Thursday, October 11, 2012

Friday October 12 Housing and Economic stories



TOP STORIES:

A Lost Decade for Savers - (www.bloomberg.com) The 1990s were a lost decade for Japan. The 2000s delivered a lost decade to U.S. investors. Now, five years into the onset of the financial crisis, with stock and bond markets booming, housing resurgent, and even Detroit redeemed, it’s savers who find themselves in a lost decade. This runs counter to the lessons of the credit bubble. We were urged to spend less, save more, tell fewer lies on our mortgage applications. Problem is, the jumbo monetary response to that era’s excesses—0 percent interest rates, followed by trillions in quantitative easing and a vow to keep rates this low until at least 2015—is bent on getting people and companies spending and investing (and out of cash) at pretty much any cost.

Remember That Spanish Cop Who Got Dropkicked? This Crystal Clear Video Is Way More Intense - (www.businessinsider.com) Things getting crazy in Spain… This video of the Spanish protest is by far the most intense one yet.
It's a reverse angle of the video we posted yesterday of the protesters attacking a cop. And it's way more intense. Protesters attacking a cop starts at around 1:20.

Why Europe is looking like a mess (again) - (www.washingtonpost.com) Just a few days ago, Europe’s long-simmering financial crisis seemed to have reached a resolution, following demonstrations of resolve by all players involved to deploy whatever means necessary to heal the deep fissures among the 17 nations using the euro. Never mind. European stock markets tumbled Wednesday amid unrest on the streets of Madrid and Athens and new doubts about the path forward for the continent. The German stock market was down 2 percent, the French market was down 2.8 percent and the Spanish market fell a whopping 3.9 percent.

Chinese slowdown haunts premium carmakers at Paris show - (www.reuters.com) Luxury auto giants BMW, Audi and Mercedes have been enjoying robust demand in China for almost three years as they vie to be the world's biggest premium car manufacturer. That could be about to change. While carmakers will use this week's Paris auto show to display models such as Audi's updated $146,600 top-of-the-line R8 coupe and Porsche's $126,000 four-wheel drive 911, the fate of the vehicles will be decided thousands of miles away in China, where premium-car buyers are showing signs of saturation.

Spain's precarious future - (money.cnn.com) The nation, which is doing everything it can to avoid a bailout, will release its 2013 budget on Thursday. And Friday brings auditors' results of bank stress tests, which could give investors a better idea of just how deep Spain's banking troubles run. A bailout seemed inevitable a few months back, when Spain's borrowing costs were sitting at unsustainably high levels. But ever since the European Central Bank announced an intervention plan, those costs have come down sharply. Just two months ago, the 10-year yield was above 7.6%





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