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Keyword: bubble

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  • David Stockman: "There Are No Markets, Just a Raging Casino"

    04/29/2015 12:41:49 PM PDT · by concernedcitizen76 · 3 replies
    David Stockman Contra Corner ^ | April 27, 2015 | Dan Weil
    Kafka & Keynes Mania in financial markets has raged so far out of control as to place them outside the realm of rationality, says former White House budget director David Stockman. “There are no markets left in any meaningful sense of the word, just a raging casino infected with the madness of the crowds and the central bank pied pipers who mesmerize them,” he writes on his blog. That madness is illustrated in the months-long rise of Chinese stocks and the rebound of McDonald’s shares last week, Stockman says. As for China, the Shanghai Composite Index has soared 121...
  • UK Jeremy Warner: <img src= ></img>

    04/28/2015 4:17:53 PM PDT · by concernedcitizen76 · 4 replies
    UK Telegraph | April 28, 2015 | Jeremy Warner
    John Maynard Keynes obit 21 April 1946 Franz Kafka obit 03 June 1924 Here’s an astonishing statistic; more than 30pc of all government debt in the eurozone – around €2 trillion of securities in total – is trading on a negative interest rate. With the advent of European Central Bank quantitative easing, what began four months ago when 10-year Swiss yields turned negative for the first time has snowballed into a veritable avalanche of negative rates across European government bond markets. In the hunt for apparently “safe assets”, investors have thrown caution to the wind, and collectively determined to pay...
  • Stockman: Corporate America Is Cannibalizing Itself

    04/01/2015 12:35:16 AM PDT · by concernedcitizen76 · 13 replies
    NewsMax ^ | March 9, 2015 | John Morgan
    American businesses are borrowing at historic high levels, but the only thing growing as a result is how fast their equity capital is vanishing, according to David Stockman, White House budget chief during the Reagan administration. Stockman blamed the Fed and the Fed's Wall Street cheerleaders. He said the Fed’s balance sheet has ballooned by nine times since 2000, yet real net investment in the business sector has cratered by 33 percent during the same time period. “Once upon a time businesses borrowed long term money — if they borrowed at all — in order to fund plant, equipment and...
  • Ex OMB chief Stockman: "It is the biggest speculative disaster in human history."

    03/31/2015 7:59:48 PM PDT · by concernedcitizen76 · 52 replies
    Zero Hedge ^ | March 01, 2015 | Tyler Durden
    David Alan Stockman interviewed on CBS-TV 60 Minutes (October 2010) Highlights of recent interview by Harry Dent. David Stockman: People don't want to hear the reality and the truth that we're facing. But I think there is an enormous appetite out in the country to get a different perspective than what you have from the media day in and day out, so I say the fed is out of control. Its balance sheet is exploded. It's printing money like never before. Zero interest rates for 70 months have basically destroyed the pricing function in the financial markets. I said...
  • College Debt Bubble Crisis: 33% Of All Student Loans Are Delinquent On Repayments

    03/31/2015 1:47:59 PM PDT · by SeekAndFind · 40 replies
    Market Daily News ^ | 03/31/2015 | Mac Slavo
    With all of that job creation being claimed by the Obama administration and disseminated by mainstream media outlets as signs of a sustained recovery youÂ’d think most college graduates would have no trouble keeping up with their bills. But new data released by the Department of Education tell a different story. According to the report as many as 33% of American college grads with student loan debt are now in delinquent status on their repayments. About one-third of borrowers with federal student loans owned by the U.S. Department of Education are late on their payments, according to new federal data.The...
  • $100 Trillion American Economic Collapse with Jim Rickards

    12/11/2014 8:11:12 AM PST · by Ghost of SVR4 · 11 replies
    Youtube ^ | Oct 21, 2014 | Jim Rickards
    I don't know too much about Jim Rickards, just found this to be an interesting video about the overall economy and some tidbits about what our government agencies are up to. The video is a 45 minutes long interview of sorts and discussion. Just posting in the event other are interested.
  • NASDAQ Closes in on Dot-Com Peak [Is another bubble around the corner?]

    02/26/2015 7:37:38 AM PST · by SeekAndFind · 17 replies
    The Data Center Journal ^ | 02/26/2015 | Jeff Clark
    The technology sector has been a hot topic for both bulls and bears, with the former seeing the sky as the limit for company valuations and the latter seeing a bubble set for a 2000-like bust. Following the infamous dot-com crash, the Nasdaq composite index fell from a peak of just over 5,000 to nearly 1,000 in about two years. It never exceeded 3,000 during the time leading up to the Great Recession. In early 2009, the Nasdaq began a relatively steady run to today, when it is again testing 5,000. So, whoÂ’s right, the bulls or the bears?...
  • Commodity Prices Are Cliff-Diving Due To The Fracturing Monetary Supernova—The Case Of Iron Ore

    12/31/2014 6:13:00 AM PST · by Riflema · 65 replies
    davidstockmanscontracorner.com ^ | 12-30-2014 | David Stockman
    Crude oil is not the only commodity that is crashing. Iron ore is on a similar trajectory and for a common reason. Namely, the two-decade-long economic boom fueled by the money printing rampage of the world’s central banks is beginning to cool rapidly. (snip)Nowhere is this more evident than in China’s vastly overbuilt steel industry, where capacity has soared from about 100 million tons in 1995 to upwards of 1.2 billion tons today. Again, this 12X growth in less than two decades is not just red capitalism getting rambunctious; its actually an economically cancerous deformation that will eventually dislocate the...
  • Here a bubble, there a bubble: Ol' Marc Faber

    09/19/2014 10:34:58 AM PDT · by SkyPilot · 9 replies
    CNBC ^ | 19 Sep 14 | Matthew J. Belvedere
    Even after the Dow and the S&P 500 closed at new all-time highs, closely followed contrarian Marc Faber keeps sounding the alarm. "We have a bubble in everything, everywhere," the publisher of The Gloom, Boom & Doom Report told CNBC's "Squawk Box" on Friday. Faber has long argued that the Federal Reserve's massive asset purchasing programs and near-zero interest rates have inflated stock prices. The catalyst for a market decline, as he sees it, could be a "raise in interest rates, not engineered by the Fed," referring an increase in bond yields.
  • Two experts warn correction could total 60%

    08/27/2014 5:07:06 PM PDT · by SkyPilot · 93 replies
    CNBC ^ | 27 Aug 14 | Matthew J. Belvedere and Everett Rosenfeld
    <p>Markets could soon face a fall of up to 60 percent, two experts told CNBC on Wednesday.</p> <p>A jolt to international confidence in central banks will lead to a 30 to 60 percent market decline, David Tice, president of Tice Capital and founder of the Prudent Bear Fund, told CNBC's "Power Lunch." When this happens, he said, markets will face a "period of extreme turmoil."</p>
  • Shale gas: 'The dotcom bubble of our times'

    08/04/2014 5:51:58 PM PDT · by Lorianne · 33 replies
    Telegraph (UK) ^ | 04 August 2014 | Tim Morgan
    On the one hand, many environmental and conservation groups are bitterly opposed to shale development. Ranged against them are those within and beyond the energy industry who believe that the exploitation of shale gas can prove not only vital but hugely positive for the British economy. Rather oddly, hardly anyone seems to have asked the one question which is surely fundamental: does shale development make economic sense? My conclusion is that it does not. That Britain needs new energy sources is surely beyond dispute. Between 2003 and 2013, domestic production of oil and gas slumped by 62pc and 65pc respectively,...
  • MARK CUBAN: 'The Student Loan Bubble Is Going To Burst'

    06/20/2014 11:49:07 AM PDT · by SeekAndFind · 46 replies
    Business Insider ^ | 06/20/2014 | Myles Udland
    Screenshot via Inc.comMark Cuban thinks colleges are going to go out of business.In a clip on Inc.com, Cuban talks about the student loan bubble, which he says will burst and end badly for colleges.The end of the student loan bubble, Cuban says, will be like the housing bubble, where tuition collapses the way the price of homes collapsed. These collapses will put colleges out of business.Cuban:"It's inevitable at some point there will be a cap on student loan guarantees. And when that happens you're going to see a repeat of what we saw in the housing market: when easy credit...
  • Mass Hysteria In The Stock Market Backed By The Full Faith And Credit Of The United States.

    06/19/2014 4:56:36 PM PDT · by joeclarke · 8 replies
    JoeClarke.Net ^ | 6/19/2014 | JoeClarke.Net
    Article IV, Section 1  "Full Faith and Credit" Clause of the United States Government. "This is the worse post recession  recovery in American  history,"  as the stock market reaches new highs, compliments of the Federal Reserve's money printing. It is hard to fathom how the elites and intellectuals can get it so wrong that they fall for falsehood after falsehood. The smartest people in the room have been foiled no less than Hitler's mesmerized disciples, or Mao's little-red-book of communized socialist fellow travelers, or Stalin's scientists who guaranteed that wheat could be grown in the coldest, most inhospitable climates.There is...
  • The Ammunition Bubble: Substitute 12 guage for .22?

    06/09/2014 6:38:45 AM PDT · by marktwain · 44 replies
    Gun Watch ^ | 8 June, 2014 | Dean Weingarten
    The two boxes of ammunition cost about the same on today's market The price of 12 gauge hunting ammunition has dropped back to near pre- ammunition bubble levels.    Wal-mart had 100 rounds of birdshot loads priced at $19.97 a couple  of days ago.   That is 20 cents per round, or $5 per box of 25.  Before the Barack Obama ammunition bubble, the ordinary price was a little lower, perhaps $4.50, with sales just before dove season as low as $3.00. .22 rimfire ammunition, particularly .22 long rifle (LR) ammunition prices are at an all time high.  This is a...
  • With Stocks at Record Highs, What Could Go Wrong?

    06/02/2014 6:42:24 AM PDT · by SeekAndFind · 12 replies
    Wall Street Journal ^ | 06/02/2014 | By GREGORY ZUCKERMAN
    The S&P 500 is up nearly 10% since its 2014 low in the first week of February. The index, which tracks the largest stocks, is now at a record high, up 4.1% for the year. Behind the rebound is a view that stocks will continue to benefit from robust earnings, low interest rates and scant inflation. If those conditions persist, the market's climb could very well continue. But it's important to examine the issues that have the worrywarts up at night and the justification bears have for their downbeat outlooks. Below are some critical investor concerns, with a 1 to...
  • Yes, we're in a tech bubble. Here's how I know it

    05/09/2014 6:51:13 AM PDT · by SeekAndFind · 3 replies
    FORTUNE ^ | 05/09/2014 | By Adam Lashinsky
    When tech startups are willing to offer almost anyone -- even a journalist -- shares ahead of an IPO, a burst isn't terribly far behind. I was surprised but not completely flabbergasted by the phone call I received a few weeks ago. A representative of Arista Networks, a networking company I've written about recently, phoned to inform me that the company's chief executive wanted to offer me "friends and family" shares in Arista's upcoming initial public offering. The offer was explicit, down to the number of shares I'd have the opportunity to purchase at the IPO price. The caller specifically...
  • If a Bubble Bursts in Palo Alto, Does It Make a Sound?

    04/24/2014 6:53:21 AM PDT · by SeekAndFind · 4 replies
    New York Times ^ | 04/24/2014 | Annie Lowrey
    This year, Facebook purchased the mobile-messaging application WhatsApp for $19 billion, or about $350 million per employee and $40 per user, only some of whom even pay the $1 annual fee for the advertisement-free platform. But what was perhaps most remarkable about Facebook’s acquisition of WhatsApp was that the start-up was making any money in the first place. In recent years, Facebook has shelled out 10-figure sums for Instagram and the virtual-reality headset maker Oculus V.R., both of which had scant or no revenue. Ditto for the safe-sexting-enabler Snapchat, which reportedly turned down a $3 billion offer from Mark Zuckerberg....
  • College: The Sixty-Five Thousand Dollar Misunderstanding

    04/17/2014 7:28:04 AM PDT · by SeekAndFind
    Pajamas Media ^ | 04/17/2014 | Roger L. Simon
    [1]Back in 1962, Robert Gover published a novel called the One Hundred Dollar Misunderstanding [2] whose premise Amazon describes this way: “A college sophomore spends a weekend with a pretty 14-year-old black prostitute under the manly misapprehension that she has invited him because she finds him irresistible.”I remember reading it as an undergraduate and finding it mildly amusing. Of course, inflation being what it is, it’s hard to write a book about a piddling hundred dollar misunderstanding anymore. But somehow the novel came to mind today when reading one of my favorite websites — The College Fix [3]. The...
  • Furious Chinese Demand Money Back As Housing Bubble Pops

    03/24/2014 7:34:39 AM PDT · by SeekAndFind · 4 replies
    Zero Hedge ^ | 03/24/2014 | Tyler Durden
    <p>Hell hath no fury like a woman scorned or, it seems, like a Chinese real estate speculator who is losing money. After four years of talking (and not doing much) about cooling the hot-money speculation that is the Chinese real-estate bubble (mirroring the US equity market bubble since stock-ownership is low in China), the WSJ reports that the people are restless as the PBOC actually takes actions - and prices are falling. With new project prices down over 20%, 'homeowners' exclaim "return our hard-earned money" and "this is very unfair" - who could have seen this coming?</p>
  • Margin Debt Hits All-Time High

    02/02/2014 12:46:29 PM PST · by Red in Blue PA · 16 replies
    In the month of December margin debt on the NYSE surged by over $20 Billion dollars hitting a new all-time high of $444.931 billion. The rise in leverage also sent investors net worth to a negative $149.358 billion which is also a record. This is shown in the chart below.
  • Bitcoin -- Boom or Bubble?

    01/20/2014 8:17:37 AM PST · by Errant · 29 replies
    Real Clear Politics ^ | 20 January, 2014 | Robert Samuelson
    WASHINGTON -- The baffling Bitcoin boom is either an exercise in self-delusion -- a high-tech Ponzi scheme that will come crashing down -- or an imaginative new Internet technology that will ultimately change how millions of people around the world conduct everyday business. There is little middle ground. Called a "digital currency," Bitcoin originated in early 2009 with a software program written by Satoshi Nakamoto. Who is Nakamoto? Good question. It's a pseudonym, and we don't know who's behind it -- whether man or woman; individual or group; American, Japanese, Russian or some other nationality. But what seems clear is...
  • The 'Facebook Bubble' Bubble

    A tug of war is taking place between Facebook (FB) bulls and bears. It is playing out in the blogosphere and financial news outlets. Facebook has passionate longs and shorts as can be expected with a stock that has increased to the degree it has over the past year. Those who are short Facebook are clinging to two particular themes that warrant contemplation since the hopes and livelihood of short-sellers are resting heavily upon them: (continued)
  • No, the 'College Bubble' Isn't Popping

    01/10/2014 4:57:23 AM PST · by SeekAndFind · 27 replies
    The Atlantic ^ | 01/10/2014 | JORDAN WEISSMANN
    When newspaper editors are in the mood to run a good old-fashioned screed about the collapsing value of college, they inevitably turn to Richard Vedder, an Ohio University economist who runs the Center for College Affordability and Productivity. Vedder likes to argue that the financial return on a B.A. is falling, graduates are chronically underemployed, and that our profligate universities are in for a reckoning once everyone wises up and stops throwing their money away. (For what it's worth, I tend to disagree). Today Vedder and one of his students, Christopher Denhart, have upped the ante a bit for The...
  • Beware the Tech Bubble—But Stay Calm

    12/30/2013 5:34:35 AM PST · by SeekAndFind · 24 replies
    Wall Street Journal ^ | 12/30/2013 | Farhad Manjoo
    I spend a lot of time worrying about the next tech bubble. It's my job to worry, of course, and this year, worrying became a full-time occupation. Ever since Facebook's stock price rebounded this year to the level of its initial public offering, tech startups have seen an incredible run-up in valuations.
  • Astronomy Picture of the Day -- Sharpless 308: Star Bubble

    12/24/2013 7:46:27 PM PST · by SunkenCiv · 3 replies
    NASA ^ | December 24, 2013 | (see photo credit)
    Explanation: Blown by fast winds from a hot, massive star, this cosmic bubble is huge. Cataloged as Sharpless 2-308 it lies some 5,200 light-years away toward the constellation of the Big Dog (Canis Major) and covers slightly more of the sky than a Full Moon. That corresponds to a diameter of 60 light-years at its estimated distance. The massive star that created the bubble, a Wolf-Rayet star, is the bright one near the center of the nebula. Wolf-Rayet stars have over 20 times the mass of the Sun and are thought to be in a brief, pre-supernova phase of massive...
  • Fact, Fiction, And 11 Bitcoin Myths

    12/12/2013 8:24:38 AM PST · by Errant · 59 replies
    Zero Hedge ^ | 12/12/13 | Tyler Durden
    Haters gonna hate, but the “Bitcoin bubble” meme has become the financial equivalent of a viral online cat video – wildly popular but pretty vacuous. In an effort to separate fact from fiction, ConvergEx's Nick Colas reviews 11 bitcoin myths (and dispels them). Still, there’s no doubt that the public is entranced: there are now 3x more Google searches for “bitcoin” than “Western Union”, and 33x more than for “Gold coins”. We started writing about bitcoin back in February because it was – and still is – a fascinating invention (for better or worse). How it plays out, we will...
  • Oh We Got Trouble, Right Here In Bubble City: Real Income Fallinbg While House Prices Rise

    12/09/2013 11:31:31 AM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 12/09/2013 | Anthony B. Sanders
    There are cheers from the media about the latest jobs report. While some speculated that it was so good that The Fed would begin tapering their assets purchases, few noticed that the 10 year Treasury yield actually fell on the jobs report. But let’s look at the longer term picture. House prices are rising rapidly despite declining real median household income. Problem 1: Labor’s share of nonfarm business have been falling for decades, but it’s decline has been accelerating since 2000. laborsharelt No problem, many economists say. The U.S. has been moving towards a service economy for decades. But, …...
  • On West Coast, Along With House Prices (Another Affordability Crisis In Housing?)

    12/05/2013 3:26:29 PM PST · by whitedog57 · 7 replies
    Confounded Interest ^ | 12/05/2013 | Anthony B. Sanders
    Trulia released its price and rent monitor today. In November, asking home prices rose 12.1 percent year-over-year (YoY), increasing in 98 of the 100 largest U.S. metro areas. Regaining a bit of steam since the slowdown began in July, asking prices rose 1.0 percent month-over-month (MoM) and 3.0 percent quarter-over-quarter (QoQ). In fact, the quarterly increase is the fastest in five months, though still lower than in the spring. The west coast along with Atlanta and … Detroit(?) are still growing in price at a rapid rate, but that rate is slowing down. askrpicertrulia Rents on the west coast are...
  • Greenspan Baffled Over Bitcoin 'Bubble': "To Be Worth Something, It Must Be Backed By Something"

    12/04/2013 8:43:19 PM PST · by Nachum · 42 replies
    zero hedge ^ | 12/4/13 | Tyler Durden
    "In order for currencies to be 'exchangeable' they have to be backed by something," is the remarkably ironic initial comment from none other than debaser-of-the-entirely-fiat-dollar Alan Greenspan when asked about the "bubble in bitcoin," by Bloomberg TV's Trish Regan. Unable to "identify the intrinsic" backing of Bitcoin (or see bubbles in equity, credit, real estate, or greater fools) Greenspan is, apparently, capable of identifying Bitcoin "as a bubble," because "there is no fundamental means of "repaying' it by any means that is universally accepted." The farcical double-speak continues as the Maestro does a great job of making Bitcoin (which Ron...
  • House Prices, Home Ownership And Real Income - Why Housing Is Still Weak And Investor Dependent

    12/01/2013 10:57:26 AM PST · by whitedog57 · 11 replies
    Confounded Interest ^ | 12/01/2013 | Anthony B. Sanders
    There is a lot of talk about a new housing bubble. If you look at a chart of house prices, you can see why. cs2009 This is a faster acceleration rate in house prices than during the much-discussed housing bubble of the last decade. csindices112613 Can it continue to accelerate? There are a couple of factors that say no. First, real median household income has been falling since 2000 and particularly since 2009. It is difficult to maintain price growth under these conditions once investors pull out. csrealinc Second, home ownership rates continue to fall …. along with real median...
  • Talk of a Stock Market Bubble is Baloney

    11/27/2013 7:28:07 AM PST · by SeekAndFind · 23 replies
    SERVO WEALTH ^ | 11/26/2013 | Eric D. Nelson, CFA
    In case you haven’t noticed, there has been a surge in market forecasts lately claiming that the recent run up in prices has resulted in a stock “bubble”. There is no universal definition of what actually constitutes a bubble, so we’ll settle for the vague description of “a condition where market participants drive stock prices well above their value in relation to some system of stock valuation.” The fear of a bubble, of course, is that when the euphoria ends, prices will fall to more pedestrian levels resulting in a significant loss for existing investors who don’t bail out first.Pundits...
  • Bankrupty Detroit Leads Case-Shiller House Price Growth For September (Followed By Southwest)

    11/26/2013 7:56:24 AM PST · by whitedog57 · 8 replies
    Confounded Interest ^ | 11/26/2013 | Anthony B. Sanders
    The S&P Case-Shiller repeat sales house price indices were released this morning. The U.S. National Home Price Index rose 3.2% in the third quarter of 2013 and 11.2% over the last four quarters. Call me crazy, but the recent expansion of house prices (red) looks faster than the rapid expansion during the housing bubble (orange). The recent rapid expansion of house prices coincides with the unprecedented monetary stimulus by The Federal Reserve. csindices112613 The big winner from August to September? Bankrupt Detroit! And in the LPS house price report from yesterday, bankrupt Modesto showed a good gain. Other winners in...
  • Are We In Another Tech Bubble?

    11/17/2013 6:26:37 PM PST · by SeekAndFind · 6 replies
    TIME ^ | 11/17/2013 | Raba Foroohar
    There’s a reason why a lot of the world’s top investors, like Warren Buffett, don’t invest in technology—it moves too fast. And it’s too hard to track whether the hot stock or idea of today will be worth anything in five years. Buffett famously references the auto industry when he talks about his aversion to technology stocks. There were hundreds of car companies in the U.S. during the early part of the 20th century, but only a handful survived and made investors any money over the long haul. The big question is, are we in a bubble right now? First,...
  • Trulia's Koklo: "Home Prices Simmering, Not Bubbling" - Really, Jed?

    11/13/2013 9:16:32 AM PST · by whitedog57
    Confounded Interest ^ | 11/13/2013 | Anthony B. Sanders
    For years doctors have been focused on specific cholesterol numbers to help patients prevent initial and recurrent heart attack. New guidelines mean only those at high risk will be recommended to take the drugs. So how will doctors decide who is at high risk? More importantly what are physicians already saying about changes? Dr. Neil Stone of Northwestern University chaired the committee that wrote the new guidelines, which was a collaborative effort between the American Heart Association and the American College of Cardiology. No more statins to control cholesterol numbers say expertsInstead of looking at cholesterol numbers Stone said physicians...
  • Morgan Stanley says internet companies overvalued, lowers view

    11/11/2013 3:50:01 PM PST · by xzins · 14 replies
    Global Post ^ | November 11, 2013 18:02 | Thomson Reuters
    Morgan Stanley lowered its industry view on internet stocks to "in-line" from "attractive," saying growth in the sector needs to accelerate to justify current valuations. Shares of Facebook Inc and LinkedIn Corp have more than doubled in the last one year, and trade 44 and 97 times forward earnings, according to Thomson Reuters data. Google Inc's shares have risen 56 percent in the same period and trade almost 20 times earnings, data showed. Morgan Stanley analysts said the rise in the valuation of internet stocks has been due to investors looking at the total addressable market (TAM) opportunity with minimal...
  • Insight: Yellen Feared Housing Bust But Did Not Raise Public Alarm

    11/02/2013 8:20:16 AM PDT · by Son House · 4 replies
    Reyters ^ | Oct 30, 2013 | Marilyn W. Thompson, Ann Saphir and Alister Bull
    In 2004, the new president told risk managers in San Francisco that closer supervision had "made our financial system far more resilient to shocks." In Phoenix that year, she reported "more positive signs in the economy." She flagged real estate as a concern in March 2005, telling a banking group in Hawaii that her staff was examining commercial lending and was concerned about the "easing of credit standards and terms on loans" for home mortgages. But Yellen ended optimistically, concluding that "we don't think widespread problems are likely" and that "industry conditions in many respects are stronger now than they've...
  • Investors Gone Wild! CS House Prices Rise Most Since 2006 (Vegas Leads)

    10/29/2013 7:13:46 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 10/29/2013 | Anthony B. Sanders
    S&P Case-Shiller house prices rose by 0.93% in August (MoM) and 12.82% (YoY), the biggest Year-over-Year rise since 2006. csyoy And the Case-Shiller 20 metro index is back to August 2008 levels. spcs102913 Well, we know that it isn’t households borrowing to purchase a home that is driving this bubble. Here is a chart from CoreLogic on Purchase Mortgage Credit Production. It remains low. skfig1-purchasemortgage And the MBA Purchase Application index (due out tomorrow) is similarly low (at 1995 levels). mbapurchase1995 In fact, house prices are rising as mortgage purchase applications are falling. csaugmbapurch In terms of metro area price...
  • Expert: Higher Education Bubble Is Coming and States Better Prepare

    10/29/2013 6:07:22 AM PDT · by MichCapCon · 12 replies
    Capitol Confidential ^ | 10/26/2013 | Jarrett Skorup
    LANSING — In the next decade, potentially hundreds of colleges will go out of business as their prices push families away from traditional universities, said an expert on higher education. American higher education is in a bubble, said Richard Vedder, an economist at Ohio University and the president of the Center for College Affordability and Productivity, who spoke Tuesday at an “Issues & Ideas” event sponsored by the Mackinac Center for Public Policy. Vedder, who also is on the Mackinac Center's board of scholars, said the government subsidizing college has increased demand but also pushed prices higher and out of...
  • Does Janet Yellen Know What a Bubble Looks Like?

    09/30/2013 11:52:41 AM PDT · by Kaslin · 9 replies
    Townhall.com ^ | September 30, 2013 | Mark Calabria
    With Larry Summers withdrawing from the race for Federal Reserve chair, current Fed vice chair Janet Yellen has pulled into the lead to become Ben Bernanke’s replacement. Previous to her current appointment, Yellen served as president of the San Francisco Federal Reserve Bank The SF Fed’s district includes three of the worst states in the housing crisis – California, Arizona and Nevada. I think its fair to say that without the housing boom and bust in these states we wouldn’t have had a mortgage crisis. Given that Yellen was the top banking regulator for this geography, one has to wonder...
  • A Preview Of Tomorrow’s Case-Shiller House Price Report (Survey Says +0.80%)

    09/23/2013 2:02:08 PM PDT · by whitedog57
    Confounded Interest ^ | 09/23/2013 | Anthony B. Sanders
    Tomorrow at 9am EST, the S&P Case-Shiller house price index will be released. The survey of economists is for a print of +0.80% increase. csfore The high forecast? Lea Tyler from Oxford Economics at +2.50%. The low forecast? E. Green/M. Mulrain at TD Securities at 0.40%. We can look at CoreLogic’s Loan Performance Index for a peak at what CS might do for July. cslp CoreLogic’s house price index rose more than 0.80 for July, so we shall see about Case-Shiller tomorrow. But this continues to be a low mortgage purchase application recovery in prices.
  • Real Median Household Income Below 1989 Levels (And We STILL Had A Housing Bubble?!)

    09/20/2013 1:25:43 PM PDT · by whitedog57 · 10 replies
    Confounded Interest ^ | 09/20/2013 | Anthony B. Sanders
    The typical American family makes less than it did in 1989. “the most depressing result comes when you look at the longer view of household incomes in the United States. This chart shows real median household income over the past 25 years; that is, the money earned, in inflation-adjusted dollars, by the family at the exact middle of the income distribution.” medianhouseholdincome Yes, that is pretty depressing. This in spite of a tax system where 43% of Americans pay no Federal income taxes. The good news? It used to be 47%. This corresponds to my least favorite chart which shows...
  • The New Credit Supercycle? Subprime Auto And Student Loans (Mortgages Next?)

    09/20/2013 7:58:33 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/20/2013 | Anthony B. Sanders
    The last credit supercycle, the housing bubble and easing of mortgage credit, almost took the US economy out. But of course, nothing ever changes. That was the theme of the classic Bernard Malamud novel “The Natural” where Roy Hobbs strikes out in the climactic moment (Robert Redford hits a titanic home run in the movie to win the game defeating the entire message of the Malamud novel). Take auto loans and student loans, for example. student-debt-is-the-only-kind-of-household-debt-that-rose-during-the-recession-its-now-the-second-largest-consumer-debt-category-after-mortgages The average loan-to-value ratio, or LTV, on vehicle sales to consumers with spotty credit has risen to 114.5 percent this year from about 112...
  • UK Considers Price Controls To Prevent Housing Bubble (UK House Recovery Driven By Investors)

    09/14/2013 9:59:48 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/14/2013 | Anthony B. Sanders
    Fearing another housing bubble in the UK, the Royal Institution of Chartered Surveyors called on the Bank of England to use its powers to cap house price growth at 5% in certain areas. Where in the UK are house prices growing at breakneck speed? London .. and some place outside of Liverpool. london If we compare London house prices (white line) to New York City house prices (gold line), we can see that London did has rebounded more rapidly after the global recession. The largest increase was in London where prices were up 8.1%. Read more: http://www.dailymail.co.uk/news/article-2419824/Call-expensive-mortgages-areas-house-prices-soaring-5-slammed-experts-insist-boom.html#ixzz2eswQBWhh Follow us: @MailOnline...
  • Student Loan Bubble – Bursting Or Not? Delinquencies Falling in 2013

    09/10/2013 4:13:23 PM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 09/10/2013 | Anthony B. Sanders
    The student loan bubble is starting to burst. The largest bank in the United States will stop making student loans in a few weeks. JPMorgan Chase has sent a memorandum to colleges notifying them that the bank will stop making new student loans in October. “We just don’t see this as a market that we can significantly grow,” Thasunda Duckett tells Reuters. Duckett is the chief executive for auto and student loans at Chase, which means she’s basically delivering the news that a large part of her business is getting closed down. And if you read Zero Hedge or AgainstCronyCapitalism,...
  • Housing Bubble — the Sequel: Here we go again

    08/22/2013 8:14:07 AM PDT · by SeekAndFind · 16 replies
    Townhall ^ | 08/22/2013 | Bill Tatro
    Here we go again.  Having just recently endured a one-hour phone conversation with my friend Steve, a mortgage broker, I’m a little bit confused and somewhat worried.  Since most of the houses sold in the past year have been “all-cash” transactions, combined with the fact that mortgage applications have fallen off the cliff, I asked Steve if that means that the average person is no longer a buyer.  Steve replied, “Define the average person.”  I articulated, “It’s not someone who pays “all-cash” because I know that’s the technique on Wall Street, and I also know it’s a select few...
  • Core Logic: Los Angeles House Prices Up 21%, Phoenix Up 17% (The West Of The Rockies Rebound)

    08/06/2013 12:28:49 PM PDT · by whitedog57 · 11 replies
    Confounded Interest ^ | 08/06/2013 | Anthony B. Sanders
    According to Core Logic, house prices in Los Angeles rose 20.7% Year-over-year. Phoenix rose 19.8%. Texas cities (Houston, Dallas) were up 10%. clcities Excluding distressed sales, the recovery is largely west of the Rockies and Georgia/Florida. clmap The large year-over-year gains occurred when the 30 year mortgage rate was 3.80% (but has risen since late May to 4.37%). br30080613 Rising mortgage rates and 70% of jobs being created are part-time. Throw in nationally flat-to-falling mortgage purchase applications, and we have an INVESTOR-FUELED HOUSE PRICE RECOVERY. lambs Hope those investors keep buying!!!! Sadly, it is difficult for part-time workers to purchase...
  • EASY CREDIT IS INFLATING A MASSIVE STUDENT-LOAN BUBBLE

    06/22/2013 1:40:12 PM PDT · by SeekAndFind · 14 replies
    Human Events ^ | 06/21/2013 | Steven Greenhut
    Americans are still talking about the recently deflated housing bubble, but there’s a new bubble in town. It’s the student loan bubble and when this one pops, it might dwarf the wreckage we’ve witnessed in the real-estate markets. In the latest news, the Federal Reserve’s Board of Governors warned that soaring student-loan debt has “parallels to the housing crisis,” according to a May report in Bloomberg. As with housing, free-flowing cash will lead to widespread default. Of course, it’s easier to repossess a tract house than to take back a potentially worthless degree. Federal Reserve Chairman Ben Bernanke dismissed these...
  • Mortgage Applications Fall 3.3%, Fed FOMC Meets Today at 2pm EST

    06/19/2013 6:08:48 AM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 06/19/2013 | Anthony B. Sanders
    The Federal Reserve Open Market Committee (FOMC) meets today at 2pm EST. But is there a bubble? One sign of a bubble is the rise in NYSE margin accounts. Another sign of a bubble is the junk bond yield. But I will tell you where there is NOT a bubble – mortgage applications. The Mortgage Bankers Association (MBA) released their weekly mortgage applications this morning revealing that mortgage applications dropped -3.3% from the preceding week. Mortgage purchase applications fell 3.04% from the previous week and remain at 1997 levels. Mortgage refinancing applications fell 3.43% from the preceding week. This is...
  • CANADA IS DOOMED: Three Signs That The Country Up North Is Screwed Beyond All Recognition

    06/17/2013 9:16:17 AM PDT · by SeekAndFind · 55 replies
    Business Insider ^ | 06/17/2013 | Josh Barro
    You might be under the impression that everything is going pretty well in Canada, which had no banking collapse and only a mild recession in 2008-9. You would be wrong. The country is beset by political corruption scandals of the sort that people focus on when the economy is good. But it also has a massive ongoing housing bubble, and its economy is being propped up by a global commodities boom that now shows signs of slowing. Let's break down the three ominous signs. First, the scandals: Montreal Mayor Michael Applebaum got arrested this morning, charged with 14 counts including...
  • The Education Bubble Has Burst: Students and Parents already know it, only Government Doesn't

    06/11/2013 7:24:36 AM PDT · by SeekAndFind · 28 replies
    American Thinker ^ | 06/11/2013 | Frank Ryan
    The student loan debate in Congress is bringing to the forefront the student loan crisis plaguing our nation, as well as the financial instability of academic institutions in the United States. Relative to the student loan crisis, the New York Federal Reserve concluded in its 2012 report that the obligations for student loans total approximately $1 trillion, or approximately $25,000 per graduate. The report notes that there are over 15 million borrowers under the age of 30, while the total number of borrowers is almost 39,000,000. The delinquency rates on the loans range between 10% to 20% for the various...