San Francisco housing market overheats: Tech beauty is unable to modify the realities of the real estate market.

The San Francisco housing market is the most inflated and delusional market in the United States. It does make sense though at least from a psychological perspective. You have many people that are cubicle or open space programming junkies working away to create the new app or new crypto currency and somehow, they feel that ‘tiny’ spaces are worth lots of money. It is telling but no surprise given the environment many work in. Then you have the case of people doing mega commutes into the Bay Area from inland locations similar to the morning exodus of people from the Inland Empire to Los Angeles and Orange County. Yet the market does seem to be overheating and some reality is starting to creep in. Apparently, no amount of tech enabled photo filtering is going to turn a crap shack into the Cinderella of housing.
Old homes in the Bay Area
Let me start off that homes in the Bay Area are old. We are talking pre-World War II built old. Now of course we know that Taco Tuesday baby boomers now own the housing market in California but did you know that housing in the Bay Area is also aging and frail as well?
Don’t take my word for it:
San Francisco is old. The homes in San Francisco are old. But you

This post was published at Doctor Housing Bubble on August 24, 2017.

UVa Students Demand Racial Quotas, “Mandatory Education” On “Jefferson’s White Supremacy”

Student groups at the University of Virginia have issued a list of demands that includes racial quotas and mandatory ‘education’ about Thomas Jefferson’s connection to white supremacy.
The Minority Rights Coalition (MRC) at UVA, a coalition of minority student groups, hosted the ‘March to Reclaim Our Grounds’ on August 21 to ‘send a message to the university that we demand more from them [sic] in these times.’
***
Taking that vow literally, the MRC members delivered a ten-point list of demands during the rally articulating the steps they believe UVA must take to ‘reclaim’ the campus after it was overrun by white supremacists.

This post was published at Zero Hedge on Aug 24, 2017.

Market Report: Pausing under the highs

After last Friday’s spike to test the water at $1300, gold has consolidated its six-week run since Monday in a narrow range of $1280 to $1290. In early European trade this morning (Friday) gold was trading at $1286.50. Silver’s week has also been one of consolidation, a few cents either side of $17, trading this morning at $16.98.
Paper gold on Comex is overbought, but not seriously so. The danger is if gold does move above the $1300 level, it will become very overbought and vulnerable to another unpleasant sell-off. There is some evidence in the open interest numbers that the swaps are closing their longs, rather than opening new shorts to accommodate the speculators. However, OI is now at the highest level since this bull-run commenced. This is illustrated in the next chart.

This post was published at GoldMoney on August 25, 2017.

Macron Spent $30,000 On Makeup In Three Months

One year ago, when he was still president, Francois Hollande scandalized the establishment when it emerged that amid record unemployment, painful labor reforms, a sliding economy and the most serious social unrest in decades, the French president’s personal hairdressed was getting paid a gross salary by the state of ~$11,000 per month (more than a European parliament member). As the media reported at the time, “the hairdresser, who the leaked contract names only as Oliver B, is set to earn half a million pounds over the course of Hollande’s current premiership, in exchange for being available at every waking moment and signing a contract promising not to speak about his position.”
The fact that this was probably not the best way to spend French taxpayers’ money was confirmed this past summer, when Hollande’s approval rating was so low, the socialist president did not even run for re-election: a first in French history. Sadly, this was lost on Hollande’s former Minister of Economy – and current president – Emmanuel Macron who failed to learn from the mistakes of his former boss.
According to French magazine Le Point, French President Emmanuel Macron spent 26,000 – over $30,000 – on makeup in his first three months as leader of the country.
As Politico adds, “Macron’s personal makeup artist put in two claims for payment, one for 10,000 and another for 16,000, for doing his makeup during his travels and ahead of press conferences.” When asked about this abuse of taxpayer funds, The Elysee Palace said in response: ‘We called in a contractor as a matter of urgency.’ Still, aides said that spending on makeup would be ‘significantly reduced’ in future, Le Point reported.

This post was published at Zero Hedge on Aug 25, 2017.

TROUBLE FINANCING ITS DEBT: Massive Decline Rates Push U.S. Shale Oil Industry Closer Towards Bankruptcy

The U. S. Shale Oil Industry is in serious trouble as its debt spirals higher due to its massive production decline rates. While the Mainstream media continues to put out hype that the shale oil industry can produce oil at $30 or $40 a barrel, the reality shows that it’s becoming difficult just to finance its debt.
Yes, it’s true. Many of the shale oil companies are bringing on new wells just to pay the interest on their debt. Now, this wasn’t the case back in 2008 when the U. S. Shale Oil Industry first took off as most of the shale energy companies held very little debt and paid a tiny percentage of their operating income to finance its debt.

This post was published at SRSrocco Report on AUGUST 24, 2017.

US Futures Spike After Gary Cohn Promises Tax Reform By Year End

Having hugged the flatline for much of the overnight session, S&P futures have spiked after the FT released an exclusive interview with Gary Cohn shortly after 5am ET this morning, in which Trump’s chief economic advisor (and most likely future Fed chair) said that Trump’s agenda and calendar “is going to revolve around tax reform” starting next week, assuring passage by year’s end. Cohn explained that in the next three or four weeks, the tax bill will be written in the ways and means committee and Congress is “going to own” the writing of legislation. As a result, reform “can pass both of the tax committees and both chambers in 2017.”
***
‘Starting next week, the president’s agenda and calendar is going to revolve around tax reform,’ Cohn said ‘He will start being on the road making major addresses justifying the reasoning for tax reform and why we need it in the US.’

This post was published at Zero Hedge on Aug 25, 2017.

The Overlooked Cost of Electric Cars by EU Gov’t

Government first imposed taxes on alcohol and cigarettes under the claim that they were trying to make people stop for their own good. But as always, as the governments became addicted themselves to the tax revenue, then they looked to tax soft drinks in Philadelphia to prevent people from drink too much sugar, and New York tried to them impose a tax on electronic cigarettes. In New York, the Democratic Governor Andrew Cuomo lived up to the Democratic motto – tax everything. Only the fact that the GOP-controlled Senate in New York, the Republicans rejected Cuomo’s plan to tax the liquid used in electronic cigarettes. Government always pretends to be raising taxes to help people, but it is always a huge lie.

This post was published at Armstrong Economics on Aug 25, 2017.

Slumping College Enrollment Signals Americans Are No Longer Buying The College Lie

For decades, teachers and parents around the country have been repeating the same message to children: ‘To have a bright future, you need to go to college.’
***
But now, in Hawaii at least, it’s starting to look like the younger generation isn’t buying it.
Across the state, University of Hawaii college enrollment has plummeted by 15 percent in just six years, from a high of 60,300 students in 2012 to 51,300 as of 2017.

This post was published at Zero Hedge on Aug 24, 2017.

Are Central Banks Nationalising the Economy?

The FT recently ran an article that states that ‘leading central banks now own a fifth of their governments’ total debt.’
The figures are staggering.
Without any recession or crisis, major central banks are purchasing more than $200 billion a month in government and private debt, led by the ECB and the Bank of Japan. The Federal Reserve owns more than 14% of the US total public debt. The ECB and BOJ balance sheets exceed 35% and 70% of their GDP. The Bank of Japan is now a top 10 shareholder in 90% of the Nikkei. The ECB owns 9.2% of the European corporate bond market and more than 10% of the main European countries’ total sovereign debt. The Bank of England owns between 25% and 30% of the UK’s sovereign debt. A recent report by Nick Smith, an analyst at CLSA, warns of what he calls ‘the nationalization of the secondary market.’
The Bank of Japan, with its ultra-expansionary policy, which only expands its balance sheet, is on course to become the largest shareholder of the Nikkei 225’s largest companies. In fact, the Japanese central bank already accounts for 60% of the ETFs market (Exchange traded funds) in Japan.
What can go wrong? Overall, the central bank not only generates greater imbalances and a poor result in a ‘zombified’ economy as the extremely loose policies perpetuate imbalances, weaken money velocity, and incentivize debt and malinvestment.

This post was published at Ludwig von Mises Institute on August 25, 2017.

What Financial Conditions Tell Us (Two Charts & A Prediction)

It seems every bank, including central banks, publishes a financial conditions index these days. And because financial conditions typically lead the economy, it makes sense to track them. In fact, they might contain even more information than they get credit for. They might offer the elusive ‘crystal ball’ that foretells our economic fortunes.
Sound far-fetched? Spend a few minutes with this week’s pictures and talk, and you’ll be well equipped to judge for yourself. We start with seven of our favorite indicators, shown in the table below:

This post was published at Zero Hedge on Aug 24, 2017.