Housing Markets

Fed Orders China Bank To Tighten Anti-Money Laundering Protections

The Federal Reserve on Tuesday faulted the Industrial and Commercial Bank of China Ltd for its weak anti-money laundering protections, ordering ICBC to tighten its screening of illicit money. Real estate money laundering from China into global property markets has been an ongoing theme for several years, and by all accounts the volumes of money being cleaned are still substantial. Last month the Canadian Imperial Bank of Commerce (CIBC) introduced new guidelines to replace its "Foreign Income Program". CIBC decided it should obtain income verification for foreign buyers gobbling up overpriced Canadian homes. Many of [...]

Housing Bubbles A Global Problem

Housing bubbles are easy to see, unless of course you are one those people in the real estate industry who feign ignorance for the sake of sales. For those who care to look, it is blatantly obvious that there is an echo bubble in real estate prices. It's a global problem that poses a number of challenges, and the potential capital destruction that would result from its collapse is probably larger than many want to admit. Everyone has to dance to the music, until the music stops. Looking at an updated index of San Francisco [...]

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