Bits Bucket for July 18, 2014
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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What is a “widow maker trade”?
Are US bonds the next widow maker trade?
Posted by Houses and Holes in US Economy at 2:09pm on July 17, 2014
One of the markets that has been least easy to predict this year has been US bonds. The long term US bond bears, that are often monetarists at heart and believe QE will bring inflation, have been queuing up to short. Likewise, post-Keynesians have pointed at Japan and laughed about secular deleveraging and widow-maker trades.
The fact is, the bears have been wrong all year, and even with recent inflationary rumblings are still wrong. That has not stopped BofAML issuing a new warning today:
…
How come the Chinese folks seem to like our bonds better than their own these days?
Markets
China Government-Bond Sale Falls Short of Target
July 18, 2014 5:16 a.m. ET
SHANGHAI—China failed to sell all the government debt it had planned to Friday, in the second incomplete auction in just over a month as rising yields and signs of improving economic growth turn investors away from the safety of bond markets.
The main buyers of Chinese government debt are banks and they have grown increasingly short of cash as a series of mini-stimulus measures by Beijing has pushed them to focus more on lending to companies. That is reducing the funds available in the financial system, cutting demand for low-yielding government bonds and sending China’s borrowing costs higher.
Meanwhile, signs that the sluggish Chinese economy is gaining traction have left investors less interested in bonds and worried that prices, which move inversely to yields, may have further to fall. The world’s second-biggest economy expanded 7.5% in the second quarter from a year earlier, versus 7.4% in the previous quarter.
“Investors don’t have strong demand for the short-term bonds, as liquidity has turned so tight recently,” said Gao Yang, a trader with China Guangfa Bank.
At a routine auction Friday, China’s Finance Ministry sold 23.4 billion yuan ($3.8 billion) of two-year bonds. It had planned to sell 26 billion yuan. The bonds were sold at an average yield of 3.99%, higher than the 3.79% on bonds of the same maturity that are currently being traded. Yields have risen by around 20 basis points since the start of July.
The last time a sale fell short of expectations was June 11, when the ministry sold 25.3 billion yuan of one-year bonds, below the planned 28 billion yuan. The bonds fetched an average yield of 3.32% then, though shorter-dated bonds typically receive lower yields. A similar bond sale also fell short in April.
…
Credit Markets
China Plays A Big Role As U.S. Debt Yields Fall
By Min Zeng
Updated July 17, 2014 9:23 a.m. ET
Investors wrestling with the mysterious U.S. bond rally of 2014 got a clue about where to look: China.
The Chinese government has increased its buying of U.S. Treasurys this year at the fastest pace since records began more than three decades ago, data released Wednesday show. The purchases help explain Treasurys’ unexpectedly strong rally this year. The yield on the 10-year U.S. Treasury note has fallen to 2.54%, from 3% at the end of 2013. Yields fall as prices rise.
The world’s most-populous nation boosted its official holdings of Treasury debt maturing in more than a year by $107.21 billion in the first five months of 2014, according to the U.S. government data. The buying has been fueled by China’s efforts to lift its export-driven economy by weakening its currency, the yuan, against the dollar, market analysts said, a strategy that encompasses hefty purchases of U.S. assets.
China officially holds roughly $1.27 trillion of U.S. debt, about 10.6% of the $12 trillion U.S. Treasury market.
The country’s purchases have salutary effects on both sides of the Pacific. In addition to the weaker yuan, they hold down U.S. interest rates, making houses more affordable and generally easing financial conditions in the U.S. economy.
On the other hand, lower yields mean lower income for bond investors. They have spurred investors to chase assets globally for returns, fueling asset-price increases and investor fears that some market valuations are stretched.
Also, investors fear any reduction in Chinese purchases, along with other macroeconomic events, could destabilize the U.S. bond market and send rates higher, slowing the housing industry, widely viewed as a key driver of economic growth. Some analysts contend that low rates also can allow capital to be misallocated, fueling the risk of future economic disruption.
The bond rally has left many traders on Wall Street scratching their heads. Most investors had forecast that interest rates would rise this year as the U.S. economy picked up steam and the Federal Reserve slowly pared its stimulus measures, in a shift that was widely expected to push rates higher.
But yields remain far below 2013 highs even as U.S. job creation has gained pace in recent months. The disclosure of China’s holdings underscores the frayed nerves in the bond market as the Fed prepares to raise interest rates as early as next year, for the first time since the financial crisis. Many investors fear that reduced Fed support and unpredictable buying by foreign governments could spell bond-market tumult.
“The big picture is that China buying may be helping to keep bond yields lower than they should be ahead of the Fed moving closer to raising rates,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ. “The market could wake up and get quite a shock…if China changes course.”
…
Walnut Creek, CA Housing Prices Crater 9% YoY As Housing Demand Plunges Statewide
http://www.zillow.com/local-info/CA-Walnut-Creek-home-value/r_34637/#metric=mt%3D18%26dt%3D1%26tp%3D5%26rt%3D8%26r%3D34637%252C118802%26el%3D0
C R A T E R
“Walnut Creek, CA Housing Prices Crater 9% YoY As Housing Demand Plunges Statewide”
How are Ampipe’s prices holding up?
I know the biggest azzhole who lives in Walnut creek. He is the ex of a friend. He bought out her half of the house in a divorce. That post warms the heart a little.
The link shows values up 14% YOY.
9% ‘crater’ is a figment of HA’s imagination, not unlike his career.
List price and sale price are off significantly YoY, but yes Zillow says the “value” is up YoY. So your home is worth more, but you will have to sell it for less. Make sense to you?
Makes sense to everyone else. Why not to a lying lawyer?
Lawyers are liars.
Sales Price = up 5% YOY.
Crater!
List price= Down 9% yoy.
Not nearly enough price slashing to find a buyer. You better get slashing some more Idjits.
Blue, they have another stat, which is the median sale to list price ratio:
http://www.zillow.com/local-info/CA-Walnut-Creek-home-value/r_34637/#metric=mt%3D44%26dt%3D1%26tp%3D5%26rt%3D8%26r%3D34637%252C118802%26el%3D0
The median is that homes that DO sell, are selling for 2% over ask.
The question is what homes are selling vs. just sitting on the market.
The median list and sale prices are determined by looking at actual data, but none of the data is adjusted for the mix (which can become meaningful when you are looking at a small sample size, like one City of 65k people).
The Zillow index tries to control for the different characteristics of housing.
….. and falling.
We don’t do plastic pipe Jethro. Ductile, cast, RCP, CPP and HDPE. No plastic.
HDPE IS plastic, you moron.
Not by specification Donk. Another day of foot in mouth for you?
Probably!
So what else is HDPE made out of that isn’t plastic? Wire reinforcement? And why don’t they call it something other than HDPE?
Don’t know nor do I care. I don’t bid or build plastic.
HA couldn’t build a paper airplane.
The only houses he builds are in his dreams. Try not to disrupt his perceived reality, it is very delicate.
Wrong again Idgits.
Hello Realtor®
Because debt donkeys gonna donk:
http://m.washingtonpost.com/realestate/debt-ratios-not-credit-scores-are-the-most-worrisome-factor-for-mortgage-applicants/2014/07/17/5f064494-0b85-11e4-8c9a-923ecc0c7d23_story.html
—–
“Researchers asked a representative sample of them what single factor makes them most hesitant to fund a loan request — in other words, what’s most likely to prompt them to say no.
Tops on the list? Surprise, it’s not your credit scores. And it’s not how much you’ve got for a down payment or what you have in the bank. It’s your DTI — your debt-to-income ratio.”
—–
“Suprise”? That was SOP right up until this sh!t started in the first place. That’s why mortgages used to be such a source of societal approval. It meant you had a JOB, a real one, not that you could pay off the $1.29 in toothpaste on the Tarjhay store card.
“…why mortgages used to be such a source of societal approval.”
That is some kind of imagined alternate reality. Society may have approved of you because of the material possessions you apparently could afford, not at all that you were mortgaged.
LOLZ
That’s a beaut right there…. another drive-by honk honk from The Donk.
I just want to be on record as saying that not only is Elizabeth Warren a fraud, she is also a creep.
She’s a sanctimonious hag.
I agree fully with both of those assessments.
Even though she is one of the very few politicians that at least identifies some of the actual financial problems once in a while, her ‘fixes’ are the exact opposite of what is needed. And even if she came around to supporting some real solutions that would work, she’s still a fraud.
That broad is a perfect example of shrewd marketing of a counterfeit.
Why? What’s wrong with her?
Video of the day: Elizabeth Warren blowtorches Yellen on TBTF banks.
http://libertyblitzkrieg.com/2014/07/16/video-of-the-day-elizabeth-warren-torches-janet-yellen-on-tbtf/
Dallas Re Continues to Soar!
Median home sales prices in the area are up 12 percent through the first half of 2014 from the same period last year.
http://www.dallasnews.com/business/residential-real-estate/20140717-dallas-area-buyers-will-have-to-shell-out-even-more-this-year-for-homes.ece
And not a buyerin sight.
Remember….I can ask $200k for my 30 year old depreciating house but where is the buyer at that price?
” It’s crazy to have three to 10 offers on a house,” he said.”
Hows your bankruptcy going? Maybe the trustee will buy your old truck!
Not having a good day Idgits?
B A N K R U P T
“Dallas Re Continues to Soar!”
Lots of pretty ladies in Dallas, TX. Something in the water?
Yeah. Residue from hair dye, makeup, and Botox.
And ugly wimmin get hidden in the house.
I think Texas has a fracking boom or something.
TBTF banks hit with monster $250 Billion lawsuit related to housing bubble meltdown.
http://www.truthdig.com/report/item/big_banks_hit_with_monster_250_billion_lawsuit_in_housing_crisis_20140717
“…$250 Billion lawsuit related to housing bubble…”
The MSM isn’t carrying the story, yet.
“TBTF banks hit with monster $250 Billion lawsuit related to housing bubble meltdown.”
Bahahahahaha … does the acronym “TBTF” mean anything to you?
So sue me! Sue my pants off! Then after you are done with all this suing you can dig deep into your taxpaying pockets and bail my TBTF ass out just as you did the last time and will forever do in the future.
Again (for those who do not get it) you cannot lose with the stuff I use.
Bahahahahahahahahahahahahahahahahahahahahaha
RAL, thoughts on this flip?
http://www.redfin.com/MD/Baltimore/6950-German-Hill-Rd-21222/home/9316255?utm_medium=email&utm_content=address&utm_campaign=listings_update&utm_source=myredfin
A guy bought it for 120k cash in 2009, rented it out for 4 yrs, then did kick out & renovate. Just went pending at $180k, actual sale price will be revealed in county records in a couple months when sale’s final.
I’ve been ‘mirin his flips for a while. He never touches the outside, leaves them ugly or homely, but he turns war zone interiors into modern spaces with nice flow between rooms. I guess this works bc he only does small houses that are mostly 1 story + basement.
I think he paid too much back in ‘09, but that particular area is very white and the schools in that area are solid (brand new HS opened last fall).
$2500 in taxes on a $179,000 house…
plus a yearly Special Tax Assessment of $746.07
???
Doesn’t sound right. Baltimore County prop taxes are 1.1%.
http://www.dat.state.md.us/sdatweb/taxrate.html
Special assessment — not sure what that is? I don’t have any special assessments (but I’m in the city). I think “special assessments” are how the suburban counties get revenue while still saying that prop taxes are lower than the city.
Liberace lololol.
So he dumped his poor rental investment as soon as the rebubble allowed him to break even. Big deal. (Don’t forget to factor in transaction costs, property taxes, and the cost of that interior renovation there.)
1500/month x 48 month = 72k in rent received. Take out the taxes and ins. during that time, still more than enough to pay for the reno.
I do think he should’ve gotten a lower price, though. He usually stays <100k.
I also bet this only sold for 170k — in other words 10k under listing price. Even if it says it sold for 175 or 180, I bet the seller pays closing costs or does some other kind of incentive.
http://www.zerohedge.com/news/2014-07-18/chinese-home-prices-decline-record-number-cities-average-sale-price-has-biggest-drop
China’s attempts to “reign in” its credit and housing bubble (to “taper”, if you will) and to deleverage its financial sector, so widely trumpeted over a year ago just before its banking system nearly locked up overnight, are rapidly becoming the biggest joke in finance, just after anything relatedd to the Fed of course. Sure enough, confirming that the reason for the epic surge in Chinese lending over the past few months (a topic we will touch upon later) was making sure that the all important housing bubble doesn’t pop (at least not yet, recall: in China housing is a far more critical bubble than the stock market which is widely ignore by most as a “wealth effect” mechanism), was data released overnight showing how Chinese home prices reacted following the last few months of credit conservatism and destruction courtesy of the commodity funding deal rehypothecation scandal. In short: not good.
As summarized by Bloomberg, China’s new-home prices fell in a record number of cities tracked by the government as developers cut prices to boost sales volume. Prices fell in a record 55 of the 70 cities last month from May, the National Bureau of Statistics said in a statement today, the most since January 2011 when the government changed the way it compiles the statistics.
What’s worse, and as can be seen on the chart below, prices in Shanghai and the southern city of Guangzhou fell 0.6 percent each from May, the biggest drop since January 2011, while they declined 0.4 percent in Shenzhen. Prices fell 1.7 percent in the eastern city of Hangzhou, the largest monthly decline among all the cities.
At the national level, China recorded a 0.48% sequential decline in home prices: the largest since at least 2010. And slamming the nail in the Chinese housing market, at least for now, is that the Average Sale Price dropping by 1.5% Y/Y, the biggest drop since Lehman!
http://www.chinadaily.com.cn/business/2014-07/18/content_17841656.htm
Affordable housing fraud, they are getting like us.
And the fraudsters are probably already ensconced in their new SoCal homes that they paid for in cash.
Bought with never-to-be-repaid money borrowed back home.
Latest Chinese housing prices.
http://www.chinadaily.com.cn/business/chinadata/2014-07/18/content_17835763.htm
Euro tumbles as Italy slashes growth expectations (despite “former” Goldman Sach’s exec Draghni’s frantic money-printing)…looks like Eurozone crisis not quite so contained.
http://www.zerohedge.com/news/2014-07-18/euro-tumbles-italy-slashes-growth-expectations
Goon, you need to change careers and work in the rental car field, money for nothing and your pot for free. Go to Drudge and check out the link about the Denver International Airport.
http://www.denverpost.com/news/ci_26171190/denver-applies-grant-shelter-immigrant-children
Canada’s inflation rate rises “unexpectedly.” How long can central bankers keep lending rates below the rate of inflation? (Or keep printing money with inflation - not least from the debasement of the currency - eroding consumer purchasing power)?
http://www.bloomberg.com/news/2014-07-18/canada-inflation-unexpectedly-quickens-to-2-4-in-june.html
In the UK, the morbidly obese are now to be classified as “disabled.” Hey Pelosi, here’s a massive new entitlement category for your DNC supermajority!
http://www.ibtimes.co.uk/british-bosses-must-treat-severely-fat-workers-disabled-1457109
Under ADA in this country it has been that way for years.
It’s as big a scam as being a LIEberal
They’ve been doing that for a long time.
You know history takes so many twists and turns it is amazing. Things can blow back on the United States for our overseas advantages in unexpected ways. The U.S. destabilizes the Ukraine and that leads to a plane filled with world class AIDS researchers being killed. The entire world will suffer but of course the area will suffer the most is probably the greatest supporter of this administration, ironic.
You know history takes so many twists and turns it is amazing.
Well, you would know about “twists” of history because you constantly twist history around to fit your tired and illogical script Adan. For example: USA “destabilizing” Ukraine could be described by you as leading it towards European democracy/capitalism and away from Russian tyranny if anyone but Obama was The President of The United States.
Is it that easy for you to tout Putin’s Russia and Communist China in the same breaths as you purport to be a “real” capitalistic/democratic American? Is that not “ironic” too?
Most of your descriptions of world events and history are twisted and opportunistic with the goal of confusing, obfuscation and just pushing totally predictable FOX news jive. (But your transparency in what you are actually doing is funny.)
Lola!
All geared up for a weekend bender?
Lola, will bend over to please. But it is the last industry in Brazil still prospering since they turned to socialism.
(Reuters) - Brazil’s sluggish economy faces substantial risk of falling into a light recession in 2014, and may already have done so, providing opposition candidates with extra ammunition in the run-up to October’s presidential election.
Latin America’s largest economy has slowed to average growth of just 2 percent a year since President Dilma Rousseff took office in early 2011 and, coincidentally, global demand for commodities ebbed.
Attempts to boost activity by spurring consumption largely backfired as investment failed to catch up with demand, driving inflation higher and eventually forcing the central bank to drive up interest rates.
The economy has stagnated over the past 12 months and industrial output fell for three straight months through May.
Now, some economists say the economy likely shrank between April and June and that growth in the previous quarter could be revised into negative territory from its previously reported 0.2 percent gain.
“That would give you a technical recession,” warned Alberto Ramos, Goldman Sachs senior economist for Latin America. “It wouldn’t be a deep one, but it would have a relevant political cost.”
If the numbers do come in negative when gross domestic product data is released on Aug. 29, it would be more than just another sign that once-booming Brazil remains stuck in an economic rut - it would allow opposition candidates to use the “R-word” for five weeks before Brazilians vote on Oct. 5.
Rousseff currently leads the presidential race with 38 percent of voters’ support, according to the latest opinion poll. Aecio Neves, her main opponent with 20 percent support, has criticized Rousseff’s inability to bring inflation under control and says her interventionist policies have failed to foster economic growth.
Both Neves and Eduardo Campos, who is running third in the presidential race, have promised to cut taxes and restore investor confidence with a pro-business agenda, including changes in state-run oil company Petróleo Brasileiro SA, whose financial performance has suffered because of a government policy forcing it to sell fuel at below-market prices.
While it’s unclear whether Brazil’s hosting of the World Cup soccer tournament will have any lasting impact - positive or negative - on Rousseff’s popularity, her re-election chances are much more dependent on Brazil’s economic success.
And that’s where the opposition might have a chance.
Brazil’s second-quarter gross domestic product, as well as any potential revision to previous figures, will be released on Aug. 29, but there are widespread signs of economic trouble.
Consumer confidence in the city of São Paulo, Brazil’s biggest city and business capital, dropped in June to its lowest level in nearly 11 years, hurt by a combination of stubborn inflation, smaller wage increases and higher interest rates that have eroded Brazilians’ purchasing power.
Slowing economic activity caused government revenues to fall more than expected in May, resulting in the second-largest monthly primary budget deficit ever. That means Brazil did not have enough revenue in May to cover all of its expenses, including interest obligations.
Retail sales are also forecast to dip for a third straight month, according to a Reuters survey.
JOB MARKET ALSO COOLING
Even Brazil’s tight job market, one of Rousseff’s main calling cards on the campaign trail, has started to falter. The pace of job creation in May was the worst for that month in 22 years as a net 30,000 industry workers lost jobs.
Take the labor-intensive automotive sector as an example. Car sales are forecast to drop more than 5 percent this year while truck sales, which move hand-in-hand with investment decisions, are expected to plunge 14 percent, according to industry associations Anfavea and Fenabrave.
“We’re not expecting an improvement any time this year,” said Roberto Cortes, president of German truck maker MAN in Brazil.
“You only buy a truck if you expect to transport more merchandise. And all growth indicators, either in the agricultural or the industrial sectors, are not growing or growing so little that it isn’t worth increasing your truck fleet.”
“Economic activity as a whole is very low, especially in the industrial sector, which is suffering the most.”
Sales of corrugated board, used for all sorts of packaging and considered a gauge of overall economic activity, fell year-on-year in each of the last three months.
Recession fears have been around since the second half of last year, the direct result of a long central bank anti-inflation campaign that has lifted borrowing costs by 375 basis points since April 2013 to 11 percent.
“Effectively, the Brazilian economy has already been stagnant since the middle of 2013,” said Bill Adams, senior economist with PNC group in Pittsburgh. “The odds are that Brazil will see a technical recession at some point in 2014.”
(In July 15 item, the story corrects last paragraph to say that Bill Adams, from the PNC group, is based in Pittsburgh, not New York.)
(Editing by Todd Benson and Kieran Murray)
Hosting international games is self inflicted financial disaster.
A friend of mine was down in Rio during the games. She was appalled at the ridiculous expenditures for the games in the midst of squalid poverty. The poor were demonstrating against it as well, though I doubt that got much press.
Lola’s supposed to be sensitive to the poor and hate the wealthy. Of course, Lola only wants to redistribute OPM to the poor and then claim the rank of “humanitarian.” All “progressive” fellow travelers do that. But they never give up their own net worth. They are too elevated above that.
The gullible low class liberals (and there ironically are few) think the elitists are moral. Go figure. Moral for stealing OPM and not redistributing their own money.
G E T F I N A N C I A L H E L P
Proof of the destabilizing of Ukraine was posted by many on this board. Obama is promoting globalism not democracy. Murdock is a globalist and hardly supports my view. Consequently, I rarely view Fox and see its faux conservative views. Hey, but don’t let facts get in your way, you rarely do.
Ironically, it is either a tragic mistake caused by the civilian pilot changing course or it was an attempt on Putin’s life. However, the globalists Hillary and McCain are all over the airwaves trying to get more sanctions placed on Putin.
http://www.dailymail.co.uk/news/article-2696975/Putin-blames-Ukraine-loss-Flight-MH17-298-innocent-souls-DOESNT-deny-Russian-separatists-shot-missile-McCain-warns-Hell-pay.html
Obama is promoting globalism not democracy.
You’re not consistent Adan. Ever. You constantly tout Red China. (The poster child of globalism) Is it that easy for you to tout Putin’s Russia and Communist China in the same breaths as you purport to be a “real” capitalistic/democratic American?
Hey, but don’t let the facts on your inconsistency get in your way, you rarely do.
China does not follow globalist policies it and Russia follow very nationalistic policies. The globalists tried to use China and it used and abused them. Sort of what Joe does to you Lola.
The U.S. destabilizes the Ukraine and that leads to a plane filled with world class AIDS researchers being killed.
Why don’t you just come right out and say that Obama specifically looked up the flight manifest and shot down the plane with a drone that he controlled himself, all from from Lois Lerner’s bedroom, just to rid us of some IQ 75 HIV patients in Angola.
Come on …. you know you wanna.
You know you want to say its Bush’s fault. Are you still trying to defend Lois Lerner? Even O.J. ’s jury knows she is a lying crook.
Yeah, everything that happens in the world is our fault. We control everything. We are responsible for everyone. No one else is responsible for anything.
Hardly my opinion but our hands are all over the Ukraine and Obama continues to interfere.
Now why in the world would so many lying lawyers be found on a single blog that has nothing to do with practicing law?
Anyone?
I sold more shares today - got so much cash I don’t know what to do with it. Oh yes my new prescription eyewear copayment in three frames including prescription for my polarized reptile sunglasses cost me a tad under $900.
Rather than boosting any debt I simply take a 500% gain to cover it. And then some change - to buy a few $200 bottles of high quality California cabernet.
Life is great as a hoarder of vino, cash, precious metals, ammo and firearms.
Amy the Hoaxster, life is great as a carefree renter whose bond interest pays for the roof over his head and whose stocks are doing so swell he has to sell (swell..so I sell LOL!!!!)
Cash is king for us debt free libertarians.
“as a carefree renter”
+1
Life is great as a hoarder of vino, cash, precious metals, ammo and firearms.
That sure beats companionship and long-term love.
Giving Bill relationship advice, how cute.
I don’t think Lola is giving me relationship advice. Lola knows better to give his nemesis advice.
I don’t want any relationship or love anyway.
But I do know the ulterior motive. The nattering nabob will try to say anything to make it seem negative. Lola is not intelligent at all.
For Lola long term love is two nights instead of one.
Drink the wine, Bill.
It is not night train, you would not understand.
What are you talking about?
Bill’s wines have corks in the bottles, your wines twist off.
Yeah my wine time is usually the evenings but we occasionally have wine at lunch at the office.
Bill, you may have misunderstood my comment. It is the type of wine she drinks:
http://www.bumwine.com/nighttrain.html
Now that’s funny!
Would it be better to go to gold or to Treasurys now?
Go is finite, the government can always add a zero, what do you think?
go = gold
Hard to say. I did much better the last 13 years in gold than I did my Series I Savings bonds.
And far better than treasury bills. But treasury bills attract me. There is no FDIC limit on t bills. Safer than a bank or credit union. And I can all my stuff out in the course of a year. I’m just starting to move into 2 year notes.
On the other hand I’m becoming more and more confident in gold, silver, platinum, and palladium as an alternative currency. I can sell off a few coins within an hour and walk out with fiat if I need to.
So I try to be 50/50: physical precious metals and treasuries.
Understand Bill but as the disclaimer says past performance is no guarantee of future success. The bond market was in a long bull market during most of those 13 years while gold during part of that time was in a bear market. I believe both of those have flipped.
http://www.zerohedge.com/news/2014-07-18/us-treasury-admits-collateral-problem-bond-market-considers-issuing-ultra-long-dated
We noted yesterday once again that The Fed was out en masse demanding investors sell their bonds because “bonds are in a bubble” but not stocks. The reason - as we have explained in great detail - is the repo market is broken due to massive collateral shortages (thanks to the Fed). Today, the Fed admitted it has a problem…
• *TREASURY ASKS DEALERS TO EXPLAIN REASONS FOR FAILS-TO-DELIVER
The tongue in cheek message of course is that the Treasury wants to know why all the dealers continue to be so short bonds (even as it urges ‘investors’ to sell). Furthermore, it is surveying dealers over the need to issue bonds of greater maturity than 30 years in order to fulfill collateral needs.
printing money to buy bonds is a great way to the govt afloat when tax revenue is cratering cause good jobs are not being created.
The Fed is buying bonds at levels no sane free market person would buy them and then the Treasury wonders why they do not own them, it is a strange world.
ponzi scheme?
Region VIII checking in.
And here’s the map in case you forgot where you’ll be checking in:
http://www.fema.gov/regional-operations
Agency quietly constructing new facilities as Latin America’s collapse into US accelerates
by KIT DANIELS & ADAN SALAZAR | INFOWARS.COM | JULY 18, 2014
Federal Emergency Management Agency vehicles were spotted outside a new illegal alien shelter in McAllen, Texas,
Both FEMA and the Border Patrol were present during construction of the new 55,000 square foot shelter, which is expected to house up to 1,000 immigrant children just three miles north of the border, and subcontractors were moving quickly to erect privacy fences to keep the controversial facility out of public view.
Nestled in a manufacturing complex less than a mile from the McAllen Border Patrol station, the revamped warehouse features benches, sleeping mats, laundry facilities, a recreational area, a mess hall and isolation units.
The shelter is divided into four sections, which each section containing holding cells for 252 detainees guarded by raised observation towers.
Free Sh*t Army = Permanent Democrat Supermajority
Politico dot com - Joe Biden touts progressive cred, claps for protesters
“Biden also faced immigration protesters, who interrupted his address partway through to chant, “Stop deporting our families.” Some immigration activists have been highly critical of the number of undocumented immigrants who have been deported under the Obama administration.
The vice president initially said that he would deal with one issue at a time. But when the activists continued, he began clapping to applaud them, leading the rest of the room to cheer, too.
“We should clap for these young people, you should clap for them,” he said. “… Can you imagine the pain, the anxiety, coming home every day, wondering whether or not your mother or father will still be there?”
http://www.politico.com/story/2014/07/joe-biden-touts-progressive-cred-claps-for-protesters-109067.html
“Can you imagine the pain, the anxiety, coming home every day, wondering whether or not your mother or father will still be there?” Well, that’s what happens when you enter the country illegally, i.e. you’re a criminal.
You are late, if it happens again, it will be “go time” on the hellfire. We will see if you can run faster than that bud.
Great video by a Non Fienstien approved journalist of an illegal EBT field trip to Wally World in North Carolina.
Obama regime drops off illegal aliens at Walmart with EBT cards
These illegal aliens are being housed in China Grove, North Carolina. The Obama regime is giving them welfare and using school buses to take them back and forth between Walmart.
topconservativenews.com/…/ - 76k -
This should work.
Illegals arriving in North Carolina aren’t children by any means …
http://www.youtube.com/watch?v=KaJH5Me8TUc - 384k - Cached - Similar pages
4 days ago .
AZTLAN
Republica del Norte
Another Obama Zombie with buyer’s remorse. Nope, he didn’t pay her mortgage after tall.
http://toprightnews.com/?p=4505
2039 is 25 years from now. And a lot of you will still be alive. I hope to be alive. But I’m accumulating movable and hidable wealth.
http://www.unitedliberty.org/articles/18304-cbo-once-again-shows-that-washingtons-budget-deficits-will-be-driven-by-out-of-contro
“Twenty-five years from now, in 2039, federal debt held by the public would exceed 100 percent of GDP, CBO projects,” the report continues. “Moreover, debt would be on an upward path relative to the size of the economy, a trend that could not be sustained indefinitely.”
phony scandals