Monday, March 20, 2017

Tuesday March 21 2017 Housing and Economic stories

TOP STORIES:            

Canadian households owed $2 trillion at the end of 2016 - (www.cnbc.com) Debt levels continue to hit record highs in this country, but Canadians' net worth is also rising as the value of assets increases. The information is contained in a Statistics Canada report released Wednesday on how much Canadians owe, and what they're buying with their borrowed money. The much publicized debt-to-income ratio — how much we owe, compared to how much we earn — inched up to 167.3 per cent in the fourth quarter of 2016, a new high. That means for every dollar of Canadians' disposable income, they owe almost $1.67 in debt. "The debt-to-income ratio was up 2.4 percentage points in 2016 overall, marking the fastest annual growth since 2010," TD Bank economist Diana Petramala observed after the numbers came out. "Gains in real estate asset values, however, helped keep most other ratios of indebtedness stable."

The Bloodletting among Retailers Simply Doesn’t Let Up - (www.wolfstreet.com) Neiman Marcus, the Texas-based luxury retailer with 42 stores around the country and two Bergdorf Goodman stores in Manhattan, is in no immediate risk of bankruptcy, the sources told Reuters on Friday, though it has hired investment bank Lazard Ltd to help restructuring its nearly $5 billion in debt. When this news emerged, Neiman Marcus unsecured bonds due in 2021 plunged 7% to 54 cents on the dollar, according to Thomson Reuters, and its $3 billion term loan fell 5% to 77 cents on the dollar. Earlier this year, Neiman Marcus scrapped its IPO entirely, after having delayed it in 2015 when its difficulties could no longer be swept under the rug. In December that year, it reported its first quarterly sales decline since 2009, with same-store sales dropping 5.6%. There was plenty of red ink. And layoffs commenced.

As Venezuelan "Bread War" Escalates, Maduro Warns Bakers "You Will Pay, I Swear" - (www.zerohedge.com) With its people resorting to eating flamingoes, the Venezuelan government has decided to find yet another thing to blame for the collapse of the socialist utopia - the bakers! As The BBC reports, the Venezuelan government says it will expropriate bakeries which fail to abide by new government regulations aimed at tackling bread shortages. In a growing row between the government and bakers, officials said that bakeries could face fines if people had to queue to get their bread. Severe shortages of basic goods mean that Venezuelans often have to queue for hours to buy essential items. The government says the shortages are caused by an "economic war".  They're going to pay, I swear. Those responsible for the bread war are going to pay and they better not complain that it was a political persecution.. bakeries which do not follow [the rules] will be occupied by the government."

Where’s Citizenship for Sale? Huddled Masses Need Not Apply - (www.wolfstreet.com) Most countries offer citizenship (passports) the hard way. But 7 sell them outright, and 3 have “powerful” passports. “Citizenship Planning” is a thing. For people who need a second citizenship and passport to dodge the long arm of their government, there is something called “citizenship planning,” similar to “financial planning.” But when it comes to just outright buying a citizenship and passport without having to languish for years as mere non-citizen resident, the Huddled Masses need not apply. And not any passport will do. In fact, there are only three for sale that are really good. Then there’s the direct way: Buy a citizenship and the passport that comes along with it. These citizenship-by-investment programs are not for folks on a tight budget. According to Henley & Partners, only seven countries offer this convenient route, only three have powerful passports, and only one is in the top of the heap above. Passports from EU countries are the best. If you’re from Russia or China or Iraq and become a citizen of one of the 28 EU countries, you’ll get a country-specific EU passport that allows you to live and do business anywhere in the EU. There are all sorts of offshore benefits. And travel around the world is a breeze.

NY AG Still Refuses To Fork Over Emails Related To Exxon Climate Probe - (www.dailycaller.com) The attorney general who revealed Rex Tillerson used a pseudonym while with ExxonMobil continues to block requests to review the Democrat’s connections to groups bankrolling the anti-Exxon probe. New York AG Eric Schneiderman told a judge earlier this week that Tillerson used the alias “Wayne Tracker” for years during email exchanges with company executives. The Democrat made his revelation while hiding the names of donors behind a nearly two-year investigation into Exxon’s climate research. Schneiderman refuses to fork over emails between his office and wealthy donors such as Rockefeller Brothers Fund, Rockefeller Family Fund, and billionaire activist Tom Steyer. He uses a Freedom of Information Law (FOIL) “law enforcement” exemption to justify blocking the requests, and claims his communication with the donors is part of the Exxon investigation.

The Gold Party's Back on After Yellen Reassures the Market - (www.bloomberg.com)
The Market Is Acting Like the Fed Cut Rates Yesterday - (www.bloomberg.com)
Low VIX Got You Down? These Fear Gauges May Do the Trick - (www.bloomberg.com)

Mounting Costs, Not PBOC, Could Slow China's Bank Debt Binge - (www.bloomberg.com)
China treads closer to a day of debt reckoning - (www.ft.com)

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