/Tag: Banking

QE Or Bust – US Yield Curve Continues To Flatten

Behold the flattening U.S. yield curve! Reading through the latest Quarterly Report on Household Debt and Credit, you might get the impression that things are still humming along just fine. After all total household debt just hit a new high in the latest survey posting at $12.96 trillion. Mortgage debt is still below the previous bubble peak, so home buyers would appear to be doing doing just fine. If you peak below the headline metrics, however, you begin to see some cracks in the "everything is awesome" narrative. One of the first things that stands [...]

Foreign Buyers Still Flooding U.S. Real Estate Market

The the volume of foreign buyers buying U.S. residential real estate rose dramatically during the latest 12-month survey from the National Association of Realtors. The 2017 Profile of International Activity in U.S. Residential Real Estate shoes that the dollar volume of purchases by foreign buyers rose from $102.6 billion in 2016 to $153 billion in the latest 12-month period ending in March. In all, foreign buyers purchased 284,455 U.S. residential properties accounting for 5 percent of existing home sales and 10% of existing home sales by dollar volume. If you were wondering what's been driving the [...]

New Home Sales Rebound In May

The Census Bureau reported a rebound for new home sales in May. New residential home sales posted at a seasonally adjusted annual rate of 610,000. This was 2.9 percent higher than the revised April numbers and 8.9 percent higher than a year ago. The median price of a new home contracted in May was $345,800 while the average new home price in May came in at $406,400. Just like we saw with existing home sales this week, median home prices hit a new all-time high. New home sales volume, while up from last month, is [...]

Peak Auto? October Motor Vehicle Sales Decline

Preliminary October home sales numbers for Houston indicate volume is still holding steady even if prices are taking it on the chin. U.S. motor vehicle sales appear to have already topped out with October sales declines for all of the major U.S. automakers. Car sales in the Houston area are now down 22.6 percent year-over-year. Looking at a chart of motor vehicle loans and the miraculous "recovery" in the automobile industry during the last 8 years, one might get the impression that U.S. automobile sales look a lot like U.S. home sales in the sense [...]

By | 2016-11-03T16:53:47+00:00 November 3rd, 2016|Economy, Energy & Utilities, Real Estate, Transportation|1 Comment

Texas Housing Market Meets The Fed’s ‘Game of Thrones’ Economy

The latest issue of Tierra Grande is out, and it contains more examples of the Federal Reserve's fingerprints on the Texas housing market. This new batch of evidence is contained in an article titled 'Game of Homes - The Supply-Demand Struggle'. What is thoroughly entertaining is that the two Dallas Fed employees (both recent college graduates apparently) working on this latest missive appear to completely ignore their employer's responsibility for the distortions in the Texas housing market while making a complete mockery of the economics profession. Collaborating with a PhD from TAMU, they lay out [...]

By | 2016-11-20T13:26:48+00:00 October 23rd, 2016|Economy, In the Press, Politics, Real Estate, Spin Cycle|0 Comments

Dallas Fed Chief Calls For Investment In Education While Fed Pays Billions To Banks On Excess Reserves

File this one in the Orwellian chronicles of America. This is the kind of news that writes itself because it is so absurd, such an insult to our collective intelligence that you couldn't imagine a rational human being with a soul offering up such a steeping pile of horseshit. Enter Robert S. Kaplan, the new chair of the Dallas Federal Reserve and by default the chief monetary policymaker in the American southwest. Why is Mr. Kaplan concerned about investments in education in Texas? Perhaps we should educate ourselves to find out. Speaking to an audience [...]

By | 2018-05-11T22:54:36+00:00 May 26th, 2016|Economy, Education, Politics, Spin Cycle|0 Comments

Fed Hikes Rates, Four More Increases Projected In 2016?

As expected the Federal Reserve hiked the benchmark Fed Funds rate to 0.25 percent, putting the target rate between 1/4 to 1/2 percent. This comes after 9 years of driving rates into the basement! Interestingly the Fed forecast rate of 1.375 percent remained unchanged. This implies that the Fed will hike rates 4 more times next year. Will that actually happen? I doubt it! I'll give you another reason why... The truth of the matter is that the Fed was backed into a corner so they took the best opportunity they had to try to [...]

Hovnanian Shares Plummet 14 Percent, Homebuilders Standing At The Precipice

"Oh, what a tangled web we weave, when first we practice to deceive." Shares of Hovnanian Enterprises fell out of bed again today, plummeting 14 percent to close at $1.71 per share. Hovnanian Enterprises (HOV) is now down a whopping 50 percent YTD, with no signs of the hemorrhaging ending anytime soon. If anything, the drop in Hovnanian's stock seems to be picking up steam. Other homebuilders were clipped today as well. Beazer Homes (BZH) dropped more than 6 percent today after reporting tepid third quarter results, and several other builders were selling off with Hovnanian's [...]

Financial Repression – Interview With Dr Lacy Hunt

This is a thoughtful interview on the subject of financial repression with Dr. Lacy Hunt of Hoisington Investment Management out of Austin Texas. Hunt is a former employee of the Dallas Federal Reserve and a former chief economist with one of the largest global banks (HSBC). Hunt has been following the policy errors of the Federal Reserve for years, and here he discusses the financial repression that is still gripping the global economy. As Hunt explains, monetary policy is not the solution for our global indebtedness. Global central banks have facilitated $35 trillion in new [...]

By | 2018-05-12T01:02:21+00:00 February 22nd, 2015|Economy, Energy & Utilities, Markets, Video|0 Comments

What The Oil Market Can Tell Us About Fed-Driven Asset Bubbles

For all of the talk about deleveraging in America, it's interesting to see that both the national debt and total credit market instruments tell a rather different story. That's because the Federal Reserve has been goosing the markets to keep them afloat while they exercise their undisclosed and primary mandate which is to keep the market from tanking and keep their friends in a job. If last week's market action wasn't telling enough, Jim Grant offered a bit of perspective on what's really going on. The problem with Fed-driven asset bubbles is that they always [...]

By | 2017-12-22T01:30:30+00:00 December 21st, 2014|Economy, In the Press, Markets, Politics, Real Estate, Spin Cycle, Video|0 Comments