Category: Speculation

Vote bankruptcy in 2016!

8 February, 2016 (10:00) | Bankruptcy, Chicago, Cities, Homeownership, Housing, Municipal bankruptcy, Politics, Public-employee pensions, Rahm Emanuel, Speculation, US News | No comments

By: David A. Smith   When you don’t pay your electric bill, the company shuts off the power.  When you exhaust your credit card, the company cuts you off.  And when you’re unable to prepay old bond issues, this becomes a problem for you only if you cannot sell new bond issues.  And that is […]

Yuan to buy American housing? Part 4, Fall back on the tired old trick

4 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News | No comments

By: David A. Smith [Continued from yesterday’s Part 3 and the preceding Part 1 and Part 2.] You must not fight too often with one enemy, or you will teach him all your art of war. Napoleon Bonaparte Whenever a government decides to intervene in the financial markets – and modern governments are already intervening, […]

Yuan to buy American housing? Part 3, Befuddled by free markets

3 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News | No comments

By: David A. Smith [Continued from yesterday’s Part 2 and the preceding Part 1.] Never interrupt your enemy when he is making a mistake. Napoleon Bonaparte Markets have a nasty habit of speaking truth to power, and for that reason, they are worth hearing, even when the power is the newly assertive nation of China […]

Yuan to buy American housing? Part 2, A high price for the honor

2 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News | No comments

By: David A. Smith [Continued from yesterday’s Part 1.] In politics, never retreat, never retract, never admit a mistake. Napoleon Bonaparte As we saw in yesterday’s Part 1, judging by the report in Bloomberg Business (January 14, 2016) and a similar article and editorial in the Economist’s January 16 issue, something is badly awry in […]

Yuan to buy American housing? Part 1, $550 billion in net outflows

1 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News | No comments

By: David A. Smith An army marches on its stomach. Napoleon Bonaparte Cap rates for US real estate are at levels so low they haven’t been seen in half a century, and as I’ve discussed in previous posts, so great is the hunger of real estate yield that no one in the business is prepared […]