An Era Of Unreality Defined By Magical Thinking

A weekend topic on financial manias. "At one point in the late 1990s, a $5 toy mass-produced in China became such a big craze that people – mostly adults – paid thousands of dollars to collect them. But only a few years after Beanie Babies made their creator a billionaire, the stuffed animals...
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In A Sane World, Most People Would Want Cheaper Housing

It's Friday desk clearing time for this blogger. "No one knows better than real estate insiders how money flooding in from mainland China is driving up prices in Vancouver, the second-most unaffordable city in the world. One top Vancouver real estate executive, who did not want to be named, said in...
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Reality And Desperation Are Going To Kick In

Bloomberg reports on the UK. "Buying upscale homes in the U.K. through trust funds and overseas-based companies is popular among the rich as a way to minimize taxes and protect privacy. The practice also makes it difficult for law enforcement and the courts to establish whether their owners bought...
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The Bubble Can't Help But Burst

Tulsa World reports from Oklahoma. "Tulsa-area home sales rose only slightly in January compared to the same time last year, but they were at the highest January levels since before the housing bust. Tulsa’s average sale price also shot up significantly, as the reported $170,690 was 10.8 percent...
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Inflated Prices And Funny Money Spending Patterns

A weekend topic on credit, deflation and the housing bubble. Reuters, "China's central bank cut interest rates on Saturday, just days before the annual meeting of the country's parliament, in the latest effort to support the world's second-largest economy as its momentum slows and deflation risks...
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A Glaring Piece Of Hubris

It's Friday desk clearing time for this blogger. "Some Puget Sound buyers are paying nearly $100,000 more than the list price for many luxury homes in this market. But that trend is all across the board, not just high-priced homes. Broker George Moorhead of Bentley Properties says a lot of sellers...
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Accelerating The Burst Of The Bubble

Bloomberg reports on Denmark. "Here’s an example of some of the twists and turns that economies with negative rates might need to gird for. Seven years after Denmark’s property bubble burst, house prices in the country’s biggest cities are already higher than at any point in recorded history....
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