Real estate

Is There A Housing Recovery Underway?

A couple of OK months (i.e., not downright bad) in the residential real estate market has the optimists declaring (again!) that a bottom has been reached for home prices. The data are hardly definitive but provide “green shooters” the opportunity to claim that the worst is behind us. Most of those making this claim have no more basis for doing [...]

China Collapse?

The Daily Bell provides an overview of China’s real estate market which they (and others) claim has already collapsed. This collapse is expected to bring  down the Chinese economy and what remains of the world economy. Here is an excerpt from the article: And here is some of the text that accompanies the video below … Chinese Vice Premier, Li [...]

China Troubles Ahead

Mish has written a disconcerting piece on China’s lending bubble as it relates to real estate. China’s housing market valuations are much worse than ours were at the peak. In Beijing, housing values are 22 times incomes. A quote from one of Mish’s sources states: A 90-square-metre (968-square-foot) apartment in Beijing cost 1.6 million yuan (236,000 dollars) last year, the [...]

Healthcare and Detroit: Murdered by Government

The recent passage of Obamacare is madness not seen before in this country. Any cursory review of government indicates that it fails at everything it does. It destroys rather than heals.  Just a few examples are the following: Social Security is insolvent. Medicare and Medicaid are insolvent. The Post Office, despite being a monopoly, is incapable of paying for itself. [...]

Time to Pony Up Again, Taxpayers

Image via Wikipedia Image via Wikipedia Obama announced his new budget, which exceeded most people’s expectations regarding spending. The deficit is likely to be worse than projected because of rosy revenue assumptions. Today WaPo announces that serious problems are developing in the FHA: The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration [...]

What Recovery?

Here are some posts referenced on Chris Martenson’s site yesterday. Is there anything in here that even remotely looks like a green shoot? Things continue to deteriorate and will do so in spite of what the touts tell you. New York Personal Income Tax Collections Fell 21% Last Year Nov. 17 (Bloomberg) — New York state’s personal income tax collections, [...]

Why The Economy Will Not Recover

Image via Wikipedia Image by Getty Images via Daylife Nearly six months ago, I taught a course entitled “Surviving the Crisis.” While not knowing how this crisis will end (either now or back then), I was pretty sure that it could not end given the economic policies put in place. At that time, I stated: “From the standpoint of economics, [...]

Enron was an Ethical Angel compared to our Government

Image via Wikipedia Image via Wikipedia Fannie Mae reports third quarter loss of $18.9 billion and requests another $15 billion in taxpayer funds. Another government enterprise comes back to the well for more, with no end in sight. Bloomberg has a summary of the results here. FNM was the organization that couldn’t do accounting properly several years back. Based on [...]

Huge Commercial Real Estate Crash Forecast

Image by La Citta Vita via Flickr Wilbur Ross Sees ‘Huge’ Commercial Real Estate Crash (Update3) By John Gittelsohn and Thomas R. Keene Oct. 30 (Bloomberg) — Billionaire investor Wilbur L. Ross Jr., said today the U.S. is in the beginning of a “huge crash in commercial real estate.” “All of the components of real estate value are going in [...]

Taxpayers Sacrificed Again

Image via Wikipedia Image by Getty Images via Daylife It is probably hard for the trusting public to believe what is being done to them by their government. Most of us were raised to think that government was “of the people, by the people and for the people.” It was there to help us, not exploit us. Some still believe [...]

Wizard of Oz Economics Runs Into Reality

Image via Wikipedia This is an Econ 301 post, a bit more complicated than typical posts. But this post from Nic Lenoir of ICAP and published at Zerohedge is worthwhile for those inclined to deal with data and charts. It lays out the Fed’s options, neither of which is good. If we had followed proper economic theory, we could not [...]

Intervention Always Harms

Interventionism is economic intervention by the government into the free market. It typically involves subsidies or penalties to particular groups. Interventions never improve the economy. Indeed, many interventions lead to additional interventions to attempt to correct the harm done by the first action. Interventions may improve the lot of a targeted group, but does so at the expense of society. [...]