The Bursting Bubble Ahead!

[Wade Hampton III]

Harry Dent wrote...

I’ve been to Mumbai about three times in the past decade or
so. It’s the most packed city in India. There’s no doubt it’s
a magnificent, sprawling city full of wonder. Yet as far as
large cities go, many think it’s more affordable than urban
areas in China – a country that holds the world title for
the largest housing bubble on the planet! That might be.
But what I can tell you is that I’ve talked to a number of
hotel workers in Mumbai who have to travel as much as two
whole hours to get to work in the city. Living in the city
is completely out of the question. There’s no way they could
afford to. And even the surrounding areas are pushing it.
I’ve no doubt there are countless such workers in the U.S.,
but even for those who can pull off renting in a big city,
they haven’t got an easy time, either! The housing bubble
is now higher than ever in cities like San Francisco, Miami,
Denver, Dallas and Houston. They’re so bloated that most
of the people in these cities can’t afford to own a home
there. They can only rent. But here’s the catch-22: renting
hasn’t gotten easier. It’s gotten more expensive. By a lot!
Rents have been getting more and more expensive for three
whole decades now. Between 1985 and 2000, renters spent an
average of 24.2% of their income. Today, it’s 30.2%. That’s
24% higher! Going into 2006, owning a home was the more
attractive option. Now, in 11 of the largest U.S. cities,
all have seen rising renters. And nine of them are dominated
by renters:

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At the top of the list is Miami, FL. That doesn’t surprise
me one bit as I used to live there. The average person can’t
afford to buy its real estate. Into 2006 Miami had one of
the biggest bubbles, and its crash was hence as extreme.
And now it’s bubbled again, this time more than ever, due
largely to foreign buyers from Latin America. The other
reason is that Miami has the lowest median wages of any
large city in the country. No wonder 65% of its residents
are renters! I doubt the Big Apple at No. 2 is any surprise
to you either. The city’s famous for being damn-near
impossible to live in, affordability-wise. Its median wages
are better than Miami’s, but still not as high as you’d expect.
Next comes Boston and L.A. at 60%. San Francisco’s a little
better at 57% – it at least has the highest median wages of
any major U.S. city. But its housing and rent costs are still
off the charts. Last is Philly. Compared to the others, it’s
more affordable and has higher than average median wages. But
of these 11 cities, its percentage of renters increased the
most from 2006 to 2013 – from 37% to 44%, a whopping 20%
increase. Overall, demand for rentals is rising so fast in
many cities it’s starting to overwhelm supply. That’s why
rental costs are rising, while ownership costs are falling.
It’s unfortunate for all of us because many of these renters
are millennials who, thanks to absurdly high rent costs, can’t
afford to save for a down-payment on a home even if they wanted
one – which right now, they don’t. And I can’t blame them!
They’re the first generation to see home prices fall significantly,
then take their sweet time trickling back up. But that means
millennials will be late to the homeowner party. And for us,
it will be devastating to our housing market as boomers increasingly
fall off the demographic cliff. It’s almost ironic, since thanks
to lower interest rates – much of that artificial – mortgage
payments have become more affordable since 2006, dropping from
21.3% to 15.1%, or 29% lower. But for now, millennials are
stuck renting. Their rental phase doesn’t peak until age 27,
which means we’ll continue to see demand for rentals increase
until at least 2017. That could be despite a deep downturn
ahead. After all, it’s not like all those millennials can go
back to live with mom and pop, as so many already have. For
homeowners – especially in these large cities – I continue to
advise you to sell all non-essential real estate. If you’re
holding onto property because you’re renting it out for stable
monthly income, that’s fine – though I’d much rather have the
cash on hand to buy up investments that get slaughtered through
the global downturn ahead:

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But if you’re a boomer hoping to retire on the value of your
home in the next five to 20 years, think again. Demographics
show we’ll never see these heights again!

Wade says, "Reminds me of those 'duck-and-cover' episodes
us/we kids used to have to endure back in the '50's. I remember
ONE honest teacher who gave me the answer I was looking for
...believe it was when I was in the Fifth Grade over at
Bradley Elementary School. I asked him honestly what to
do...he said, 'kid, get under the desk, put your head between
your legs, and kiss your a** goodbye!' I will never forget
that...believe Harry Dent knows what he is talking about
here."

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[Wade Hampton III]

Yes, THIS bank!

No Bailout Here

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“…the fallout will be 525 times bigger than Enron and is sure to affect all
American citizens – no matter where you live, what you do for a living,
or how much money you have.

Once the mainstream media uncovers this deception (possibly in the next
six months), it will be too late for anyone to act. Here’re the four steps
you need to take to prepare for the coming chaos…”

— Jim Rickards, Financial Crises Advisor to the CIA and Pentagon

Days Gone By

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http://research.agorafinancial.com/rese ... &r=MC2&g=0

Depression II

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[Wade Hampton III]

Harry Dent says...

Since the financial crisis, central banks have injected trillions
of dollars into the global economy. Their goal: to offset the
natural downturn from slowing demographic trends and the crushing
debt loads of the greatest credit bubble in history. The Federal
Reserve alone has created $4 trillion in QE since late 2008. They
tried to solve an unprecedented debt crisis by adding more debt.
A toddler can tell you how backwards that is! It’s killed investors
looking for safe, long-term yields, while empowering Wall Street
and hedge funds to lever up at low costs, and bet the casino on
never-ending Fed stimulus. Likewise, corporations buy back their
own stocks to increase their earnings per share. It’s bogus
accountant voodoo magic. It’s got nothing to do with fundamentals
like growing your business. What a novel concept! And yet, this
is the world we live in today: a world in which governments buy
back their own bonds, corporations buy back their own stocks, and
Wall Street lives on speculation rather than real lending and
investment.

As the Fed and other central banks bought trillions of their own
bonds, they drove down interest rates to encourage more borrowing
and spending. But as it turns out, they were a little late to
the party! Consumers and businesses had already over-spent and
over-borrowed in the great bubble boom leading up to the financial
crisis. As David Stockman puts it, we had already reached peak
debt and excess capacity by 2007. Since we can’t go any higher,
there’s just one direction left: building up financial bubbles,
then deflation when they inevitably burst. It’s happened every
single time in history!

But despite this peak debt, central banks can create more free
money at no credit rating limitations. And the largest, most
credit-worthy corporations can borrow at near-zero long-term
rates easier than we mere consumers or small businesses can,
especially after the Great Recession. So, these corporations
buy back their own stocks to increase earnings per share, even
if such earnings are slowing. Even if earnings remain the same,
if you reduce the numbers of shares outstanding ­­– bam! More
earnings per share! All it takes is rigging the system. Stock
options further incentivize the top executives to do this. If
the stock goes up, they benefit, whether they expand the
business or not. What a sweet deal! Why didn’t we think of
this before!?

Probably because, decades ago, this mal-practice was quasi-
illegal. Corporations used to be prosecuted for this downright
manipulation of their stock prices. But not now, when the Fed
needs anything to keep this out-of-control bubble going and
consumer and investor confidence rising so Humpty Dumpty
doesn’t fall again. These guys will look like idiots in a
few years. They’ve bought their own stocks near the top of
this bubble, and increased their debt burdens at the worst
time in history. They’re not setting themselves up to win,
as the challenging downturn ahead will quickly determine
which companies survive, and which thrive – just like the
1930s.

So, let’s add it up…

The Fed creates near $4 trillion in free money to stimulate
the economy by buying their own bonds and pushing down
longer term yields to near zero risk-free rates… As a
direct effect, corporations buy back their own stocks to
the tune of $2.3 trillion… The oil frackers and other high-
risk ventures borrow money at super-low rates to take
greater and greater risks for another $1 trillion mal-
investment… And in late August, the first 10% crash in
stocks that bubbled up dramatically as a result of QE,
sees over $2 trillion of wealth disappear in one week!
HALF of the QE lost in ONE WEEK. Think about that. Does
it sound like the Fed’s $4 trillion bet will pay off?
Does this sound like a plan to you? I think stocks
alone will lose $7 to $10 trillion in the years ahead.
Don’t even ask me about real estate and junk bonds. And
don’t get me going on China. What they’ve done is much,
much worse. Talk about excessive debt and over investment!
Every credit and financial asset bubble in history has
crashed. Some in a few years. Some a matter of months.
Get safe now on any bounces in the market. The great crash
has already begun.

Jewed

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[Wade Hampton III]

Next Stop: Hyper-Inflation...

Jeff Nielson says it’s all about to come down, by design, exactly as the (Jewish)
banking cabal has been planning and preparing for… Jeff says that the bubbles
are blown be design of the central bankers, with the specific purpose of luring
in the masses, only to pop the bubble and leave the masses holding the bag. Jeff
says there are many ways to look at the recent developments in Bitcoin, as whether
it is a NSA creation or a free market creation, Jeff sees merit in both sides of
the argument, but Jeff leans to the side that Bitcoin and the cryptocurrencies
were born out of the free market while governments and banks around the world
seek to gain control of the cryptos and seize them for their own use or pop the
cryptocurrency bubble. This is the same way the banks have always been doing it,
Jeff says, and it’s no different than luring people into the stock markets or
luring people into housing bubbles. Jeff says we are at the end of the useful
life of fiat currencies, and the next time the bankers pop the bubble and bring
down the system, there will be no recovery. Listen to the entire interview below:

Spend It While You Can

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https://www.silverdoctors.com/headlines ... economies/

[Jim Mathias]

Hmm....I see hyperinflation as being an opportunity for those to get themselves out of debt (pay off mortgages, for instance) and I don't see that as being profitable for the Jews. The gameplan I see them playing is collapsing the money supply and foreclosing on everyone------basically throwing everyone out of their homes and turning them into renters---if they can afford it. Same for businesses. The Jew banksters could clean up by buying off corporations that have any value at fire sale prices since they would be the only ones to have any 'money.'

Please note, I'm not an economist nor any kind of expert and this is just speculation on my part. Take it for what it's worth (probably nothing!)

[Wade Hampton III]

The Year Of Living Dangerously

Here’s a sneak preview:

Student loan debt is over $1.4 trillion, and default rates are over 20%. Most
of these defaults have not yet hit the federal budget deficit. They will soon.
Resulting bad credit ratings are standing in the way of jobs and household
formation for an entire generation of millennial's. The new U.S. tax bill is
the greatest hoax since Orson Welles’ 1938 radio broadcast, “War of the Worlds,”
about an invasion of Earth by Mars. Orson Welles caused a panic in the New
Jersey/New York listening area, with people fleeing their homes and jamming
the roads. The tax bill damage will be less visible but far more damaging.

Indeed

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Biggest winners: corporations and billionaires (think Jamie Dimon). Biggest
loser: the U.S. economy. I’ll have a lot more to say about this in the weeks
ahead. What is certain is the tax bill will add $2 trillion or more to the deficit,
something the U.S. can ill afford.

https://jimrickards.blogspot.com/2018/0 ... -year.html

[Jim Mathias]

Yet when will the bubble burst--if at all? The cons running this game have managed to keep it all limping along in spite of several decades worth of Doom and Gloom predictions.

My prediction: more limping along for several more years....perhaps even a few decades unless someone does something really rash--like starting a nuclear war.

[Wade Hampton III]

Yet when will the bubble burst--if at all? The cons running this game have managed to keep it all limping along in spite of several decades worth of Doom and Gloom predictions.

My prediction: more limping along for several more years....perhaps even a few decades unless someone does something really rash--like starting a nuclear war.

It depends on your point of view. In Great Depression I, seventy-five percent of the population was
still working and had an income. For the twenty-five percent, life was hell. Some even defected
to the old Soviet Union. Others put their children up for sale because they could not even afford
to feed themselves. There was starvation, but no known accounts of cannibalism.

[Wade Hampton III]

Deutsche Bank's Crisis Will Likely Lead To U.S. and Global Banking Crisis....

The biggest example, Deutsche Bank, Germany’s largest bank, has had problems
with capital and profitability going back decades. But Deutsche Banks’s problems
are not unique.
61207

61207.JPG (62.3 KiB) Viewed 7907 times

Prior to 2018, when the president of the European Central Bank, Mario Draghi,
directed EU banks to start recognizing bad credits, international accounting
rules essentially allowed EU banks to ignore bad credits. Indeed, EU banks
could pretend that loan payments were still being received. Loans that
defaulted prior to 2018 were not included in the directive. Thus Europe
has a decade of detritus sitting in the loan portfolios of many banks that
is neither disclosed nor properly valued. Whereas in the United States banks
must charge-off bad assets down to some expected recovery value, in Europe
we extend and pretend.

https://www.zerohedge.com/news/2019-05- ... ing-crisis

[Jim Mathias]

Deutsche Bank's Crisis Will Likely Lead To U.S. and Global Banking Crisis....

The biggest example, Deutsche Bank, Germany’s largest bank, has had problems
with capital and profitability going back decades. But Deutsche Banks’s problems
are not unique.
61207

61207.JPG

Prior to 2018, when the president of the European Central Bank, Mario Draghi,
directed EU banks to start recognizing bad credits, international accounting
rules essentially allowed EU banks to ignore bad credits. Indeed, EU banks
could pretend that loan payments were still being received. Loans that
defaulted prior to 2018 were not included in the directive. Thus Europe
has a decade of detritus sitting in the loan portfolios of many banks that
is neither disclosed nor properly valued. Whereas in the United States banks
must charge-off bad assets down to some expected recovery value, in Europe
we extend and pretend.

https://www.zerohedge.com/news/2019-05- ... ing-crisis

Why, it's as good as gold on paper.