The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label housing bubble. Show all posts
Showing posts with label housing bubble. Show all posts

Sunday, September 4, 2016

As the world rushes to hoard cash, and gold supplies dwindle, what might a frenzy on gold buying look like?

Two interesting events are taking place right now in different parts of the world that threaten to create a frenzy not unlike the bank runs we saw in the 1930's and again following the bursting of the Housing Bubble in 2007.

Trust in banks have seriously eroded in places like Japan and Germany to the point where average people are making a run on home safes, and moving their cash out of financial institutions.  The root cause of course is the advent of negative interest rates and the growing fear that insolvent institutions will soon be forced to conduct bail-ins to stave off bankruptcy.

But it is not just a run on cash that is occurring in different pockets of the market.  Last week demands for delivery of physical gold were met with severe resistance, and this is a signal that most paper gold ETF's are not actually backstopped with physical gold, and which could soon bring about a run that would skyrocket the price to well over $5000 according to well respected metals analyst David Morgan.


Economist David Morgan of The Morgan Report is one of the world’s best known silver investors. In the following interview with Future Money Trends Morgan discusses his personal experiences during the last major run-up in gold, when it hit a price of $850 in early 1980. As Morgan describes it, there was significant panic buying during that time period, and should central banks and governments continue on their current course, we’ll see a similar endgame play out this time around: 
"What’s good for gold is the end of empire… And we’ve got governments that are failing… When these bond markets blow up further, that’s when you’re going to see a run to gold than we’ve already seen… 
Wait until the physical market freezes up, which could happen. I am not saying it would happen, but it could. With the worldwide demand and a failing currency across the world, where do you think people are going to go? They’re going to go to precious metals which have been trusted for thousands of years. 
If that were to occur, and I think it could happen… could you imagine the amount of money sitting on the sidelines in a panic mode that would go into the mining shares? It’s incredible. 
I saw it once… I saw what happened with gold and silver when it was a panic buy… My commodities broker was a woman. She worked for Dean Witter… She was very savvy… She would leave her office at lunchtime and go and buy gold at the local coin dealer… then after she closed her office she would stand outside her front door and sell gold coins to people who were lined up… believe it or not. 
That’s the kind of frenzy you get at the top of the gold market." - SHTFPlan

Tuesday, August 30, 2016

As the new housing bubble gets ready to burst, gold will be the beneficiary as it was in 2007

The new housing bubble the Fed helped create through its policies of cheap money and stimulus is a bit different than the one that burst in 2007, but the consequences will be very similar.

From 2004-07, low interest rates and sub-prime lending fueled a housing bubble that engulfed buyers from nearly every level of the economic ladder.  From ninja loans (no income, no job) which helped families living below the poverty level to buy 'McMansions' costing over $600,000, to home builders racing to put up new communities by the thousands which didn't even have enough buyers to fill, the result was a complete collapse of the housing market, and spawned the Credit Crisis that nearly collapsed the global financial system.

However today's new housing bubble is quite different, but just as spectacular nonetheless.  Because instead of low income Americans being the buyers in the market like in 2004, today the majority of buyers are foreigners with billions of dollars to spend, and the willingness to purchase property no matter how overpriced it is.

And like in 2007, this bubble has suddenly hit the skids and is now bursting as areas such as the Hamptons, Aspen, Miami, Vancouver where even the rich are finding it impossible to sell in an environment of shrinking buyers.

Hamptons:
One month ago, we said that "it is not looking good for the US housing market", when in the latest red flag for the US luxury real estate market, we reported that sales in the Hamptons plunged by half and home prices fell sharply in the second quarter in the ultra-wealthy enclave, New York's favorite weekend haunt for the 1%-ers. 
Reuters blamed this on "stock market jitters earlier in the year" which  damped the appetite to buy, however one can also blame the halt of offshore money laundering, a slowing global economy, the collapse of the petrodollar, and the drastic drop in Wall Street bonuses. In short: a sudden loss of confidence that a greater fool may emerge just around the corner, which in turn has frozen buyer interest.
Aspen:
The statistics are stunning: single-family home sales in Aspen are down 62% in dollar volume through the first-half of the year. Sales of homes priced at $10 million or more — almost always paid for in cash — are down 60%. Last year, super-high-end transactions accounted for nearly a third of sales volume in Pitkin County. 
“The high-end buyer has disappeared,” said Tim Estin, an Aspen broker whose Estin Report analyzes the Aspen-Snowmass real estate market. 
"Aspen has never experienced such a sudden and precipitous drop in real estate sales," according to the post.
Miami:
Luxury condo sales in Miami have crashed 44%. 
According to the latest report by the Miami Association of Realtors, the local luxury housing market is just as bad, if not worse, than the Hamptons and Aspen. 
The latest figures out of Miami this week showed residential sales are down almost 21% from the same time last year. But as bad as this double-digit decline may seem, it pales in comparison to what’s happening at the high end of the market. 
A closer look at transactions for properties of $1 million or more in July shows just 73 single-family home sales, representing an annual decline of 31.8%, according to a new report by the Miami Association of Realtors. In the case of condos in the same price range, the number of closed sales fell by an even wider margin: 44.4%, to 45 transactions.
Vancouver, Canada:
Needless to say, while most Vancouverites had long been priced out of the domestic real etate bubble - and some say were hoping for the recent substantial pullback in prices, if not outright crash - the biggest losers from this sudden, dramatic collapse, were foreign buyers, mostly the Chinese, whose aggressive, "buy at any price" money laundering "purchase tactics" have been duly documented on this website for the past year. 
The result was swift: as Bloomberg reports, China’s top envoy in British Columbia slammed the Canadian province’s new 15% tax on foreign home buyers, questioning the justification behind the hastily imposed measure
"Why a 15 percent tax? Why now? Why this rate? What’s the purpose? Will it work?"
Liu Fei, China’s infuriated consul general in Vancouver, said in an interview with Bloomberg. "The issue is how to help young people afford housing," she added. "I’m not sure even a 50 percent tax would solve the problem."
Back in 2007, the beneficiary of the crashing housing bubble was of course gold and silver.  And the collapse of housing was the catalyst which sparked the crisis of confidence that took gold to its new all-time high in 2011.

Image result for gold price chart 2007 to 2011

2016 saw the year begin with a huge move in gold, only to use the summer months to consolidate in the $1320 - $1350 range.  And just as we saw the price begin its historic move upward in September and October of of 2007 when the housing bubble finally burst, so too will we see the metals follow the same course as confidence in the financial system will bring in even more buyers than a decade ago.


Thursday, July 7, 2016

Don’t blame Brexit as global recession and financial crises were here long before UK vote

The powers that be have learned to never let a crisis go to waste.  And in the wake of last month’s Brexit vote which they desperately didn’t want to happen, mainstream financial analysts and central bankers are now shifting the UK vote into the perfect excuse to blame the oncoming global recession and financial collapse on that event and on the British people.
But for any real economist who isn’t a paid shill of the establishment, knowledge that the global economy and global financial systems were rushing headlong into crisis occurred long before the June 24 vote.  And following the Federal Reserve’s stress test that ended last week, not only did two large European banks fail the test, but in Italy where no banks were deemed to be in trouble by the U.S. central bank, the first bailout outside of Greece is now taking place, and two institutions in London are halting redemptions in the nation’s largest property funds.

Tuesday, May 3, 2016

Gold vs. Stocks: Trend ratios looking exactly like 2007 just prior to financial collapse

Contrary to the year of the financial EVENT in 2008 that changed the global economy forever, the circumstances behind the Credit Crisis started in 2007 with the collapse of the housing bubble, and the apex of the six year equity Bull Market.  And one thing it also triggered was the beginning of the next leg of the Bull Market in gold, which would move from the $700's to a new all-time high of over $1900 in a short period of time.

There are many things that act as warnings and signposts for future events, and one of these has occurred since the beginning of the year which parallels 2007, and the beginning of events that led to a worldwide financial collapse.

The ratio between gold growth and stock market declines.


As you can see on this chart, the 2016 performances of both gold and the S&P 500 are exactly the same as the performance of each back in 2007.
Gold is enjoying an incredible year, surging 22 percent as the S&P 500is barely positive. What's rare is for the yellow metal to outperform the market so dramatically in a year when stocks are up. 
In fact, going back to 1980, there has been only year in which gold has outperformed the S&P by 20 percent or more while the latter was positive on the year: 2007. 
Both gold and the fear-measuring CBOE Volatility Index surged in the second half of that year, even as stocks maintained their footing. The crash, of course, came in 2008. - CNBC

Saturday, March 12, 2016

Economic recovery? Credit card debt for Americans nearly to $1 trillion

Wall Street pundits love to use the hyperbole of lower oil and gasoline prices to sell the idea that consumers now have much more discretionary cash to spend in the economy.  But a new report out on March 11 shows that not only is this a complete fallacy, but that Americans are so broke they are having to use credit card debt just to make ends meet each month.

And that debt is now reaching nearly $1 trillion, and putting Americans in the same insolvent positions they found themselves at during the 2007 Housing Bubble crash, and subsequent Great Recession two years later.


A new study from CardHub.com says credit card debt in the US has jumped by about $71 billion to $917.7 billion in 2015. The average American household with credit card debt now owes $7,879, which is the highest figure since the 2008 financial crisis.
CardHub.com says $7,879 is just $500 from an “unsustainable tipping point”, when the risk of mass defaults rises dramatically. 
The $71 billion debt ballooning last year is 24 percent higher than in 2014. The fourth quarter of 2015 alone saw credit card debt load surge to $52.4 billion. In the entire 2014 total credit card debt amounted to $57.4 billion. 
"With seven of the past 10 quarters reflecting year-over-year regression in consumer performance, evidence is mounting to support the notion that credit card users are reverting to pre-downturn bad habits," said CardHub.com CEO Odysseas Papadimitriou in a statement. “All of this has us wondering: Is 2016 the next 2008 for credit markets?” the statement added. 
According to the Fiscal Times estimates, if credit card debt in the US continues to grow at the current pace, American consumers would have to pay down their debts at a record rate to prevent escalated defaults and tightened credit availability. - Russia Today

Monday, February 15, 2016

Got Karatbars? Owning gold is the best rebellion against the corrupted financial system

In the movie the Big Short, narrator Jarred Vennett implied that prior to the discovery and creation of the Mortgage Backed Security (MBS), banking was a boring occupation where financial advisers offered safe products like government and municipal bonds, or dividend paying utility and energy stocks to investors.  In fact, until the 1980's when Gordon Gecko's 'greed is good' mantra permeated the American psyche, high finance was something very few strived to make their life's work.

But something changed in the early 80's on Wall Street and it may have all started with Alan Greenspan and the Federal Reserve.  This is because a decade after the dollar was removed from the gold standard, America's central bank began their policies of lowering interest rates which vastly increased lending via cheaper money.  And speculation, fraud, and a departure from fiscal responsibility became the fuel that made banking not only a profitable venture, but the new way to become rich with limited liability.

That of course was until the 1987 when stock market crash occurred, and began a different cycle of booms and busts that culminated in even greater and greater explosions, such as the Savings and Loan scandal, the Dot Com bubble, the Housing Bubble and 2008 stock market crash, and in 2016, a derivatives time bomb that could soon destroy the wealth of every individual except for a select few.

But there have been signals along the way for those who actually pay attention to their money instead of simply giving it to Wall Street 'experts' for 30 to 40 years and hoping that at the end it will fund their retirements.  And the very asset that has been both a barometer and a safe haven signal in all of these events has been gold.


Both central bankers and Wall Street hate gold because it not only limits their ability to leverage capital far beyond the boundaries sound money would allow, but it does one other important thing which is to put authority over money back into your hands.  And in the end it is the ultimate rebellion against a corrupted financial system, which in today's world owns most politicians, and can con government's into using taxpayer money to bail them out from their fraud and mistakes.
We’ll be blunt: most financial asset investors really hate gold. 
Anything - even leaving money in the bank - is better than owning gold since at least society has access to your capital through the banking system.  Once you buy physical gold, no one has access to that sliver of your portfolio. 
Of course, that’s actually a feature for the owner since physical gold is no one else’s liability. 
So the notable rally in gold is essentially a protest vote against the global financial system, the equivalent of taking your ball and going home. 
This only happens when investors think central banks have lost their way, and that’s not good news.  Think of gold as a super-duty dive watch.  It can go places humans can’t actually even dive.  The watch will outlive the person wearing it.  Kind of cool, but you don’t necessarily want to test it yourself.  - ConvergEx's Nick Colas via Zerohedge

Gold: Best performing asset of the 21st century, and one of the top 3 since 1971

Because gold was disconnected from money, an interesting thing has occurred which has only been seen a few times in history when precious metals were relegated as commodities rather than as a currency.  It has become a form of investment as well as simply being alternative money or wealth protection, and in fact, has been the best performing asset of the 21st century despite the massive stock, bond, and housing bubbles created through the use of debt and low interest rates.  And it is also one of the top 3 performing assets since its disconnect from currencies beginning in 1971.


So... gold has not only been one of the best investments of the past 45 years, and especially the past 16, it is a way to protect and hedge against inflation and against central bank manipulation of currencies, and lastly it is the one true way to tell Wall Street and bankers to 'shove it' by taking your money completely out of their rigged game, and limit their ability to increasingly leverage debt and steal your money by removing the capital foundation they use in the markets.

And with more and more people finally waking up out of the Wall Street programming that helped fuel their greed by conniving people to trust them with their money by giving it to them for decades under the guise of mutual funds, 401k's, and IRA's, how can you achieve nearly every financial need and desire you have through the purchasing and holding of gold?

You can do so with a company called Karatbars.



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Wednesday, December 23, 2015

Is Canada the first domino to fall in the new Great Depression?

Interesting things have happened 18 months after oil prices fell off a cliff to hover down around $35 per barrel, with the deflationary environment that now permeates the global economy just a microcosm of the overall problems that signal the world entering into a new Great Depression.  And besides currency wars, trade wars, and escalating hot wars that are the norm across the world today, one economy may be the first domino to trigger the global collapse.
Canada.

U.S. lowers tax barriers to allow foreigners to buy more property and investments

Since the 1990’s, central bank policy has been to create monetary environments that build financial bubbles to make the economy look much better than it actually is.  And just as we recently saw where Fannie Mae is engineering amodified resurrection of sub-prime lending to boost the current housing bubble even further, the government is also jumping on the bandwagon by lowering a 35 year old tax rule that kept out foreign investors from buying up American property.
Known as the 1980 Foreign Investment in Real Property Tax Act, or FIRPTA, this act had created a disincentive for foreign individuals and institutions to buy property in the U.S., and keep Wall Street investments like REITS from being controlled by offshore entities.  But after passage of the new $1.1 trillion Omnibus spending bill last week, Congress and the President cut this Act to facilitate the inflow of foreign capital to keep the newest housing bubble from bursting.

Tuesday, August 18, 2015

Eight years later, the Housing bubble morphs into Rent bubble

Prior to the bursting of the artificially created Housing bubble in 2007, home prices had skyrocketed due to cheap money, low interest rates, and government policies that mandated banks lend to people who couldn’t afford it.  And with many families remaining cautious or unable to purchase a home after millions of Americans had lost theirs during the run of foreclosures following 2008, renting in the U.S. has never been higher since the 1960’s.
But with so much property once again being overpriced thanks to the Fed’s saturation of money coupled with historically low interest rates, the rise of a new bubble has taken shape, only this time it is not in regards to home ownership, but instead it is in the cost of rents.
Welcome to the new rent bubble, and the re-emergence of the Rentier Class.

Friday, July 31, 2015

Death of the American Dream: Home ownership falls to lowest level in nearly 50 years

When it comes to both the government and the Federal Reserve, trusting any program to either of these agencies is a sure fire way to destroy an industry.  And just as former Fed Chairman Alan Greenspan helped create the housing bubble that burst confidence in home ownership, the latter two central bank heads have finally killed it entirely.
On July 27, the U.S. Census issued its most recent home ownership data, with the results showing that Americans owning a primary residence are now down to the point where ownership is at levels not seen in nearly 50 years.
 

Sunday, May 24, 2015

We are now once again at the peak of the new housing bubble

The bursting of the Housing Bubble in 2007 that signaled the lead-in to the overall stock market collapse and credit crisis was quantified by two key technical points.  First, home prices were far above their actual values, with bidding wars causing prices to escalate for even the most run down shack.  And second, a large portion of home buyers near the end were sub-prime mortgage borrowers who couldn’t afford the monthly payments once the economy collapsed, and job losses escalated during the recession.
So using these two parameters, it is fair to say that the Fed’s mission of re-inflating the housing market has been a success, and any artificially stimulated bubble has only one sure outcome.
To burst.
 

Tuesday, January 7, 2014

New York realtors using Bitcoin to fuel the real estate bubble

Never let it be said that businesses and investors will ever be short of opportunities to spend their money, especially in this era of Fed induced cheap currency.  Like foreign and domestic casinos that allow gamblers to bet on such esoteric things like what time the newest heir to the throne of England would be born, to Wall Street firms opening a bond fund to speculate on the success of ex-convicts, people with money will always be willing to seek profits when standard markets no longer look good.

So it should come as no surprise that a real estate broker in New York City is jumping on the Bitcoin bandwagon, and opening up a new channel for home buyers in the realm of luxury housing to use the digital currency to expand the re-inflated housing bubble and keep the exuberance going.




Read more on this article here....

Tuesday, August 20, 2013

Had a bankruptcy last year? No Problem! FHA has a mortgage for you as Obama pushes to re-inflate housing bubble

As mortgage lenders around the country begin to suspend operations and layoff workers, the Federal Housing Administration (FHA) is ready to throw away financial sense and offer Americans a new loan program.  In an FHA Mortgagee Letter 2013-26 published this month, the largest mortgage backer in the country is offering loans to people who have gone just a full year since filing for bankruptcy with the intention of re-inflating the housing bubble.



Read more of this article here...

Tuesday, July 23, 2013

Rising home prices coming from flippers not first time buyers

In certain parts of the country, home prices are rising as the country digests trickle down portions of the $Trillion's in money printing coming out of the Fed's QE program.  However, a closer look at who is and who isn't buying houses shows that the majority of home buyers are hedge funds and flippers, and not the average American family or first time home buyer.


There was a time when the US housing market was not "driven" by hedge funds armed with government-subsidized, "REO-to-Rent" loans loading up on distressed properties, by banks refusing to release foreclosed properties into the market (thus creating a market subsidy) or by foreigners eager to park their "tax-evaded" wealth with the Anti Money-Laundering exempt National Association of Realtors. Instead, the main driver of US housing were first-time home buyers, "typically couples in their late 20s or early 30s" who historically have accounted for about 40% of home sales. Alas, last year, and all throughout the New Normal, this number has been about 25% lower, or representing just 30% of all sales - Zerohedge

It is these numbers that investors and all Americans need to be cautious about, and remember the winds of the 2007 housing bubble crash.  When prices reached their peak in the housing cycle, and the stock markets were reaching all-time highs, the end to it all came not only suddenly, but in a crash that nearly brought down the entire Western financial system.

And this was before $20 trillion dollars was printed by the Fed in the last 5 years, and inflated into the economy.

Tuesday, May 1, 2012

Housing trend: More people renting homes today than a decade ago

There is one underlying fact about housing data, and that is the reporting is done by those with a specific agenda.  When two analysts read the same data, and come up with entirely different conclusions, then either no prediction is possible, or one of those two analysts must work for the government.

With this being said, the truth is, housing prices and opportunities for Americans is not improving, but in fact, is decreasing.  A new chart shows that more people are renting rather than owning homes in 2012 than they did just a decade ago, and before the bursting of the housing bubble.



Less than two thirds of Americans say they own their own homes - the lowest rate of home ownership in more than a decade.

A new Gallup poll shows just 62 per cent of Americans are homeowners, down 11 percentage points from the high of 73 per cent in 2007, just before the housing market crashed spectacularly.

A record number of Americans, 43 per cent, also say their homes are now worth less than what they paid for them.

The new data, based on a survey of 1,000 people, shows that housing market continues to plummet, despite modest economic recovery and improvements in the unemployment rate.

The home ownership rate reported by Gallup dropped six percentage points from this time last year. The numbers were the lowest in the history of the survey, which Gallup began taking in 2001. - Daily Mail


Unfortunately, the Federal Reserve and the Treasury place too much stock in home ownership, consumer spending, and the stock markets rather than focus on actual production, job growth, and exports.  The economy will continue to decline because the American people have not recovered from the failures of the banks in 2008, and housing will be a dream left in the past unless fundamental changes are made which clear out the debts of this recession.  Without this deleveraging of debts, the system cannot provide Americans the chance to own a home for years to come.

Friday, April 20, 2012

The Lost Boys: foreclosures have evicted 2.3 million children with more on the way

Most economic analysts point to the millions of families that have been uprooted through foreclosure since the bursting of the Housing bubble in 2008, but very few have looked into the impacts of the children who have seen their lives change, and what the future holds for them as they continue to grow up.


Five years into the foreclosure crisis, many American families with children continue to lose their homes through foreclosure. An estimated 2.3 million children in single-family homes have already lost their homes to foreclosure, and even more - 3.0 million children - are at serious risk of losing their homes in the future. Another three million or so children may face eviction from rental properties that undergo foreclosure, suggesting that more than 8 million children are directly affected by the ongoing foreclosure crisis (see Figure 1). As single-family and rental properties continue to enter foreclosure, children face not just the loss of their homes, but also the risk of losing friends and falling behind academically if they are forced to switch neighborhoods and schools.

Children Affected by Foreclosures
Children are the often invisible victims of the foreclosure crisis. Mortgage records do not tell how many children are in owner-occupied homes, and it is even harder to estimate the number of children in rental properties. Yet foreclosure affects not just the homeowner or landlord, but also the children living in the foreclosed properties. This brief combines state-by-state estimates on foreclosures with Census Bureau data on the living arrangements of families with children to generate estimates of the numbers of children affected by the mortgage crisis. It also synthesizes research bearing on the negative effects of foreclosure on children’s schooling and overall well-being and outlines some possible policy responses. -
Brookings Institute





"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."