The infamous home price bubble and financial crisis of 2008 is easily blamed on 1) subprime borrowers, 2) Collateralized Debt Obligations (CDOs), 3) financial derivatives, 4) tricked-up ARMs (adjustabe rate mortgages) like pay-option ARMs, 4) lack of regulatory oversight (The Fed claimed that is wasn’t their job!), etc. But what generally overlooked is the supply … Continue reading Simply Unaffordable! The Fed And Why Apartment Rents Are So High And The 1-Unit Housing Bubble of 2006 Market Distortion →
Are financial markets dazed and confused by The Fed’s activities? Or is there a communications breakdown? Or are we over, under, sideways, down in terms of The Fed and asset bubbles? (Bloomberg) — Wall Street has become obsessed with the Federal Reserve’s balance-sheet runoff, as investors debate why it’s suddenly roiling markets more than a year after it … Continue reading Fed Balance Sheet Fracas Highlights Confusion Over Market Impact (Dazed And Confused? Or Communications Breakdown?) →
Yes, US home price growth continues to slow as The Federal Reserve continues to unwind its bloated balance sheet.
Back in 2010, bank analyst Chris Whalen wrote this piece for Zero Hedge entitled “The Sanders Polynomial or Why “Esto se va a poner de la chingada””. Yes, things got ugly for the residential mortgage market following the mortgage purchase application bubble that peaked around 2005. If you fit a non-linear curve to MBA Mortgage … Continue reading The “Sanders Polynomial” Update: Mortgage Purchase Applications And Mortgage Rates (The Raising Of Credit Standards And Demise Of Non-vanilla ARMs Since Financial Crisis) →
Venezuela, the once prosperous nation in South America, is now a Socialist cesspool with an inflation rate of … 106,000%. That is according to Professor Steve Hanke at Johns Hopkins. Here is Nicolas Maduro, the Man in the Yellow Hat, demonstrating that he can walk safely among the Venezuelan people who adore him. And is … Continue reading The Man In The Yellow Hat? Venezuela’s Annual Inflation Rate Cools … To 106,000% →
First, the expectations for furthering tighening of The Fed Funds Target Rate are near zero, at least according to WIRP. Now, according to Nick Timiraos at the Wall Street Journal, Federal Reserve officials are close to deciding they will maintain a larger portfolio of Treasury securities than they’d expected when they began shrinking those holdings two … Continue reading Fed Dead Redemption II: Fed Officials Weigh Earlier-Than-Expected End to Bond Portfolio Runoff →
The good news? US initial jobless claims chimed in at 199k, the lowest since 1969. Beating the expectation of 218k jobless claims. The bad news?
One day it looks like China and the US are making progress in trade talks, the next day there is no progress. Just like Brexit &
And no, that was not a seasonal effect. Existing home sales declined 6.4% MoM in December, the largest decline since November 2015.
The International Monetary Fund (IMF) has downgraded economic growth for the Eurozone to 1.6 for 2019. weoupdatejan2019. But Japan is even worse at a forecast of 1.1% for 2019.
Russia is also forecast to be sub-2% as 1.6%.
The Eurozone and Japan are …