Global House Price Imbalance
According to The Economist, there are still six global real estate markets that are more than 30% overvalued. Australia shows the largest overvaluation at 61.1%, followed...
Get Yourself Some Debt
“Get yourself some debt” isn’t the advice you’d expect to hear from your financial advisor. But with interest rates at record lows it makes...
Record Low for Car Purchase Plans
If consumers follow through with their purchase plans for major appliances, new homes, and new cars, economic growth is likely to slow significantly over...
Housing Starts Look Weak
Housing starts released today came in far below consensus estimates. Government efforts to stimulate the housing market have once again failed. The federal tax...
A Valuable Lesson
There is a valuable lesson for all investors in the SEC’s case against Goldman Sachs. Be sure you know it.
Lowest Mortgage Rates in a Lifetime
The three decade decline in mortgage rates is now at a trough. The Federal Reserve program to support the mortgage market ends today. If you haven’t refinanced your mortgage what are you waiting for? You may never see mortgage rates this low again in your lifetime.
Bad News for Small Business
In 2009, the number of problem banks increased nearly 200%.
The U-Shaped Recovery?
Historically, housing recoveries follow a V-shaped trajectory. Even with significant government support, the current housing recovery, appears to be taking more of a U-shaped path. A healthy skepticism on the pace of a housing recovery remains warranted.
A Threat to Global Economic and Financial Stability
There is an emerging real-estate bubble in China. Ultra-loose monetary policy in the U.S. and an over-the-top stimulus plan in China, coupled with a pegged yuan, have created optimal bubble conditions.
Pull Your Head Out of the Sand
In a recent speech to the American Economic Association, Fed Chairman Bernanke offered his explanation of the causes of the housing bubble. But Chairman Bernanke has his head in the sand. His explanation of the housing bubble is naive.