Mish's Global Economic Trend Analysis |
- China Premier Wen Jiabao Dampens Speculation on China Saving Europe with Statement "Debt-Laden Economies Must First Put Their Own Houses in Order"
- Census Report Shows Poverty Rate Hits 15.1%; Record 46.2 Million in Poverty; Real Median Household Income Sinks Below Level First Reached in 1989
- Dreamland (or Nightmare) Real Estate Agents Dump Homeowners Asking Too Much; Housing Shills Still Cheerlead Others to Doom
Posted: 13 Sep 2011 09:10 PM PDT The stock market rallied for the last two days on a Financial Times rumor that China would buy "significant" quantities of bonds and stakes in strategic companies from Italy. There was not much truth to those rumors, and I never thought there was in the first place. Certainly the bond market never believed believed the rumors judging from yields on Italian bonds. Please consider Stocks Decline as China Signals Reluctance on Europe Bailout Japanese stocks dropped after Premier Wen Jiabao said debt-laden economies "must first put their own houses in order," damping speculation China would rescue Europe from an escalating crisis that has sent global financial markets plunging.China is willing to help, but only after Europe solves the crisis and no longer needs help. QE2 Completely Unwound Bloomberg reports Asia Stocks at Lowest in a Year as China Signals Europe Bailout Reluctance Asian stocks fell, with the regional benchmark index set for its lowest in more than a year, after the Chinese premier said economies "must put their own houses in order" and not rely on bailouts from China.Asia Pacific Equities Asia Pacific (click on link to refresh) is down across the board except for China which is up slightly. US S&P 500 futures are off about 12 points. The important reaction, however, us not Asia or the US but the European markets, particularly the Italian bond market and European banks. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Posted: 13 Sep 2011 02:50 PM PDT Please consider Income, Poverty, and Health Insurance Coverage in the United States: 2010. Report released today.
Poverty Rate click on chart for sharper image Real Median Income click on chart for sharper image Real median income has been in decline since 1999 and is now back at a level last seen in 1996. Real median income is below the level seen in 1989. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Posted: 13 Sep 2011 07:19 AM PDT The real estate bubble in Australia has taken its next step forward as noted in Agents dump sellers over 'dream 2010' prices REAL estate agents are dumping vendors who are stubbornly holding out for "dream 2010" prices instead of dropping their reserve in order to wrap up a sale.Surprise? Not! Anyone surprised by this is not paying attention to me or far more importantly to Australian economist Steve Keen author of Debunking Economics. Steve Keen has taught me a lot. I do not agree with everything he says (or vice-versa). However, a tip of the hat goes to Keen for his early, unheeded warnings regarding debt-deflation in the US and Australia. Keen's big mistake was being a year or so early in his home country, Australia. However, those demanding perfection will not find it from Steve Keen, from me, or from anyone else. Debt-deflation has taken hold in the US, followed by Europe, followed by Australia. Canada will follow as well, and only a few of us have called it. Keen is one of them. Housing Shills Still Cheerlead Others to Doom In spite of the fact the Australia housing market has turned, bulls still stick to the absurd "housing shortage" myth. We heard the exact same nonsense in the US about Florida, Phoenix, Las Vegas, and for that matter everywhere. There should be no debate on shortages because the idea is preposterous. Nonetheless, Bloomberg reports Home-Shortage Myth Pits Blogs Versus Banks in Call Australia Set for Crash Australia, where home prices are falling at the fastest rate in more than two years, may have a glut of properties and be set for a U.S.-style crash.Who Bet the House? For starters, Keen did not "bet the house". He did the opposite. He has no position, neither betting on, nor against the housing market (ignoring the "walk the mountain bet", a matter of pride as opposed to money). On the other hand, Robertson, an economic analyst at Westpac would not recognize a bubble if it engulfed his head, popped, left sticky residue all over his hair, then became infested with ants. I can make that claim because Australia's housing bubble has popped and Robertson still cannot see it. Nor can he see the sticky residue in his hair. The only thing missing is the ants. Rest assured, ants (followed by cockroaches) will come. Moreover, and more to the ironic point, it is Westpac who bet the house, or rather (and worse yet) bet the entire bank on the housing bubble in a big way. Without a doubt, this will come back to haunt Westpac. Unfortunately, housing shills like Robertson seldom pay the price for their preposterous "cheerleading others to doom" efforts. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
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