Homeownership Falls under the Obama Economy

People keep talking about a “recovery.” The rest of us wonder what they are talking about. Perhaps a “recovery” means the successful inflation of housing prices. “The value of homes has recovered.” Right. So now no one can afford them. Ryan McMaken addresses the issue at Mises.org: “Thanks, Janet Yellen: Homeownership in US Falls to 25-Year Low.” I do not regard homeownership rates as a proxy measure of economic prosperity. But, in the United States, increasing homeownership has long been Read more […]

Telegraph: Economic Doomsday Is Here

The inevitable collapse of China is finally happening and with it comes economic doomsday — but we should welcome it. The Telegraph has an excellent account of what is happening in the world economy: “Doomsday clock for global market crash strikes one minute to midnight as central banks lose control.” Here is a video that illustrates the report: The article begins with an obvious whitewash: When the banking crisis crippled global markets seven years ago, central bankers stepped Read more […]

Is the Bubble about to Burst?

Do you own any stocks or mutual funds? If so, you really should read and ponder this article. From the Sovereign Man blog: Lord Overstone said it best. “No warning can save people determined to grow suddenly rich.” Case in point– CYNK Technology Corp, a listed company that as of this morning has a market capitalization in excess of $1 BILLION. According to official filings, the social media development company had one employee, no website, no revenue, no product, and no assets. What Read more […]

Seniors on Fixed Income Suffer Deprivation So NYC Real Estate Can Enjoy a Boom.

The New York Times reports: The luxury market has been strong for some time, but it exploded in the first quarter, with prices jumping 45 percent to an average of $7.4 million from $5.1 million, according to data from the appraisal firm Miller Samuel. That is the largest year-over-year increase in six years. Driving the market has been a staggering lack of inventory. Just 174 new condominium units came to market in Manhattan in the first quarter, a 73 percent drop from the first quarter of 2013, Read more […]

Wall Street Journal: “Bubble? What Bubble? That’s just ‘froth.’”

Can the propaganda get more outrageous? I normally consider the Wall Street Journal one step better than CNBC, but they have not gone into full bubble-cheerleader mode, as is evidenced in this headline: “There’s No Housing Bubble, but Places Like California Starting to Look Frothy.” Froth! That was exactly the kind of rhetoric used a few years ago to deny that a housing crash was on the way. As the Guardian recently recalled: It was argued that financial innovation – manifested in the alphabet Read more […]

Flooding The World With New Currency Is Getting Old

A person begins heavy drinking in order to get drunk and stay drunk. Eventually, unless he stops and deals with reality, he drinks just to stay sane—until his health collapses. Likewise, a person may get high from heroin but later need the drug just to stay functional. Creating continual flows of new currency “stimulus” works in a similar fashion on the economy. Thus far, the Fed’s (now slightly reduced) monetary stimulus has kept the stock market rising. But there are signs that the drug Read more […]

Dear Tom Perkins: Why Comparing Hatred Of The Rich To Nazism Is Misguided

Tom, I had never heard of you before I read about you at Newser: A billionaire venture capitalist has sparked a furor with a worried letter to the Wall Street Journal. In the brief piece, Tom Perkins notes “the parallels of fascist Nazi Germany (and) its war on its ‘one percent,’ namely its Jews, to the progressive war on the American one percent, namely the ‘rich.'” He continues: “From the Occupy movement to the demonization of the rich embedded in virtually every word of our local newspaper, the Read more […]

Small Town America Dying From Recessions, Heroin, Depopulation; But Media Not Curious About Causes

The headline looks like it is ready to go all Marxist on the readers: “Reinventing the Dwindling Middle Class May Take A Revolution.” But the content of the radio news report didn’t match it. It was just sad story about a journalist returning to her hometown of Lincoln, Illinois and noticing the changes. It turns out that what’s happening in Lincoln is happening in so many towns and communities across the country: As we recover from the Great Recession, jobs are coming back. But they are not Read more […]

What Do The Rich Know That No One Is Telling Us?

Think the stock market is going to go higher? I suspect some people may disagree with you. A new survey of family offices by Citi finds that the wealthy are cash heavy—meaning they may fall short of the investment returns they’re expecting. Wealthy families have about 39 percent of their assets in cash, according to a recent poll of more than 50 large family office representatives from 20 countries conducted by Citi Private Bank. Stocks represented about 25 percent of portfolios on average. Read more […]