The subprime car-lending industry -- charging exorbitant rates for car-loans to people least suited to afford them, enforced through orwellian technologies, obscuring the risk by spinning the debt into high-risk/high-yield bonds -- is collapsing.
Read the rest
Donald Trump's budget sought to punish blue states by removing income tax deductions for mortgage interest on high-ticket real estate; this was enough to prick the Manhattan property bubble, with co-op and condo sales volume dropping 25% year-on-year for Q1/18; the majority of red ink is in the luxury property market, where Q1 prices fell 15% year-on-year.
Read the rest
London's housing bubble has appeared unprickable, stabilised by influxes of offshore money from "investors" who saw property in the capital as a safe, easily liquidated bet even after the 2008 crisis when the rest of the UK saw housing prices tumble.
Read the rest
Toronto is one of the many great world cities that has been rendered nearly unlivable by real-estate speculation, both from onshore investors and offshore ones.
Read the rest
China's latest rich-list of 2,030 people controlling fortunes of $300M or more now totals $2.6 trillion, as much as the UK GDP. Read the rest
Massive infusions of cash by way of the central bank, combined with runaway mass panic-buying has stampeded Chinese people into buying into the property markets in boomtowns like Shenzhen, despite the insane prices that almost guarantee that they will default on their mortgages -- because they fear that rising property prices will shut them out forever if they don't buy now, and the new rentiers who've speculated on all that property are cranking up rents so fast that renting is worse than buying. Read the rest
Toronto's crazy-insane property prices stayed high even through the 2008 crash and its aftermath, but sales volumes of houses of all types plummeted by 40.4% for July 2017-vs-July 2016, new listings are up by 5% over the same period -- and the average selling price has fallen by 19% since April. Read the rest
In a world of expensive urbanization where the spiraling cost of basic shelter has forced ever-more people into debt and fuelled a speculative global bubble of criminal money-launderers who use luxury housing as empty safe-deposit boxes in the sky, London is ground zero. Read the rest
Noah Smith (previously) writes in Bloomberg (!) about the "fleecing" of the Gen-X and Boomer middle class -- a class that is growing continuously smaller and poorer, thanks to "financial deregulation, tax cuts and a lax attitude toward consumer protection and antitrust." Read the rest
The Resolution Foundation's Living Standards 2017 is an eye-opening look at the current state of the British experiment in allowing wealth inequality to expand without any check, to use a combination of austerity, the elimination of protection for tenants, reckless lending, offshore money-laundering and public subsidies for speculators to turn the human necessity of shelter into the nation's leading asset-class. Read the rest
More news on the Chinese crackdown on money-laundering and its impact on the global property bubble: the controls the Chinese government has put on "capital outflows" (taking money out of China) are actually working, and there's been a mass exodus of Chinese property buyers from the market, with many abandoning six-figure down payments because they can't smuggle enough money out of the country to make the installment payments. Read the rest
Stock buybacks are the preferred form of financial engineering in corporate America, through which companies borrow like crazy and give the money to their shareholders, artificially increasing their earnings-per-share ratio, massively reducing real economic growth, while enriching a tiny number of already-wealthy investors: but buybacks may finally be coming to an end. Read the rest
The all-cash deal is expected to close by the end of the calendar year, and will be one of the largest acquisitions in tech business history. Read the rest