Investors Are Stuck And Nobody Cares
A report from Reuters UK. “UK housebuilder Berkeley Group Holdings Plc has halted construction at a 20 million-pound luxury housing project in London, it said on Friday. Berkeley Group declined to say why it stopped construction last month at the Barnes Village scheme in southwest London, where homes were expected to sell for up to 5 million pounds, local residents said. It’s not unusual for builders to hold off starting developments until market conditions are optimal. However, it is rare for projects to be stopped mid-build, said Clyde Lewis, analyst at brokerage Peel Hunt, who covers Berkeley. Basements and ground floors had already been built at the Barnes site.”
“‘The London market has got a bit tougher post-Brexit,’ he said, referring to the June referendum on EU membership. ‘The value end of London is still selling OK but more expensive stuff is selling slow,’ he said.”
The Business Standard in India. “Real estate developers continue to pile up inventory at a rapid pace. For the entire industry, unsold stock stood at 1.2 billion sq ft at the end of the April-June 2016 quarter, according to a survey by real estate consultancy Liases Foras. In the June quarter, unsold inventory increased by two per cent on a sequential basis and 17 per cent on a year-on-year (y-o-y) basis. ‘As sales growth continues to lag behind new launches, unsold inventory continues to climb for the industry. In recent times, we have seen a slowdown in new project launches but it will take the industry nearly three years to clear the current inventory, based on the present sale or absorbency rate,’ said Pankaj Kapoor, managing director, Liases Foras.”
The Cambodia Daily. “Condominium sales have plummeted by 50 percent, real estate developments are stalled and the central bank is working to rein in debt, the Finance Ministry reported in its first official biannual review of the economy. ‘There is an urgent need to stabilize credit growth at a sustainable pace to facilitate the soft landing of the country’s real estate market,’ the report says.”
“Beyond its warnings of a credit bubble, the report also notes that sales of condominiums plunged 50 percent in the first six months of the year, while those of gated communities dropped by 30 percent. ‘Real estate developers are adjusting to the excess supply by either postponing some planned real estate construction projects or by outright canceling some of the projects,’ it says.”
The New Zealand. “Auckland property developers fear that a sudden tightening of bank lending may ‘throttle’ new housing projects despite the city’s desperate housing shortage. Several developers have told the Weekend Herald that the country’s big four Australian-owned banks - ANZ, ASB, BNZ and Westpac - have tightened lending to developers because of worries that house prices are peaking and because of Australian regulatory requirements to reduce their exposure to New Zealand borrowers.”
“John Harman, who is developing an apartment block in St Marks Rd, said the banks ‘have kind of lost their appetite for funding developments. The ANZ Bank has even stopped lending. It’s not lending for development of new homes,’ he said. Another apartment developer said: ‘BNZ and ANZ have stopped lending completely. Westpac and ASB are being very selective about who they lend to.’”
From ABC News in Australia. “Brisbane developers are winding back their plans for new apartments but it is unlikely to stop a major fall in prices, a property expert says. Queensland University of Technology property economics expert Professor Chris Eves said there was an increasing glut of apartments in Brisbane and the decline in apartment development plans should have occurred 18 months ago. He predicted some major price drops in investor-style apartments.”
“Professor Eves said rental prices would continue to fall. ‘We’re already seeing it in drops of 10 to 15 per cent in the inner city market … but what we aren’t seeing is the hidden fall in rents that’s with land owners giving rent-free periods to the tenants. So they’re giving the first one, two, three months rent-free. We aren’t seeing that reflected in the face rents being quoted, he said.”
“Brisbane developer Brendan Tutt from Tessa Group said he did not believe the industry was in trouble. He said there had been a maturing of the market and a greater demand for better quality apartments. ‘The day of being able to develop 500, 600-unit towers or even just investment stock for the sake of developing projects is over,’ he said.”
From Arabian Business on Dubai. “It has been described as ’sad,’ ‘troubled’ and ‘fallen’ but for thousands of investors, discussion of the $6bn Dubai Pearl scheme provokes far less sympathetic language. The huge mixed-use project, announced in 2002, has been beset by delays and management changes, and lain dormant since construction work ground to a halt in 2006. A decade later, the project — 13 percent complete, according to its website — looms as a blot on Dubai’s skyline; an exposed concrete core with rusted steel framework; and, until recently, motionless cranes rising from the top of its skeletal structure.”
“An investor: ‘I also visited the Pearl Dubai FZ’s office and met with them, they told me there are so many lawsuits but they do not have the money to pay the investors back or complete the project; they literally told me, you are stuck and no one knows what will happen.’”
“Amir Nosratabadi, founder of a LinkedIn group set up for aggrieved Pearl investors says: ‘The last I heard, which has not been confirmed by anyone, is that the project will be cancelled and land auctioned off. If that happens, I doubt any of the clients would expect to receive much from their money paid. Nobody wants to take responsibility and nobody cares about our investments.’”
“‘I am so frustrated and angry because I put my savings and retirement money into this property but did not receive anything back,’ laments another investor. ‘I tried all the routes but with no avail. I don’t know what I should do next.’”
Man, that last article may be the all time high in FB’s. Check this out:
‘In 2014, there was a glimmer of hope. Hong Kong-based Chow Tai Fook Endowment Industry Investment Development (CTFE) reportedly bought a $1.9bn slice in the project, prompting Pearl Dubai FZ to promise work would restart later that year. ‘
‘Tai Fook’ translates as ‘big luck’ — something Dubai Pearl appears not to have enjoyed to date. Sources reported in 2014 that work did restart in the second quarter, but soon stalled.’
Somebody got fooked alright, lots of em’.
What’s strange to me about Dubai is this isn’t the only failed tower. So off they go on another bubble while the last one still has thousands of fooked investors crying in their camels milk.
‘Amir Nosratabadi, founder of a LinkedIn group set up for aggrieved Pearl investors’
Note to self: check in on these guys, offer them a bunch of money for their investment, and announce it’s a joke. They’re probably used to that sort of thing by now.
“I don’t know what I should do next”
Pillage and burn!
If you’re not building and selling it, you’re losing your ass.
Do you really expect to earn profit by paying retail plus 150% and trying to sell it for more?
Hope n’ change comes to Caterpillar.
http://www.breitbart.com/big-government/2016/09/04/caterpillar-lays-off-300-illinois-workers/
‘‘The day of being able to develop 500, 600-unit towers or even just investment stock for the sake of developing projects is over’
Well Brendan, did you think developing for the sake of developing was going to last forever? This “investment stock” is the junk they’ve been selling to the Chinese.
Imagine that! The rents in Australia are falling!
Gonna happen in the North peninsula in Marin, Sonoma, and Napa counties.
Gonna happen in Irvine
…all over this laaaand!
July 13, 2016
“After a few years of hot sales activity, the market for multifamily properties in the North Bay appears to be slowing, not so much from lack of interest among investors but for lack of buying opportunities and pricing uncertainties, according to local experts. In Marin County, there are a number of properties with more than five units awaiting buyers, an unusual amount for the market, according to Katherine Higgins, an apartments specialists with Paragon Real Estate Group in Greenbrae. ‘I’m not sure if it’s the price point or that the prices do not make sense,’ she said. ‘Last year, almost everything that came on market was snapped up in weeks.’”
“Buyers of institutional-level properties, typically with more than 200 units, seem to be getting less aggressive in chasing prices and more cautious about overpaying, said Scott Gerber, another longtime apartment broker, now with Bradley Commercial. ‘It’s no secret rents in San Francisco — one of the major drivers for the North Bay as activity radiates this way — were down in the fourth quarter and moderating at best because of the huge supply built there in last five years,’ Gerber said.”
“There has been such a hunger for properties and competition between buyers that a number of deals have gone into contract before inspection reports were completed and at sale prices that the properties’ rents didn’t seem to justify, Higgins said. ‘It’s been an absolute feeding frenzy for the past two years,’ Higgins said. ‘It’s a bubble in the making. Then the buyers get in and realize they have put in more money to get the property to where they want it to be.’”
http://thehousingbubbleblog.com/?p=9687
If they are hesitating on buying multiple units that of course means they are also thinking rents will decrease there!
Splendid!
‘ “In Marin County, there are a number of properties with more than five units awaiting buyers, an unusual amount for the market,” ‘
Nonsense, everyone wants to live in Marin County.
Not me
physically Marin Co. is absolutely stunning, socially not so much…lotsa self absorbed people and waaay too much money. FWIW this all started waaay back in the ’70’s and that inspired a most amusing satirical newspaper column that was later published in book form, reread it recently and it is still hilarious nearly 40 years later….well worth a read if you can find a copy at the library, etc…
https://en.wikipedia.org/wiki/The_Serial
Movie, too.
Serial
‘I have over twenty-eight years of combined experience as primarily a Real Estate Attorney, in both Canada and Costa Rica, fourteen years in each jurisdiction, with a Law Degree from each jurisdiction (English Common Law and Roman Civil Law respectively), and a Notary and Registry Degree from Costa Rica in addition.’
‘I belong to a very “exclusive club” of two, or three Attorneys in Costa Rica, that have a similar academic and legal practice background.’
‘During my fourteen years of practice in Costa Rica, I have seen several real estate cycles completed. From a residential and commercial real estate point of view, these cycles are largely driven by the state of the U.S. Economy at any given time, with a lag-time of eighteen months to two years for the economic effects in the U.S. to “take-hold” in Costa Rica.’
‘At the moment, although there has been a steady improvement in the U.S. Economy from the 2008 downturn, the effects of this improvement have yet to be felt in any significant fashion in Costa Rica. The real estate market in Costa Rica is currently “slow” when it comes to property sales, making it a “Buyers’ Market” price-wise.’
‘Taking this “lag-time” factor into account and the up-coming U.S. Election in November, my prediction is that the Costa Rica real estate market is “on the cusp” of changing into a “Sellers’ Market”, starting late this year and continuing into 2017.Accordingly, property prices will rise consistent with the “Sellers’ Market” conditions arriving.’
‘In my opinion, there will be a significant exodus of U.S. Citizens from the U.S., from the losing side, following the Election. In other words, if Hillary Clinton wins, it will be Republicans leaving and of course, if it’s Donald Trump, it will be the Democrats.’
‘I have seen this happen previously following U.S. Elections, but with the significantly more emotionally charged Election and the deep divisions politically which exist in the U.S., I expect this pattern to be amplified this time around. Apparently, there have been well over one million inquiries to Canada by U.S. Citizens, inquiring how to move to Canada, if Donald Trump wins the Election.’
‘a significant exodus of U.S. Citizens from the U.S., from the losing side, following the Election’
You keep telling yourself that Senor, and keep flogging that over-priced Costa Rican coastal property.
‘The real estate market in Costa Rica is currently “slow” when it comes to property sales, making it a “Buyers’ Market” price-wise.’
The landscaper company I used to hire for my old house was run by a white guy who spoke fluent Spanish. Cool dude. He owned a house down in one of the central american countries and would chill out there a few months out of the year. He told me one day, if you are American and don’t speak Spanish, and try to enter into any complex contract, like buying a house… All the paperwork is in Spanish, of course, and if you don’t speak the language, they know this, and will actively try to take advantage of you in those contracts. I don’t think I’d be trying to buy property in countries that I couldn’t speak the language.
Lets pool our money and put up a preserve for disenchanted partisans in Costa Rica.
‘a Law Degree from each jurisdiction (English Common Law and Roman Civil Law respectively)’
RE law in Costa Rica doesn’t follow either one of these.
Central banks buying gold mining stocks with printing-press fiat currency. Sounds like someone’s getting ready for the long-deferred financial reckoning day to arrive.
http://www.shtfplan.com/headline-news/jumping-ship-two-central-banks-just-printed-billions-in-paper-currency-and-immediately-bought-gold-mining-stocks-with-it_09022016
“Why Does No One Speak of America’s Oligarchs?”
http://russia-insider.com/en/why-does-no-one-speak-americas-oligarchs/ri7504
A very good read.
It’s depressing how many relevant topics of public interest and discussion are consigned to the memory hole by the MSM and its journalistic Omerta.
Collectivist kleptocrats are not going to surrender power and the patronage and graft schemes that are enriching the Comrades of Proven Worth without a fight. Look to Venezuela for a preview of coming attractions once the DNC has its permanent Democrat supermajority of entitlement voters. Forward!
http://www.breitbart.com/national-security/2016/09/02/venezuela-chavista-gangs-attack-million-protesters/
Zika outbreak in Florida: bullish for housing, right? Not to mention a future bumper crop of lifetime Democrat dependency voters.
http://www.independent.co.uk/news/world/americas/zika-virus-outbreak-mosquito-found-florida-a7220911.html
Yeats, “The Second Coming”
Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
http://www.independent.co.uk/news/world/americas/white-nationalist-movement-twitter-faster-growth-isis-islamic-state-study-a7223671.html
“‘The London market has got a bit tougher post-Brexit,’ he said, referring to the June referendum on EU membership. ‘The value end of London is still selling OK but more expensive stuff is selling slow,’ he said.”
Translation: Key-raaaaaaaaaaaaaaaaaaaaaaaaaaaaaash!
The implications of German voters repudiating Frau Merkel and her globalist agenda could be profound. How can the ECB keep up its endless bailouts of the banksters if German nationalists refuse to let Frau Merkel and her ilk put German taxpayers on the hook for these massive, perpetual swindles?
http://www.nytimes.com/2016/09/05/world/europe/angela-merkel-germany-mecklenburg-vorpommern-elections-refugees.html?_r=0
Bolsheviks have to stick together.
http://newsbusters.org/blogs/nb/jeffrey-lord/2016/09/03/communist-party-usa-endorses-hillary-media-yawns
Whats it gonna take to suck retail back into the sh@t show?
The globalist elites, blinded by their greed and hubris, are warned that the Great Unwashed might finally get fed up enough with being screwed over that they pick up the pitchforks and torches. (Except ‘Muricans, who will elect Crooked Hillary to that the swindles against them to a whole new level.)
http://www.bloomberg.com/news/articles/2016-09-04/economic-czars-warn-g-20-of-risk-from-populist-backlash-on-trade
They call them Czars and wonder why there’s populism.
It’s not “populism”, Ben Jones, it’s the bugbear “far right.” Let’s stick with approved Narrative terms and memes, shall we?
“We’ve heard here at this G-20 a lot of talk — and I think it’s right that we’re talking about it — about the protectionist sentiment which is really sweeping the world,” and we should be worried about it, Freeland said.’
“Those fears people have are real,” she said. “If we can show people that trade is good not just for Wall Street or Bay Street or the City of London but is good for small companies, then we’ll be doing a huge amount to push back against that protectionist sentiment.”
‘The WTO’s Azevedo called anti-trade rhetoric “extremely sad.” “We cannot let this go without keeping it in check,” Azevedo said. “Going against trade is effectively going against growth, is going against your economy and making things even worse. So we do have to take action.”
Another sad panda!
Why not call them poohbas… It’s a lot cuddlier.
Blame it on Brexit, but why is Miami, Las Vegas and Phoenix crashing? Could it be the houses are overpriced and has NOTHING to do with Brexit? I believe the latter. We’re headed, especially now that it looks more likely Trump will win, that Obama sabotages the economy and we see a Housing, Unicorn Dot Com, Dollar and Banking crash. Obama will screw over Trump, but he with TRiUMPh!
‘now that it looks more likely Trump will win’
Oh man, Doubting Mike predicted it will be a landslide the other way. He’ll be one big sad panda if you are right. Inconsolable even. He might move to Costa Rica.
“Oh man, Doubting Mike predicted it will be a landslide the other way. He’ll be one big sad panda if you are right. Inconsolable even. He might move to Costa Rica”
Double-win!
Merkel won’t be the only fat-a$$ed frump to bitterly disappoint the sheeple who foolishly voted for a globalist, then got exactly what they voted for, good and hard.
https://ca.news.yahoo.com/german-anti-immigrant-party-poised-big-gains-merkels-071222127.html
May be in for an interesting Fall.
https://www.yahoo.com/news/sleepy-summer-may-way-freaky-fall-102709806–sector.html
“There is a real good chance that the low volatility that we have seen in August hasn’t just disappeared, it’s just been storing up for September,” he said.”
–
Now where is that can of volatility I stored? I swear I left it around here somewhere…
Oh, our friends at Goldman talks about our asset price bubbles and some of their predictions. How nice of them.
http://www.zerohedge.com/news/2016-09-04/goldman-reveals-great-dilemma-investors
They left out the Soft Landing scenario, but one of them is the New Goldilocks. Hehe.
Goldman never misses a muppet-slaying opportunity. Every HBB regular should see “The Big Short” to see how these shysters operate.
Here’s a good one for a chuckle.
Russian ice cream is a thing apparently. I had no idea. Hey Crushin’ Russian, is it good?
It was an important trade negotiation item between China and Russia. hehe.
https://www.rt.com/news/358201-ice-cream-putin-xi/
“Thank you very much for the gift, for the tasty ice-cream. In my every trip to Russia I always ask to buy Russian ice-cream. And then, at home, we eat it,” the Chinese leader said.”
On Friday, a Chinese businessman in Russian Far-Eastern city of Vladivostok complained to Putin that the customs doesn’t allow Russian ice-cream to be brought to China.
“It’s the first time I’ve heard this. Starting from now, each time I go to China, will bring ice-cream as a gift for Xi [Jinping],” Putin said, as quoted by TASS.
Nobody wants ice cream from the US, on account of there’s no ice cream, it’s all frozen dairy treats.
It was delicious. We wondered why the food was pretty much consistently awful when the ice cream was so good.
Fed to savers and the prudent: screw you - buy stawks!
http://www.zerohedge.com/news/2016-09-04/fed-fiddles-while-free-markets-burn
“Condominium sales have plummeted by 50 percent, …
‘There is an urgent need to stabilize credit growth at a sustainable pace to facilitate the soft landing of the country’s real estate market,’ the report says.”
A fifty percent collapse in sales is a soft landing? It boggles the mind to imagine how bad the situation would need to be in order to call it a hard landing.
This condo bubble in Cambodia has been building for some time. (Luckily there are more than one English-language papers, so I find regular reports). This is almost entirely foreign investors, mostly Chinese, because the condos are - you guessed it - luxury! And the locals can’t afford them. Anyhoo, sounds like another one bites the dust.
Professor Bear
I am used to Mighty’s hit and run BS like his couldn’t have been more wrong statement about
Vin Scully but not yours. Would you please go back to your “That line is a telling sign that you can’t think of anything intelligent to say. I suggest you refrain from revealing that.” and explain to me who besides the Special Snowflakes at Yale and other college campuses who need “safe spaces” from Halloween costumes and other such nonsense (see Trigglypuff Umass) along with those who would say it from the Clinton camp are actually terrorized by Trump?
I apologize for the comment.
I have Russian ice-cream in my safe space.
Riddle me this: if our Obama-Fed-Goldman Sachs “recovery” is as robust as that clever man on CNBC told me it is, why are freight volumes plunging?
http://www.marketwatch.com/story/troubled-hanjin-shipping-files-for-bankruptcy-in-us-2016-09-04?link=MW_latest_news
Syria is starting to look like Spain in 1939.
http://www.reuters.com/article/us-mideast-crisis-syria-usa-obama-idUSKCN11A060
“For the entire industry, unsold stock stood at 1.2 billion sq ft at the end of the April-June 2016 quarter, according to a survey by real estate consultancy Liases Foras.”
I’m not sure what kind of units these are. If they were 1000 sq foot homes on average, then we’d be talking about 1.2 million of them.
That’s alot! Roughly equal to the number of housing units in all of San Diego County.
There is the general idea that the Fed won’t raise rates prior to the election as raising rates would hurt the economy. I think it’s safe to say that the Fed leadership is roundly opposed to Trump.
If they do raise rates in September… that would mean that they don’t think it will hurt the economy, in fact that it would help the economy. It may slightly harm those who have benefitted from low rates but probably not enough to turn any votes.
So the September rate hike action will be quite interesting to watch. If they do raise rates, it may be a sea change in their thinking.
The Fed will not raise rates unless/until their hand is forced by the bond market. There is zero possibility of a September rate rise, despite what Goldman Sachs would have the muppets believe.
Indeed, GS’s pronouncements are meant to benefit GS, not the muppets or counterparties.
Yep. GS isn’t fooling anyone.
http://www.zerohedge.com/news/2016-09-04/blunt-language-goldman-explains-why-it-so-confident-fed-will-hike-under-3-weeks
But…but…the Oligopoly and its media propaganda outlets assured us BREXIT would mean disaster for Britain.
http://www.telegraph.co.uk/business/2016/09/05/britains-growth-engine-rebounds-at-record-pace-after-brexit-vote/
As central bank money printing enriches oligarchs and speculators, ordinary people are being pauperized and find housing priced out of their reach.
http://www.aljazeera.com/indepth/features/2016/08/zealand-homeless-living-cars-garages-160811062112936.html
German sheeple who voted for Frau Merkel and her CDU Quislings are learning the blessings of globalism the hard way. But soon we will have a more corrupt and venal version of our own Frau Merkel, Hillary Clinton.
http://www.dailymail.co.uk/news/article-3773361/Merkel-smashed-home-state-polls-far-Right-year-let-hundreds-thousands-migrants-Germany.html
Hillary is either grossly incompetent, or a pathological liar, or both.
http://market-ticker.org
Honestly you give her too much credit. She’s acting the way any stooge of a dying empire would.
She ain’t gonna make it. She’s already dressing in hospital smocks. When the health stuff first started, other than the coughing, I thought it was a bunch of wishful thinking and exaggeration. In fact I still don’t buy the “she had a seizure” while talking to the two lady reporters. Honestly, I think she was milking her own reaction while trying to think of a response and then the internet took over and went beyond that. Even the coughing can be a side effect of medication for something as innocuous as high blood pressure.
But something’s definitely wrong health-wise, we just don’t really know what it is. Head injuries can have long term health effects.
Interesting thing is, when she drops out, Bernie becomes the candidate, is what I’ve been reading. On account of he has the second most delegates.
The can-kicking by the Keynesian fraudsters at the Fed and central banks continues, despite the lack of results of endless “stimulus.”
http://www.telegraph.co.uk/business/2016/09/04/ecb-poised-to-cut-growth-forecasts-as-policymakers-mull-fresh-st/
Another DNC dependency voting bloc emerges.
http://www.dailynews.com/social-affairs/20160902/inside-skid-rows-spice-epidemic-the-dangerous-cost-of-a-dollar-high
Cubans bask in the blessings of socialism. Coming soon to a permanent Democrat supermajority collectivist kleptocracy near you.
https://www.theguardian.com/cities/2016/sep/05/havana-cuba-rubbish-strewn-streets-spark-anger-failing-city
The Fed is getting ready to escalate its financial warfare against the 99%.
http://finance.yahoo.com/news/feds-janet-yellen-mulls-negative-interest-rates-183711629.html
u must sacrifice your savings interest so the national debt can continue to be serviced. If u want yield buy stawks!
Any opinions on this. It’s a good ‘read’:
The Greater Depression, Part 1
by Jim Quinn • September 4, 2016
http://davidstockmanscontracorner.com/the-greater-depression-part-1/
“Shut it Down!”
https://twitter.com/RSBNetwork/status/772690930335903745
“The most blatant attempt by the ruling class to subvert the truth regarding our ongoing depression is the despicably absurd propaganda churned out by the government apparatchiks at the Bureau of Labor Statistics. With a working age population of 253.9 million people and only 151.6 million of them employed (27 million part-time, 15 million self-employed, 7 million working multiple jobs and worst of all 22 million government workers), the BLS has the gall to report only a 4.9% unemployment rate. There are 102.3 million working age Americans not working, but only 7.8 million of them are unemployed according to the highly educated establishment lackeys at the BLS. The other 94.5 million non-working Americans must be frolicking in the surf, sipping margaritas and counting the millions they’ve made in the rigged Wall Street casino.”
http://davidstockmanscontracorner.com/the-greater-depression-part-1/
These people just keeping repeating the same nonsense. He doesn’t supply his own unemployment rate, but it appears that he think that it should be around 40%. Of course, it would have been even higher 50 years ago, when most women didn’t work outside the home.
Irrelevant.
Labor Force Participation Rate Plummets To 38 Year Low; Joblessness At Record High
http://data.bls.gov/timeseries/LNS11300000
You still don’t know what you’re talking about.
Irrelevant.
“Central bankers around the globe have all implemented identical monetary schemes to sustain the unsustainable. They have always had only one tool in their toolkits – printing money and creating enormous amounts of unpayable debt to prop up crooked corporate cronies, their morally bankrupt banker puppeteers and the slimy snakes slithering within the halls of Congress. Total credit market debt to GDP peaked at 261% in the mid-1930’s as FDR’s debt financed New Deal programs did absolutely nothing to lift the country out of its Great Depression. Obama and his Keynesian acolytes have tried the same solutions since 2009, with an equally dismal result. Total credit market debt to GDP peaked in 2010 at 381%, but six years later still stands at 345% as the stagnant economy grinds to a halt.”
http://davidstockmanscontracorner.com/the-greater-depression-part-1/
“No, the only thing which will arrest Washington’s headlong toward fiscal ruin is the upcoming crash of the global bond market. It is the mother of all financial bubbles thanks to the $20 trillion of bond buying by the world’s central banks over the past two decades.
That is, without the massive artificial bid of central banks, the price of government debt is going to fall hard. That will threaten, in turn, to wipe-out the accumulated capital gains of these bond market front-runners and crush the carry-trade spreads on which their speculative positioning is based.”
http://davidstockmanscontracorner.com/the-myth-of-morning-in-america-how-the-public-debt-went-from-1-trillion-to-35-trillion-in-four-decades-part-2/
At this point they cant stop buying or sh@t hits the fan.
Who in their right mind is going to buy government debt that is going to be printed away by the Fed and central bankers?