As long as local officials strangle housing starts, the mirage of affordability will be pushed further toward the distant horizon.
The other option: too ugly to even imagine.
“Let markets clear.” It’ll be just “a financial engineering shock.”
What happens to prices when the biggest, reckless buyer walks away?
After promises of transparency, Americans aren’t allowed to know what’s being negotiated at their expense.
Until shares can be sold, “valuations” remain fake wealth.
Welcome to the Mexican Paradox.
You get to own and steer a car for a while longer, if you insist.
The upside is fake stability. The downside is too ugly to contemplate.
Bankruptcies don’t help. Even the big chains are closing stores.
“Significant economic damage” is a “price worth paying.” Businesses are not so sure.
Asset class of Beautiful Machines deflates: fate of bubbles under the new regime.
QE unwind in September, “another rate hike later this year.”
Bay Area housing affordability nightmare hits home, so to speak.
Households at lower 80% of income scale are maxed out.
Who pays for excessive risk taking on nuclear power investments?
Tourism is now bigger than construction was during the real estate bubble.
Are we blinded yet by the brilliance of corporate earnings?
And footloose hot money that has flooded Mexico can quickly dry up.
It depends on the value of the home.
All the big gorillas are trying, but consumers just don’t want to.
Before the Elections and despite Bank of Mexico’s “monetary shock.”
“The Only Free Cheese is in a Mouse Trap.”
Layoffs and massive losses loom.
Even Italian banks are dumping Italian government bonds.
The last big enthusiastic buyer, China, is leaving the party.
BS asking prices meet the ax.
The Financial Crisis is forgotten. Even sounds of gentle wrist-slapping fade.
“Why did no executive at the company say, ‘This will come back to haunt us’?”
Wolf Richter Talks Shop on radio in Canada.