Bear Market


The ASX 200 Could Rebound 15% by 2016, But There’s a Catch

August 31, 2015 by · Leave a Comment 

The Daily Reckoning

Deutsche Bank is bullish on the future of the Aussie stock market. The investment bank believes the ASX 200 is on course to rise 10% over the next year.

The post The ASX 200 Could Rebound 15% by 2016, But There’s a Catch appeared first on The Daily Reckoning Australia.

More articles from The Daily Reckoning….

Are REOs ready for a comeback?

August 31, 2015 by · Leave a Comment 

A new report from Clear Capital suggests that REOs and short sales may be on the rise again, what with the saturation of distressed properties on the rise, plus some other factors. Worried? Getting cash ready? Read on.

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How auction companies are disrupting traditional home-buying

August 31, 2015 by · Leave a Comment 

But investors aren’t the only ones interested in auctions these days. In survey results from last year, Auction.com found a startling 30% to 40% of its registrants were owner-occupants — people who wanted to buy houses to live in them.

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Company Spotlight: Auction.com

August 31, 2015 by · Leave a Comment 

“Within our competitive environment, we have a pretty significant lead in terms of our technology deployment,” Sharga said. “Our partnership with Google has been very helpful to our product and engineering teams, which are tapping into Google’s expertise for mobile development and SEO optimization.”

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China: Doomed If You Do, Doomed If You Don’t

August 31, 2015 by · Leave a Comment 

By Charles Hugh Smith, OFTWOMINDS

Whichever option China chooses, it loses.
Many commentators have ably explained the double-bind the central banks of the world find themselves in. Doing more of what’s failed is, well, failing to generate the desired results, but doing nothing also presents risks.
China’s double-bind is especially instructive. While there an abundance of complexity in China’s financial system and economy, we can boil down China’s doomed if you do, doomed if you don’t double-bind to this simple dilemma:
If China raises interest rates to support the RMB ( a.k.a. yuan) and stem the flood tide of capital leaving China, then China’s exports lose ground to competing nations with weaker currencies.
This is the downside of maintaining a peg to the U.S. dollar. The peg provides valuable stability and more or less guarantees competitive exports to the U.S., but it ties the yuan to the soaring dollar, which has made the yuan stronger simply as a consequence of the peg.
But if China pushes interest rates down and floods its economy with cheap credit, the tide of capital exiting China increases, as everyone attempts to escape the loss of purchasing power as the yuan is devalued.
This is the double-bind China finds itself in: weakening the yuan to shore up exports incentivizes capital flow out of China, forcing the central bank to torch reserves to mediate the flood tide of capital fleeing China.
But efforts to support the yuan crush exports based on a cheap currency, creating the potential for mass layoffs in sectors with razor-thin margins and convoluted black box financing. Nobody knows how many times the stuff in warehouses has been pledged as collateral, or how much debt is floating around the shadow banking system in China.
Doomed if you do, doomed if you don’t: trash your currency and watch capital gush out of your economy and financial sector, or support your currency and watch your export sector’s sales and profitability crater.
Whichever option China chooses, it loses. Doing nothing doesn’t work, either, as the central planners’ incompetence and cluelessness is now on display. The flood of money leaving China will pick up speed due to uncertainty and fear of central planning desperation, and attempts to support the yuan are the equivalent of a chemical fire burning down the export sector.
Life is tricky that way.

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More articles from Charles Hugh Smith….

New Hope gets conditional approval for $900m Acland coal mine expansion in Australia

August 31, 2015 by · Leave a Comment 

Coal mining company New Hope has secured approval from the Queensland Department of Environment and Heritage Protection for its $900m Acland coal mine project expansion near Oakey on the Darling Downs in Australia.

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Australia’s NSW Government amends mining policy process

August 31, 2015 by · Leave a Comment 

Australia’s New South Wales Government has changed its mining policy process in a bid to ensure economic, environmental and social considerations are well-balanced when determining mining projects.

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Barrick Gold forms JV with Zijin Mining

August 31, 2015 by · Leave a Comment 

Barrick Gold has formed a previously announced strategic joint venture (JV) with Chinese mining company Zijin Mining, including a 50% interest sale in Barrick (Niugini) (BNL), for $298m.

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RBC: Housing Affordability down in Vancouver, Prices Continue To Rise

August 31, 2015 by · Leave a Comment 

The Royal Bank of Canada released their August Housing 2015 Housing Trends and Affordability Report.  Housing Prices in Vancouver continue to be ridiculous, with ownership costs for a Two-storey property rising to 48.3% of income.  Like Toronto, prices are high, continuing to be high, and expected to be high for some time.

The rest of Canada has remained fairly steady, with RBC stating:

“Trends in the national measures have been fairly flat since 2010. Affordability levels are close to or slightly above long-term averages, which suggest that except for Toronto and Vancouver, housing affordability remains fairly neutral in Canada.”

RBC’s Chief Economist, Craig Wright, spoke of prices out-of-step with market fundamentals.

“Poor housing affordability at the provincial level, particularly in the single- detached home segment, is a reflection of the extreme situation in Vancouver” …

“Vancouver’s housing affordability readings are nearing the worst levels ever recorded in Canada, but this is still not reining in buyer demand at all … Given the current high degree of tightness in the market, further price acceleration and affordability deterioration are even very likely in the near term.”

When the speculative bubbles ramped up in the United States, one of the indicators was a decrease in affordability and an increase in prices without a change in the underlying fundamentals.  Might these be a sign of a similar situation in Vancouver and Toronto?

The post RBC: Housing Affordability down in Vancouver, Prices Continue To Rise appeared first on Housing Doom.

Read more….

RBC: Housing Affordability down in Vancouver, Prices Continue To Rise

August 31, 2015 by · Leave a Comment 

The Royal Bank of Canada released their August Housing 2015 Housing Trends and Affordability Report.  Housing Prices in Vancouver continue to be ridiculous, with ownership costs for a Two-storey property rising to 48.3% of income.  Like Toronto, prices are high, continuing to be high, and expected to be high for some time.

The rest of Canada has remained fairly steady, with RBC stating:

“Trends in the national measures have been fairly flat since 2010. Affordability levels are close to or slightly above long-term averages, which suggest that except for Toronto and Vancouver, housing affordability remains fairly neutral in Canada.”

RBC’s Chief Economist, Craig Wright, spoke of prices out-of-step with market fundamentals.

“Poor housing affordability at the provincial level, particularly in the single- detached home segment, is a reflection of the extreme situation in Vancouver” …

“Vancouver’s housing affordability readings are nearing the worst levels ever recorded in Canada, but this is still not reining in buyer demand at all … Given the current high degree of tightness in the market, further price acceleration and affordability deterioration are even very likely in the near term.”

When the speculative bubbles ramped up in the United States, one of the indicators was a decrease in affordability and an increase in prices without a change in the underlying fundamentals.  Might these be a sign of a similar situation in Vancouver and Toronto?

Read more….

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