house prices

China has locked down again. Yet World Cup TV shows that normal life has resumed outside China. And the real estate bubble (29% of GDP) continues to burst

The World Cup runs till December 18. That’s a long time for Chinese viewers to ask themselves “Why am I still locked down, when the rest of the world is living a normal life again”? And in the background, the real estate bubble continues to burst.

China has locked down again. Yet World Cup TV shows that normal life has resumed outside China. And the real estate bubble (29% of GDP) continues to burst Read More

“We now understand better how little we understand about inflation”, Jay Powell, US Federal Reserve Chairman

We are facing a perfect storm of global food, energy and financial crises set off by the war in Ukraine.  Analysts need to stop focusing on monetary policy and the inversion of the yield curve. They need to look out of the window and start dealing with the geopolitical reality of Putinflation. 

“We now understand better how little we understand about inflation”, Jay Powell, US Federal Reserve Chairman Read More

US Supreme Court throws a lifeline to Democrats for the mid-term elections

Social and political issues were always more important than economics before the SuperCycle.  And now they are resurfacing again. Does an individual woman have the right to choose what to do with her body? Or can judges tell her what she can, and can’t do? It is early days, but many women may choose to vote Democrat because of this issue in November.

US Supreme Court throws a lifeline to Democrats for the mid-term elections Read More

US housing bubble starts to deflate as sellers cut prices and mortgage rates rise

The Fed might change its mind and rush to support asset markets again. But that seems unlikely today. If it doesn’t, then debt, divorce and death will force an increasing number of people to sell their home. And if buyers continue to disappear, then sellers will have to continue cutting prices in order to try and achieve a sale, as the bubble finally bursts.

US housing bubble starts to deflate as sellers cut prices and mortgage rates rise Read More

The world’s real estate bubbles start to burst, as central banks pivot to focus on inflation

Problems in the housing market aren’t just confined to the US, UK, Germany and China. The average house price/income ratio is now back to the highest level since records began. And the problem for homeowners is that potential buyers are already starting to disappear as mortgage rates rise – and affordability reduces.

The world’s real estate bubbles start to burst, as central banks pivot to focus on inflation Read More