real estate bubble

WeWork’s bankruptcy marks the beginning of the end for the stimulus economy

Essentially, the central banks thought that unlimited amounts of free money could reverse the impact of ageing populations. WeWork’s bankruptcy suggests that the bills for this mistake are now coming due, after 20 years of what the Wall Street Journal called “The most reckless monetary and fiscal experiment in history”

WeWork’s bankruptcy marks the beginning of the end for the stimulus economy Read More

China’s One Child Policy meant it “lost” 73 million brides – adding to its real estate and economic risks today

Everyone will now lose out as China’s real estate bubble continues to burst. The speculators who bought apartments they couldn’t afford will go bust. The new capacity built to supply the bubble will have to close down. And the millions of people who invested in China’s “growth miracle” will lose their shirts.

China’s One Child Policy meant it “lost” 73 million brides – adding to its real estate and economic risks today Read More

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

Time to focus on the danger of corporate and household leverage as “subprime on steroids” comes to an end

The seeming genius of many private equity funds in recent years has been based on this ability to borrow at cheap rates during the ‘up’ part of the business cycle. Now we are heading into the ‘down’ cycle. And the central banks have abandoned Bernanke Theory and are back to worrying about inflation. So today’s excess leverage means many over-leveraged companies will go bust.

Time to focus on the danger of corporate and household leverage as “subprime on steroids” comes to an end Read More