tag:blogger.com,1999:blog-50192278066331207962024-03-05T00:52:36.237-08:00KeNo's Housing and Economic PortalYour one stop shop and information portal for alternative housing and economic news.Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.comBlogger2871125tag:blogger.com,1999:blog-5019227806633120796.post-40091719283380510282017-06-29T23:43:00.000-07:002017-06-29T23:43:18.452-07:00Friday June 30 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
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<a href="https://www.bloomberg.com/news/articles/2017-06-19/shale-s-record-fracklog-could-force-crude-prices-even-lower"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Shale's
Record Fracklog Could Force Crude Prices Even Lower</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">There’s
yet another concern growing as oil prices continue to erode: A record U.S.
fracklog. There were 5,946 drilled-but-uncompleted wells in the nation’s
oilfields at the end of May, the most in at least three years, according
to estimates by the U.S. Energy Information Administration. In the last month
alone, explorers drilled 125 more wells in the Permian Basin than they would
open. That represents about 96,000 barrels a day of output hovering over the
market. If OPEC thought shale was a thorn in its side before, just wait until
U.S. explorers turn their spigots on full blast. Wells waiting to be
fracked and flowing are an overhang that could mean a burst of new supply in
the second half of the year and into 2018, according to Luke Lemoine an analyst
at </span><a href="https://www.bloomberg.com/quote/9577Z:US" title="Company Overview"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Capital One Securities Inc. </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">in New Orleans.<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/20/hong-kong-house-price-bubble-dangerous-situation/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Hong
Kong Warns: Its Housing Bubble is a “Dangerous Situation”</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
HK financial system is “very strong” and “can withstand an adjustment in the
property market.” The Hong Kong dollar is pegged to the US dollar. Hong Kong’s
monetary policy is follows the Fed’s monetary policy. The Fed has embarked on a
tightening cycle, raising rates four times so far. The Hong Kong Monetary
Authority has followed each time. Last week, it raised its policy rate by 25
basis points to 1.5%. This will have consequences for the most expensive and
ludicrously inflated housing bubble in the world. “We have to warn our people
about the dangerous situation of the property market at the moment,” Hong Kong
Financial Secretary Paul Chan told </span><a href="https://www.bloomberg.com/news/articles/2017-06-19/-dangerous-situation-for-hong-kong-property-market-says-chan" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bloomberg TV</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">.<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-19/china-s-workers-are-saying-goodbye-to-double-digit-pay-raises"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">China's
Workers are Saying Goodbye to Double-Digit Pay Raises</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">China’s
workers may be starting to feel like they’re getting a raw deal. Amid soaring
industrial profits, employees in the world’s second-largest economy saw slower
wage growth last year -- and many are seeing the smallest raises since 1997. That’s
another sign that the years of pay gains above ten percent and burgeoning
spending power are coming to a close, as China confronts industrial
overcapacity, mounting debt and waning competitiveness. Yet while slowing wage
growth is bad for workers now, it’s not entirely negative for the economy as a
whole – a cheaper labor bill helps China stay lean against the nations like
Vietnam snapping at its heels. Where the balance falls will determine whether
the workforce continues to see living standards rise –- or ends up finding
common cause with peers in developed economies who’ve seen real incomes
stagnate.<o:p></o:p></span></div>
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<a href="http://www.doctorhousingbubble.com/san-francisco-real-estate-housing-bay-area-1-5-million-home/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">San
Francisco and tech driven housing mania: The median home in San Francisco
reaches a new high of $1.5M</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.doctorhousingbubble.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.doctorhousingbubble.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><a href="http://www.doctorhousingbubble.com/san-francisco-real-estate-bubble-peak-affordable-to-only-11-percent-of-households/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">San Francisco real estate</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> is deep into a tech driven mania.
Home prices in the Bay Area are comically out of reach for most families and
people are getting squeezed out like ketchup in a disposable packet. What
seemed like a new peak was once again surpassed. The housing market is
running on massive fumes and delusions run rampant. … Home prices
are up nearly $300,000 in one year simply because San Francisco is going
through a housing mania. Tech valuations are off the charts and there
seems to be this belief that prices will never come down. The consensus
seems to think that buying real estate at any given point is a smart
move. They simply cannot foresee a correction in the cards.<o:p></o:p></span></div>
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<a href="http://www.reuters.com/article/china-banks-rates-idUSL8N1J60FM"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Funding
scramble squeezes China's borrowers despite PBOC injections</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Generous
money injections by China's central bank are helping to maintain some calm in
the country's financial markets, but market rates are persistently high,
reflecting worries that liquidity conditions remain unusually tight. Rates on
14-day repos climbed to 5.3 percent on Monday, their highest late April,
showing that a large gap remains between the supply of funding and demand from
banks. Liquidity conditions are typically tight in China in June due to tax
payments and as companies look to make their balance books look healthier at
the end of the month and quarter. A rigorous quarterly inspection by the
People's Bank of China (PBOC) is also prompting banks to hoard cash.</span><o:p></o:p></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/politics/articles/2017-06-20/ryan-says-tax-overhaul-must-happen-in-2017-to-rebuild-economy">Ryan
Says Tax Overhaul Must Happen in 2017 to Rebuild Economy</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-20/carney-s-brexit-concerns-mean-boe-governor-in-no-rush-to-tighten">Carney
Ends Silence With Brexit Warning to Rebuff Rate-Hike Call</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-20/china-deploys-bond-buying-tool-for-first-time-to-boost-liquidity">China
Deploys Bond-Buying Tool First Time to Boost Liquidity</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-china-economy-wealthy-idUSKBN19B059">Wealthy
Chinese rise to 1.6 million in past decade, up nearly 9 times - survey</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-20/rise-of-robots-inside-the-world-s-fastest-growing-hedge-funds">Rise
of Robots: Inside the World's Fastest Growing Hedge Funds</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.wsj.com/articles/argentina-sells-2-75-billion-of-100-year-bonds-1497905921">Argentina
Sells $2.75 Billion of 100-Year Bonds</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.wsj.com/">www.wsj.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com7tag:blogger.com,1999:blog-5019227806633120796.post-41793577162664638782017-06-28T23:34:00.000-07:002017-06-28T23:34:13.812-07:00Thursday June 29 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
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<a href="http://www.zerohedge.com/news/2017-06-20/illinois-comptroller-state-can-no-longer-function-we-have-reached-new-phase-crisis"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">Illinois Comptroller: "The State Can No Longer
Function, We Have Reached A New Phase Of Crisis"</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;">With just 10 days to go until Illinois
enters its third year without a budget, resulting in the state's imminent
downgrade to junk status and potentially culminating in a default for the state
whose unpaid bills now surpass $15 billion, Democratic Illinois Comptroller
Susana Mendoza issued a warning to Illinois Gov. Rauner and other elected
officials on Tuesday, saying in a letter that her office has <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">"very serious concerns" </span></b>it may no longer
be able to guarantee "<b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">timely and predictable
payments" </span></b>for some core services. </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;">In the </span><a href="https://illinoiscomptroller.gov/news-portal/comptroller-mendoza-reaches-out-to-state-leadership/#.WUl882jyscE"><span style="border: 1pt none windowtext; color: #1e439a; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;">letter posted on her
website</span></a><span style="font-family: Calibri, sans-serif; font-size: 11pt;">, Mendoza who over the weekend warned that Illinois is "</span><a href="http://www.zerohedge.com/news/2017-06-17/illinois-state-official-we-are-massive-crisis-mode-not-false-alarm"><span style="border: 1pt none windowtext; color: #1e439a; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;">in massive crisis
mode" and that "this is not a false alarm</span></a><span style="font-family: Calibri, sans-serif; font-size: 11pt;">" said the state
is "effectively hemorrhaging money" due to various court orders and
laws that have <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">left government spending roughly $600 million
more a month than it's taking in</span></b>. Mendoza said her office will
continue to make debt payments as required, but indicated that services most
likely to be affected include long-term care, hospice and supportive living
centers for seniors. She added that managed care organizations that serve
Medicaid recipients are owed more than $2.8 billion in overdue bills as of June
15. "<b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">The state can no longer function </span></b>without a
responsible and complete budget without severely impacting our core obligations <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">and decimating services to the state's most in-need citizens</span></b>,"
Mendoza wrote. <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">"We must put our fiscal house in order.
It is already too late. Action is needed now.</span></b>"</span><span style="font-family: Verdana, sans-serif; font-size: 10pt;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/20/argentina-sells-100-year-dollar-denominated-junk-bonds/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Argentina
(!) Sells 100-Year Dollar-Denominated Junk Bonds</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Yield-desperate
investors stop before nothing. What have central banks wrought? Junk-rated,
deficit-plagued, inflation-whacked Argentina just sold $2.75 billion of
100-year dollar-denominated bonds. This was the first time ever that a junk-rated country
was able to sell 100-year bonds denominated in a foreign currency, or any
currency. Argentina sports a “B” credit rating from Standard & Poor’s. Five
notches below investment grade. Deep junk. And 100 years is a very, very long
time for Argentina and its regularly beaten-up creditors: Just over the past 65
years, it has defaulted six times – in 1951, 1956, 1982, 1989, 2001, and
its “selective default” in 2014. Its default in 2001 on $80 billion of
dollar-denominated debt was the largest sovereign default at the time.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://mfi-miami.com/2017/06/carrington-mortgage/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Carrington
Mortgage To Throw Korean War Hero To The Street</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.mfi-miami.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.mfi-miami.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Korean War Hero Faces Being Homeless Thanks To
Carrington Mortgage And Being Scammed By A Michigan Lawyer. Large mortgage
servicers like Carrington Mortgage seem to care more about their bottom line
than our nation’s military. Soldiers and sailors are coming home from battle
only to find they have no home. Some have been fortunate to sue their lender
and be victorious. Yet, the vast majority of servicemembers and veterans
haven’t been so lucky. Bob Chalice is a combat veteran of the Korean War.
He was a Navy gunner during the Battle of Inchon. He also shot down
Chinese and North Korean planes during Operation Wonsan. You would think
Carrington Mortgage would be honoring this man and his service. Nope.
Carrington Mortgage and their lawyer, Randall Miller and Associates had other
ideas. They decided to take Bob Chalice’s money and then foreclose on him and
his family anyway. Miller is the brother of prominent </span><a href="https://mfi-miami.com/2012/11/lisa-brown/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Michigan
Democratic politician Lisa Brown</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-19/hanson-housing-bubble-20-end-nigh?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Fed
is Careening Into Housing and Stock Bubble... Look Out Below! - Ben Hunt</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">What has happened (and apologies for the
ten dollar words) is that the Fed's reaction function has
flipped 180 degrees since the Trump election. Today the Fed is looking for
excuses to tighten monetary policy, not excuses to weaken. So long as the
unemployment rate is on the cusp of "instability", that's the only
thing that really matters to the Fed (for reasons discussed below). Every other
data point, including a market sell-off or a flat yield curve or a bad CPI
number -- data points that used to be front and center in Fed thinking -- is
now in the backseat. I'm not the only one saying this about the Fed's reaction
function. Far more influential Missionaries than me, people like Jeff Gundlach
and Mohamed El-Erian, are saying the same thing. If you think that this Fed
still has your back, Mr. Investor, the way they had your back in 2009 and 2010
and 2011 and 2012 and 2013 and 2014 and 2015 and 2016 ... well, I think you are
mistaken. I think Janet Yellen broke up with you this week.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://seekingalpha.com/article/4082451-amazon-will-cash"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">Amazon
Is Now Cash-Poor -- Big Contrast From Tech Giant Peers</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">-</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"> (</span><a href="http://www.seekingalpha.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">www.seekingalpha.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">The big merger of last week had one key aspect
mostly overlooked by the market. The </span><a href="https://seekingalpha.com/news/3273999-amazon-acquires-whole-foods-market"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">surprise purchase</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"> of <b>Whole
Foods Market</b> (NASDAQ:</span><a href="https://seekingalpha.com/symbol/WFM"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin; text-transform: uppercase;">WFM</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">) by <b>Amazon</b> (NASDAQ:</span><a href="https://seekingalpha.com/symbol/AMZN"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin; text-transform: uppercase;">AMZN</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">) was
made with cash leaving the company in a precarious cash position in comparison
to other tech giants. </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;">Amazon traded up and topped the
magical $1,000 mark on Monday. Will the shift towards a brick and mortar focus
finally place Amazon into a retail type valuation? …. </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">The
purchase price knocks the net cash balance down to virtually zero. This doesn't
even account for Whole Foods trading above the offer price with expectations
that a bidding war might ensue causing Barclays to place a $48 price target on
the stock. For Amazon, another billion in cash doesn't really alter the
equation for owning the organic food retailer. What it does though is highlight
the vast differences between the retail giant and tech giants that are so
commonly lumped into the same investment discussions.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-japan-economy-tankan-idUSKBN19A31Y?il=0">Japan
business mood up, points to better BOJ tankan - Reuters Tankan</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-19/shale-s-record-fracklog-could-force-crude-prices-even-lower">Shale's
Record Fracklog Could Force Crude Prices Even Lower</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-19/china-s-workers-are-saying-goodbye-to-double-digit-pay-raises">China's
Workers are Saying Goodbye to Double-Digit Pay Raises</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://www.reuters.com/article/us-mideast-crisis-syria-idUSKBN19A21A">White
House says it retains right to self-defense in Syria; Moscow warns Washington</a>
</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.wsj.com/articles/russia-to-target-u-s-and-coalition-aircraft-over-syria-1497882794">Russia
Warns U.S. as Risks Rise in Syria</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.wsj.com/">www.wsj.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com6tag:blogger.com,1999:blog-5019227806633120796.post-33567142774859717432017-06-27T22:25:00.000-07:002017-06-27T22:25:20.926-07:00Wednesday June 28 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/19/amazon-cut-jobs-whole-foods-cashiers-get-cheaper-products-price-war-with-walmart/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Amazon
to Slash Jobs at Whole Foods, Dump Cashiers, Switch to Cheaper Products in
Price War with Wal-Mart</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Here’s
something Wal-Mart could do to Amazon, just to be nasty. Amazon expects to
slash jobs and other costs at Whole Foods, “a person with knowledge of the
company’s grocery plans” told </span><a href="https://www.bloomberg.com/news/articles/2017-06-18/amazon-said-to-plan-cuts-to-shed-whole-foods-pricey-image" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bloomberg</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. The ink isn’t even dry on the proposed deal,
but synergies and efficiencies are already being trotted out. Amazon </span><a href="http://wolfstreet.com/2017/06/16/amazon-acquires-whole-foods-buys-brick-mortar-grocery/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">agreed to acquire</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> Whole Foods for $13.7 billion, a 27%
premium over the stock price on Thursday at close, and now intends to push down
prices to slough off Whole Food’s nickname “Whole Paycheck,” and go after
Wal-Mart Stores, Target, the German discounters Aldi and Lidl that are
expanding in the US, Costco, and grocery store chains, such as Kroger and the </span><a href="http://wolfstreet.com/2017/06/12/albertsons-reveals-supermarket-meltdown-aldi-lidl-deep-discounters-promise-price-war-in-stagnating-u-s-market/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">private-equity owned chains Safeway and Albertson’s</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. The jobs to be cut include cashiers, who’d be
replaced by Amazon’s own “Just Walk Out Technology,” now being tested at its
Amazon Go convenience store in Seattle. When customers with the Amazon Go app
on their smartphones walk into the store, the system logs them into the store’s
network and establishes the connection to their Amazon account.<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-18/stagnant-rents-haunt-australia-s-housing-horror-movie"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Australia's
Haunted Housing Market</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">You
know that horror-film trope where some piece of ominous information is missed
by all the characters? Where the dire warnings of the one wise old
Cassandra who spots what's going on are inevitably ignored? Something
similar is happening in Australia's frothy housing market. Forget all the
headlines about the undimmed pace of house price inflation -- </span><a href="http://www.smh.com.au/business/the-economy/australian-house-price-growth-surges-to-sevenyear-high-20170402-gvc3d3.html" target="_blank" title="SMH: Australian house price growth surges to seven-year high"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">up 19 percent in Sydney during March</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, pushing the median house price in the
city </span><a href="http://www.domain.com.au/product/domain-state-of-the-market-march/" target="_blank" title=" Domain State of the Market Report"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">to A$1.15 million</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> ($875,000) according to Domain, a
property-listings website. House prices, after all, aren't so much a guide to
the state of the housing market as to the 1 percent or so of homes that bought
or sold in a typical year. Even there, they're less an indicator of supply and
demand for housing than of how supply and demand for mortgage credit interact
with real estate fundamentals.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-18/italy-eu-race-to-find-solution-for-two-troubled-banks-in-veneto"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Italy,
EU Race to Find Solution for Two Troubled Banks</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Italian
finance officials and the European Commission are racing to find a solution for
two troubled banks in the northern Veneto region that have weighed on the
nation’s financial system. Finance Minister Pier Carlo Padoan said Sunday
the matter of Veneto Banca SpA and Banca Popolare di Vicenza SpA is being
worked on “actively,” without offering details. The European Commission is
working “hand in hand” with Italian authorities and Europe’s Single Supervisory
Mechanism, and is making “good progress” on reaching a solution within the
bloc’s rules, it said in a statement on Monday.
Rome’s </span><a href="http://www.repubblica.it/" target="_blank" title="Newspaper Website"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">la Repubblica</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> newspaper said Sunday that the Italian
government and bank managers are seeking an agreement “by the end of next
week.” Padoan said last week that an accord with the Commission in Brussels was
“close.” Still there were differing </span><a href="https://www.bloomberg.com/news/terminal/ORNNNA6JTSEC" target="_blank" title="Italy OKs Decree Allowing Veneto Banca Bond Repayment Suspension"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">news media</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> accounts
of the status of the talks with European Union officials who will need to sign
off on any state involvement. La Stampa, quoting officials in the EU and the
Treasury in Rome, said the current rescue plan has been determined to be
unfeasible. The newspaper said a split into so-called good banks for performing
assets and bad banks for deteriorated credit was one possibility. Under this
option, Intesa Sanpaolo SpA may agree to buy the good banks, while the bad
assets would be sold, the newspaper said on Monday.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.ekathimerini.com/219306/article/ekathimerini/news/debt-deal-gives-clarity-to-markets-tsakalotos-says"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Debt
improves Greece's lot, Tsakalotos says</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.ekathimerini.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.ekathimerini.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Greece’s
finance minister says financial markets now have “much greater clarity” about
the future of Greece’s debts, which will help the country regain market access
when its current bailout program ends next year. Speaking after a meeting of
the eurozone’s 19 finance ministers, Euclid Tsakalots said the country can
“look forward with much greater confidence.” Tsakalotos said one big benefit
from the deal Thursday was that future debt repayments could be linked to
Greece's growth. In essence, that could mean payments could be postponed in the
event of an adverse shock... As well as securing 8.5 billion euros ($9.5
billion) in bailout funds, which will help Greece meet a big summer repayment,
Tsakalotos won a promise on future measures to ease the country's debt burden
and possible IMF financial involvement in the coming year.'<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-19/south-african-mining-stocks-crash-5-year-low-valuations-after-policy-shock"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">South
African Mining Stocks Crash To 5-Year Low Valuations After Policy Shock</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">South
Africa’s new mining charter (</span><a href="http://www.zerohedge.com/news/2017-06-15/south-africa-says-mines-must-be-30-black-owned-rand-mining-shares-tumble"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">that all local mines should be 30% black-owned</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) is scaring away investors. The charter
revision comes shortly after Africa’s most industrialised economy entered its
first recession since 2009, with investor confidence already shaken by
infighting within the ANC over the scandal-hit presidency of Jacob Zuma. The </span><a href="https://www.bloomberg.com/news/articles/2017-06-15/south-africa-raises-black-ownership-requirement-for-mines-to-30?srnd=157392532"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">proposal was unveiled </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">by the Department of Mineral Resources which
said it intends to raise the minimum black-ownership level from the current 26% to
ensure more proceeds from the country’s natural resources flow to the black
majority, Mining Minister Mosebenzi Zwane told reporters on Thursday in
Pretoria. The charter will also require companies to pay 1% of annual revenue
to communities and new prospecting rights will require black control, Zwane
said. “The mining sector does not exist in a vacuum,” Zwane said as he unveiled
the charter on Thursday. South African miners needed “strong legislative
regimes” to thrive, he added. “We have listened to miners who have not seen
real economic benefit; people who don’t see benefit of transformation
structures,” he said. And the reaction is clear, as Bloomberg notes, the average
price-to-earnings <span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/politics/articles/2017-06-19/abe-s-popularity-slides-as-mounting-japan-scandals-take-toll">Abe's
Popularity Slides as Mounting Japan Scandals Take Toll</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.wsj.com/articles/market-volatility-has-vanished-around-the-world-1497860894">Market
Volatility Has Vanished Around the World</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)<br />
<a href="https://www.ft.com/content/797a800a-5278-11e7-a1f2-db19572361bb">Markets
must grasp that the Fed is no longer their best friend</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<br />
<a href="https://www.ft.com/content/c2a7585a-5419-11e7-80b6-9bfa4c1f83d2">Brexit
talks: what to expect on day one</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="http://www.bbc.com/news/world-middle-east-40329036">Syria conflict:
Russia issues warning after US coalition downs jet</a> - (<a href="http://www.bbc.com/">www.bbc.com</a>)<br />
<a href="http://www.reuters.com/article/us-gulf-qatar-rift-idUSKBN19A1KN">New
assertive generation of Gulf leaders at heart of Qatar rift</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com2tag:blogger.com,1999:blog-5019227806633120796.post-81960192034488455972017-06-26T23:49:00.000-07:002017-06-26T23:49:39.013-07:00Tuesday June 27 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="https://steemit.com/money/@marketreport/100-proof-that-a-massive-economic-meltdown-is-closer-than-you-think-by-gregory-mannarino"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Fed
Losing Control: 100% Proof That A Massive Economic Meltdown Is Closer Than You
Think</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.steemit.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.steemit.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This
past Wednesday we heard from the Federal Reserve with regard to monetary
policy, and as I predicted they did raise the federal funds rate 25 basis
points however, instead of yields rising, they are dropping. More than a year
and a half ago I had said publicly that the Federal Reserve's attempt at trying
to normalize bond yields would backfire-and this is exactly what is happening. It
is clear to me that the Federal Reserve has absolutely lost control of what is
occurring in the bond market. Remember, this is uncharted territory, we have
never been here before in the history of the financial world-so the Federal
Reserve actually has no idea of how the market will react in the current
environment with regard to their attempt at normalizing interest rates.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://wolfstreet.com/2017/06/18/tough-time-for-automakers-great-time-to-buy-a-car-truck-how-to/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Tough
Time for Automakers, Great Time to Buy a Car?</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Wolf
Richter Talks Shop: “Carmageddon” and tips on buying a car. Here I am with
radio host Jim Goddard on “</span><a href="http://www.howestreet.com/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This Week in Money</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,” discussing the worsening conditions that the
US auto industry is facing. Jim is also asking whether it’s better to buy or
lease, go directly to a sales manager or start with a salesperson first,
whether to buy new or used, what to watch out for when buying used, what to
research, and many more things I don’t normally write about since WOLF STREET
isn’t a how-to site. So here’s an in-depth conversation on the nuts and bolts
of the industry I used to work in: And here’s more: Subprime Auto-Loan Backed
Securities from 2015 on track to be Worst Ever. Read… </span><a href="http://wolfstreet.com/2017/06/13/defaults-subprime-auto-loans-falling-used-values-negative-equity/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This Toxic Trifecta for Auto Loans is Fueling #Carmageddon</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-19/hanson-housing-bubble-20-end-nigh"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Mark
Hanson: Housing Bubble 2.0 - The End Is Nigh?</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) "If, the past 8-years of a Fed in
Armageddon-mode created the 'everything bubble', what will shifting
monetary policy into reverse do to said asset price levels?
..Remember, a 'house-price recovery' and 'housing market recovery' are two
vastly different things." The incredible essay below is reproduced here
with permission by Dr. Hunt for </span><a href="http://epsilontheory.com/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Epsilon Theory</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. If Dr. Hunt is even moderately accurate,
which I believe he is, the housing market headwind on deck could be every bit
as powerful as what hit at the end of Bubble 1.0. Bottom line: The Fed,
during Obama, did everything in its power to surge all asset prices — stocks,
bonds, real estate, collectables, et al — with no regard for its own guidance,
as to when it would take its lead-foot off the accelerator. Now,
under Trump, they are doing the exact opposite; looking “through” all the
obvious coincident and near/mid term, economic weakening trends in an effort to
raise rates as quickly as possible. If, the past 8-years of a Fed in
Armageddon-mode created the “everything bubble” (hat-tip Wolf Richter), what
will shifting monetary policy into reverse do to said asset price levels? Back
in Bubble 1.0, the helium came out of house prices when the “unorthodox
credit and liquidity” was forced out of the markets all at once precipitated by
the mortgage credit market implosion. Quickly, house prices
“reattached” to end-user, shelter-buyer employment, income, and credit
fundamentals…or, to what end-user, shelter-buyers could really buy using a
traditional, 30-year fixed rate mortgage, and a truthful loan application,
which was about 30% less.<o:p></o:p></span></div>
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<a href="http://www.smh.com.au/business/the-economy/10-years-since-the-gfc-20170526-gwe5f2.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Ten
years since the global financial crisis, world still suffers 'debt overhang'</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.smh.com.au/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.smh.com.au</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It
is almost exactly 10 years since the financial world began a wobble that would
swing into what we now know as the global financial crisis. Today, the scars of
the global financial crisis remain. There have been trillions of dollars in
losses. And in a world of subpar economic growth, even optimists are downbeat
about whether the economic medicine has been taken... Firstly, excessive debt.
In the aftermath of the world market crash, rather than pushing for debt
destruction, world leaders used fiscal and monetary policy to fan demand.
Global debt now stands at a staggering US$215 trillion.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://ml-implode.com/staticnews/2017-06-18_HistoryofGreatDepressionInterestRatesShowsWaitingforRecoveryExha.html" title="
The similarities are remarkable, particularly in this "reflation" view. It proves, I suppose, irresistible because of human nat..."><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">History
of Great Depression Interest Rates Shows "Waiting-for-Recovery Exhaustion
Effect" Echoed in the Present</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.alhamgrapartners.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.alhamgrapartners.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
similarities are remarkable, particularly in this "reflation" view.
It proves, I suppose, irresistible because of human nature; again the belief
that lack of full recovery is somehow impossible. At some point after so many
years, "we" believe recovery just has to kick in if for no other
reason than luck, and therefore amplify whatever small positive indication into
the convincing proof it never was. Belief in authorities certainly plays a
role, but as the history of all these curves really shows, that belief isn't
permanent. The longer it goes without recovery, the lower curves drop in each
cycle, meaning the more jaded (for every good reason) these markets become. It
is not so much despair vs. reflation or hope, rather it's making peace with
reality. To today's policymakers, the yield curve as well as eurodollar futures
are some kind of mystery. They aren't. They simply prove that these people who
claimed to have studied all the necessary facets of the Great Depression didn't
actually do that. How else could 2008 have happened, let alone the aftermath?
They surely didn't listen to Friedman.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-18/asian-stocks-face-a-mixed-start-euro-gains-markets-wrap">Asian
Stocks Face a Mixed Start; Euro Gains: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-18/italy-eu-race-to-find-solution-for-two-troubled-banks-in-veneto">Italy,
EU Race to Find Solution for Two Troubled Banks</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.cnbc.com/2017/06/18/liquidity-big-driver-being-the-market-rally-bmos-ablin-says.html">Liquidity
is the liquid of life for the rally, BMO's Jack Ablin says</a> - (<a href="http://www.cnbc.com/">www.cnbc.com</a>)<br />
<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-18/stagnant-rents-haunt-australia-s-housing-horror-movie">Australia's
Haunted Housing Market</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.nytimes.com/2017/06/18/business/dealbook/car-loan-subprime.html?ref=business&_r=0">The
Car Was Repossessed, but the Debt Remains</a> - (<a href="http://www.nytimes.com/">www.nytimes.com</a>)<br />
<a href="http://www.npr.org/sections/thetwo-way/2017/06/18/533447759/u-s-led-coalition-shoots-down-syrian-military-jet-west-of-raqqa-pentagon-says">U.S.-Led
Coalition Shoots Down Syrian Military Jet West Of Raqqa</a> - (<a href="http://www.npr.com/">www.npr.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-66909541717795548412017-06-25T23:26:00.000-07:002017-06-25T23:26:12.654-07:00Monday June 26 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="https://www.nytimes.com/2017/06/16/business/whole-foods-walmart-amazon-grocery-stores.html?_r=0"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Amazon
Deal for Whole Foods Starts a Supermarket War</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.nytimes.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.nytimes.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Shares
of </span><a href="http://www.nytimes.com/topic/company/walmart-stores-inc?inline=nyt-org" title="More information about Wal-Mart Stores Inc."><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Walmart</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, Target, Kroger and Costco, the largest
grocery retailers, all tumbled on Friday. And no wonder. Grocery stores have
spent the last several years fighting against online and overseas entrants. But
now, with its $13.4 billion purchase of </span><a href="http://www.nytimes.com/topic/company/whole-foods-market-inc?inline=nyt-org" title="More information about Whole Foods Market Inc."><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Whole Foods</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, </span><a href="http://www.nytimes.com/topic/company/amazoncom-inc?inline=nyt-org" title="More information about Amazon.com Inc."><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Amazon</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> has effectively started a supermarket
war. Armed with giant warehouses, shopper data, the latest technology and
nearly endless funds — and now with Whole Foods’ hundreds of physical stores —
Amazon is poised to reshape an $800 billion grocery market that is already
undergoing many changes. And much of the battle is expected to take place
online, Amazon’s home turf.<o:p></o:p></span></div>
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<a href="http://www.cnbc.com/2017/06/16/negative-yielding-government-debt-supernova-jumps-to-9-point-5-trillion.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Negative-yielding
government debt 'supernova' jumps to $9.5 trillion</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.cnbc.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.cnbc.com</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) The
staggering level of government debt carrying negative yields, after falling
from its peak a year ago, is back on the rise. A slew of factors converged in
May to send the global total to $9.5 trillion of sovereign debt — a situation
where governments effectively are getting paid to borrow money, according to
Fitch Ratings. The total represented a 10.5 percent increase from April. Prominent
investors have warned of the dangers of so much negative-yielding debt. Janus
Henderson's </span><a href="http://www.cnbc.com/2016/06/10/bill-gross-10-trillion-negative-yield-supernova-will-explode.html"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bill Gross has called it a "supernova"</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that will "explode," while
Deutsche Bank CEO </span><a href="http://www.cnbc.com/2016/08/25/deutsche-ceo-negative-rates-have-fatal-consequences.html"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">John Cryan has cautioned about "fatal consequences"</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> of central banks being enticed by
slashing rates to that extent.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.reuters.com/article/us-whole-foods-m-a-workers-idUSKBN1972VI?il=0"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">For
Whole Foods workers, fears of robots, drones and culture clash</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
merger that shook food and retail stocks on Friday - Amazon.com Inc's proposed
deal to buy Whole Foods Market Inc - rattled some employees of the upscale grocery
chain who expressed fears ranging from layoffs to the loss of their laid-back
corporate culture. The online retailer hopes the $13.7 billion acquisition
helps it disrupt the grocery business and expand its real-world store
footprint. Carmen Clark, 37, a six-year employee at a store in Mount Pleasant,
South Carolina, said some workers worry that Amazon-led automation could lead
to job cuts. "Everybody's been kind of joking that it's going to be robots
and drones," Clark said of potential changes from Amazon, which uses
robots in its warehouses and is testing drones for delivery.<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/15/what-happens-when-the-machines-start-selling/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">What
Happens When the Machines Start Selling?</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
infamous FAANG stocks – Facebook, Apple, Amazon, Netflix, and Google’s parent
Alphabet – along with other “tech” stocks have been getting “hammered,” to use
a term that for now exaggerates their “plight.” The FAANG stocks are down
between 1.7% and 2.5% at the moment and between 5.5% and 11% since their peak
on June 8. Given how far these stocks have soared over the past few years, this
selloff is just a barely visible dip. But fundamental analysis has long been
helpless in explaining the surge in stocks. The shares of Amazon now sport a
Price-Earnings ratio of 180, when classic fundamental analyses might lose
interest at a PE ratio of 18 for the profit-challenged growth company that has
been around for over two decades. For them, the stock price might have to come
down 90% before it makes sense.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-19/illinois-death-watch-continues"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Illinois
Death Watch Continues...</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It’s
been a long time coming, but Illinois’ slow-mo financial disaster is now front
page news. A few recent examples: </span><a href="http://chicagoist.com/2017/06/15/roadwork_across_the_state_could_shu.php" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Roadwork Could Shut Down
Across Illinois Due To Budget Impasse</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. Roadwork
across Illinois may grind to a halt at the end of June due to the continued
state budget impasse, a representative for the Illinois Department of
Transportation (IDOT) announced Wednesday. IDOT will be unable to pay
contractors on July 1, unless the state passes a stopgap funding measure. IDOT
has told contractors that “all construction work is to shut down on June 30,”
according to a statement. “Contractors will be advised to secure work zones to
ensure their safety during any potential shutdown.” Illinois has gone almost two full years without
a state budget, which has hit education funding throughout the state and
generated more than $14 billion in unpaid bills. Summer is both a high-volume
construction season and a vaguely ominous time to cease road repairs; just last
week, IDOT released a statement warning that the heat could lead to pavement
“buckling or blowing out.”<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/politics/articles/2017-06-16/may-is-living-the-weak-unstable-brexit-nightmare-she-warned-of">May
Is Living Brexit Nightmare She Warned Of</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.spiegel.de/international/europe/british-prime-minister-may-stumbles-into-brexit-talks-a-1152469.html">Brexit
Talks Set to Begin amid Chaos in London</a> - (<a href="http://www.spiegel.de/">www.spiegel.de</a>)
<o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-18/urgent-iran-s-revolutionary-guard-says-hit-syria-for-tehran-attacks">Iran's
Revolutionary Guard Strikes Syria for Tehran Attacks</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<!--[if !supportLineBreakNewLine]--><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><a href="https://www.ft.com/content/0f7b13d8-52ad-11e7-bfb8-997009366969">Politicians
and investors adapt to the age of radical uncertainty</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="https://www.ft.com/content/a365ef78-5262-11e7-bfb8-997009366969">Record
level of investors fear corporate bonds are overvalued</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="https://www.wsj.com/articles/the-new-cold-war-pits-a-u-s-general-against-his-longtime-russian-nemesis-1497623852">The
New Cold War Pits a U.S. General Against His Longtime Russian Nemesis</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)</span></div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com1tag:blogger.com,1999:blog-5019227806633120796.post-86137514629716859902017-06-22T23:13:00.000-07:002017-06-22T23:13:22.736-07:00Friday June 23 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-17/illinois-state-official-we-are-massive-crisis-mode-not-false-alarm"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Illinois
State Official: "We Are In Massive Crisis Mode, This Is Not A False
Alarm"</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Last
week </span><a href="http://www.zerohedge.com/news/2017-06-12/illinois-bond-spreads-explode-market-pukes-latest-batch-bad-news"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">we reported </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">that as Illinois, a state which now faces </span><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/04/illinois%20backlog_0.jpg"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">over $15 billion in backlogged bills</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, struggles over the next two weeks to somehow
come up with its first budget in three years ahead of a June 30 fiscal year
end, and faces an imminent ratings downgrade to junk - the first ever in US
state history - traders </span><a href="http://www.zerohedge.com/news/2017-06-12/illinois-bond-spreads-explode-market-pukes-latest-batch-bad-news"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">finally puked</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,
sending the yield on its bonds surging after a judge ruled at the start of the
month that the state is violating consent decrees and previous orders, and
instructed the state to achieve "substantial compliance with consent
decrees", further pressuring its financial situation. In a last ditch
attempt to resolve the ongoing budget impasse and prevent a potential crisis,
which may culminate with an eventual default by the distressed state, yesterday
the </span><a href="https://www.wsj.com/articles/illinois-lawmakers-to-return-for-special-session-to-address-budget-impasse-1497627502"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">WSJ reported </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">that Illinois Gov. Rauner ordered lawmakers to
return for a special session this week, but the two sides still seem far apart.
Republican Gov. Bruce Rauner ordered the special session starting Monday, as
the backlog of unpaid bills reaches $15.1 billion.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://wolfstreet.com/2017/06/17/san-francisco-bay-area-sheds-jobs-workers/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">San
Francisco Bay Area Sheds Jobs and Workers</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Commercial
and residential real estate bubbles choke the economy. The upper bounds of hype
and craziness have been reached. The San Francisco Bay Area has seen an
astounding jobs boom since the Great Recession. The tsunami of global liquidity
that washed over it after the Great Recession, central-bank QE and
zero-interest-rate policies that sent investors chasing blindly after risk, a
blistering no-holds-barred startup bubble with the craziest valuations, one of
the greatest stock market bubbles ever – whatever caused the boom, it created
one of the craziest housing bubbles ever, a restaurant scene to dream of,
traffic jams to have nightmares over, and hundreds of thousands of jobs. But
it’s over.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.forbes.com/sites/panosmourdoukoutas/2017/06/18/amazon-whole-foods-deal-is-bad-news-for-store-cashiers-and-the-fight-for-15-minimum-wage/#66d2929a7513"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Amazon-Whole
Foods Deal Is Bad News For Store Cashiers And The Fight For $15 Minimum Wage</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.forbes.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.forbes.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Among
the losers will be traditional neighborhood stores, which won't be able to
compete with Amazon's razor thin operating margins -- and minimum wage
employees like cashiers, as Amazon's technology will make them dispensable and
speed up a trend already underway in traditional retail chains...and in
the process, make the $15 minimum wage irrelevant.... ... other store chains
will also have to do away with cashiers to keep up with Amazon, accelerating
and broadening a trend already underway in the retail industry. Wal-Mart and
Target have been using technology to replace labor that is usually paid the
minimum wage.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.latimes.com/business/la-fi-dodd-frank-senate-20170616-story.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Small
and midsized banks could get regulatory relief from Senate. Wall Street?
Probably not</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.latimes.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.latimes.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">One
of the key targets of the House bill and the Treasury report is the Consumer
Financial Protection Bureau, which would have its authority gutted. The changes
include making its director subject to removal by the president for any reason,
eliminating the independent funding stream so Congress could reduce its budget,
and stripping the agency of its ability to send supervisors into banks to make
sure they are complying with consumer protection laws. For [Sen. Sherrod] Brown
and Senate Democrats, changes like that amount to a poison pill for any
legislation.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.cnbc.com/2017/06/15/be-careful-a-global-crisis-is-coming-says-lvmh-ceo.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It's
a 'scary' time with a global crisis on the way, LVMH CEO says</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.cnbc.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.cnbc.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">A
financial crisis could be just around the corner, according to the chief
executive of LVMH, who has described the global economic outlook as
"scary". "For the economic climate, the present situation
is...mid-term scary," Bernard Arnault told CNBC Thursday. "I don't
think we will be able to globally avoid a crisis when I see the interest rates
so low, when I see the amounts of money flowing into the world, when I see the
stock prices which are much too high, I think a bubble is building and this
bubble, one day, will explode." Arnault, who is responsible for the
world's largest luxury goods company, couldn't say whether the crash would be
imminent or within the next few years, but he insisted that almost a decade on
from the global financial crisis of 2008, one was due.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-brazil-corruption-jbs-idUSKBN1980IS">Brazil's
Temer led graft scheme, billionaire tells Época magazine</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://hosted.ap.org/dynamic/stories/A/APFN_US_ILLINOIS_PAYING_THE_BILLS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2017-06-17-11-53-44">Official
Warns Illinois Finances in 'Massive Crisis Mode'</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.ap.org/">www.ap.org</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://www.cnbc.com/2017/06/16/negative-yielding-government-debt-supernova-jumps-to-9-point-5-trillion.html">Negative-yielding
government debt 'supernova' jumps to $9.5 trillion</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.cnbc.com/">www.cnbc.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<br />
<a href="http://www.cnbc.com/2017/06/14/millionaires-own-a-record-45-percent-of-the-worlds-wealth--and-their-share-is-growing.html">Millionaires
own a record 45% of the world's wealth — and their share is growing</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.cnbc.com/">www.cnbc.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.nytimes.com/2017/06/16/business/whole-foods-walmart-amazon-grocery-stores.html?_r=0">Amazon
Deal for Whole Foods Starts a Supermarket War</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.nytimes.com/">www.nytimes.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.ft.com/content/1ea66e44-5275-11e7-a1f2-db19572361bb">A
deal too far for China’s Anbang</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.ft.com/">www.ft.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com4tag:blogger.com,1999:blog-5019227806633120796.post-29626326266167549002017-06-21T23:19:00.000-07:002017-06-21T23:19:08.520-07:00Thursday June 22 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
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<a href="http://www.zerohedge.com/news/2017-06-14/toxic-trifecta-auto-loans-fueling-carmageddon"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">GM
Extends Plant Shutdowns As Toxic Trifecta For Auto Loans Fuels Carmageddon</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Here
we go again... In yet another unsurprising headline, </span><a href="https://www.wsj.com/articles/gm-schedules-additional-plant-downtime-amid-soft-sales-inventory-glut-union-officials-say-1497447375"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The Wall Street Journal reports </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">that GM will extend the typical summer
shutdown at certain U.S. factories to deal with slumping sales and bloated
inventory, a sign the industry’s hot streak is grinding to a halt. The No. 1
U.S. auto maker in terms of sales will idle its Chevrolet Malibu factory near
Kansas City for five weeks starting in late June, Vicky Hale, president of
the United Auto Workers Local 31, said. Job cuts will be needed if GM is forced
to slow assembly-line speeds when those workers return. Additional downtime is
also slated in Lordstown, Ohio, a small-car factory already stung by deep
layoffs related to a pullback in demand for passenger cars. A GM spokesman
declined to comment on specific plans. GM enters the summer with a glut of
unsold inventory after running production lines at relatively high rates to
prepare for factory downtime related to plant upgrades. WardsAuto.com
estimates GM’s production increased 2.9% over the first four months of 2017,
even as the broader industry pulled back.<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/05/18/used-vehicle-trade-in-values-sink-hit-new-vehicle-sales/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Used
Vehicle Trade-in Values Sink, Hit New Vehicle Sales</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">More
#Carmageddon data – and its impact. This is just relentless: Wholesale prices
of used vehicles up to eight years old going through auctions across the US
dropped another 1.5% in April from the prior month. It pushed the seasonally
adjusted Used Vehicle Price Index by </span><a href="http://www.nada.com/b2b/homepage.aspx" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">J.D. Power Valuation Services</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> (formerly known as NADA Used Car Guide)
down to 109.9. The 10th month in a row of declines. The index is down 7.1%
year-over-year and down over 13% from its peak in mid-2014. It’s at the lowest
level since September 2010, when prices were still spiking from the
cash-for-clunkers program which had eliminated a whole generation of often
perfectly good cars. In that sense, values are just now beginning to normalize
(chart by J.D. Power Valuation Services):<o:p></o:p></span></div>
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<a href="https://www.theguardian.com/society/2017/jun/14/low-income-families-forced-to-walk-relentless-financial-tightrope"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Low
income families forced to walk 'relentless financial tightrope' (UK)</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.theguardian.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.theguardian.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Low-income
families are going without beds, cookers, meals, new clothes and other
essential items as they struggle to cope with huge debts run up to pay domestic
bills, according to a survey highlighting the cost-of-living crisis experienced
by the UK's poorest households. ... The pressure of coping with low income and
debt frequently triggered mental illness or exacerbated existing conditions,
with more than a third of clients reporting that they had considered suicide
and three-quarters visiting a GP for debt-related problems. More than half were
subsequently prescribed medication or therapy. ... Experts said the survey
highlighted the extreme hardship faced by the "new destitute" --
people on low incomes who might in the past have been able to rely on a welfare
safety net to help them through financial shocks but who now were forced to go
into debt to survive, leaving them struggling to afford even the basics.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-13/greeks-promised-economic-boost-despair-of-ever-seeing-debt-deal"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Greeks
Promised Economic Boost Despair of Seeing Debt Deal</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Across
the country in places like Corinth, an industrial hub about 80 kilometers west
of Athens, Greeks have spent years treading water as news bulletins bombard
them daily with reports of meetings and decisions in Brussels and Frankfurt
that will determine their economic future. In the meantime, as the ECB's
stimulus measures -- including its asset-purchase program -- buoy the rest of
the euro-area economy, Greece's output has been stagnant, leaving its people
the most pessimistic in the region. Yet the ECB remains unlikely to include
Greek bonds in its QE program in the foreseeable future, according to a person
familiar with the matter. That's because a meeting on Thursday of euro-area
finance ministers, whose electorates are leery of debt relief, looks like
delivering another fudge. There may be agreement to disburse more bailout loans
but without easing repayment terms enough to satisfy the ECB and International
Monetary Fund.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-13/some-qatar-banks-said-to-boost-deposit-rates-to-attract-dollars"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Qatar
Banks to Boost Deposit Rates to Attract Dollars</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Some
Qatari banks are boosting interest rates on dollar deposits to shore up
liquidity as a Saudi-led campaign to isolate the gas-rich Arab state
intensifies, people familiar with the matter said. The lenders are offering a
premium of as much as 100 basis points over the London interbank offered rate
to attract dollars from regional banks, two of the people said, asking not to
be named because the matter is sensitive. That compares with rates of 20 basis
points over Libor before the feud started on June 5. Some of the banks are
dealing with regional lenders directly instead of using brokers, which allows
them to determine interest rates depending on the amount being deposited, two
of the people said. Qatar, one of the world’s richest countries and
biggest producer of liquefied natural gas, is seeking to boost dollar supplies
after Saudi Arabia, the United Arab Emirates and Bahrain cut economic and
diplomatic ties with the country last week, in an unprecedented move designed
to punish it for ties with Iran and Islamist groups in the region. Some banks
in neighboring countries are cutting their exposure to Qatar amid concerns of a
widening of the blockade, people familiar with the matter said on June 7.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-12/asian-stocks-set-to-fall-as-u-s-tech-drop-resumes-markets-wrap">U.S.
Stocks Rebound, Dollar Weakens as Fed Looms: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-usa-banks-regulation-idUSKBN1932KQ">U.S.
Treasury unveils financial reforms, critics attack</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="http://www.reuters.com/article/us-usa-fed-idUSKBN1940E4">Fed set to
raise interest rates, give more detail on balance sheet winddown</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-usa-economy-idUSKBN1941PP">U.S.
producer prices unchanged as energy costs drop</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="https://www.bloomberg.com/politics/articles/2017-06-13/charting-the-lift-in-u-s-job-market-as-trump-seeks-elevation">Charting
the Lift in U.S. Job Market as Trump Seeks Elevation</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-14/biggest-online-lenders-don-t-always-check-key-borrower-details?srnd=157393012">Biggest
Online Lenders Don't Always Check Key Borrower Details</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-78510532148528967052017-06-20T23:02:00.000-07:002017-06-20T23:02:03.054-07:00Wednesday June 21 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/13/sears-canada-hires-bankruptcy-advisor-brick-mortar-retail-meltdown/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Sears
Canada Hires Bankruptcy Advisory Firm</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
shares of Toronto-based Sears Canada plunged as much as 50% early today, from
very little to even less, to C$0.50 at the low point before recovering some and
ending down 24% for the day at C$0.87, on its bumpy ride to zero. The company
announced in its </span><a href="https://sears.investorroom.com/2017-06-13-Sears-Canada-Announces-First-Quarter-2017-Results?env=prod&secure=true&lang=en" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">first quarter results</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that there are “material uncertainties”
about its “ability to continue to satisfy its obligations,” that it has doubts
about its ability “to continue as a going concern,” and that lenders weren’t
willing to keep it afloat for the next 12 months. It further announced that it
hired one of Canada’s leading bankruptcy and insolvency advisory practices –
the same law firm that is representing Target Canada in its insolvency
proceedings.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-14/axel-merks-best-bubble-indicator-setting-major-shock"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Axel
Merk's 'Best Bubble Indicator' Is Setting Up For "Major Shock"</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">We
increasingly see claims low volatility in the markets may be structural. Even
as we agree that some of the analyses we see make good points, we are concerned
we may be setting ourselves up for a major shock. "In my
experience, complacency, with its cousin low volatility, is the best bubble
indicator I am aware of. Perceived safety gets investors to pile into
investments that they later regret. When it happens on a massive scale, major
market distortions may be created that can lead to financial crises. And
as the tech bubble that burst in 2000 shows, even if there is no systemic
risk, the unwinding can be most painful to investors." Is the recent
sell-off in the Nasdaq the canary in the coal mine? We think it is, but the
buy-the-dip troopers may well prove us wrong. For a day. Or a week. Or longer.
But maybe not. So while the banks may not need a bailout, I'm not so sure about
pension funds or individual investors. Yet, "needing a bailout" and
actually getting one are different stories.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://mishtalk.com/2017/06/12/buy-the-faangs-baby-slow-torture/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Buy
the FAANGS Baby! Slow Torture?</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.mishtalk.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.mishtalk.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">
Here an amusing MarketWatch Opinion: </span><a href="http://www.marketwatch.com/story/now-that-faang-stocks-are-crashing-which-are-undervalued-2017-06-12" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Now that FAANG stocks are
crashing, which are undervalued?</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">
That title, by Thomas H. Kee Jr., a former Morgan Stanley broker and founder of
Stock Traders Daily, says quite a bit about market sentiment. Let’s
Investigate. Central bank capital infusions dating back to 2013 are exactly
what caused this asset bubble, and the liquidity injections have not stopped.
This bubble will burst, but probably not today, and the recent selling in FAANG
stocks does not appear to be a precursor to an impending market crash. Looking
at the stocks as a group, their influence on the market is tangible, but they
have very different relative valuation metrics. For example, Facebook has an
immediate and relatively exceptional valuation while Amazon is at the other
end, and has virtually no value at these prices.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.wsj.com/articles/the-mall-of-the-future-will-have-no-stores-1497268801"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
Mall of the Future Will Have No Stores</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wsj.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wsj.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Some
landlords plug empty spaces with churches, for-profit schools and random
enterprises while they figure out a long-term plan. Others see a future in
mixed-use real estate, converting malls into streetscapes with restaurants,
offices and housing. And some are razing properties altogether and turning them
into entertainment or industrial parks. Ford's 10-year lease at Fairlane Town
Center [in Michigan] "brought 1,800 to 2,000 employed people to our
property, people with a paycheck," said Mr. Powers. The mall, which is
still anchored by Macy's , J.C. Penney and Sears, is currently 91% leased, he
said, and its food operators are doing better in the daytime than they did
before, as Ford workers pile in for lunch. Ford liked the mall's proximity to
its main facility in Dearborn, which is being rebuilt over the next 10 years,
and its wide open spaces.<o:p></o:p></span></div>
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<a href="https://blogs.wsj.com/moneybeat/2017/06/13/u-s-companies-look-abroad-to-sell-their-debt-2/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S.
Companies Look Abroad to Sell Their Debt</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wsj.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wsj.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">American
companies sold $107.3 billion of bonds in other currencies in 2017, the most
for any comparable period in a decade, according to data provider Dealogic.
U.S. companies have done hefty issuance of euro-denominated debt but have also
sold bonds in Canadian dollars and British pounds this year, Bank of America
Merrill Lynch data show. The issuers are some of the best-known firms. General
Electric Co. issued $8.7 billion worth of euro bonds last month, one of the
largest sales in the market's history. And AT&T Inc. sold $7.9 billion of
euro bonds last week, according to Dealogic. These so-called reverse Yankee
bonds have become increasingly popular in recent years as companies look to
diversify their portfolios of debt -- particularly if they have a lot of it or
plan to take on a lot to do a deal. Issuance was especially strong in May. At
the moment, companies are benefiting from a favorable set of market conditions,
analysts say. One thing that's lubricated the euro-denominated debt market
recently: The European Central Bank has continued to buy up corporate bonds as
part of its stimulus policies. That has maintained a source of strong demand
in the market for euro corporate bonds.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-12/asian-stocks-set-to-fall-as-u-s-tech-drop-resumes-markets-wrap">Stocks
Close at Records, Dollar Slips as Fed Looms: Markets Wrap</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-13/anbang-says-chairman-can-t-perform-duties-for-personal-reasons">Anbang
Says Chairman Can't Perform Job for Personal Reasons</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://www.cnbc.com/2017/06/13/jeff-gundlach-sees-trouble-says-traders-should-raise-cash-literally-today.html">Jeff
Gundlach sees trouble, says traders should raise cash 'literally today'</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-13/here-are-the-theories-for-why-mega-cap-tech-stocks-took-a-bath">Here
Are the Theories for Why Mega-Cap Tech Stocks Took a Bath</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-13/looking-for-world-s-most-inflated-investments-check-u-s-stocks">A
Record Number of Investors Say Stocks Are Overvalued</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-13/sinking-hong-kong-dollar-has-money-managers-unworried-for-now">Sinking
Hong Kong Dollar Has Money Managers Unworried -- for Now</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span></div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-76142214032351869282017-06-19T23:16:00.000-07:002017-06-19T23:16:00.689-07:00Tuesday June 20 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/13/defaults-subprime-auto-loans-falling-used-values-negative-equity/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This
Toxic Trifecta for Auto Loans is Fueling #Carmageddon</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Subprime
Auto-Loan Backed Securities from 2015 on track to be Worst Ever. Institutional
investors that manage other people’s money grabbed subprime auto-loan backed
securities because of their slightly higher yields. These bonds are backed by
subprime auto loans that have been sliced and diced and repackaged and stamped
with high credit ratings. But those issued in 2015 may end up the worst
performing ever in the history of auto-loan securitizations, Fitch warned. And
then there are those issued in 2016. They haven’t had time to curdle. The 2015
vintage that Fitch rates is now experiencing cumulative net losses projected to
reach 15%, exceeding the peak loss rates during the Financial Crisis.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://mishtalk.com/2017/06/11/puerto-ricans-vote-for-u-s-statehood-with-97-of-the-vote-but-turnout-was-a-mere-23/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Puerto
Ricans Vote for U.S. Statehood with 97% of the Vote, But Turnout was a
Mere 23%</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.mishtalk.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.mishtalk.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">By
an overwhelming margin, Puerto Ricans Vote for Statehood. But the vote is
nonbinding, and only 23% bothered to vote. “According to early results on a
government website, statehood drew 97% of support with more than 90% of votes
counted Sunday afternoon, but less than one in four voters participated in the
plebiscite as opponents called for a boycott. Polls closed at 3 p.m. Sunday. The
vote was spearheaded by the territory’s governor, Ricardo Rosselló, who has
pushed for statehood as a way to help improve the island’s economy, which is
weighed down by debts of more than $73 billion. In May, Mr. Rosselló declared
what amounts to the largest-ever municipal bankruptcy in the U.S. that placed
Puerto Rico under court protection. Congress would need to authorize a new
state. Mr. Rosselló recently signed into law a measure creating a commission to
press U.S. lawmakers for admission. On Sunday evening, he said he would visit
Washington, D.C. to formally notify Congress and the White House of the
results.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-13/qatar-running-out-dollars"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Qatar
Is Running Out Of Dollars</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) "We
have no dollars because there is no shipment or transportation from the United
Arab Emirates. There is no stock," said a dealer at the Qatar-UAE Exchange
House in Doha's City Center mall. "The shipment is blocked from the
UAE." While the Saudi-led campaign to starve Qatar's citizens may end up
short of the target, with both Turkey and Iran volunteering to provide needed
staples to the isolated Gulf nation while </span><a href="http://www.zerohedge.com/news/2017-06-12/bypass-food-embargo-qatar-will-pay-8-million-airlift-4000-cows"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">local entrepreneurs have started a cow paradropping campaign</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> to offset the decline in milk imports, a
more pressing problem has emerged: Qatar's financial system is running out of
dollars. As Bloomberg reports, several Qatari banks have boosted interest rates
on dollar deposits to shore up liquidity as the Saudi-led campaign to isolate
the gas-rich Arab state intensifies. To boost their hard currency reserves,
Qatar banks are now offering a premium of as much as 100 basis points over
LIBOR to attract dollars from regional banks, some 80 bps higher compared to
the rate they offered prior to last week's crisis. A similar picture is visible
on the 3-Month QIBOR, or Qatar Interbank Rate, which has surged to 2.3% as of
Tuesday.<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-12/subprime-auto-bonds-from-2015-may-end-up-worst-ever-fitch-says"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Subprime
Auto Bonds From 2015 May End Up Worst Ever, Fitch Says</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Subprime
auto bonds issued in 2015 are by one key measure on track to become the worst
performing in the history of car-loan securitizations, according to Fitch
Ratings. This group of securities is experiencing cumulative net losses at a
rate projected to reach 15 percent, which is higher even than for bonds in the
2007, Fitch analysts Hylton Heard and John Bella Jr. wrote in a report
Thursday. "The 2015 vintage has been prone to high loss severity from a
weaker wholesale market and little-to-no equity in loan contracts at default
due to extended-term lending, a trend which was not as apparent in the
recessionary vintages," said the analysts, referring to lenders’
stretching out repayment terms on subprime loans, sometimes to over </span><a href="https://www.bloomberg.com/news/articles/2015-07-20/subprime-auto-lending-veteran-calls-longer-maturities-new-normal" target="_blank" title="Subprime Auto-Lending Veteran Calls Longer Maturities New Normal"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">six years</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,
to lower borrowers’ monthly payment. That becomes riskier in the tail end of
the loan, after the car has mostly depreciated and borrowers may be left owing
large balances.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-11/bond-market-doomsayers-sound-alarm-as-margin-of-safety-vanishes"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bond
Market Doomsayers Sound Alarm as Margin of Safety Vanishes</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Look
around the $14 trillion U.S. Treasury market, and you’d be </span><a href="https://www.bloomberg.com/news/terminal/OR6TFR6JIJUU" target="_blank" title="Demand Is Rising for Swaption Hedges Against Lower Rates: Chart"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">hard-pressed</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> to
find anything to suggest investors are even remotely concerned about the
possibility of a selloff. Bond yields
keep falling day after day, bullish bets have soared and volatility has all but
vanished. At the same time, traders foresee inflation subdued for decades and
seem to have bought into the idea the Federal Reserve will </span><a href="https://www.bloomberg.com/news/articles/2017-05-29/fed-s-williams-sees-much-smaller-balance-sheet-in-five-years" target="_blank" title="Fed’s Williams Sees ‘Much Smaller’ Balance Sheet in Five Years"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">take its time </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">to trim its crisis-era bond investments. To Binky
Chadha, that’s a recipe for disaster. Chadha, the chief global strategist at
Deutsche Bank’s U.S. securities unit, is part of a group of die-hard bond bears
who say Treasuries have become unhinged from reality and yields have nowhere to
go but up. Like many before him, he points to all the obvious signs investors
seem to be ignoring: higher benchmark interest rates, wage pressures that will
lead to faster inflation, worsening budget deficits that will result in more
debt issuance.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-11/asia-shares-set-to-open-mixed-after-u-s-tech-rout-markets-wrap">Tech
Selloff Spreads; Pound Slides as May Battles: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.reuters.com/article/us-global-markets-idUSKBN19300X">Tech
sell-off spreads to Europe and Asia, politics lift euro</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="http://www.reuters.com/article/us-global-forex-idUSKBN19303A">Eyes on
central banks after sterling shocker</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<!--[if !supportLineBreakNewLine]--><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-britain-election-idUSKBN1930WK">Britain's
PM May to face her party amid post-election tumult</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="http://uk.reuters.com/article/us-eurozone-greece-france-finmin-idUKKBN19319T">French
finance minister says 'optimistic' about Greek deal after Athens talks</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-11/hedge-fund-delivers-19-return-by-betting-only-on-safest-bonds">Hedge
Fund Delivers 19% Return by Betting Only on Safest Bonds</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-31635941797393812482017-06-18T23:51:00.000-07:002017-06-18T23:51:05.967-07:00Monday June 19 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://www.amny.com/real-estate/broadway-s-empty-storefronts-total-almost-200-borough-president-says-1.13732598"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Broadway's
empty storefronts total almost 200, borough president says</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.amny.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.amny.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Manhattan
Borough President Gale Brewer announced Monday that her office tallied 188
vacant storefronts on the iconic thoroughfare, thanks to volunteers who helped
survey storefronts along the avenue's entire span in Manhattan last month. ... Retail
experts cited several factors hindering the industry: people purchasing items
online rather than in brick-and-mortar shops, demographic shifts that have
flooded areas with newcomers who eschew former mainstays, and a rental market
in flux. "You're seeing the highest vacancy [rate] in Manhattan, at least,
in history," said Scott Plasky, a retail specialist in Marcus &
Millichap's Manhattan office. "They have opportunities to rent those
spaces. There are tenants that want to be here: this is New York. But these
guys either are unwilling or unable to lease at what the marketplace is telling
them they're worth." <o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/12/albertsons-reveals-supermarket-meltdown-aldi-lidl-deep-discounters-promise-price-war-in-stagnating-u-s-market/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Albertson’s
Reveals Supermarket Meltdown as Global Deep-Discounters Promise Price War in
Stagnating US Market</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Aldi’s
$5 billion bet at a brutal time. Today, Albertson’s explained in an amended </span><a href="https://www.sec.gov/Archives/edgar/data/86144/000119312517200829/d377366ds4a.htm" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">S-4 filing</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> for a debt exchange offering just how
tough things have gotten for traditional supermarket chains. As is so often the
case, there is a private equity angle to it. Albertson’s was acquired in a 2005
LBO by a group of PE firms led by Cerberus. In January 2015, it acquired
Safeway to eliminate some competition. It then wanted to sell its shares to the
public. But in October 2015, as brick-and-mortar retail began to melt down, it
scrapped its IPO. The filing’s most revealing data are same-store sales on a
quarterly basis through Q4, 2016, comparing year-over-year sales growth at
stores that have been open in the current and prior year. I added the red line
to show the trend since Q3 2015:<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-13/obamacare-death-spiral-first-2018-coverage-map-reveals-least-47-counties-no-coverage"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Obamacare
Death Spiral: First 2018 Coverage Map Reveals At Least 47 Counties With No
Coverage</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">"This
is yet another failing report card for the Exchanges. The American people have
fewer insurance choices and in some counties no choice at all. CMS is
working with state departments of insurance and issuers to find ways to provide
relief and help restore access to healthcare plans, but our actions are by no
means a long-term solution to the problems we’re seeing with the Insurance
Exchanges." Earlier today the Centers for Medicare and Medicaid Services
(CMS) released the first projected </span><a href="https://downloads.cms.gov/files/cciio-exchange-carriers-by-county.pdf"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">county-by-county map</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> of Obamacare coverage for the 2018 plan
year which depicts at least 47 counties, with 35,000 active Obamacare exchange
participants, that will have no health insurance options next year.
Meanwhile, another 2.4 million people are expected to have only 1 option for
coverage. Per </span><a href="https://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-releases/2017-Press-releases-items/2017-06-13.html"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">CMS</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">:
The Centers for Medicare & Medicaid Services (CMS) is releasing a
county-level map of 2018 projected Health Insurance Exchanges participation
based on the known issuer participation public announcements through June 9,
2017. This map shows that insurance options on the Exchanges continue to
disappear. Plan options are down from last year and, in some areas, Americans
will have no coverage options on the Exchanges, based on the current data.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.mauldineconomics.com/this-week-in-geopolitics/us-oil-production-makes-waves"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">US
Oil Production Makes Waves, Swamping OPEC</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.mauldineconomics.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.mauldineconomics.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It's not just the US production numbers that
are making waves: It's the spike in US crude oil exports. The US exported
830,000 barrels of crude per day in March, a whopping 64.2% increase year over
year. In February, it exported 1.1 million barrels per day, a nearly 200%
increase year over year...[per the WSJ,] the February numbers are closer to the
new norm, as it expects the US to export, on average, roughly 1 million barrels
per day in 2017. This is a huge challenge for major oil producers, especially
Saudi Arabia and Russia. In December 2016, OPEC and its oil-producing partners
agreed to cut production by about 1.8 million barrels per day, or roughly 1.5%
of global crude production at the time... <span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-13/stockman-fears-fiscal-blodbath-mother-all-debt-ceiling-crises-looms"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Stockman
Fears Fiscal Bloodbath As "Mother Of All Debt Ceiling Crises" Looms</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">"Washington
is heading for the unthinkable... And unlike the saves which
were put together at the 11th hour in August 2011 and October 2015 by President
Obama and Speaker Boehner, this time there will be absolute legislative
paralysis." As my colleague </span><a href="https://dailyreckoning.com/author/ladler/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Lee Adler</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> has pointed out, Treasury tax
collections have slowed to a crawl. Overall collections are barely even
with prior year, and even withholding payments are now coming in at barely 2% on
a year/year basis. That is far below the built-in spending growth rate of about 4% —
and says nothing to the big increases for defense, law enforcement, border
control and infrastructure being sought be the Trump White House. The four week
moving average of withholding collections — about as accurate a real time
measure of the US economy as exists — is running below the average wage rate
gain of about 2.6% per annum. That means real wage growth is turning
negative — not accelerating like the “escape velocity” </span><a href="https://dailyreckoning.com/look-ma-no-hands/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">narrative being peddled by Wall Street</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://u.s.%20tech%20drop%20resumes%20as%20apple%20falls%3B%20oil%20rises:%20Markets%20Wrap/">U.S.
Tech Drop Resumes as Apple Falls; Oil Rises: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-12/bank-of-canada-to-assess-need-for-less-stimulus-wilkins-says">Bank
of Canada Rate Hike Signal Sends Loonie Higher</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-12/subprime-auto-bonds-from-2015-may-end-up-worst-ever-fitch-says">Subprime
Auto Bonds From 2015 May End Up Worst Ever, Fitch Says</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<!--[if !supportLineBreakNewLine]--><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-12/u-s-bears-return-to-china-with-shorts-circling-6-billion-etfs">U.S.
Bears Return to China With Shorts Circling $6 Billion ETFs</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.cnbc.com/2017/06/12/fang-tech-wreck-showing-strains-but-not-cracks-in-broader-market.html">The
tech wreck is a sign there could be a summer swoon</a> - (<a href="http://www.cnbc.com/">www.cnbc.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"> <o:p></o:p></span></div>
<br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><a href="https://www.nytimes.com/2017/06/10/world/asia/china-bridges-infrastructure.html?ref=business&_r=0">China’s
New Bridges: Rising High, but Buried in Debt</a> - (<a href="http://www.nytimes.com/">www.nytimes.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-33088049816295735262017-06-15T23:23:00.000-07:002017-06-15T23:23:07.040-07:00Friday June 16 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://www.cnbc.com/2017/06/12/gymboree-files-for-chapter-11-bankruptcy-cfo-departs-retailer.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Gymboree
files for Chapter 11 bankruptcy; CFO departs retailer</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.cnbc.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.cnbc.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Gymboree
has filed for Chapter 11 bankruptcy protection. The children's clothing
retailer announced the move Monday morning, only a few weeks after it partnered
with a turnaround firm, AlixPartners, to assist with its operations and then </span><a href="http://www.cnbc.com/2017/06/02/gymboree-misses-june-1-debt-payment-bankruptcy-seen-as-imminent.html" title="http://www.cnbc.com/2017/06/02/gymboree-misses-june-1-debt-payment-bankruptcy-seen-as-imminent.html"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">missed a June 1 debt payment.</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> A bankruptcy filing had been seen as imminent,
with S&P Global lowering its corporate credit rating on the company to
"D" from "CC." San Francisco-based Gymboree also announced
Monday the departure of Chief Financial Officer Andrew North, who is leaving
for personal reasons.<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/12/chain-restaurant-recession-structural/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Is
the Chain-Restaurant Recession Becoming Structural?</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">A
15-month downturn, longest since 2009, and no end in sight. There’s simply no
respite for chain restaurants. Industry-wide, same-store sales fell again in
May. The last time, same-store sales actually rose year-over-year was in
February 2016. On that basis, the chain-restaurant recession is now in its 15th
month, the longest downturn since the Financial Crisis. In May, same store
sales fell 1.1% year-over-year. Same-store foot traffic fell 3.0%. Food sales
were down, and alcohol sales were down, according to TDn2K’s </span><a href="http://tdn2k.com/snapshot/2017-05/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Restaurant Industry Snapshot</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, tracking sales at 27,000 restaurant units
from 155 brands, generating about $67 billion in annual revenue. But the
average amount of the check per person increased by 2%, and not because they
ordered more food and booze, but because prices rose.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-12/coinbase-crashes-bitcoin-ethereum-join-fang-stocks-meltdown"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Coinbase
Crashes As Bitcoin, Ethereum Join FANG Stocks Meltdown</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Whether
it is just a curious coincidence or not, cryptocurrencies are crashing
along with FANG stocks this morning... Earlier statements about the
Ethereum network running slow due to extremely heavy activity appear to have
taken their toll on one major exchange... And Bitcoin is tracking FANG stocks
lower (down around 13% this morning)... This is the biggest drop since
January 2015. And Ethereum is down over 15%...after tagging $400 earlier last
night<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.telegraph.co.uk/business/2017/06/11/new-economic-woes-put-theresa-may-fresh-pressure/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">New
economic woes put Theresa May under fresh pressure</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.telegraph.co.uk/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.telegraph.co.uk</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Theresa
May has been hit by a series of economic blows, with consumers tightening their
belts and businesses increasingly showing fears of a sharp slowdown as she
attempts to cling on to power. The crucial services sector stands on the brink
of a contraction, new data shows, and credit card spending has fallen for the
first time in four years. High Street footfall has also gone sharply into
reverse and manufacturing and construction companies in the English regions
report a widespread slowdown in activity.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
<h1 style="background: white; margin-bottom: .0001pt; margin: 0in;">
<span style="color: #0b5456; font-family: "Arial",sans-serif; font-size: 14.5pt; mso-fareast-font-family: "Times New Roman";"> </span></h1>
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<a href="http://wolfstreet.com/2017/06/09/big-tech-stocks-come-unglued/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
Biggest Tech Stocks Come Unglued</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Wow,
did you see that? That was quick. Friday morning between 10:15 AM and 11:15 AM,
the Nasdaq gallivanted around blissfully for an entire hour in record territory
of around 6,340 with not a worry in sight, and then someone must have looked at
the valuations or something, and it became infectious, and the sell-orders
started pouring out, and by 2:48 PM, the Nasdaq hit a low for the day of 6,160,
down 3.1% from peak to trough. It closed at 6,208, down 114 points, or 1.8%,
its biggest daily decline so far this year. Meanwhile, the Dow rose nearly
90 points or 0.4% to 21,272. And the S&P 500 ended down a minuscule 2
points.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-11/qatar-banks-can-survive-gulf-foreign-funds-withdrawal-s-p-says">Qatar
Banks Can Survive Gulf, Foreign Funds Withdrawal, S&P Says</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-gulf-qatar-currency-idUSKBN1920QK">Dollar
shortages hit Qatar exchange houses as foreign banks scale back ties</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-10/puerto-rico-warns-it-may-grab-sales-taxes-claimed-by-bondholders">Puerto
Rico Warns It May Grab Sales-Taxes Claimed by Bondholders</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.nytimes.com/2017/06/10/world/asia/china-bridges-infrastructure.html?ref=business&_r=0">China’s
New Bridges: Rising High, but Buried in Debt</a> - (<a href="http://www.nytimes.com/">www.nytimes.com</a>)<br />
<br />
<a href="https://www.wsj.com/articles/feds-effort-to-guide-markets-falls-short-1497182401">Fed’s
Effort to Guide Markets Falls Short</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)<br />
<a href="https://www.ft.com/content/320a2278-4e88-11e7-bfb8-997009366969">Theresa
May is ‘dead woman walking’, says George Osborne</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="https://www.ft.com/content/a1526e2e-4d43-11e7-919a-1e14ce4af89b">Poor
inflation readings unlikely to deter Federal Reserve</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="http://thehill.com/policy/national-security/337175-trump-russia-and-comey-where-it-all-stands">Trump,
Russia and Comey: Where it all stands</a> - (<a href="http://www.thehill.com/">www.thehill.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com1tag:blogger.com,1999:blog-5019227806633120796.post-19115074538395996192017-06-14T23:43:00.000-07:002017-06-14T23:43:09.124-07:00Thursday June 15 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/10/liberbank-spanish-bank-about-to-bite-the-dust/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Is
Another Spanish Bank about to Bite the Dust?</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Stockholders
and junior bondholders fear a “bail-in.” After its most tumultuous week
since the bailout days of 2012, Spain’s banking system is gripped by a climate
of fear, uncertainty and distrust. Rather than allaying investor nerves, the </span><a href="http://wolfstreet.com/2017/06/07/bail-in-era-for-europe-banking-crisis-spain-italy/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">shotgun bail-in and sale of
Banco Popular</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> to
Santander on Tuesday has merely intensified them. For the first time since the
Global Financial Crisis, shareholders and subordinate bondholders of a failing
Spanish bank were not bailed out by taxpayers; they took risks in order to make
a buck, and they bore the consequences. That’s how it should be. But bank
investors don’t like not getting bailed out. Now they’re worrying it could
happen again. As Popular’s final days showed, once confidence and trust in
a bank vanishes, it’s almost impossible to restore them. The fear has now
spread to Spain’s eighth largest lender, Liberbank, a mini-Bankia that was
spawned in 2011 from the forced marriage of three failed cajas (savings
banks), Cajastur, Caja de Extremadura and Caja Cantabria.<o:p></o:p></span></div>
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<a href="http://www.cnn.com/2017/06/12/politics/senate-health-care-bill-fail-on-purpose/index.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">GOP
senators might let their health care bill fail on purpose </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">- (</span><a href="http://www.cnn.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.cnn.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">So
why vote on a bill that may not pass? The issue could jeopardize other
top-ticket items on the GOP's agenda, Utah's former Republican Gov. Mike
Leavitt told CNN... While conservatives may not be pleased with the changes on
the table, moving the bill to the left could help McConnell protect his most
vulnerable members. There aren't many endangered Republican members up in 2018,
but those who are hail from more purple states, like Dean Heller in Nevada and
Jeff Flake in Arizona. Last week, it became clear that GOP leaders were
seriously considering several moderate concessions on their health care bill,
including keeping some of the Obamacare taxes and not allowing states to repeal
what is known as community rating -- a key protection for people with
pre-existing conditions.<o:p></o:p></span></div>
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<a href="https://www.reuters.com/article/us-global-markets-idUSKBN19300X"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Tech
sell-off spreads to Europe and Asia, Nasdaq seen falling further</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Technology
stocks fell heavily across Europe and Asia on Monday and were set to fall again
on Wall Street after the worst day for Apple (AAPL.O) shares in more than a
year, while easing political tensions lifted the euro and European bonds. A
near 4 percent slump in Apple (AAPL.O) on Friday, along with falls in Alphabet
(GOOGL.O), Facebook (FB.O) and others took a heavy toll on rivals including
Samsung (005930.KS) and Europe's big chipmakers STMicro (STM.PA) and Dialog
(DLGS.DE) on Monday. [.EU] ... Europe's tech index .SX8P fell 3.5 percent to
put it on track for its biggest one-day loss since Britain's Brexit vote a year
ago. The index had reached a 15-year high earlier this month having soared
around 40 percent over the last year.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://wolfstreet.com/2017/06/11/americans-suddenly-sour-on-the-housing-market/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Americans
Suddenly Sour on the Housing Market</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It’s
a Great Time to Sell and a Bad Time to Buy, they think. Americans have been
gung-ho in recent years about the housing market, bidding up prices with gusto
as they went. The election helped. By February, the Fannie Mae Home Purchase
Sentiment Index (HPSI) had shot up to 88.3, up 5.6 points year-over-year, and
the highest ever in the data series going back to 2011. But since then, some
dark clouds have appeared, and other dark clouds have been out there for a
while – by some measures the darkest in the data series. The index itself still
looks benign: In May, it fell 0.5 points to 86.2, down 2.1 points from its
February peak, but still up 0.9 points year-over-year: But here are the clouds,
according to Doug Duncan, senior VP and chief economist at </span><a href="http://www.fanniemae.com/portal/media/corporate-news/2017/may-home-purchase-sentiment-index-6566.html" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Fannie Mae</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">: “High home prices have led many consumers to
give us the first clear indication we’ve seen in the National Housing Survey’s
seven-year history that they think it’s now a seller’s market.”<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-12/viking-returns-8-billion-investors-cio-departs"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Viking
Returns $8 Billion To Investors As CIO Departs</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Viking
Global Investors, one of the world's largest hedge funds founded in 1999 by
Andreas Halvorsen, is returning about $8 billion to investors as CIO Daniel
Sundheim departs to pursue his own business interests, Bloomberg reports. Along
with Eric Mindich's Eton Park Capital Management, Viking Global Advisors was
once a stalwart name in the hedge fund industry, consistently generating double
digit returns no matter the economy or macro climate. However, just like Eton
Park, </span><a href="http://www.zerohedge.com/news/2017-03-23/eric-mindichs-12-billion-eton-park-returning-capital-investors-here-are-his-biggest-"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">which shuttered in March</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, Andrew Halvorsen's Viking Global (thus named
so for obvious reasons) had fallen upon hard times last year, and moments ago
Bloomberg reported that the legendary hedge fund will return $8 billion to
investors (out of a total $30 billion in AUM), as a result of the departure of
its CIO, Daniel Sundheim, who is leaving to pursue his own business interests. According
to Bloomberg and II, Sundheim joined Greenwich, Connecticut-based Viking in
2002 as an analyst. He started managing his own portfolio in 2005, became
co-CIO in 2010 and gained sole responsibility for the job in 2014.
Bloomberg adds that Sundheim is leaving "because the firm couldn’t find a
role for him that would give him the flexible investment mandate he was looking
for." <span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-britain-election-may-idUSKBN19033J">British
PM fights for survival ahead of Brexit talks</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/politics/articles/2017-06-10/may-fights-to-keep-job-as-dysfunctional-inner-circle-savaged">May
Fights to Keep Job as Top Aides Resign</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://www.bbc.com/news/uk-40231107">Theresa May's Top Two Aids Quit</a>
</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bbc.com/">www.bbc.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<br />
<a href="http://www.cnbc.com/2017/06/09/big-five-tech-stocks-sell-off-facebook-apple-amazon-microsoft-alphabet.html">The
five biggest tech stocks lost nearly $100 billion in value on Friday</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.cnbc.com/">www.cnbc.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://www.reuters.com/article/us-italy-politics-idUSKBN1910L5">Italy's
Renzi sees elections at natural end of legislature in 2018</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/view/articles/2017-06-10/washington-s-never-seen-anything-like-the-comey-crisis-or-has-it">Washington's
Never Seen Anything Like the Comey Crisis. Or Has It?</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-71874018149468546732017-06-13T23:35:00.000-07:002017-06-13T23:35:08.755-07:00Wednesday June 14 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-09/withdrawing-paris-accord-helps-americas-most-vulnerable"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Withdrawing
From Paris Accord Helps America's Most Vulnerable</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">
- (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Are
you concerned about the poor’s economic welfare? If so, you should celebrate
President Trump’s announcement that the United States will withdraw itself from
the Paris Agreement. The Paris climate accord, which was ratified last year,
attempts to “brings all nations into a common cause to undertake ambitious
efforts to combat climate change and adapt to its effects.” Supporters of
the agreement claim it is necessary to avert the disastrous consequences of
climate change. Regrettably, the plan’s supporters are committing the greatest
economic fallacy, which Henry Hazlitt, the acclaimed economics writer,
warned about in his most prominent work, Economics in One Lesson (1946):
The bad economist sees only what
immediately strikes the eye; the good economist also looks beyond. The bad
economist sees only the direct consequences of the proposed course; the good
economist looks also at the longer and indirect consequences.<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/02/inventory-unsold-cars-hyundai-sales-crushed-gm-ford-others-struggle/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Haunting
Photos of #Carmageddon: Hyundai Gets Crushed, as GM, Ford, Others Struggle</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Factory-fresh
Hyundai cars stored on vast new gravel lots near the Mexican border. Industry
experts had lowered their forecasts for May auto sales, having been
overoptimistic every month this year, always figuring that there would be a
year-over-year sales increase, when in fact sales fell every month. So for May,
they became practically gloomy, but not gloomy enough. J.D. Power and LMC
Automotive </span><a href="http://wardsauto.com/us-auto-sales-seen-05-pct-may-jd-power-and-lmc" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">forecast</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that new vehicle sales in May would inch
up 0.5% year-over-year to 1.54 million cars and light trucks. Edmunds predicted
that sales would edge up 0.3% to 1.53 million units. And Kelley Blue Book </span><a href="http://mediaroom.kbb.com/2017-05-24-May-New-Car-Sales-To-Remain-Flat-Year-Over-Year-Up-7-Percent-From-April-2017-According-To-Kelley-Blue-Book" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">forecast</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that sales would be essentially flat
year-over-year at 1.525 million: Heavily focused on cars, it has run into the
buzz saw of crashing car sales in the US. Its car sales plunged 19.1% in May to
39,567. Even its truck sales fell 7.5% to 20,444. Total sales sagged 15.5%, by
far the worst among the major automakers. And its inventory of unsold cars is
piling up, but not only on dealer lots! The photos below show Hyundai cars
starting to fill up especially created gravel lots just north of the Otay
border crossing to Mexico (Tijuana).<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-08/spain-s-wounds-run-deep-as-economy-retraces-crisis-losses"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Spain's
Wounds Run Deep as Economy Retraces Crisis Losses</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It
has taken the Spanish economy a decade to claw back lost output after its worst
crisis in modern history, but the wounds are far from healed. While gross
domestic product is this quarter on track to finally reach the level registered
in 2007, employment is almost 12 percent lower, wages remain subdued and social
inequality has risen even as the nation extends a four-year recovery. To
support its recovery, while being part of the euro area, Spain had to
undergo an internal devaluation through lower salaries coupled with more
flexible labor laws. As a result, wages in relation to GDP have fallen to the
lowest since 1995. That means middle-income families depending on their
paycheck have come under strain, while asset-rich households have held
firm. <span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-09/state-corporate-tax-receipts-just-crashed-most-recession"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">State
Corporate Tax Receipts Just Crashed The Most Since The Recession</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) After flatlining for the past year, US income
tax receipts - both at the federal government and on a state and local level -
have been disappointing, and have posted a sharp drop since the start of the
year, which is "sounding an alarm about the health of the US economy"
in BofA's words (in addition to the countless other alarms about the health of
the economy, which however are ignored due to the record stock market). As Bank
of America highlights something we warned </span><a href="http://www.zerohedge.com/news/2016-09-24/state-tax-revenues-plunge-q2"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">about last Septembe</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">r, according to the Rockefeller Institute and
CBO, US federal income tax receipts have come in about 3% below
expectations this year. Digging deeper, the disappointment was largely in
personal current tax receipts, with withheld tax receipts showing little growth
over the prior two quarters. The story is a bit different for state and local
governments where personal tax receipts were fairly stable, but there was a
significant decline in tax receipts for corporate income.<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-09/illinois-bonds-fall-as-budget-impasse-pushes-rating-toward-junk"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Illinois
Bonds Fall as Budget Impasse Pushes Rating Toward Junk</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Illinois
bond prices have dropped as Governor Bruce Rauner and lawmakers remain locked
in two-year stalemate over the government’s budget, increasing the chance that
it may become the first U.S. state ever cut to junk. Illinois’s 10-year bond
yields, which move in the opposite direction as price, have soared to about 5.2
percent, or 3.36 percentage points more than top-rated municipal debt,
according to Bloomberg’s indexes. Securities due in 2023, the most actively traded
Friday, sold for an average yield of 4.3 percent, a nearly half percentage
point jump since May 31, the day before S&P Global Ratings and Moody’s
Investors Service downgraded Illinois to the lowest investment grade. The
downgrades came after state leaders failed for the third year in a row to
approve a spending plan during the regular legislative session, forcing
lawmakers to secure a three-fifths majority of the legislature to pass a budget
before the start of the next fiscal year on July 1. If they can’t, S&P
warned that it will likely cut Illinois’s credit rating again.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-07/asia-stocks-look-mixed-pound-steady-before-vote-markets-wrap">U.S.
Stocks at Records Amid Comey as Euro Weakens: Markets Wrap</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-08/china-s-banks-brace-for-june-cash-squeeze-as-funding-costs-jump">China's
Banks Brace for June Cash Squeeze as Funding Costs Jump</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-08/household-wealth-gain-of-2-35-trillion-to-fuel-u-s-consumers">U.S.
Households Just Added $2.35 Trillion in Wealth in the First Quarter</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-08/kuroda-says-japan-still-a-long-way-from-meeting-inflation-goal">Kuroda
Says Japan Still a ‘Long Way’ From Meeting Inflation Goal</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="http://www.reuters.com/article/us-usa-trump-russia-idUSKBN18Z0HC">FBI
ex-head accuses White House of lies, does not say Trump obstructed justice</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/features/2017-06-08/no-one-has-ever-made-a-corruption-machine-like-this-one">No
One Has Ever Made a Corruption Machine Like This One</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-55071051152425232862017-06-12T23:34:00.000-07:002017-06-12T23:34:06.127-07:00Tuesday June 13 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/09/wall-street-wakes-up-to-auto-sales-downturn/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Wall
Street Wakes Up to #Carmageddon</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Auto
industry faces “Unprecedented Buyer’s Strike”. After five months in a row of
year-over-year declines in auto sales, and therefore after five months in a row
of sales that fell </span><a href="http://wolfstreet.com/2017/06/02/inventory-unsold-cars-hyundai-sales-crushed-gm-ford-others-struggle/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">below already lowered
expectations</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,
the big guns on Wall Street are now seeing the writing on the wall, and are
trying to come to grips with it. “A stretched auto consumer, falling used
[vehicle] prices, and technological obsolescence of current cars are
ingredients for an unprecedented buyer’s strike,” wrote Morgan Stanley’s auto
analyst Adam Jonas in a note to clients. He now sees a “multiyear cyclical
decline.” In this environment, he sees an impaired ability by these stretched
consumers to buy new vehicles. He sees a declining “willingness of financial
institutions to lend as aggressively as in the past.” He’s particularly worried
that even the automakers’ captive finance operations – such as Ford Motor
Credit, GM Financial, Mercedes-Benz Financial Services, and Toyota Financial
Services – which have been doing everything they could to get people into new
cars, are at the end of their wits:<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-09/its-perfect-storm-list-retailers-danger-bankruptcy-hits-record-22"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">"It's
A Perfect Storm": List Of Retailers In Danger Of Bankruptcy Hits Record 22</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This
is a "perfect storm... you're on the Andrea Gail right now, and the
water's starting to get very choppy." The US retail sector continues to
sink at an alarming rate, and according to the </span><a href="https://www.moodys.com/research/Moodys-Ranks-of-distressed-retailers-set-to-keep-growing-amid--PR_367907?WT.mc_id=AM~RmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z~20170607_PR_367907"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">latest iteration of Moody</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">'s list of retailers who are in danger of
filing for bankruptcy, there are now 22 distressed retailers whose troubled
financials the rating agency believes could make them potential bankruptcy
candidates in the near future, up substantially </span><a href="http://www.zerohedge.com/news/2017-04-26/sp-these-ten-retailers-will-file-bankruptcy-next"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">from just two months ago</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, and topping the 19 recorded at the peak
of the Great Recession. According to Moody's analyst Charles O'Shea, legacy
retailers such as Sears, Neiman Marcus and others on the rating agency's retail
distress list, face a "perfect storm" and warned that "you're on
the Andrea Gail right now, and the water's starting to get very choppy." The
worst could be yet to come as </span><a href="https://www.moodys.com/research/Moodys-Ranks-of-distressed-retailers-set-to-keep-growing-amid--PR_367907?WT.mc_id=AM~RmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z~20170607_PR_367907"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">the Moody's analyst writes that </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">"the ranks of distressed retailers is set
to keep growing over the next 12 to 18 months amid a secular shift in the
industry." Moody's list consists of all retailers which have ratings of
Caa or lower. That number has grown to 22, or approximately 15%, of the firm's
retail and apparel universe. "When you're down there in C-a land,
bankruptcy is a real possibility," O'Shea said.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://therealdeal.com/issues_articles/the-ultraluxury-rental-market-falls-to-earth/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">"Ultra
Luxury" Rentals Feel The Pain in NYC</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.therealdeal.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.therealdeal.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Thanks
to the recent condo boom that's turned scores of investors into landlords,
there's an abundance of ultrahigh-end units on the rental market. And just like
the rest of the rental market -- where landlords have been throwing out
concessions for the better part of a year -- tenants in the uberluxe
market are scoring fat discounts. Browne estimated the high-end rental market
is down 10 to 15 percent since late 2015. He said that one of his clients,
who'd been getting $19,000 to $20,000 a month for his two-bedroom at 40 East
66th Street, agreed to discount the condo to $18,000 . It's also taking longer
to do deals. Douglas Elliman's Tal Alexander recently used "light
staging" on a $20,000-a-month rental at One57, which still took about 60
days to rent. Alexander said he's telling clients that overpricing is a waste
of time. "If [renters] see the apartment linger, they think it's more
negotiable."<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-07/bill-gross-says-market-risk-is-highest-since-before-2008-crisis"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bill
Gross Says Market Risk Is Highest Since Pre-2008 Crisis</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S.
markets are at their highest risk levels since before the 2008 financial crisis
because investors are paying a high price for the chances they’re taking,
according to </span><a href="https://www.bloomberg.com/billionaires/id/1487665" target="_blank" title="Billionaire Profile"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bill Gross</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, manager of the $2 billion Janus Henderson
Global Unconstrained Bond Fund. “Instead of buying low and selling high, you’re
buying high and crossing your fingers,” Gross, 73, said Wednesday at the
Bloomberg Invest New York summit. Central bank policies for low-and
negative-interest rates are artificially driving up asset prices
while creating little growth in the real economy and punishing individual
savers, banks and insurance companies, according to Gross. The U.S. economy is
expected to grow 2.2 percent this year and 2.3 percent in 2018, according to
forecasts compiled by Bloomberg. Trump administration officials have said their
policies will boost annual growth to 3 percent.<o:p></o:p></span></div>
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<a href="https://www.ft.com/content/85a852ec-4b8b-11e7-a3f4-c742b9791d43"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">$16tn
US retirement sector faces radical overhaul</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.ft.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.ft.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
US’s $16tn retirement industry faces a radical shake-up from Friday, when
sweeping new rules requiring financial advisers to put clients’ interests ahead
of their own come into force. The landmark “fiduciary rule”, drawn up by the
Obama administration in 2015, has been opposed by many asset managers and
financial advisers over concerns that it will hit profits and lead to weaker
outcomes for savers. But despite being put under </span><a href="https://www.ft.com/content/efcdddf0-e186-11e6-8405-9e5580d6e5fb"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">review</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> by
Donald Trump, the US president, in February, most of the new regulations will
be rolled out from Friday, prompting cheers from consumer advocates. The rules,
which apply to retirement investments, are expected to spell the end of
financial advisers recommending expensive funds to clients in return for large
commissions. The regulations are also likely to bolster cheaper passive fund
managers that track market indices.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-07/packed-thursday-to-test-finanical-markets-not-easily-flummoxed"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">An
Unusually Packed Thursday Will Test Markets</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
</span><a href="http://oil%20dives%205%20percent%20on%20surprise%20build%20in%20u.s.%20crude%2C%20gasoline%20stocks/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Oil
dives 5 percent on surprise build in U.S. crude, gasoline stocks</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
</span><a href="http://www.reuters.com/article/us-gulf-qatar-downgrade-idUSKBN18Y2NH"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Qatar
debt rating downgraded by S&P as riyal hits 11-year low</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<br />
</span><a href="http://www.reuters.com/article/us-eurozone-banks-popular-italy-idUSKBN18Y2OZ?il=0"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Exclusive:
EU in stronger position to tackle Italy after Spain bank rescue - source</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
</span><a href="https://www.nytimes.com/2017/06/07/business/dealbook/stock-market-facebook-amazon-apple-google-netflix.html?ref=business&_r=0"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">5
Big Tech Stocks Build Market Euphoria, and Jitters</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (</span><a href="http://www.nytimes.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt;">www.nytimes.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
</span><a href="https://www.ft.com/content/190e854e-4b58-11e7-919a-1e14ce4af89b"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Revolutionary
Guards blame Saudi Arabia for Tehran terror attack</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (</span><a href="http://www.ft.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt;">www.ft.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-16688216646497654422017-06-11T23:28:00.000-07:002017-06-11T23:28:06.482-07:00Monday June 12 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/07/bail-in-era-for-europe-banking-crisis-spain-italy/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">“Bail-In”
Era for Europe’s Banking Crisis Begins</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Many
Banco Popular investors wiped out. Taxpayers off the hook. What it means for
Italy. Banco Popular, until today Spain’s sixth biggest bank, is no more. Its
assets, including a massive portfolio of small-business clients, now belong to
Banco Santander, Spain’s biggest bank. The global giant now has 17 million
customers in Spain, a country of just 45 million people. The price was €1. Spain’s
Ministry of the Economy </span><a href="http://www.expansion.com/empresas/banca/2017/06/07/5938302dca4741214f8b45dd.html" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">revealed</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that by 3 pm Tuesday, Popular was no
longer able to contain the deposit outflow. “It had exhausted all its lines of
liquidity, both ordinary and extraordinary.” It had run out of collateral to
cover any further lines of emergency liquidity. This apparently triggered the
intervention by the ECB’s Single Resolution Board (SRB), which decided on
Tuesday that the bank “was failing or likely to fail” and would have to be
wound down, unless a buyer could be found. Banco Popular’s shareholders, who’d
been repeatedly suckered into handing Popular fresh funds in numerous capital
expansions, will be wiped out. Holders of Popular’s riskiest bonds, its AT1
bonds and AT2 bonds, or CoCo bonds, also got wiped out. These bonds had </span><a href="http://wolfstreet.com/2017/05/29/banco-popular-co-co-bonds-plunge-balance-sheet-chaos-forced-sale/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">already plunged</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> in recent weeks. But the bank’s
senior bondholders and depositors were spared.<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-06/trump-s-america-is-facing-a-13-trillion-consumer-debt-hangover"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Trump’s
America Is Facing a $13 Trillion Consumer Debt Hangover</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">After
bingeing on credit for a half decade, U.S. consumers may finally be
feeling the hangover. Americans faced with lackluster income growth have
been financing more of their spending with debt instead. There are early signs
that loan burdens are growing unsustainably large for borrowers with lower
incomes. Household borrowings have </span><a href="https://www.newyorkfed.org/microeconomics/hhdc.html" target="_blank" title="NY Fed Household debt outstanding"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">surged </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">to a record $12.73 trillion, and the percentage
of debt that is overdue has risen for two consecutive quarters. And with
economic optimism having lifted borrowing rates since the election and the
Federal Reserve expected to hike further, it’s getting more expensive for
borrowers to refinance. Some companies are growing worried about their
customers. Public Storage said in April that more of its self-storage
customers now seem to be under stress. Credit card lenders including Synchrony
Financial and Capital One Financial Corp. are setting aside more money to cover
bad loans. Consumer product makers including Nestle SA posted </span><a href="https://www.bloomberg.com/news/articles/2017-04-20/price-rises-provide-sign-of-optimism-for-europe-s-food-giants" target="_blank" title="Nestle, Unilever Price Rises Boost Outlook as Demand Wanes (3)"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">slower sales</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> growth
last quarter, particularly in the U.S. <span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.caseyresearch.com/articles/they-killed-bitcoin-129-times-each-time-it-came-back-even-stronger"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">They
Killed Bitcoin 129 Times; Each Time, It Came Back Even Stronger</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.caseyresearch.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.caseyresearch.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">From
2009–13, bitcoin rallied from a fraction of a penny to over $1,100… and then
spectacularly crashed 85% to $185. It looked like a classic “pump and dump” to
me. That’s why I ignored it. But then something very interesting happened. Instead
of collapsing back to pennies, bitcoin found support in the $200 range. Even
after the bubble popped, bitcoin was still worth billions. This intrigued me
because true Ponzi schemes have zero value when they crash. The fact that
bitcoin was still attracting buyers even after the onslaught of negative news…
an 85% price crash… and universal scorn… said something to me. It said that
maybe this asset had real value. At the very least, it told me that more
investigation was needed.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-08/household-net-worth-hits-record-95-trillion-there-just-one-catch"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">Household
Net Worth Hits A Record $95 Trillion... There Is Just One Catch</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">I</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">n the
first quarter of 2017, total US household net worth rose by $2.3 trillion,
reaching a record $94.8 trillion as the stock market soared and home prices
posted modest improvements. And while it would be great news if wealth across
all of America had indeed risen as much as the Fed claims, the reality is
that there is a big catch...</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">And while it would be great news if wealth<span class="apple-converted-space"> </span></span><em style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; line-height: inherit;"><span style="border: 1pt none windowtext; padding: 0in;">across America</span></em><span class="apple-converted-space"><i><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"> </span></i></span>had indeed risen as much as the chart above shows, the
reality is that there is a big catch: as shown<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2016-08-29/devastating-truth-behind-americas-record-household-net-worth" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in;">previously</span></a><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Calibri, sans-serif; font-size: 11pt;">,<span class="apple-converted-space"> </span><strong style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; line-height: inherit;"><span style="border: 1pt none windowtext; padding: 0in;">virtually all of the net worth,
and associated increase thereof, has only benefited a handful of the wealthiest
Americans.</span></strong></span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">In other words, roughly three-quarter of the $2.4
trillion increase in assets went to benefit just 10% of the population, who
also account for roughly 76% of America's financial net worth, </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;">Even
worse, when looking at how wealth distribution changed from 1989 to 2013, a
clear picture emerges. Over the period from 1989 through 2013, <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">family wealth grew at significantly different rates for different
segments of the U.S. population. In 2013, for example: </span></b>The wealth of
families at the 90th percentile of the distribution was 54 percent greater than
the wealth at the 90th percentile in 1989, after adjusting for changes in
prices.<o:p></o:p></span></div>
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<a href="http://ml-implode.com/staticnews/2017-06-08_MoneyMarketsEasingDespiteImpotentFedPolicyBLOWUPIMMINENT.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Money
Markets "Easing" Despite Impotent Fed Policy (BLOWUP IMMINENT?)</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.alhambrapartners.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.alhambrapartners.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">ZeroHedge
reports this morning on some (more) interior confusion by economists at one of
the big banks. The Fed has "raised rates" and yet according to their
calculations, all their calculations, financial conditions are for them
paradoxically easier. ... Through no action or direction of the Fed, the global
"dollar" conditions after February 11, 2016, have been relatively
better. The confusion more recently stems from the same set of flawed premises;
it was widely believed that the tighter "dollar" conditions of the
"rising dollar" period, though "unexpected", were due to
the end of QE and then the first "rate hike." They weren't; the
global "dollar" pays little or no mind to monetary policy.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-05/asian-stocks-face-mixed-start-as-oil-dollar-drop-markets-wrap"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S.
Stocks Fall With Dollar as Treasuries Rise: Markets Wrap</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.bloomberg.com/news/articles/2017-06-06/how-financial-vulnerability-helped-to-curb-global-productivity"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">How
Financial Vulnerability Helped to Curb Global Productivity</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.bloomberg.com/news/articles/2017-06-06/job-openings-in-u-s-rise-to-record-in-april-topping-6-million"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S.
Job Openings Hit Record High in April, Topping 6 Million</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.bloomberg.com/news/articles/2017-06-06/u-s-ceo-sentiment-at-three-year-high-is-good-omen-for-economy"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S.
CEO Sentiment at Three-Year High Is Good Omen for Economy</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-05/asian-stocks-face-mixed-start-as-oil-dollar-drop-markets-wrap"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Havens
Rally as Risk Events Stack Up; Oil Swings: Markets Wrap</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="http://www.reuters.com/article/us-global-markets-idUSKBN18X02T"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Dollar
hits seven-month low, stocks, oil retreat as caution reigns</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="http://www.reuters.com/article/us-gulf-qatar-banks-idUSKBN18X0J7?il=0"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Qatari
riyal under pressure as Saudi, UAE banks delay Qatar deals</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-54830151895699114162017-06-08T23:05:00.000-07:002017-06-08T23:05:06.573-07:00Friday June 9 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://wolfstreet.com/2017/06/06/bankruptcies-consumers-businesses-rise-2017/" title="">Great Debt Unwind: Bankruptcies by Consumers and Businesses Jump</a> -
(<a href="http://www.wolfstreet.com/">www.wolfstreet.com</a>) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Consumer and business bankruptcies are rising
again, after declining for years since the Financial Crisis. That’s not a
propitious sign. For bankruptcy filings by businesses from large corporations
to tiny sole proprietorships, the dance started in November 2015. At first it
was the energy bust. But bankruptcies of energy companies have tapered off with
new money surging into the oil & gas sector once again. Now bankruptcies in
the retail sector are steadily worsening, and other sectors too have picked up
the slack. So here we go again. Total US business bankruptcies in May rose 4.7%
year-over-year to 3,572 filings, according to the <a href="http://www.abi.org/" target="_blank"><span style="color: windowtext;">American
Bankruptcy Institute</span></a>. That’s up 40% from May 2015 and up 10% from
May 2014.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.cnbc.com/2017/06/06/anthem-will-drop-out-of-ohios-obamacare-market.html">Anthem
will drop out of Ohio's Obamacare market</a> - (<a href="http://www.cnbc.com/">www.cnbc.com</a>) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Health insurer Anthem said Tuesday it will
effectively exit its Obamacare individual plan business in Ohio, leaving
potentially 18 counties in the Buckeye State with no insurer selling plans in
2018. Anthem, which sells Obamacare plans in 14 states this year, left open the
door to dropping out of other states next year. The company this year sold
individual health plans in all 88 counties in Ohio, the only Obamacare insurer
to cover the whole state. But next year, Anthem said, it will sell just a
single plan in Pike County, and that will only be available outside of the
Obamacare federal marketplace, HealthCare.gov.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-06/these-charts-drill-down-into-the-data-on-u-s-home-construction" title="
``Americans' spending on residential construction projects -- from the pouring of foundations to home improvement -- just hamme...">Americans
Are Pouring Money Into Their Homes Like It's the 1990s</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Americans' spending on residential construction
projects -- from the pouring of foundations to home improvement -- just
hammered out its strongest three-month period since 1994. Home sales continue
to mount, albeit unevenly, and there are more one-family houses under
construction now than at any time since mid-2008....What's more, Americans are
spending more on home improvements. While a report Thursday from the Commerce
Department showed a 2.9 percent drop in April outlays for improvements from the
prior month, such spending was still 32.3 percent higher than it was a year
ago. That's the strongest advance since January 2000, as the chart below shows.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.businessinsider.nl/mergers-acquisitions-slowdown-citi-2017-6/">CITI:
Falloff in M&A Bodes Poorly for Market</a> - (<a href="http://www.businessinsider.nl/">www.businessinsider.nl</a>) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">M&A lawyers argue the `uncertainty' factor,
which has come about recently, given some unpredictable aspects of the new
Trump administration, has been the issue. It only may explain the last six
months, but the trend has been poor for about two years or more. In the past,
there has been some correlation with the S&P 500 and thus it could generate
more legitimate fears than some of the other excuses that are put forth for not
wanting to buy American equities.<o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.zerohedge.com/news/2017-06-08/civil-asset-forfeiture-another-stealth-tax">Civil
Asset Forfeiture: Another Stealth Tax</a> - (<a href="http://www.zerohedge.com/">www.zerohedge.com</a>)
</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">When you're a government
agency, asking for a tax increase is always a hassle. For the most
part, taxpayers don't like taxes, and if asked if they want to pay more, they're
likely to often say "no." Moreover, when public officials pass
tax increases, they may face the wrath of taxpayers at the ballot box. For this
reason, governments are always looking for ways to get revenue without
having to use tax revenue. After all, if taxes are the government's only
source of revenue, this presents a problem. As noted by Ludwig von Mises in Omnipotent
Government: The government has but one source of revenue — taxes. No
taxation is legal without parliamentary consent. But if the government has
other sources of income it can free itself from this control.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER
STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-06-05/asian-stocks-face-mixed-start-as-oil-dollar-drop-markets-wrap">Asian
Stocks Face Mixed Start as Oil, Dollar Drop: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-usa-stocks-idUSKBN18W1HJ">Wall
Street dips; 2017's laggards tick up, Apple slips</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="http://www.cnbc.com/2017/06/05/trump-set-to-make-first-moves-at-completely-remaking-the-fed.html">Trump
set to make first moves at completely revamping the Federal Reserve</a> - (<a href="http://www.cnbc.com/">www.cnbc.com</a>)<br />
<br />
<a href="https://www.bloomberg.com/news/articles/2017-06-05/banker-robert-jones-said-to-be-on-trump-list-for-fed-governor-j3ko7vrn">Banker
Robert Jones Said to Be on Trump List for Fed Governor</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/gadfly/articles/2017-06-05/stock-bears-are-endangered-but-have-some-fight-left">Bad
News Bears Throw in Towel</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.ft.com/content/445848fe-4a02-11e7-919a-1e14ce4af89b">Fed
weighs benign impact of rate rises on markets</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="https://www.ft.com/content/157bca48-49c0-11e7-919a-1e14ce4af89b">Corporate
casualties will rise as China and US tighten policy</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-61405669467659046082017-06-07T23:42:00.000-07:002017-06-07T23:42:10.143-07:00Thursday June 8 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/06/05/toronto-house-price-bubble-condo-pops/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Toronto’s
Housing Bubble Pops. “The Frenzy is Over – It’s Over”</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
magnificent house-price bubble in Toronto, which has raised eyebrows even
across the jaded asset-bubble world, is hissing hot air. Residential property
sales in Greater Toronto plunged 20% in May year-over-year to 10,196 homes,
according to the Toronto Real Estate Board (TREB), with sales of condos
dropping 6.4% and sales of detached homes plunging 26.3%. At the same time, new
listings – the new supply suddenly coming out of the woodwork – soared nearly
50% year-over-year. The </span><a href="http://www.trebhome.com/MARKET_NEWS/market_watch/2017/mw1705.pdf" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">report</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> tried to put a positive spin on it:
“Homeowners, after a protracted delay, are starting to react to the strong
price growth we’ve experienced over the past year by listing their home for
sale to take advantage of these equity gains.” And it has already impacted
prices. The “TREB MLS Average Price” for all types of homes, dropped 6.2% from
April to C$863,910. It remains up 14.9% year-over-year, given the crazy surge
in prices over the past months, including the 33% year-over-year gain in March,
when </span><a href="http://wolfstreet.com/2017/04/05/toronto-house-price-bubble-goes-nuts/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">prices had gone totally nuts</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">!<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-01/illinois-bonds-cut-to-one-step-above-junk-by-s-p-over-stalemate"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">S&P,
Moody's Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">S&P
warned that Illinois will likely lose its investment-grade status, an
unprecedented step for a state, around July 1 if leaders haven't agreed on a
budget that chips away at the government's chronic deficits. Moody's followed
S&P's downgrade Thursday, citing Illinois's underfunded pensions and the
record backlog of bills that are equivalent to about 40 percent of its
operating budget. Illinois hasn't had a full year budget in place for the past
two years amid a clash between the Democrat-run legislature and Republican Governor
Bruce Rauner. That's left the fifth most-populous state with a record $14.5
billion of unpaid bills, ravaged entities like universities and social service
providers that rely on state aid and undermined Illinois's standing in the bond
market, where investors have demanded higher premiums for the risk of owning
its debt. Moody's called Illinois "an outlier among states" after
suffering eight downgrades in as many years.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
<h2 style="background: white; margin-bottom: .0001pt; margin: 0in; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: 15pt;"> </span></h2>
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<a href="http://www.zerohedge.com/news/2017-06-05/real-unemployment-number-102-million-working-age-americans-do-not-have-job"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
Real Unemployment Number: 102 Million Working Age Americans Do Not Have A Job</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">"I
don’t see how anyone can possibly claim that the U.S. economy is doing well... prior
to t Did you know that the number of working age Americans that do not have a
job right now is far higher than it was during the worst moments of the last
recession? For example, in January 2009 </span><a href="https://www.bls.gov/news.release/archives/empsit_02062009.pdf" target="_blank" title="92.6 million"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">92.6 million</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> working age Americans did not have a job,
but we just found out that in May the number of working age Americans without a
job </span><a href="https://www.bls.gov/news.release/empsit.t01.htm" target="_blank" title="increased to just a shade under 102 million"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">increased to just a shade under 102 million</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. We’ll go over those numbers in more
detail in a moment, but first I want to talk a bit about the difference between
perception and reality. According to the bureaucrats in the federal
government, the “unemployment rate” in May was the lowest that we have seen in
16 years. At just “4.3 percent”, we are essentially at “full employment”,
and so according to them anyone that really wants a job should be able to find
one pretty easily. Of course that is a load of nonsense. John Williams of
shadowstats.com tracks what our economic numbers would look like if honest
numbers were being used, and according to his calculations the unemployment
rate is currently </span><a href="http://www.shadowstats.com/alternate_data/unemployment-charts" target="_blank" title="22 percent"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">22 percent</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. So what accounts for the wide disparity
between those numbers? he last recession
there were 26 million Americans on food stamps, now we have 44 million, we're
on pace to shatter the all-time record for store closings in a single year, and
the number of homeless in LA has risen by 23% over the past 12 months... But
once again, it is a battle of perception vs. reality."<o:p></o:p></span></div>
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<a href="https://www.reuters.com/article/banco-popular-ma-idUSL8N1J006I"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Banco
Popular head tells staff to stay calm, source says ECB meet planned</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
chairman of Banco Popular has told his executives that the struggling Spanish
lender was solvent and urged them to remain calm and confident, while a source
said he would hold a routine meeting with the European Central Bank next week. Popular's
shares fell almost 40 percent in the past three days on concern it would not
find a buyer or raise new capital to fix its balance sheet, which is weighed
down with 37 billion euros ($41 billion) of non-performing real estate assets. One
of Europe's top bank watchdogs warned European Union officials that Popular
might need to be wound down if it failed to find a buyer, an EU official told
Reuters this week. "Banco Popular remains solvent and has positive
equity," Chairman Emilio Saracho wrote to his executives in a letter sent
on Friday, seeking to reassure them despite what he called the "difficult
situation."<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-05/john-paulson-goes-from-hot-to-not-as-most-client-money-vanishes"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">John
Paulson Is Struggling to Hold On to Client Money</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
walls keep closing in on </span><a href="https://www.bloomberg.com/billionaires/id/1712589" target="_blank" title="Billionaire Profile"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">John Paulson</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. A decade after Paulson shot to fame betting
on the collapse of the U.S. housing market, the hedge-fund mogul is struggling
to persuade investors to stick with him after a string of </span><a href="https://www.bloomberg.com/news/articles/2013-05-08/paulson-bid-to-resurrect-reputation-hurt-by-gold-gone-bad" target="_blank" title="Paulson Bid to Resurrect Reputation Undermined by Gold Gone Bad"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">missteps</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> on
everything from gold to European bonds to drug stocks. Since the end of 2015
alone, assets at Paulson & Co. have fallen by $6 billion from losses and
client withdrawals. The decline, underscored in the firm’s most recent
regulatory filing, leaves Paulson and his employees with just $2 billion in
client money. Most of the remaining $8 billion is Paulson’s own fortune. His
personal wealth aside, it’s a remarkable comedown for Paulson, one of the
biggest names in the hedge-fund business. The idea that he might end up
managing mostly his own fortune would have struck many as improbable 10 years
ago. At his firm’s peak, in 2011, he oversaw $38 billion -- half of which belonged
to outside investors.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/politics/articles/2017-06-04/may-s-journey-to-zero-tolerance-as-terror-dominates-election"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">May's
Journey to Zero Tolerance as Terror Dominates Election</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.nytimes.com/2017/06/03/us/politics/trump-plans-to-shift-infrastructure-funding-to-cities-states-and-business.html?_r=0"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Trump
Plans to Shift Infrastructure Funding to Cities, States and Business</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.nytimes.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.nytimes.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.wsj.com/articles/the-tech-sector-catches-fire-1496584597"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
Tech Sector Catches Fire</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wsj.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wsj.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
<br />
</span><a href="https://www.wsj.com/articles/chinese-companies-move-deeper-into-shadow-banking-1496574002"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Chinese
Companies Move Deeper Into Shadow Banking</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wsj.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wsj.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.ft.com/content/53f19caa-4883-11e7-919a-1e14ce4af89b"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Support
grows in China for 1989 Tiananmen crackdown</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.ft.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.ft.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
</span><a href="https://www.ft.com/content/f6a794b4-48dc-11e7-919a-1e14ce4af89b"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">US
allies in Asia dismayed by ‘America First’</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.ft.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.ft.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)<br />
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-17779265107910074232017-06-06T23:47:00.000-07:002017-06-06T23:47:01.282-07:00Wednesday June 7 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
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<a href="http://wolfstreet.com/2017/06/01/italy-banking-crisis-metastasizes-monte-dei-paschi/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Despite
the Hype, Italy’s Banking Crisis Metastasizes</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">For
the last five months, Italy’s third largest bank, Monte dei Paschi di Siena,
has been locked in talks with the Italian government, the European Commission
and the ECB’s regulatory arm, the Single Supervisory Mechanism, over the design
of a taxpayer-funded rescue. The negotiations have no led to a </span><a href="http://uk.reuters.com/article/uk-eurozone-banks-monte-dei-paschi-eu-idUKKBN18S4DM?il=0" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">preliminary rescue deal</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, prompting speculation that Italy’s banking
sector may finally be on the mend. But the progress has been painfully slow and
as time drags on, the deep-seated problems affecting Italy’s broader banking
system continue to metastasize. Bank of Italy Governor Ignazio Visco </span><a href="http://www.reuters.com/article/us-eurozone-banks-italy-boi-idUSKBN18R0ZG" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">warned</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> on Wednesday that weaker Italian banks
that will probably have to sell off large chunks of their non-performing loans
could face additional write-downs of around €10 billion. “If they were sold at
the very low prices offered by the few large specialist debt collection
agencies active in the market today which pursue very high returns, the amount
of additional write-downs would be in the order of €10 billion,” Visco said at
the central bank’s annual meeting in Rome, which was attended by his
predecessor in the role, Mario Draghi. Italy’s most troubled banks, those that
could be forced by regulators to write down loans, currently hold €20 billion
in bad loans net of write-downs, Visco added.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-06-02/deutsche-bank-admits-guilt-fraud-conspiracy-rig-precious-metals-markets"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Deutsche
Bank Trader Admits To Rigging Precious Metals Markets</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">After </span><a href="http://www.zerohedge.com/news/2016-12-08/deutsche-bank-provides-smoking-gun-proof-massive-rigging-and-fraud-silver-market"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">months of "smoking guns" and conspiracy theory
dismissals</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,
a Singapore-based Deutsche Bank trader (at the center of fraud allegations)
finally confirmed (by admitting guilt) what many have suspected - the
biggest banks in the world have conspired to rig precious metals markets. The
Deutsche Bank trader, David Liew, pleaded guilty in federal court in
Chicago to conspiring to spoof gold, silver, platinum and palladium futures,
according to court papers. Bloomberg notes that spoofing involves traders
placing orders that they never intend to fill, in an attempt to manipulate the
price. Following an introductory period that included orientation and training,
LIEW was eventually assigned to the metals trading desk (which included base
metals and precious metals trading) in approximately December 2009. During the
Relevant Period, LIEW was employed by Bank A as a metals trader in the
Asia-Pacific region, and his primary duties included precious metals
market making and futures trading.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-06-02/-i-had-to-choose-for-my-family-thousands-fleeing-puerto-rico"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Puerto
Rican Exodus Is Speeding the Island’s Economic Collapse</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
choice is heartbreaking: stay to help other families, or leave to help
your own. That’s the calculation thousands in Puerto Rico are making. The
bankruptcy of the U.S. commonwealth, the culmination of years of decline, has
accelerated an exodus that’s adding to the island’s economic misery. “I had to
choose for my family,’’ said Aledie Amariah Navas Nazario, 39, a pediatric
pulmonologist who left behind young asthma patients when she, her husband
and two small daughters moved to Orlando, Florida. The population drop is
astonishing. The island has lost 2 percent of its people in each of the past
three years. <span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://ml-implode.com/staticnews/2017-05-31_TheGreatestFinancialBubbleinHistory.html" title="``The first and most obvious bubble is credit. The combined Chinese government and corporate debt-to-equity ratio is over 300-to..."><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
Greatest Financial Bubble in History</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.dailyreckoning.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.dailyreckoning.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
first and most obvious bubble is credit. The combined Chinese government and
corporate debt-to-equity ratio is over 300-to-1 after hidden liabilities, such
as provincial guarantees and shadow banking system liabilities, are taken into
account. Paying off that debt requires growth, but the growth itself is fueled
by more debt. China is now at the point where enormous new debt is required to
achieve only modest new growth. This is clearly non-sustainable.... [Further,
China has a proliferation of Wealth Management Products, or WMPs;] WMPs
resemble collateralized debt obligations, CDOs, the same product that sank
Lehman Brothers in the panic of 2008.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-31/australia-home-prices-fall-in-may-as-lending-curbs-start-to-bite"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Australia
Home Prices Fall in May as Lending Curbs Start to Bite</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">
Australian house prices fell in May for the first time in 17 months, in an
early sign </span><a href="https://www.bloomberg.com/news/articles/2017-03-30/australian-regulator-tightens-home-lending-curbs-to-cool-prices" target="_blank" title="Australia Regulator Tightens Loan Curbs to Cool Home Prices (2)"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">lending restrictions</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> are starting to damp demand. Home values
in Australia’s state and territory capitals fell 1.1 percent last month from
April, according to CoreLogic Inc. data released Thursday. Still, prices
across the combined capitals were 8.3 percent higher than a year ago. The
monthly decline comes after regulators tightened lending curbs amid fears of a
housing bubble, and the nation’s banks raised interest rates -- especially for
interest-only loans which are popular with property investors seeking to take
advantage of tax breaks. “The market has lost momentum, particularly in Sydney
and Melbourne where affordability constraints are more evident and investors
have comprised a larger proportion of housing demand,” CoreLogic’s head of
research Tim Lawless said.</span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-usa-stocks-idUSKBN18S4W5">Wall Street
hits record highs as economy seen accelerating</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-01/trump-and-yellen-both-like-this-labor-gauge-and-its-direction">Here’s
What the Fed Will Be Watching for in the Jobs Report</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-06-01/illinois-bonds-cut-to-one-step-above-junk-by-s-p-over-stalemate">S&P,
Moody's Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-usa-climatechange-trump-idUSKBN18R1J4">Trump
says U.S. to quit Paris climate pact; allies voice dismay</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><a href="https://www.bloomberg.com/news/articles/2017-05-31/china-teaches-yuan-bears-tough-lesson-as-currency-surges-anew">China
Teaches Yuan Bears Tough Lesson as Currency Surges Anew</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-ecb-policy-weidmann-idUSKBN18R2LJ?il=0">Euro
zone inflation would rise even if ECB support was reduced - Weidmann</a>
- (<a href="http://www.reuters.com/">www.reuters.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-42141530380909723522017-06-05T23:29:00.000-07:002017-06-05T23:29:13.447-07:00Tuesday June 6 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-31/illinois-budget-crisis-is-about-to-get-even-harder-to-resolve"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Illinois
Budget Crisis Is About to Get Even Harder to Resolve</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><a href="https://www.bloomberg.com/quote/STOIL1:US" target="_blank" title="Financial Analysis"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Illinois</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> leaders will blow past a deadline that
will leave the state careening toward the third straight year without a budget.
The Illinois House isn’t voting on a budget on Wednesday, which means the
gridlock-prone government won’t pass a spending plan by midnight. That means
approving a budget -- a usually routine task that has eluded the state for 700
days -- will become even more difficult because a three-fifths majority will be
required. Democratic lawmakers, who control both chambers, and Republican
Governor Bruce Rauner have repeatedly failed to agree on how to solve chronic
budget deficits worsened by the expiration of tax hikes in January 2015. "We
are probably approaching that point of impaired ability to function at basic
level,” said John Humphrey, the Chicago-based head of credit research for
Gurtin Municipal Bond Management, which oversees about $10.1 billion of state
and local debt and has steered clear of Illinois. “We’ve already probably
passed that point. We haven’t seen this in a modern state before.”<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://wolfstreet.com/2017/05/31/brick-and-mortar-retail-meltdown-has-a-busy-month/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Brick-and-Mortar
Retail Meltdown Has a Busy Month</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This
morning, luxury handbag retailer Michael Kors Holdings, which had had stellar
sales through 2014, revealed in its Q4 earnings report that it would close up
to 125 retail stores and take a $125 million charge, to save $60 million this
fiscal year. Sales plunged 11.3% year-over-year in Q4, and the company lost $27
million, or 17 cents a share. It doused investors with a gloomy outlook for its
fiscal year 2018, with revenues expected to drop over 5% to $4.25 billion, and
with same-store sales plunging “in the high-single digit range.” … Despite a
“new $1 billion stock repurchase program” – funded with the money the company
is losing, so to speak – share plunged 8.5%. Other retailers aren’t so lucky. On
June 1, Gymboree, a children’s clothing retailer, will face an interest payment
on its debt that it is unlikely to make. So a bankruptcy filing could be next.
Serious bankruptcy rumors started </span><a href="https://www.bloomberg.com/news/articles/2017-04-11/gymboree-said-to-prepare-bankruptcy-filing-as-debt-payment-looms" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">swirling</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> on April 11 when issues with the interest
payment cropped up. On May 4, “people familiar with the matter” told the </span><a href="http://www.denverpost.com/2017/05/05/gymboree-stores-closing/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Denver Post</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that Gymboree was looking to close 350 of
its 1,200 stores as part of a broader restructuring in bankruptcy court. <o:p></o:p></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: 15pt;"> </span></h2>
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<a href="http://www.zerohedge.com/news/2017-06-01/gm-auto-inventory-hits-10-year-high-most-november-2007-just-recession-started"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">GM Reports Record "Channel
Stuffing": Auto Inventory Highest Since November 2007</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">) GM "channel
stuffing" just hit a new all time high, with the number of GM
vehicles parked at dealer lots and patiently waiting for a buyer rising to the
highest since the month before recession officially began, when GM was still
pre-bankruptcy GM. </span><span style="background: white; font-family: Calibri, sans-serif; font-size: 11pt;">As we await all US carmakers to report May auto
sales, we remind readers that<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2017-05-03/gm-auto-inventory-hits-10-year-high-highest-november-2007" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: 1pt none windowtext; color: #1e439a; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;">when we
discussed last month's disappointing monthly car sales report</span></a><span style="background: white; font-family: Calibri, sans-serif; font-size: 11pt;">, which badly missing expectations showing the fourth
consecutive month of declining auto sales -<span class="apple-converted-space"> </span><em style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; line-height: inherit;"><span style="border: 1pt none windowtext; padding: 0in;">the first time this has
happened since July 2009</span></em><span class="apple-converted-space"><i><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"> </span></i></span>- we noted what may be the biggest concern for the auto
industry: inventory days continued to trend higher as OEMs push product on to
dealer lots even though sale-through to end customers has seemingly stalled.
Of note, we highlighted GM, one of the few OEMs to actually disclose dealer
inventories in monthly sales releases, which reported that April inventories
increased to 100 days (935,758 vehicles) from 98 days at the end of March and
just 71 days (681,402 vehicles) in April 2016. Indicatively, analysts say an
overall inventory level of 60 to 70 days is healthy. 100 is not. GM management
was eager to deflect attention from this troubling statistic, and said that
soaring inventories are normal and, somehow, "reflect strong sales",
as per the press release: "As planned, GM’s inventories reflect strong
sales, lower car production and strategic, launch-related growth in truck and
crossover stocks."</span><o:p></o:p></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-31/mylan-may-have-overcharged-taxpayers-by-1-27-billion-for-epipen"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Mylan
May Have Overcharged Taxpayers by $1.27 Billion for EpiPen</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S.
taxpayers may have overpaid for Mylan NV’s EpiPen shot by as much as $1.27
billion over the last decade, according to a U.S. government report. Senator
Charles Grassley, an Iowa Republican, on Wednesday </span><a href="https://www.grassley.senate.gov/sites/default/files/constituents/HHS%20OIG%202nd%20EpiPen%20calculation%20letter%20for%20Senate%20Judiciary%20May%2031%202017_Redacted.pdf" target="_blank" title="Link to report"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">posted a copy</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> of a report by the Department of Health
and Human Services’ Office of the Inspector General. The report says that
Mylan, by classifying EpiPen as a generic drug rather than a brand-name
product, shortchanged the Medicaid program for the poor. Under Medicaid, makers
of brand-name drugs must provide deep discounts on their products. In October, </span><a href="https://www.bloomberg.com/quote/MYL:US" title="Company Overview"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Mylan</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> said
it reached a settlement with the U.S. to pay $465 million for misclassifying
the drug as a generic product, which doesn’t require the same discounts.
Grassley has been critical of the October settlement, calling it too small.<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-30/trouble-brewing-for-opec-as-once-costly-deep-sea-oil-turns-cheap"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Deepwater
Drilling's Cost-Fall Flummoxes OPEC</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">
- (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Pumping
crude from seabeds thousands of feet below water is turning cheaper as
producers streamline operations and prioritize drilling in core wells,
according to Wood Mackenzie Ltd. That means oil at $50 a barrel could
sustain some of these projects by next year, down from an average break-even
price of about $62 in the first quarter and $75 in 2014, the energy consultancy
estimates. The tumbling costs present another challenge for the Organization of
Petroleum Exporting Countries, which is currently curbing output to shrink a
glut. In 2014, when the U.S. shale boom sparked oil's crash from above $100 a
barrel, the group embarked on a different strategy of pumping at will to defend
market share and throttle high-cost projects. Ali Al-Naimi, the former energy
minister of OPEC member Saudi Arabia, said in February 2016 that such producers
need to either "lower costs, borrow cash or liquidate."<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.reuters.com/article/us-usa-stocks-idUSKBN18R1HV">Wall Street
falls as bank stocks skid, oil dips</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-31/fed-survey-shows-modest-growth-with-tight-labor-and-tame-prices">Fed
Survey Shows Modest Growth With Tight Labor and Tame Prices</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-usa-economy-idUSKBN18R20P">U.S.
pending home sales fall; housing market recovery intact</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-31/jpmorgan-second-quarter-trading-revenue-down-15-from-year-ago">JPMorgan
Trading Revenue on Pace to Drop 15% This Quarter</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-31/china-teaches-yuan-bears-tough-lesson-as-currency-surges-anew">China
Teaches Yuan Bears Tough Lesson as Currency Surges Anew</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-ecb-policy-weidmann-idUSKBN18R2LJ?il=0">Euro
zone inflation would rise even if ECB support was reduced - Weidmann</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-42174777040454407782017-06-04T23:43:00.000-07:002017-06-04T23:43:11.202-07:00Monday June 5 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "calibri" , sans-serif;"><o:p></o:p></span></div>
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<a href="https://srsroccoreport.com/the-great-u-s-energy-debt-wall-its-going-to-get-very-ugly/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">THE
GREAT U.S. ENERGY DEBT WALL: It's Going To Get Very Ugly</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> (</span><a href="http://www.srsroccoreport.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.srsroccoreport.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">) </span><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">As
we can see, the outstanding debt (in bonds) will jump to $110 billion in 2018,
$155 billion in 2019, and then skyrocket to $230 billion in 2020. This is
extremely bad news because it takes oil profits to pay down debt. Right
now, very few oil and gas companies are making decent profits or free cash
flow. Those that are, have been cutting their capital expenditures
substantially in order to turn negative free cash flow into positive.
Unfortunately, it still won't be enough... not by a long-shot. If we use some
simple math, we can plainly see the U.S. oil industry will never be able to pay
back the majority of its debt<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-29/hong-kong-s-throngs-of-thousands-defy-bid-to-cool-housing-market"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Mania
Continues: Hong Kong Throngs of Thousands Defy Bid to Cool Home Market</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">) </span><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">“Successive
moves by the government in recent memory to cool the property market only
resulted in it becoming crazier," The Standard newspaper said in an
editorial on Monday. “The result is a sea of madness.” The Hong Kong Monetary
Authority has been tightening rules for lenders, including restricting levels
of lending to developers, as it tries to limit financial risks and take some of
the heat out of the market. The Centaline Property Centa-City Leading
Index of existing homes has advanced 23 percent in the past year, setting new
price records week after week. At a Legislative Council meeting on Monday, HKMA
Chief Executive Norman Chan said levels of demand were reminiscent of 20 years
ago -- before Hong Kong suffered a property bust -- and he expressed concern
that people with limited financial resources were buying just because they
thought prices would only keep going up.<o:p></o:p></span><br />
<span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;"><br /></span>
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<span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;"><a href="https://mishtalk.com/2017/05/31/more-trapped-homeowners/">More Trapped
Homeowners: Pending Home Sales Decline Again, Index Below 2016 Level</a> -
(<a href="http://www.mishtalk.com/">www.mishtalk.com</a>) </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;">The
pending home sales index, an estimate of existing home sales, has accurately
provided the direction of the monthly home resale reports.</span></div>
<span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">
</span><br />
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<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The survey is down for the
second month, providing further evidence of a housing slowdown. “Spring sales
data have not been favorable for the housing sector. Pending home sales are
down for a second straight month, 1.3 percent lower in April to an index of
109.8 which is 3.3 percent below this time last year. This index tracks
contract signings for resales and the results point to weakness for final sales
in May and June. Final resales contracted in April as did new home sales while
the month’s housing starts were also weak. Spring is the big season for housing
and these are not the results of a sector that will be leading the 2017
economy.”<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/05/27/mexico-inflation-takes-off-gasoline-blast-from-past/" title=""><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Mexico’s
Economy Reels from a Blast from the Past</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">) </span><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">“Green
gold.” That’s the new name Mexicans have given to avocado, one of the country’s
staple foods and most important agricultural exports. Unlike real gold, the
price of green gold is soaring, having </span><a href="http://www.elfinanciero.com.mx/economia/y-ponle-aguacate-el-precio-del-fruto-se-dispara-122.html" target="_blank"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">more than doubled</span></a><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;"> in the last year alone, to reach an
average price of 71.4 pesos ($3.85) in Mexico City, according to data from
Mexico’s National Institute of Statistics and Geography (Inegi). Avocado prices
are soaring for a whole variety of reasons, including rising global demand.
Mexico is the world’s biggest exporter of avocado, accounting for just under
half of the global market. And that market is growing by the day, particularly
in the U.S., Europe, and China. But there’s another reason why the price of
green gold is rising in Mexico, and it’s much closer to home: inflation. After
decades of trying to tame the tempest of rising prices, with a reasonable
degree of success, Mexico’s inflation rate soared to 6.17% in May, as measured
by the INPC, the CPI version used by </span><a href="http://en.www.inegi.org.mx/app/saladeprensa/noticia.html?id=3532" target="_blank"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Inegi</span></a><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">. It was fueled largely by the rising cost
of food and energy after the government hiked gasoline prices by almost
one-fifth at the beginning of the year. <o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-05-31/stocks-rebound-chicago-pmi-changes-its-mind-corrects-earlier-dismal-data-highest-201"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Stocks Rebound As Chicago PMI
Changes Its Mind, "Corrects" Earlier Dismal Data To Highest Since
2014</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">) </span><span style="font-family: "calibri" , sans-serif; font-size: 11pt;">After Market News
International reproted a dismal 4-month low drop in Chicago PMI this morning
which sparked a decent reality check drop in stocks, they decided to change
their mind. And so stocks are rebounding.<o:p></o:p></span></div>
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<span style="font-family: "calibri" , sans-serif; font-size: 11pt;">0945ET - U.S. MAY MNI <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">CHICAGO REPORT BUSINESS INDEX
AT 55.2; EST 57.0 - lowest since Jan 2017</span></b><o:p></o:p></span></div>
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<span style="font-family: "calibri" , sans-serif; font-size: 11pt;">1121ET - CORRECT:<b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"> U.S. MAY MNI CHICAGO
REPORT BUSINESS INDEX AT 59.4 - highest since Nov 2014.</span></b><o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 16pt;">: </span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<a href="http://u.s.%20stocks%20slip%20from%20records%2C%20treasuries%20advance:%20Markets%20Wrap/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">U.S.
Stocks Slip From Records, Treasuries Advance: Markets Wrap</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">)<br />
</span><a href="https://www.bloomberg.com/news/articles/2017-05-30/fed-s-brainard-says-soft-inflation-may-call-for-rethink-on-rates"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Fed's
Brainard Says Soft Inflation May Warrant Rate Rethink</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">)<br />
</span><a href="https://www.bloomberg.com/news/articles/2017-05-30/new-warning-sign-as-fewer-subprime-auto-borrowers-pay-off-early"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Another
Warning Sign Flashes for Subprime Auto Loans</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">)<o:p></o:p></span></div>
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</span><a href="https://www.bloomberg.com/news/articles/2017-05-30/active-managers-go-all-in-on-technology-giants-as-returns-soar"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">Investors
Go All-In on Tech Giants</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">)<o:p></o:p></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-29/asia-stocks-face-mixed-start-euro-down-on-draghi-markets-wrap"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">U.S.
Stocks Slip From Records as Commodities Slump: Markets Wrap</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">)<br />
</span><a href="https://www.bloomberg.com/news/articles/2017-05-30/u-s-consumer-spending-signals-second-quarter-rebound-on-track"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">U.S.
Consumer Spending Signals Second-Quarter Rebound On Track</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "calibri" , sans-serif; font-size: 11.0pt;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "calibri" , sans-serif; font-size: 11.0pt;">)<o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-38781193181592424242017-06-01T23:38:00.000-07:002017-06-01T23:38:10.765-07:00Friday June 2 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="https://www.ft.com/content/bab49198-3f98-11e7-9d56-25f963e998b2"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Debt
pile-up in US car market sparks subprime fear</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.ft.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.ft.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)</span> Kathy Boluch was in a
bit of a state when she visited her local used-car dealership in Quincy,
Massachusetts. The rear of her Volvo had been hit by a drunk driver and her
insurer was badgering her to buy another vehicle so she could return the rental
car it had given her. But her low credit score and irregular income
disqualified her from every loan available — until the guys out the back called
Santander. Within a couple of hours she was driving off in an $18,000 Chevrolet
sport utility vehicle, financed with a $16,000 loan from Santander Consumer
USA, the auto-loans division of Spain’s biggest bank. To clinch the deal, the
salesman suggested that Ms Boluch, a freelance copywriter, help out the
dealership with promotions. He even listed her as an employee on the loan
application. But the work never came. Five years on, Ms Boluch, 60, is still
paying $350 a month to bring down an outstanding balance of about $10,000.
Meantime, she has spent another $7,000 on repairs to a “terrible” car that
would now fetch about $750 in a sale.<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-05-26/global-pension-underfunding-will-grow-400-trillion-over-next-30-years-world-economic"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">Global
Pension Underfunding Will Grow To $400 Trillion Over Next 30 Years: World
Economic Forum</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">) </span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Calibri, sans-serif; font-size: 11pt;">... turns out that politicians creating massive
ponzi schemes to promise citizens that their government would take care of
their financial needs in perpetuity, while never really bothering to explain
the true costs of such programs, was probably a bad idea. </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;">Earlier this week we highlighted "</span><a href="http://www.zerohedge.com/news/2017-05-24/six-terrifying-graphs-simplistically-summarize-americas-public-pension-crisis"><span style="border: 1pt none windowtext; color: #1e439a; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;">Six Terrifying Graphs That Summarize America's Public Pension Crisis</span></a><span style="font-family: Calibri, sans-serif; font-size: 11pt;">" which ranked state, county and city-level public pensions in the
United States by which are screwed the most. To summarize, <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">the study concluded that public pensions in the U.S. alone are
currently underfunded by nearly $4 trillion and that taxpayers in Illinois,
California and New Jersey should probably be looking to move before getting
drowned in their state's coming pension-induced tax hike tsunami. </span></b><o:p></o:p></span></div>
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<span style="font-family: Calibri, sans-serif; font-size: 11pt;">Of course, as we've argued before, the current pension
underfunding levels are sure to only get worse over the coming decades as the
world will have to contend with a wave of retiring Baby Boomers and a period of
lackluster, volatile returns. So how bad could the global funding gap
get? Unfortunately, the </span><a href="http://www3.weforum.org/docs/WEF_White_Paper_We_Will_Live_to_100.pdf"><span style="border: 1pt none windowtext; color: #1e439a; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;">World Economic Forum</span></a><span style="font-family: Calibri, sans-serif; font-size: 11pt;"> (WEF) recently
set out to solve that impossible math equation and it turns out the answer is
about $400 trillion...give or take a couple trillion.<o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/05/29/banco-popular-co-co-bonds-plunge-balance-sheet-chaos-forced-sale/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Banco
Popular’s Co-Co Bonds Plunge as Balance Sheet Chaos Revealed in Potential
Forced Sale</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Spain’s
sixth largest bank “itself cannot at this point make a rough calculation” of
what its value is, “and if they can’t, neither can we.” The current share price
of Spain’s sixth biggest bank, Banco Popular, at €0.67, is just pennies above
its lowest point ever. According to analysts at 20 different investment banks </span><a href="http://www.eleconomista.es/mercados-cotizaciones/noticias/8384524/05/17/Cuanto-vale-la-accion-de-Popular-La-valoracion-de-los-expertos-va-desde-los-15-hasta-los-025-euros.html"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">consulted</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> by
Bloomberg, the “objective” value of those shares could be anything from €1.50
(Oddo & Cie) to €0.25 (Kepler Cheuvreux). There’s good reason for this
uncertainty: Popular’s books are filled with impaired real estate assets that
date back to before the collapse of Spain’s gargantuan real estate bubble. They
are now in varying stages of decomposition. And the prices at which they’ve
been valued on the bank’s books appear to have little relation with today’s
reality. It now turns out that not even Popular’s management knows what’s
really going on on Popular’s books.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-05-30/peso-pounded-political-risk-re-emerges-mexico"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">Peso Pounded As Political Risk Re-Emerges In Mexico</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;">The Mexican peso tumbled more than 1% this morning, more than every
other major emerging-market currency except the South African rand. </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;">Bloomberg reports that<b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"> traders were anticipating
a victory for the opposition Morena party in this weekend’s gubernatorial
elections in the state of Mexico</span></b>, according to Win Thin, Brown
Brothers Harriman & Co.’s head of emerging markets in New York. And the
peso is back at one-week lows. </span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Calibri, sans-serif; font-size: 11pt;">Peso also hurt by negative sentiment towards
emerging markets, as South</span> African President Jacob Zuma quashed a revolt
in his own party,<span class="apple-converted-space"> </span><strong style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; line-height: inherit;"><span style="border: none windowtext 1.0pt; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">denting optimism a more
market-friendly leader will take over...</span></strong><span style="font-family: Verdana, sans-serif; font-size: 10pt;"><o:p></o:p></span></div>
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<a href="https://www.ft.com/content/3215e960-3faa-11e7-9d56-25f963e998b2"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Global
debt woes are building up to a tidal wave</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.ft.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.ft.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Virtually
every class of US debt — sovereign, corporate, unsecured household/personal,
auto loans and student debt — is at record highs. Americans now owe $1tn in
credit card debt, and a roughly equivalent amount of student loans and
auto-loans which, like the subprime mortgage quality that set off the 2008
financial crisis, are of largely low credit quality (and therefore high risk).
US companies have added $7.8tn of debt since 2010 and their ability to cover
interest payments is at its weakest since 2008, according to an April
International Monetary Fund report. With total public and private debt
obligations estimated at 350 per cent of gross domestic product, the US
Congressional Budget Office has recently described the path of US debt (and
deficits) as almost doubling over the next 30 years. But this is not just a US
phenomenon. Globally, the picture is similarly precarious, with debt stubbornly
high in Europe, rising in Asia and surging across broader emerging markets. A
decade on from the beginning of the financial crisis, the world has the makings
of a fresh debt crisis.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.wsj.com/articles/fed-officials-likely-to-raise-rates-in-june-finalize-plans-to-reduce-portfolio-1496138401">Fed
Officials Likely to Raise Rates in June, Finalize Plans to Reduce Portfolio</a>
- (<a href="http://www.wsj.com/">www.wsj.com</a>)<br />
<a href="https://www.wsj.com/articles/gops-proposed-tax-changes-are-no-match-for-status-quo-1496055605">GOP’s
Proposed Tax Changes Are No Match for Status Quo</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)<br />
<a href="https://www.ft.com/content/35d4a832-3c50-11e7-821a-6027b8a20f23">China’s
shadow banking crackdown shakes markets</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<!--[if !supportLineBreakNewLine]--><br />
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early Italian election hits Milan equities</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="https://www.wsj.com/articles/rural-america-is-the-new-inner-city-1495817008">Rural
America is the New 'Inner City"</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)<br />
<a href="https://www.ft.com/content/92ec8204-4251-11e7-9d56-25f963e998b2">US
banks pull back from $1.2tn car loans market</a> - (<a href="http://www.ft.com/">www.ft.com</a>)<br />
<a href="https://www.wsj.com/articles/china-huishan-faces-corporate-governance-meltdown-1496063811">China
Huishan Faces Corporate-Governance Meltdown</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)<o:p></o:p></span></div>
</div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-28121980461269855332017-05-31T23:32:00.000-07:002017-05-31T23:32:01.107-07:00Thursday June 1 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/05/29/goldman-sachs-accused-of-aiding-and-abetting-venezuelas-dictatorial-regime/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Goldman
Sachs Accused of “Aiding and Abetting” Venezuela’s “Dictatorial Regime”</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">It
didn’t take long for sparks to fly after the </span><a href="https://www.wsj.com/articles/goldman-sachs-bought-venezuelan-oil-co-bonds-last-week-1496020176" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Wall Street Journal</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> reported on Sunday that, “according to
five people familiar with the transaction,” the asset management division of
Goldman Sachs had bought Venezuelan bonds with a face value of $2.8 billion
from the Central Bank of Venezuela that it had held as part of its
international reserves. The sale of the bonds – issued by state-owned oil
company Petróleos de Venezuela S.A. (PDVSA) in 2014 and due in 2022 – was
completed on Thursday, according to the sources. That day and on Friday, the
central bank’s international reserves jumped by $749 million, to around $10.86
billion, </span><a href="https://www.reuters.com/article/us-venezuela-goldman-sachs-idUSKBN18P1Z5"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Reuters</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> reported
today. According to Reuters’s sources, including one at Goldman – oh my, all
these leaks – the negotiations took place via middlemen in Europe.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-05-29/market-crazy-hedge-fund-returns-hundreds-millions-clients-citing-imminent-calamity"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">"This Market Is Crazy":
Hedge Fund Returns Hundreds Of Millions To Clients Citing Imminent
"Calamity"</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">"We
think that there is too much risk in this market at the moment, we think
it's crazy," Altair CIO Philip Parker said: "valuations are
stretched, property is massively overstretched... Let me tell you I've
never been more certain of anything in my life."<span style="background: white;"> While hardly a novel claim - in the<span class="apple-converted-space"> </span></span></span><a href="http://www.zerohedge.com/news/2016-11-24/perfect-storm-set-pop-aussie-apartment-bubble-bringing-economy-down-it" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">past many</span><span class="apple-converted-space"><span style="background: white; border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;"> </span></span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">have<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2017-04-01/australia-has-worlds-worst-money-laundering-property-market" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">warned</span><span class="apple-converted-space"><span style="background: white; border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;"> </span></span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">that Australia's<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2017-02-08/time-panic-australia" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">housing</span><span class="apple-converted-space"><span style="background: white; border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;"> </span></span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">and stock market are<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2016-10-11/aussie-property-bubble-scale-no-other" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">massive asset bubbles</span><span class="apple-converted-space"><span style="background: white; border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;"> </span></span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(which local banks<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2017-03-09/australian-banks-deny-speculative-bubble-driving-home-prices-record-highs" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">were have been forced to deny</span><span class="apple-converted-space"><span style="background: white; border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;"> </span></span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">as their fates are closely intertwined with asset prices<span class="apple-converted-space"> </span></span><a href="http://www.zerohedge.com/news/2017-02-08/time-panic-australia" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">even as the RBA is increasingly worried</span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">) - so far few if any have gone the distance of putting their
money where their mouth was. That changed, when Australian asset manager Altair
Asset Management made the extraordinary decision to liquidate its Australian
shares funds and return "hundreds of millions" of dollars to its
clients according to the<span class="apple-converted-space"> </span></span><a href="http://www.smh.com.au/business/markets/fund-manager-hands-back-cash-to-clients-citing-looming-correction-20170529-gwfgua.html" style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; word-wrap: break-word;"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">Sydney Morning Herald</span></a><span style="background: white; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">,<span class="apple-converted-space"> </span><strong style="box-sizing: border-box; font-stretch: inherit; font-variant-numeric: inherit; line-height: inherit;"><span style="border: 1pt none windowtext; padding: 0in;">citing an impending property
market "calamity" and the "overvalued and dangerous time in this
cycle".</span></strong></span><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></b></div>
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<a href="http://www.cnbc.com/2017/05/29/bitcoin-correction-price-value.html"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bitcoin
correction sees nearly $4 billion wiped off value of the cryptocurrency as
price falls 19%</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.cnbc.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.cnbc.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Nearly
$4 billion has been wiped off of the value of </span><a href="http://data.cnbc.com/quotes/BTC%3D-USS" target="_self"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">bitcoin</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> in
the past four days after a correction that has seen the cryptocurrency's price
fall almost 19 percent from its recent record high. On May 24, bitcoin hit an
all-time high of $2.791.69. But on Monday, the digital currency was trading at
an intra-day high of $2,267.73, marking a more than $520 drop or 18.7 percent
decline since the record high, according to data from CoinDesk. "The
correction was actually quite brief, the prices today are still higher than
that of a week ago," Bobby Lee, CEO of BTCC, a major bitcoin exchange,
told CNBC by phone.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-29/hong-kong-s-throngs-of-thousands-defy-bid-to-cool-housing-market"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Hong
Kong's Throngs of Thousands Defy Bid to Cool Housing Market</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Snaking
queues of thousands of prospective apartment buyers in Hong Kong signaled
authorities have made no progress in cooling a red-hot property market, where
prices are at records. People were lining up on Friday and over the weekend at
Victoria Skye, a luxury project at the former airport site of Kai Tak, and at
the Ocean Pride development by </span><a href="https://www.bloomberg.com/quote/1113:HK" title="Company Overview"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Cheung Kong Property Holdings Ltd.</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> and MTR Corp. “Successive moves by the
government in recent memory to cool the property market only resulted in it
becoming crazier,” The Standard newspaper said in an editorial on Monday. “The
result is a sea of madness.”<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.reuters.com/article/us-global-markets-idUSKBN18P00Y"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Italian
bank worries leak into second week</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Concern
over Italy's banks and Britain's national election dominated holiday-thinned
European financial markets on Monday, pushing stock markets lower after Asian
share indices fell back off two-year highs. Sterling, hammered by a slump for
Prime Minister Theresa May's Conservatives in opinion polls last week,
recovered after weekend polls confirmed the trend but showed her still on
course to win next week's vote. European share prices were lower [.EU] overall,
but Italian banks and blue chips fell as worries over recapitalisations of
regional Italian lenders bled over into a second week.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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Stocks Mixed, Euro Falls on Draghi Comments: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-29/japan-s-unemployment-rate-holds-at-two-decade-low-in-april">Japan’s
Unemployment Rate Holds at Two-Decade Low in April</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-australia-usa-mccain-idUSKBN18P253">Senator
McCain says Putin bigger threat than ISIS</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
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Meander, Pound Rises in Holiday-Hit Trading: Markets Wrap</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-29/draghi-says-euro-area-still-needs-extraordinary-ecb-support">Draghi
Says Euro Area Still Needs Extraordinary ECB Support</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-05-29/fed-s-williams-sees-much-smaller-balance-sheet-in-five-years">Fed's
Williams Sees 'Much Smaller' Balance Sheet in Five Years</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-29/fed-s-williams-seeks-gradual-tightening-for-goldilocks-economy">Fed's
Williams Sees Gradual Policy Tightening of Three Hikes</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span></div>
Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-2133391762662371192017-05-30T23:27:00.000-07:002017-05-30T23:27:04.404-07:00Wednesday May 31 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
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<a href="http://wolfstreet.com/2017/05/25/sears-revenues-to-hit-zero-in-3-years-bankruptcy/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Sears
Revenues Plunge, to Hit Zero in 3 Years, Shares Jump</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
ingenious strategy of cost-cutting and store-closing your way out of trouble:
Pretty soon, it leads to zero. Sears reported first quarter earnings today.
“Earnings” has been a bad joke with Sears, which has lost money every one of
the past six years, $10 billion in total. First things first. Revenues plunged
20% year-over-year to $4.3 billion. Some of that plunge was caused by the
endless series of store closings with which Sears is trying to keep itself out
of bankruptcy for as long as possible. And some of it was caused by
same-store sales which plunged 12% at the surviving stores. That was about
twice the decline a year ago. So the downfall is picking up critical momentum.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-25/chinese-money-funneled-to-far-flung-homes-heralds-bubble-trouble"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Chinese
Money Funneled to Far-Flung Homes Heralds Bubble Trouble</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">When
a 59-year-old accountant in Shanghai wanted to invest for her looming
retirement, she bought two cheap apartments -- on the other side of the
country. “When friends told me about a chance to buy properties in Xishuangbanna,
I thought ‘why not?”’ said Yuan Junxi, talking of the steamy, subtropical
region in Yunnan province, bordering Laos and Myanmar. “No buying limits;
cheap, easy mortgages; and maybe property prices will jump over there too.” Buyers
such as Yuan, a mother-of-one who borrowed to help fund her purchases of
280,000 yuan ($41,000) each in the city of Jinghong last month, are spreading
the risk of bubbles to ever-smaller places in China’s provinces, after a
crackdown by the government took some of the froth out of the property market
over the past 14 months.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://mishtalk.com/2017/05/23/trump-plans-to-slash-spending-by-3-6-trillion-increase-military-spending-balance-the-budget-in-10-years/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Trump
Plans to Slash Spending by $3.6 Trillion, Increase Military Spending, Balance
the Budget in 10 Years</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.mishtalk.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.mishtalk.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">In
a budget that provides insight into Trump’s thinking but is highly
unlikely to make it through Congress, </span><a href="http://www.reuters.com/article/us-usa-budget-idUSKBN18I26X" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Trump Seeks to Slash $3.6
Trillion of Government Spending in Budget</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. U.S. President Donald Trump wants lawmakers
to slash $3.6 trillion in government spending over the next decade, taking aim
in his first budget plan at healthcare and food assistance programs for the
poor while boosting the military. Trump seeks to balance the budget by the end
of the decade, according to a preview given to reporters on Monday. There is some
new spending in his plan for fiscal year 2018, which starts in October.<o:p></o:p></span></div>
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<a href="http://www.zerohedge.com/news/2017-05-26/arizona-governor-signs-bill-repeal-state-capital-gains-taxes-gold-silver"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">Arizona
Governor Signs Bill To Repeal State Capital Gains Taxes On Gold & Silver</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">"If you’re for less government, you want sound
money. The people who want big government, they don’t want sound money.
They want to deceive you and commit fraud. They want to print the money.
They want a monopoly. They want to get you conditioned, as our schools
have conditioned us, to the point where deficits don’t matter."</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> </span><b><span style="border: none windowtext 1.0pt; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin; padding: 0in;">Good news for precious metals investors in Arizona.
</span></b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;">On Monday, Gov. Doug Ducey signed
a bill into law that eliminates states capital gains taxes on gold and silver
specie. <b><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">It's tax repeal will not only benefit Arizonans who invest in gold
and silver, it will also facilitate their use as currency and undermine the
Federal Reserve’s monopoly on money. </span></b>Rep. Mark Finchem (R-Tucson)
sponsored </span><a href="https://apps.azleg.gov/BillStatus/BillOverview/68430?SessionId=117" target="_blank"><span style="border: 1pt none windowtext; color: windowtext; font-family: Calibri, sans-serif; font-size: 11pt; padding: 0in; text-decoration-line: none;">HB2014</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;">.
The legislation eliminates state capital gains taxes on income “derived from
the exchange of one kind of legal tender for another kind of legal tender.” The
bill defines legal tender as “a medium of exchange, including specie, that is
authorized by the United States Constitution or Congress for the payment of
debts, public charges, taxes and dues.” “Specie” means coins having precious
metal content.<o:p></o:p></span></div>
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<a href="https://www.theguardian.com/society/2017/may/25/london-property-squeeze-affordable-housing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
great London property squeeze sees spillover into substandard housing</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.theguardian.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.theguardian.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
shortage of affordable housing has given rise to a range of problems in private
rented accommodation, from slum landlords and "beds in sheds" to
middle-class Londoners under the age of 45 who can no longer afford to live in
the city. A generation is being affected and our essential services, such as
hospitals and schools, and the majority of our small and medium-sized
businesses, are being undermined. .. Although it is notoriously difficult to
get accurate figures, a 2013 report by the Migrants' Rights Network concluded
that Ealing may have as many as 60,000 occupants in illegal structures, and
Slough borough council, which deployed planes equipped with thermal imaging
equipment in an effort to spot them, may have as many as 6,000 beds in sheds.
In 2013 a BBC investigation found estate agents renting out beds in sheds in
Willesden Green and Harrow.<o:p></o:p></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-05-25/quoting-buffett-china-s-state-media-hits-out-at-debt-downgrade">China's
State Media Hits Out at Debt Downgrade With a Buffett Quote</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/politics/articles/2017-05-25/brazil-succession-race-heats-up-as-temer-struggles-with-crisis">Brazil
Succession Race Heats Up as Temer Struggles With Crisis</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/politics/articles/2017-05-25/senate-gop-obamacare-talks-seek-to-avoid-house-bill-s-pitfalls">Senate
Weighs a Health Rewrite That Would Push Obamacare Repeal to 2020</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://in.reuters.com/article/us-china-corpbonds-dollars-analysis-idINKBN18L23L">Ballooning
Chinese dollar borrowing a dilemma for index trackers</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<br />
<a href="https://www.wsj.com/articles/china-takes-aim-at-moodys-after-rating-downgrade-1495713109">China
Takes Aim at Moody’s After Rating Downgrade</a> - (<a href="http://www.wsj.com/">www.wsj.com</a>)<br />
<a href="http://www.reuters.com/article/us-usa-southchinasea-navy-idUSKBN18K353">U.S.
drill designed to reject China's claim around artificial island: officials</a> -
(<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-60954193667617173972017-05-29T23:45:00.000-07:002017-05-29T23:45:18.450-07:00Tuesday May 30 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
</span><span style="font-family: "Calibri",sans-serif;"><o:p></o:p></span></div>
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<a href="http://wolfstreet.com/2017/05/24/toronto-house-price-bubble-pops/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">All
Heck Breaks Loose in Toronto’s House Price Bubble</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">During
the first two weeks in May, according to preliminary data from Toronto Real
Estate Board, home listings surged 47% from the same period last year even as
sales plunged 16%. The average selling price dropped 3.3% from April – and
this, after </span><a href="http://wolfstreet.com/2017/04/05/toronto-house-price-bubble-goes-nuts/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">a 33% year-over-year spike</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> in home prices in March and a 25% surge
in April. Something is happening to Toronto’s blistering house price
bubble. Canada’s largest alternative mortgage lender, Home Capital Group, which
focuses on new immigrants and subprime borrowers turned down by the banks, </span><a href="http://wolfstreet.com/2017/04/29/canada-house-price-bubble-what-are-homes-really-worth/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">is melting down after a run on
its deposits</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> that
crushed its funding sources. The industry is worried about contagion. At the
same time, the provincial government of Ontario announced </span><a href="http://wolfstreet.com/2017/04/20/toronto-house-price-bubble-foreign-buyers-tax-double-ending-by-brokers-paper-flipping-by-property-scalpers/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">a slew of drastic measures</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, including a 15% tax on purchases by
non-resident foreign investors to tamp down on the housing market insanity that
left many locals unable to buy even a modest home.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://jewishvoiceny.com/index.php?option=com_content&view=article&id=18040:nyc-landlords-slash-retail-rents-to-ward-off-vacancies&catid=116&Itemid=778"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">NYC
Landlords Slash Retail Rents to Ward Off Vacancies</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.jewishvoiceny.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.jewishvoiceny.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">The
poshest parts of Bleecker Street between Seventh Avenue and Hudson Street have
fared the worst of all the Manhattan markets. Rents there tumbled 27 percent
from $513 per foot to $373 per foot since last spring, and nine vacancies
remain. On Broadway in the Flatiron, rents dropped 22 percent to $348 per foot,
a decline that served to fill most of the vacancies. Rents also fell 18 percent
in both Herald Square and the now less-pricey Times Square to $734 and $1,930
per foot, respectively. In Tony Madison Avenue between 57th and 72nd Streets
building owners lowered the asking rents by 12 percent to $1,446 per foot, down
from $1,644 last spring. Nonetheless, there are still 33 vacancies in this
area.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.zerohedge.com/news/2017-05-26/70-millennials-have-less-1000-saved-buying-house"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">70%
Of Millennials Have Less Than $1,000 Saved For Buying A House</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.zerohedge.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.zerohedge.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">A new survey has revealed that despite almost
every millennial dreaming of home ownership, nearly 70% of young American
adults have saved less than $1,000 for a down payment. One of the frequent
reasons cited for the failure of the US housing sector to rebound to its
pre-recession levels, is the lack of household formation among young American
adults and specifically the unwillingness, or inability, of Millennials, </span><a href="http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">which last year overtook Baby Boomers </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">as America's largest generation... ... to move
out of their parents' basement, or stop renting, and purchase their own home.
Now, a new study from </span><a href="https://www.apartmentlist.com/rentonomics/rental-price-data/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Apartment List </span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">confirms the underlying problem: nearly
70% of young American adults, those aged 18 to 34 years old, said they have
saved less than $1,000 for a down payment. This is similar to what a
recent </span><a href="https://www.gobankingrates.com/personal-finance/data-americans-savings/"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">GoBanking Survey found last year</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">, according to which 72% of "young
millennials"- those between 18 and 24 years old - had $1,000 in their
savings accounts and 31% have $0; a sliver (8%) have over $10,000 saved. Of the
"older millennials", those between 25 and 34, 67% had less than
$1,000 in their savings accounts, 33% have nothing at all, and 15% have over
$10,000.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-24/china-s-rating-cut-exposes-companies-hooked-on-dollar-borrowing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">China's
Rating Cut Exposes Companies Hooked on Dollar Borrowing</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">China’s
first credit rating downgrade by Moody’s Investors Service since 1989 couldn’t
have come at a worse time for the nation’s companies, which have never been
more reliant on the overseas bond market for funding. While Chinese companies’
foreign-currency debt is only a fraction of the $9 trillion local bond
market, China Inc. is on pace for record dollar bond sales this year after
the authorities’ crackdown on financial leverage drove up borrowing costs at
home. Overseas borrowing has also been part of the government’s strategy to
encourage capital inflows in a bid to ease the depreciation pressure on the
yuan.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-24/warning-signs-flash-in-south-korea-as-investors-dump-stock-etfs"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Warning
Signs Flashing in Korea as Investors Dump Stock ETFs</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Cracks
are emerging in South Korea’s stock market, which has been showing remarkable
resilience to a range of pressures, not least tension with the North. Global
investors have pulled $2.17 billion from equity exchange-traded funds focused
on South Korea this year, even as those securities have returned 12 percent on
average, according to data compiled by Bloomberg. About half the outflows are
from the Samsung Kodex 200 Securities </span><a href="https://www.bloomberg.com/quote/069500:KS" title="Company Overview"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">ETF</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,
which aims to closely track the Kospi 200 Index. Net outflows from the fund
total $1.15 billion in 2017 even though it’s posted a 16 percent gain. That’s
the most outflows for any Asia Pacific ETF this year and more than double the
next closest fund, the data show.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-05-24/pudong-was-still-a-swamp-last-time-moody-s-cut-china-debt-rating">Shanghai’s
Financial Center Was a Swamp Last Time Moody’s Cut China’s Rating</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.bloomberg.com/news/articles/2017-05-24/s-p-s-famous-fang-trade-has-nothing-on-chinese-four-stock-frenzy">S&P's
Famous FANG Trade Has Nothing on Chinese Four-Stock Frenzy</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.nytimes.com/2017/05/24/business/economy/fed-interest-rates-minutes.html?ref=business">Fed
Sounds Cautious Note but Doesn’t Deter Forecast of Rate Increase</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.nytimes.com/">www.nytimes.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
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<a href="https://www.nytimes.com/2017/05/24/business/china-debt.html?ref=business&_r=0">China’s
Addiction to Debt Now Threatens Its Growth</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.nytimes.com/">www.nytimes.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.wsj.com/articles/moodys-serves-warning-to-china-1495641396">Moody’s
Serves Warning to China</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.wsj.com/">www.wsj.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><br />
<a href="https://www.wsj.com/articles/five-things-to-watch-for-in-cbo-report-on-republican-health-bill-1495652124">CBO
Report on Health Bill: What It Is and Why It Matters</a> </span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;">- (<a href="http://www.wsj.com/">www.wsj.com</a>)</span><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0tag:blogger.com,1999:blog-5019227806633120796.post-63091271069311795122017-05-28T23:18:00.000-07:002017-05-28T23:18:20.920-07:00Monday May 29 2017 Housing and Economic stories<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/null" name="_MailOriginal"><b><u><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">TOP STORIES</span></u></b></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">:
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<a href="http://dailycaller.com/2017/05/23/connecticut-labor-unions-on-verge-of-huge-concessions-deal/" title="Freezing State Employees' Wages Could Save Connecticut $1.5 Billion"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Freezing
State Employees' Wages Could Save Connecticut $1.5 Billion</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.dailycaller.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.dailycaller.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">A
tentative concessions deal from public employees unions in Connecticut
could save the state $1.5 billion over the next two years. Concessions from
public employees unions is widely viewed as a crucial step in solving the
state’s projected $2.3 billion deficit in the first year of a two-year budget.
The deficit is predicted to rise to $2.7 billion in the second year, according
to </span><a href="https://www.usnews.com/news/best-states/connecticut/articles/2017-05-22/union-steps-up-opposition-to-state-budget-cuts-with-new-ad" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">U.S. News & World Report</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. The potential deal would save the state
$712.6 million next year and $849.4 million the following year, totaling $1.56
billion in savings over two years, according to the </span><a href="https://ctmirror.org/2017/05/22/concessions-deal-would-hit-ct-workers-and-retirees/" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Connecticut Mirror</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">. Democratic Gov. Dannel Malloy has called for
$1.59 billion in concessions in order to solve the state’s financial mess.
Under the tentative deal, state employee wages would be frozen for two years,
retroactively starting in 2016. In the third year of the proposal, some workers
would be eligible for a $2,000 lump sum bonus, but short of a pay raise.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://wolfstreet.com/2017/05/18/used-vehicle-trade-in-values-sink-hit-new-vehicle-sales/" title=""><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Used
Vehicle Trade-in Values Sink, Hit New Vehicle Sales</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.wolfstreet.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.wolfstreet.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">This
is just relentless: Wholesale prices of used vehicles up to eight years old
going through auctions across the US dropped another 1.5% in April from the
prior month. It pushed the seasonally adjusted Used Vehicle Price Index by </span><a href="http://www.nada.com/b2b/homepage.aspx" target="_blank"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">J.D. Power Valuation Services</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> (formerly known as NADA Used Car Guide)
down to 109.9. The 10th month in a row of declines. The index is down 7.1%
year-over-year and down over 13% from its peak in mid-2014. It’s at the lowest
level since September 2010, when prices were still spiking from the
cash-for-clunkers program which had eliminated a whole generation of often
perfectly good cars. In that sense, values are just now beginning to normalize (chart
by J.D. Power Valuation Services): According to the report, “the used market
continues to experience negative pressure from a struggling new market.”<o:p></o:p></span></div>
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<a href="http://www.reuters.com/article/us-ford-motor-layoffs-idUSKCN18C03P"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Ford
to cut North America, Asia salaried workers by 10 percent: source</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.reuters.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.reuters.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Ford
Motor Co plans to shrink its salaried workforce in North America and Asia by
about 10 percent as it works to boost profits and its sliding stock price, a
source familiar with the plan told Reuters on Monday. A person briefed on the
plan said Ford plans to offer generous early retirement incentives to reduce
its salaried headcount by Oct. 1, but does not plan cuts to its hourly
workforce or its production. The move could put the U.S. automaker on a
collision course with President Donald Trump, who has made boosting auto
employment a top priority. Ford has about 30,000 salaried workers in the United
States. The cuts are part of a previously announced plan to slash costs by $3
billion, the person said, as U.S. new vehicles auto sales have shown signs of
decline after seven years of consecutive growth since the end of the Great
Recession.<o:p></o:p></span></div>
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<a href="http://ml-implode.com/staticnews/2017-05-22_Indiansolarpowerpriceshitrecordlowundercuttingfossilfuels.html" title="
Wholesale solar power prices have reached another record low in India, faster than analysts predicted and further undercutting ..."><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Indian
solar power prices hit record low, undercutting fossil fuels</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> – (</span><a href="http://www.theguardian.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.theguardian.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">) </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Wholesale
solar power prices have reached another record low in India, faster than
analysts predicted and further undercutting the price of fossil fuel-generated
power in the country. The tumbling price of solar energy also increases the
likelihood that India will meet -- and by its own predictions, exceed -- the
renewable energy targets it set at the Paris climate accords in December 2015. Analysts
called the 40% price drop "world historic" and said it was driven by
cheaper finance and growing investor confidence in India's pledge to
dramatically increase its renewable energy capacity. It reduces the market
price of solar tariffs well past the average charged by India's largest thermal
coal conglomerate, currently around 3.20 rupees per kWh . Wholesale price bids
for wind energy also reached a record low of 3.46 rupees in February.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="https://www.bloomberg.com/news/articles/2017-05-23/bitcoin-executives-say-digital-currency-rotation-driving-surge"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Bitcoin
Surge Is Driven by People Leaving Riskier Digital Currencies, Say Execs</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> - (</span><a href="http://www.bloomberg.com/"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">www.bloomberg.com</span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">)</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">
Bitcoin’s dramatic surge may be more than just a speculative frenzy. The recent
rally is being driven partially by enthusiasts rotating out of riskier digital
assets and into the more established cryptocurrency, according to industry
executives. "A lot of the volume into bitcoin right now is actually not
dollar or yen or euro into bitcoin, but is rather alt digital assets,"
said Peter Smith, co-founder and CEO of digital asset software platform </span><a href="https://www.blockchain.com/" target="_blank" title="Blockchain"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">Blockchain</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">,
at an </span><a href="http://www.coindesk.com/events/consensus-2017/" target="_blank" title="Consensus"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">industry</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> conference Tuesday that brought in 2,700
people on the first day. “People do view a lot of these newer assets as more
risky, and so when they make big gains there, they’re selling down those gains
and rotating into bitcoin." Numerous alternative cryptocurrencies, or
"</span><a href="http://altcoins.com/" target="_blank" title="Altcoins"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">altcoins</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">" such as ripple, have emerged since
bitcoin broke into </span><a href="https://www.bloomberg.com/view/quicktake/bitcoins" target="_blank" title="Bitcoin Was Cool, But Its Blockchain May Be Useful: QuickTake"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">public consciousness</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> in 2013. Companies can sell new tokens
through initial coin offerings, or ICOs. While the cost of one bitcoin has
skyrocketed to more than $2,000 from just 8 cents in 2010, you can buy one </span><a href="https://www.worldcoinindex.com/coin/litecoin" target="_blank" title="Litecoin"><span style="color: windowtext; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;">litecoin</span></a><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"> for about $30.<span style="color: #1f497d;"><o:p></o:p></span></span></div>
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<a href="http://www.online.wsj.com/" target="_blank"><b><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 16.0pt;">OTHER STORIES</span></b><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 16pt; text-decoration-line: none;">: </span></a><span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="https://www.bloomberg.com/news/articles/2017-05-23/brokers-drop-as-acosta-says-fiduciary-rule-to-take-effect-june-9">Broker
Stocks Drop After Labor Secretary Says Fiduciary Rule Will Take Effect June 9</a>
- (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="https://www.bloomberg.com/news/articles/2017-05-23/asian-graft-worsens-and-millennials-pose-a-challenge-ey-survey">Corruption
in Asia Is Getting Worse, Especially Among Millennials: EY Survey</a> - (<a href="http://www.bloomberg.com/">www.bloomberg.com</a>)<br />
<a href="http://www.reuters.com/article/us-usa-northkorea-intelligence-idUSKBN18J24U">North
Korea, if left unchecked, on 'inevitable' path to nuclear ICBM: U.S.</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
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<span style="color: #1f497d; font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.cnbc.com/2017/05/23/the-fed-is-about-to-reveal-how-it-could-wind-down-its-biggest-policy-experiment-ever.html">The
Fed is about to reveal how it could wind down its biggest policy experiment
ever</a> - (<a href="http://www.cnbc.com/">www.cnbc.com</a>)<br />
<a href="http://www.cnbc.com/2017/05/23/read-the-full-transcript-of-cnbcs-interview-with-treasury-secretary-steve-mnuchin.html">Read
the full transcript from Treasury Secretary Steve Mnuchin's interview</a> - (<a href="http://www.cnbc.com/">www.cnbc.com</a>)<br />
<a href="http://www.reuters.com/article/uk-banks-trading-q-idUSKBN18J36Q">Banks'
bond trading roars back in first-quarter but FX lags badly - survey</a> - (<a href="http://www.reuters.com/">www.reuters.com</a>)<o:p></o:p></span></div>
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Ken Nowakhttp://www.blogger.com/profile/08154957488698255633noreply@blogger.com0