During the...
  • Jim Rogers Concerned by Silver's 'Parabolic' Rise

    04/30/2011 4:03:26 PM PDT · by TigerLikesRooster · 19 replies · 1+ views
    CNBC ^ | 04/27/11 | Antonia van de Velde
    Jim Rogers Concerned by Silver's 'Parabolic' Rise Published: Wednesday, 27 Apr 2011 | 7:11 AM ET By: Antonia van de Velde CNBC Associate Web Producer With silver near multi-year highs, famous commodities bull Jim Rogers warned silver prices could become dangerous if they rose even further to “parabolic” levels, telling The Times of India he is keen to buy more, but would sell if the price rose too fast. Silver futures surged to a multi-year high of $49.45 per ounce on Monday, but on Tuesday the May silver contract recorded its largest one-day fall in a month. Silver steadied somewhat...
  • Silver fever is about to break, and break badly (Buying opportunity as mania subsides)

    04/29/2011 6:35:44 AM PDT · by SeekAndFind · 35 replies
    Marketwatch ^ | 04/29/2011 | Howard Gold, No Nonsense Investing
    I was just starting to work on a column about silver mania Tuesday morning when a big, beautifully produced ad insert on silver, of all things, arrived with my Financial Times. Proclaiming that “silver is the single greatest profit opportunity of our time,” the insert featured a huge, nearly three-dimensional replica of a one-ounce U.S. silver eagle, with Liberty herself reaching out her hand and In God We Trust right there for all to see. The coin replica, some 3 ˝ inches in diameter, shone like a harvest moon, glittering with the possibility of instant riches. And — you just...
  • Deepening Crisis: Inflation, Rising Interest Rates, Surge In The Price Of Gold And Silver

    04/24/2011 8:40:02 PM PDT · by blam · 32 replies
    TMO ^ | 4-24-2011 | Bob Chapman
    Deepening Economic Crisis: Inflation, Rising Interest Rates, Surge In The Price Of Gold And Silver Economics / Inflation Apr 24, 2011 - 12:43 PM By: Bob Chapman Economic recovery does not seem to be taking effect in spite of more massive expenditures by Congress and the Fed. The IMF says financial stability has improved, but then again their vision is almost always clouded. US tax revenues are not increasing in a meaningful way, manufacturing struggles to expand and Wall Street flourishes in a cascade of mega salaries and bonuses. In another six months the US will be three years what...
  • College Education: Another bubble ready to burst!

    04/19/2011 8:55:52 AM PDT · by SeekAndFind · 53 replies
    Bennington Banner ^ | 04/19/2011 | Audrey Pietrucha
    Senator Bernie Sanders added a new victim to the long list in his most recent column -- college students. Sanders complained that the Republican budget proposal would reduce the average Pell higher education grant by 17 percent at a time when the cost of a college education is "soaring." Having just sent the last of my three children off to college, I cannot argue with Sanders’ description of college tuition costs -- they are, indeed, soaring. Statistics confirm personal observation as, according to the Measuring Up 2008 report by the National Center for Public Policy and Higher Education, tuition and...
  • Could ETFs Become the Next Toxic Assets?

    04/15/2011 6:47:04 AM PDT · by SeekAndFind · 12 replies
    Wall Street Journal ^ | 04/15/2011 | Christopher Emsden
    Weird ice cream flavors have in recent years spread like mad and now include such inviting types as raw horseflesh or sardines and brandy. Is something similar happening in the world of ETFs, or Exchange Traded Funds? Mario Draghi, chairman of the Financial Stability Board, hinted as much last week. On Monday, the FSB delivered a more detailed report on the matter, noting that these once “plain vanilla” investment products have taken a “disquieting” turn and have tacked on “new elements of complexity and opacity.” The new flavors of ETFs pose new challenges regarding counterparty and collateral risks and could...
  • Chinese Real Estate Bubble Pops: Beijing Real Estate Prices Plunge 27% In One Month

    04/14/2011 9:15:38 AM PDT · by jpl · 12 replies
    Zero Hedge Blog ^ | Thursday April 14, 2011 | Tyler Durden
    Could the Chinese monetary tightening be working? The National Bureau of Statistics has released its latest food price update for the period April 1-10, which shows that while most foods continue to rise modestly, several food products have plunged particularly cucumbers and rapes, both falling 8.8%, kidney beans 6.3% and kidney beans down 6.3%. Yet this is nothing compared to what is happening to Chinese real estate: it appears Chanos' long anticipated property bubble may have popped... but the supersonic boom is so loud that nobody has heard it yet. From Market News: Prices of new homes in China's capital...
  • Federal Reserve Policies Risk Creating Asset Bubbles

    04/12/2011 6:13:53 PM PDT · by expat_panama · 17 replies
    INVESTOR'S BUSINESS DAILY ^ | April 12, 2011 | NORM ALSTER
    When Federal Reserve Chairman Ben Bernanke this month kicks off regular press briefings, he'll likely face uncomfortable questions about whether his ultra-easy policies risk creating a new round of asset bubbles.Critics inside and outside the Fed have taken aim at Bernanke's aggressive strategy and its long-term effects on bonds, commodities, stocks and more. They recall that the central bank's cheap money helped inflate the housing bubble whose debris has yet to be fully cleared."We are seeing the signs of all the intoxication that typically takes place when we have the ambrosia of cheap and readily available capital," Dallas Fed President...
  • Silver's Price Action Nearly Parabolic, but Is a Bubble Really Forming?

    04/07/2011 8:42:20 AM PDT · by SeekAndFind · 17 replies
    Minyanville ^ | 04/06/2011 | Michael A. Gayed
    Every now and then, I like to run a comparative screen on my list of over 800 ETFs/ETNs to find those areas of the investable universe which are at extremes relative to the broader stock market, or relative to themselves. Given recent market actions and the incredible resilience risk assets have had as of late, I thought it might be worth identifying those ETFs/ETNs furthest away from their respective 50-day moving averages. The purpose of doing this is to see where the crowd has been putting money to work the most, and perhaps identify contrarian trades. Silver by far and...
  • The Higher Education Bubble

    04/06/2011 8:06:48 AM PDT · by Black_Shark · 1 replies
    Forbes.com ^ | April 5th, 2011 | Richard Vedder
    Higher education is in a bubble situation—its price has risen sharply, fueled by cheap federal loan and grant money (sound familiar?) while the return on the investment has fallen. More and more college students are either not graduating or are taking jobs that do not require college-level skills and often pay mediocre amounts. In investor parlance, the price-earnings ratio on investing in higher education seems to be rising sharply. Where markets operate without external interference, there would be a correction. Sensing lower returns on their investment, the demand for higher education would fall and, with that, enrollments. Declining demand would...
  • After historic gains, are stocks nearing a bubble?

    03/06/2011 12:30:32 PM PST · by BenLurkin · 9 replies
    AP ^ | Sunday March 6, 2011, 3:10 pm | Matthew Craft and David K. Randall,
    Federal Reserve Chairman Ben Bernanke fielded the usual questions about inflation, tax cuts and government debt during a trip to Congress last week. Then a new question popped up: Is the Fed creating another bubble in stock prices?
  • China’s High-Speed Rail, Highly Suspect

    03/04/2011 2:11:03 AM PST · by TigerLikesRooster · 14 replies
    Forbes ^ | 03/02/11 | TIM FERGUSON
    China’s High-Speed Rail, Highly Suspect Mar. 2 2011 - 5:41 pm By TIM FERGUSON May we please have a station stop in the slavering over the Chinese high-speed rail program? China itself is not so enamored, based on the crackdown on officials involved. Here’s the latest from the South China Morning Post on the dismissal of the nation’s Railways Minister and the engineer in charge of the system’s R&D. Seems there were “severe violations of discipline,” which is usually code for corruption. The larger issue with the vast (16,000 kilometers planned by 2020) endeavor is that it isn’t, in fact,...
  • Twitter for $10bn? Don't form a queue (This is a bubble that says 175M users are worth $57 each)

    02/11/2011 6:53:53 AM PST · by SeekAndFind · 15 replies
    The Guardian ^ | 02/11/2011 | Nilis Pratley
    AOL's purchase of The Huffington Post for $315m, or 10 times revenues, was bizarre. A valuation of $50bn for Facebook, which has revenues of $2bn, was extraordinary. But $10bn for Twitter? That's off the scale. It is 100 times revenues – this year's forecast revenues, not sales that have been generated yet. That cannot make sense. It is reported, however, that Twitter has been talking to potential suitors, including Google and Facebook, about a deal at such a sky-high price. But Twitter's last fundraising was only two months ago and valued the networking site at $3.9bn. Is the company supposed...
  • The Shadow Party: FrontPage Interviews Co-Author Richard Poe

    08/29/2006 3:12:51 PM PDT · by Richard Poe · 189 replies · 4,379+ views
    FrontPageMagazine.com ^ | August 29, 2006 | Jamie Glazov
    A new book by David Horowitz and Richard Poe has enraged the Left and alarmed many conservatives. It exposes the machinations of a radical clique working at the highest levels of government and finance to undermine American power. That book is The Shadow Party: How George Soros, Hillary Clinton and Sixties Radicals Seized Control of the Democratic Party. It hit the New York Times bestseller list in its first week in print. Here to tell us about The Shadow Partyis co-author Richard Poe, our esteemed colleague at the David Horowitz Freedom Center, where he serves as director of research. Mr....
  • Good ol' bonus days are back for Goldman

    01/29/2011 3:15:40 AM PST · by Liz · 13 replies
    NY POST ^ | 1/29/11 | MARK DeCAMBRE
    Goldman CEO Lloyd Blankfein bagged a $14.6M compensation package.....including stock awards, which were also paid to other top executives. Blankfein also got a 230% bump in his base salary to $2M, up from $600,000 since 2007....excluding private jets, cars and other perks. CFO David Viniar, COO Gary Cohn and Vice Chair Michael Evans received identical boosts, with each hauling in $1.85M annually. Blankfein's pay in the halcyon days of 2007, was $67.9M. Other firms have been hiking base pay at a time when regulators are mulling new rules for Wall Street pay.
  • Fed takes a flogging in FCIC report

    01/28/2011 11:29:05 AM PST · by FromLori · 3 replies
    CNN Fortune ^ | 1/27/2011 | Colin Barr
    The official account of the financial crisis won't dispel anyone's impression that the Fed has spent the past decade in a fog. The Financial Crisis Inquiry Commission's 662-page report will give the central bank's many critics much to chew on beyond the current hubbub over loose monetary policy. The report, released Thursday morning, names former Federal Reserve chief Alan Greenspan and current Chairman Ben Bernanke as two of the main enablers of the credit bubble that led to the 2008 collapse. Greenspan, well known for his deregulatory zeal, simply refused to enforce regulations that could have prevented some of the...
  • China Ad Blitz Coming To U.S. With Hu Jintao

    01/17/2011 9:19:23 PM PST · by bruinbirdman · 12 replies
    Forbes ^ | 1/14/2011 | Gady Epstein
    China threat? What China threat? A warm and fuzzy ad campaign promoting China is coming to the U.S. in the days ahead as President Hu Jintao makes his state visit, reports The South China Morning Post today. The smiling and non-threatening faces of Yao Ming, Jackie Chan, John Woo and astronaut Yang Liwei are expected to greet Americans as friends, not would-be overlords, in ads appearing on television, online and in Times Square in New York. Disregard everything you have heard about China’s hard power in the last year, from tough talk on the South China Seas to the purported...
  • Hedge funds bet China is a bubble close to bursting

    01/16/2011 11:28:09 AM PST · by FTJM · 16 replies
    The Telegraph ^ | January 16, 2011 | Louise Armitstead
    For his first-ever speech as Britain’s new Minister of Trade & Industry last week, Lord Green faced a formidable audience of 400 Chinese and British business delegates. The former chairman of HSBC declared that China’s economic growth figures over the past five years represented an “extraordinary historic event”. Green didn’t need to go over Britain’s experience during the same period for most to agree that plugging into China’s blistering growth - predicted by the IMF to be 10.5pc this year - was of “vital importance” to the UK. But even as he spoke a hedge fund manager in Mayfair was...
  • Latest Stats Show Chinese Real Estate Too Hot To Cool Down(in a self-reinforcing phase?)

    01/07/2011 7:03:11 PM PST · by TigerLikesRooster · 6 replies
    Epoch Times ^ | 01/06/11 | Xiong Bin & Li Mei
    Latest Stats Show Chinese Real Estate Too Hot To Cool Down By Xiong Bin & Li Mei Created: Jan 6, 2011 Last Updated: Jan 6, 2011 Despite Beijing’s stringent regulations designed to deflate China’s real estate bubble, newly released statistics show that the markets remain overheated. According to the Land Reserve Center’s official announcement, the 2010 land transfer fees in Beijing, as of Dec. 30, 2010, totaled 163.672 billion yuan (approximately US$24.8 billion), an increase of 76.37 percent compared with 2009. Beijing has displaced Shanghai as the city with the highest amount of land income. As a result of the...
  • China's Real-Estate Frenzy (a torrid pace of lending are signals of an inflationary bubble)

    12/28/2010 7:15:55 AM PST · by SeekAndFind · 2 replies
    Wall Street Journal ^ | 12/27/2010 | Hugo Restall
    Last week I sold an apartment in Beijing for more than 2.5 times what I paid for it five years and three months ago. When I asked the buyer why he was optimistic about real estate, he explained that land was limited in Chinese cities and government policies would keep the market going up. So far that argument has proven right. Understanding government policy has long been the key to making money in China's property and stock markets. The atmosphere at the Beijing tax and land bureaus brought to mind California during the gold rush. It's impossible to say definitively...
  • Gold Isn't in a Bubble (the real issue is the future of our monetary system and fiat currency)

    12/26/2010 3:56:05 PM PST · by SeekAndFind · 27 replies · 4+ views
    Minyanville ^ | 12/24/2010 | Jordan Roy-Byrne
      On Monday morning Bloomberg issued a report on gold as part of its “The Dark Side of Gold” series. It's important to note this isn’t the first time the news organization has attempted a hit-piece on gold. I wrote about this a year ago and identified the cases and examples of Bloomberg’s gold bashing. The crux of the series is how gold ETFs are responsible for gold’s rise and are contributing to a bubble. It's insinuated that because the ETFs are easily tradeable, a torrent of sell orders could cause gold to fall sharply, a la 1980. Gold’s rise...
  • Answering My Critics On The Subject Of The College Bubble ("Where do they go?")

    12/24/2010 6:20:07 AM PST · by SeekAndFind · 71 replies · 5+ views
    Forbes ^ | 12/24/2010 | Jerry Boyer
    SNIP Let's recap the latter: According to Craig Brandon, author of The Five-Year Party, the average time spent completing college is now approximately six years. Private schools on average charge approximately $25,000 per year and a student who would have made an average of $10 per hour in a full-time job loses approximately $20,000 per year. So the combination of tuition and lost earnings is $45,000 per year--$270,000 over six years. For various reasons, most notably lower tuition at public colleges, I'm reducing my cost estimate there to $200,000. There are plenty of reasons to raise or lower it: public...
  • The Coming College Education Bubble (Higher Ed's P/E ratio looks like Nevada housing circa 2007)

    12/17/2010 7:23:47 AM PST · by SeekAndFind · 12 replies
    Forbes ^ | 12/17/2010 | Jerry Boyer
    The overwhelming cultural consensus of the post-WWII generation was that if you are middle-class, then you simply must own your own home and your children must go to college. Out of that cultural consensus emerged a complex system of tax breaks and special lending deals designed to make sure that the number of Americans who bought houses and bachelor's degrees was as high as possible--or maybe more so. Many people now understand that this system of tax-and-lend has created a multigenerational housing bubble. But only a few have noticed that a very similar tax-and-lend system has also created a multi-generational...
  • The Municipal Debt Bubble

    12/14/2010 9:26:01 AM PST · by Nachum · 8 replies
    reason.com ^ | 12/14/10 | Veronique de Rugy
    When state and local governments want to spend more than they collect in revenues, they issue bonds. Such bonds are a longstanding feature of the American landscape, going back at least as far as 1812, but during the last decade they have spun out of control, as states and cities have increased their borrowing to indulge in more and more spending on new stadiums, schools, bridges, and museums. They have even started borrowing to cover their basic operational expenses. Since 2000 the total outstanding state and municipal bond debt, adjusted for inflation, has soared from $1.5 trillion to $2.8 trillion...
  • RBS Issues Warning that China Credit is About to Burst

    12/08/2010 6:59:31 AM PST · by FromLori · 18 replies · 1+ views
    Dec. 7 – Dire warnings about the true extent of China’s credit bubble are now materializing in mechanisms designed to protect against a sovereign debt default, as the Royal Bank of Scotland has advised clients to take out protection against the risk of a sovereign default by China as one of its top trading tips for next year. “Many see China’s monetary tightening as a pre-emptive tap on the brakes, a warning shot across the proverbial economic bows. We see it as a potentially more malevolent reactive day of reckoning,” said Tim Ash, the bank’s marketing director, according to comments...
  • Gold: Long-Term Hedge or Bubble About to Burst? (A debate on whether to love it or leave it)

    12/08/2010 6:43:59 AM PST · by SeekAndFind · 34 replies
    Kiplingers ^ | 12/08/2010 | Andrew Tanzer, Senior Associate Editor, Bob Frick, Senior Editor
    Andrew Tanzer: Love It The surge in gold prices to about $1,400 an ounce makes perfect sense. Confidence is waning in paper money, such as the dollar, and for good reason. Our monetary and fiscal policies are remarkably lax, debasing our currency as a store of value and raising the specter of inflation down the road. The Federal Reserve Board continues to pump money into the economy, and we will run huge budget deficits as far as the eye can see, dramatically expanding our financial liabilities. Martin Murenbeeld, an economist at Canada's DundeeWealth Economics, shows that over the past decade,...
  • Bottoms Up for China's Lafite Wine Bubble

    12/07/2010 10:40:13 PM PST · by TigerLikesRooster · 4 replies
    Caing ^ | 12/07/10 | Andy Xie
    By Andy Xie 12.07.2010 18:37 Bottoms Up for China's Lafite Wine Bubble Speculators are pumping a wild price bubble for a fine wine whose market ride says a lot about macroeconomic trends During the dotcom bubble, a lot of worthless companies with market capitalizations in the billions of dollars were trading on the NASDAQ exchange. Meanwhile, some really good companies were priced several times higher than their intrinsic worth. Selling these stocks before the bubble collapsed was the right thing to do. What's bubbling in China today? Fine wine in general, and particularly bottles of the French wine Chateau Lafite...
  • Home prices falling faster in September

    11/30/2010 8:44:45 AM PST · by RobinMasters · 12 replies
    Hot Air ^ | NOVEMBER 30, 2010 | ED MORRISSEY
    The housing bubble continues to deflate despite the Obama administration’s efforts to delay the inevitable. Housing prices sank faster in September than in any time this year after seeing them rise briefly in the spring, thanks to short-term interventions by the federal government. As foreclosures start increasing, values will drop even further: Home prices are falling faster in the nation’s largest cities, and a record number of foreclosures are expected to push prices down further through next year. The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday fell 0.7 percent in September from August. Eighteen of the cities recorded...
  • A Dangerous Bubble Is Emerging In China

    11/24/2010 1:19:48 PM PST · by SeekAndFind · 21 replies
    Forbes ^ | 11/24/2010 | Shaun Rein
    For a decade critics have derided me as a China bull for arguing that China's economy would continue to see robust growth. And for years Chinese consumers and China Inc. have proven me right. Retail sales have grown 16% to 18% a year over the past five years while gross domestic product has grown 8% to 12% a year. Companies from Apple to IBM to Louis Vuitton make serious money in the country. Paul Otellini, the chief executive officer of Intel, recently said, "Thank God for China. They buoyed, certainly, our company through the depths." China's economic structure has changed...
  • California Gold Country raises objections to reopening mines

    11/23/2010 8:00:09 AM PST · by DeaconBenjamin · 30 replies
    Sacramento Bee ^ | Monday, Nov. 22, 2010 - 12:00 am | By Dale Kasler
    California is being left behind by the new Gold Rush. Despite sky-high prices and the state's rich gold legacy, the industry here is mostly dormant. California trails the leading gold-producing state, Nevada, by a wide margin. A California revival is hardly imminent. Companies trying to reopen old mines in Grass Valley and near Sutter Creek have slogged through years of red tape, and there are no guarantees of success. The Sutter Creek plan is at least a year away, while Grass Valley is several years from reopening. Standing in the way: scarcity of capital and strict environmental standards. * *...
  • David Einhorn's Chilling Warning: The Fed Would Like To Create Another Asset Bubble

    11/03/2010 7:48:05 AM PDT · by blam · 9 replies
    The Business Insider ^ | 11-3-2010 | Courtney Comstock
    David Einhorn's Chilling Warning: The Fed Would Like To Create Another Asset Bubble Courtney Comstock November 3, 2010, 9:29 AM The FOMC has conditioned the market to expect an announcement of further treasury security purchases after this week’s FOMC meeting, writes David Einhorn's Greenlight in its latest letter to investors, which is available in full on Dealbreaker. This is a mistake, according to Einhorn, who lays out five reasons that QE2 will most likely fail. He ends his argument with the chilling statement: We can’t say whether the Federal Reserve will succeed in creating another asset bubble, but we wouldn’t...
  • 11 Signs That Gold Is In A Bubble That Is Going To Burst

    10/25/2010 7:43:44 AM PDT · by SeekAndFind · 42 replies · 3+ views
    Business Insider ^ | 10/25/2010 | James Altucher
    I first wrote about gold in early July at WSJ.com. I took a lot of heat then but the jury is still out. In fact, since July 9, stocks and gold have performed almost exactly the same. But with stocks trading at record low multiples over earnings (versus bond yields) and with gold at an all time high I can think of 11 straightforward reasons why the Gold Bubble is going to burst and stocks are the primary place one should put their money. * It has very few industrial uses. * Gold has no dividend yield. * Gold has...
  • QE: The Numberless Oblivion

    10/24/2010 9:19:15 AM PDT · by TigerLikesRooster · 4 replies
    Caixin ^ | 10/22/10 | Andy Xie
    By Andy Xie 10.22.2010 17:13 QE: The Numberless Oblivion If you print a trillion, I'll print a trillion – and other instances of behavior leading the world toward high inflation and political instability The world seems full of smoke ahead of a world currency war. The weapon of choice is quantitative easing, a.k.a. QE. If you print a trillion, I'll print a trillion. Of course, he and she will too. No change in exchange rates after a trillion? Let's do it again, QE2. If you listen to people like Geithner, the end of the world is quite near. Rich people...
  • China: A bubble wrapped inside a mystery (No one knows whether her economy is artificially inflated)

    10/21/2010 6:49:06 AM PDT · by WebFocus · 5 replies
    Washington Times ^ | 10/21/2010 | James A. Bacon
    How the world has changed: The decision by China's central bank to raise key interest rates by one-quarter of a percentage point has sparked a worldwide sell-off in stocks, commodities and emerging-markets currencies. Investors have lowered expectations for Chinese growth, which many see as a driver of the global economy. The rise of China's influence upon the global economy makes long-term prognostications about just about any topic related to trade and capital flows, commodity prices, interest rates and economic growth subject to a crucial caveat: depending on what happens in China. The difficulty in divining the future is that China...
  • The Fed's commodity bubble

    10/16/2010 8:42:42 AM PDT · by FromLori · 4 replies
    CNN | 10/15/10 | Howard Penney
    Everything from gold to rubber is reaching new highs. And that's just one of many landmines the stock market bulls are ignoring. If Chuck Prince were in the game today, he would be dancing. In 2007, the former Citigroup CEO famously addressed a question about the bank's push into the booming mortgage market by saying: "As long as the music is playing, you've got to get up and dance. We're still dancing." As we well know, that music eventually stopped and many of the revelers were crushed. But memories are short. Today, plenty of investors are dancing as the S&P...
  • Videos: Barney Frank- Then and Now on Home Ownership

    10/14/2010 12:27:48 PM PDT · by blog.Eyeblast.tv · 5 replies
    In 2005, Rep. Barney Frank addressed the House of Representatives in which he said “you’re not going to see a collapse that you see when people talk about a bubble. Those of us on our committee in particular will continue to push for home ownership.” However, in May of this year Frank appeared on CNBC in which he said he was “very much in disagreement with this push in home ownership” and that the “Federal government should not be artificially doing that.” (2 videos)
  • Washed, Waxed, and Detailed, But It Still Won’t Start!

    10/10/2010 6:34:33 PM PDT · by jfd1776 · 6 replies
    Illinois Review ^ | October 10, 2010 A.D. | John F. Di Leo
    Washed, Waxed, and Detailed, But It Still Won’t Start! By John F. Di Leo, for Illinois Review, October 10, 2010 A.D. The Troika of President Barack H. Obama (D, Trier Tavern Club), Speaker Nancy Pelosi (D, Lubyanka Square), and Majority Leader Harry Reid (D, Cheka) has been assigned the duty of looking after a lovely but non-functioning automobile. It sputtered for awhile, then stopped. Now when you turn the key, it just makes that well-known “click-click-click” sound. It doesn’t do a thing. So they washed it, because that’s something they know how to do. They washed off all the dirt;...
  • The Entitlement Bubble: The Bust Is Going to Be a Nightmare (Worse than the Housing Bubble?)

    09/17/2010 7:12:14 AM PDT · by SeekAndFind · 57 replies
    National Review ^ | 09/17/2010 | Kevin Williamson
    In the course of arguing that our real national debt is around $130 trillion — as opposed to the official number of $14.7 trillion — I have frequently encountered the argument that I’m wrong to include unfunded entitlement liabilities in the total. Here’s a typical example from the comments to this post: Kevin Williamson, expected spending 75 years in the future, based on current policies and projects that are certain to change anyway, is NOT debt. No amount of calling it “debt” or calling it “our REAL debt” changes that fact. Project funding gaps are not debt. DEBT is debt....
  • Who Are The Biggest Bubble-Makers? (HINT: They are not investors)

    09/08/2010 8:39:10 AM PDT · by SeekAndFind · 11 replies
    National Review ^ | 09/08/2010 | Jim Powell
    Amid signs that another financial bubble might be in the making — this time involving U.S. Treasury bonds priced at about 100 times their yield — it would be helpful to review what one might call bubble dynamics. That’s the subject of a new book, Crisis Economics, by Nouriel Roubini, the New York University economics professor who famously warned about the housing bubble that began to break in 2007. He discusses “how and why markets fail.” He blames the financial meltdown on “the mantra of free markets” and “decades of free market fundamentalism.” He declares that “in the future, central...
  • China: A question of time(64 mln empty residential units)

    09/08/2010 6:56:27 AM PDT · by TigerLikesRooster · 7 replies
    Fianace Asia ^ | 09/08/10 | Lillian Liu
    A question of time It isn’t a question of whether China’s property market is a bubble, but when it will burst. By Lillian Liu | 8 September 2010 Keywords: property | china | bubble /snip Wan is not alone. Many homebuyers nowadays in China consider their property assets as part of their long-term savings plan, as well as a hedge against inflation. Why property? China’s tightly run financial system leaves only three places for its zealous savers to put their money. Bank deposits are one option. But they yield 2.25%, less than the 3.1% rise in May’s consumer price inflation....
  • Time to let home prices fall?

    09/05/2010 1:01:21 AM PDT · by Chet 99 · 45 replies
    LA Times ^ | Tom Petruno
    You can't force someone to buy a house. But as a society we've long tried to make homeownership an offer you couldn't refuse. And since the real estate mega-bubble burst three years ago, the government has tried even more tricks to get people to sign home purchase contracts. Now, a grim reality has set in: Despite the still-rich basket of tax breaks for residential property owners, and the lowest mortgage rates in a generation, the pool of willing or able buyers is dwindling.
  • Into the Interstellar Void

    09/01/2010 11:11:57 AM PDT · by LibWhacker · 10 replies
    Centauri Dreams ^ | 9/1/10 | Paul Gilster
    We often think about interstellar probes only in the context of what they find at the end of their journeys — astrobiologically interesting planets seem to be the whole story. But not so fast. As Ian Crawford (University of London) notes in a recent paper, there are quite a few fascinating — and indeed critical — things we need to learn about interstellar space itself, in this case what is known as the Local Interstellar Medium (LISM). Crawford, who has been analyzing these matters for the Project Icarus team, notes how much we’ve learned about the LISM since the Daedalus...
  • Foreclosure: 'This is like Pearl Harbor' (more whiny morons "losing their homes"

    07/25/2010 8:07:03 AM PDT · by Notary Sojac · 84 replies
    Suburban Chicago News ^ | 20 July 2010 | Cindy W. Cain
    MOKENA -- The foreclosure crisis has hit home for the Triezenbergs of Manhattan Township. Mark and Tia Triezenberg and their five young children, including one with severe disabilities due to autism, must leave their home by Aug. 29. The foreclosure, one of many nationwide and locally (see sidebar), caps a troubled couple of years for a family that saw its income soar with the home-building boom and plummet with the recession. "This is like Pearl Harbor," Mark said during an interview at a Mokena restaurant. "Only a few people saw this coming." The Triezenbergs still don't know where they will...