Perusing a Speculative Commodity Rally.

First a kind message to those delightful people that provide rail services to the southeast of England.. "IF I WANTED TO BE HELD IN A SWEATY BOX IN LEWISHAM I WOULD HAVE CALLED A PHONE BOX S+M NUMBER RATHER THAN PAYING TO GET ON YOUR TRAIN!". There. That feels better, but it does strike us as odd that if a bank might possibly have missold a tiny product it has to pay grillions in compensation but should a rail co well and truely screw up thousands of people's day then a tannoy apology suffices. We can hardly see the regulator allowing banks to just get away with "we apologise for the manipulation of your fix this morning, this was caused by overunning profiteering. Once again we apologise for any inconvenience caused".


It's going to be light from us this week as the wild and windy moors or northern England attract us away (if we ever get there) from the wild and windy markets. But these markets aren't really that wild or windy unless you are an uncool dude who is refusing to toke on the spliff of carry and refusing to go with the mellow flow of the market. It's all a bit Apocalypse Now. The beginning of the river trip where whilst you know there is some real badass shit out there, you might as well ride the boat up the river catching some rays, listening to some tunes and puffing on whatever takes your mind off worrying about the next ambush around the corner. As Mrs TMM has often said, "Only worry about what you can change" and yelling that "It shouldn't be here" isn't going to change it.

Which is probably exactly what most people are worrying about at the moment. Core beliefs have not died and we are in that part of the S curve where beliefs are being sorely tested by Mr Price inserting cold steel into the flesh of positions based on fundamental pricing and traditional measures. As mentioned in previous posts, we think that we should hang up the logic and embrace the mood for the next few days. Or at least not stand in front of it.

Does this all end in tears? Of course. You can't please all the market all of the time but in what guise will those tears manifest themselves? Well TMM are putting on their simple hats and see something like this.

Increased asset prices are the transmission function by which CB created cash and liquidity leaks out into the real world, reduces deflation and finally creates some inflation. We believe that western central banks are going to be deliberately along way "behind the curve" in a traditional sense, not wanting to choke off any growth (unlike the idiots in Congress). Equities, when they really start to move, become a form of money as they become a method of payment or collateral for loans in their own right and though not measured as money supply, should be. But TMM feel that any rally, when dramatic enough creates such price stretches that other assets start to look comparatively cheap. Even things that have been considered basket cases begin to look attractive.

Now whilst things don't look good for commodities on a big macro scale, running short has seen at best lacklustre performance over the past few months and in many cases shorts are beginning to hurt. China data is picking up (even if you don't believe it), copper prices are not going down and iron ore prices are going up (as is coal). Now of course this doesn't mean that the macro background is monstrously better but TMM think that the current background of price chasing in equities is starting to spill into commodities.

Whereas equity asset rallies transmit inflationary pressures through stimulating greater leverage against those portfolios (late 90s) commodity price rallies show up directly in inflation. IF speculation spills over into commodities then we could well see a repeat of 2006 where production was being syphoned off into speculative storage just exacerbating the problem of price rallies. Whilst regulators have been focusing on nailing down banks we would suggest that they have taken their eyes off the ball when it came to reducing speculative commodity price spikes, so the risks remain. TMM's greatest counter indicator is also saying its time for commodities to become more interesting - Haven't most financial institutions just finished dramatically scaling back their commodity capabilities?

TMM know that supply has increased dramatically in many of the basics but we still think that there is a strong risk of an "unexpected" commodity spike with its inflationary consequences coming on top of rallying economies and strengthening job markets. Not an ideal time.

So back to the start of this post, an "end in tears" is certainly on the cards, but where tears = inflation,

What are we doing? In the short term and as a spec path of pain trade, as the old favourite of Aus looks already overdone, we are thinking this.

US debt ceiling rebound in risk + Minimal immediate tapering = EM higher beta bounce.
=> EM bounce + rallying commodities + an under-performing market = buy Peru.

Have fun. We will be singing Kate Bush songs about "wiley windy moors" into the teeth of howling gales.
Previous
Next Post »

47 comments

Click here for comments
Anonymous
admin
October 21, 2013 at 12:53 PM ×

I don't know the local tarifs of course but I could imagine that a train ticket is somewhat cheaper than calling a phone box S+M number. So the train might offer some additional value after all :-).

Reply
avatar
abee crombie
admin
October 21, 2013 at 1:29 PM ×

I hear you on commodities TMM but I aint touching them, save for a few dividend paying oil equities and some spec gold miners. Commodities remain trendless trading f-overs, whipsawing and false breaks all over.

Rosey was on wealthtrack talking up wage inflation, which I think may be the next place inflation starts showing up. Skills are in short supply, believe it or not. Problem is most unemployed dont have em. Havent figured out how to play this theme yet.

Reply
avatar
Anonymous
admin
October 21, 2013 at 1:36 PM ×

C Says
"Havent figured out how to play this theme yet. "
Depends upon where relative valuations are of course. However, if we are talking Western markets then subject to a couple of exclusions property and associated sectors will correlate with wage inflation well enough. IF central banks are destined to keep rates lower for longer actively seeking inflation which will eventually come via incomes then I would expect this to feed into property albeit we should all be able to see the 'wall' waiting to be crashed into.

Reply
avatar
abee crombie
admin
October 21, 2013 at 3:07 PM ×

Agreed C, but property for me is too interest rate sensitive in the financial world, whether or not it applied equally in the real world is a different matter.

On a side note. Li-Cashing out of HK? The guy is shrewd, but also 85.

Reply
avatar
Leftback
admin
October 21, 2013 at 4:09 PM ×

Hmm... interesting idea. Of course there is one commodity that is more important than all the others. In 2008, the oil spike was the last straw that broke the camel's back. Stockpiles of crude and products in the US are already quite extensive.

Not sure if we have all of the necessary conditions in place for a repeat performance. The thing to watch for would be if all the excess oil tanker capacity starts to be taken up. In 2008 there was a small middle eastern country's worth of oil parked offshore. So check the tanker stocks? The ones we own have perked up, if ever so slightly.

The XLE is only 3-4% off its all time high from that summer of $5 gasoline. Not compelling to us, although we will continue to own the dividend paying European oil companies we scooped up in 2012.

Looks like a great week to play golf and do naff all, while vol sellers grind the traders into dust. We plan on avoiding the US version of the trains (sitting in a box between Mount Vernon and New Rochelle).

Meanwhile TMM just explore the moors. Polemic in the role of Heathcliff, perhaps? We leave you with Kate Bush herself, as skinny as Kate Moss but a lot hotter and much better at singing. Although hot, LB always felt she was ever so slightly scary - so we would probably have done a runner in the morning .... watch out, TMM, she wants to possess you....

Wuthering Heights

Reply
avatar
CV
admin
October 21, 2013 at 4:39 PM ×

Great TMM, I am with you there ...

Buy EPU and BAP! (full disc, I own the latter!). Commiserations on being stuck in Lewisham ... it is a dump (no offence to anyone living there, but it is!).

I agree with you on commodities, but pick thy horses. I think the main commodity index will remain stuck as oil could still see short term weakness!

Claus

Reply
avatar
Leftback
admin
October 21, 2013 at 7:58 PM ×

Anyone up for the usual NFP Bingo? Special Tuesday morning version coming up.... EYES DOWN..

Soooo, I think we all expect the usual Goldilocks number. Bloomberg says consensus is 185. Does anyone really believe that now? 150k is the likely not-too-hot, not-too-cold number. Surely anything over 200 is totally off the table with all the counting problems and shutdown. A hot number would be ONE HUNDRED AND EIGHTY!!!

Now, what about the cold number, the kind of number that blows an icy chill down the back of a reflationista's gold medallion bedecked neck? A number that might have popped out of a FED computer simulation ahead of the Detapering? A number that introduces COLD STEEL into the nether regions of bond bears? Hmmm... how about +110k? +85k? +70k? Oh horrors......

Come on, punters, lay those bets.

Reply
avatar
rp
admin
October 21, 2013 at 8:28 PM ×

Nice one Pol. Can anyone elaborate more on your contrarian indicator that makes a commodities rally more likely because the banks had left that particular freak show. Because I think the opposite: simply less stupid money to carry on piling in after me. Not that I think that is sufficient to STOP a rally, I just don't think it would be as melt-uppish.

Reply
avatar
Polemic
admin
October 21, 2013 at 9:56 PM ×

Well rp it's that banks tend to have a habit of all piling in to a good thing right before it stops being a good thing. Peer pressure drives product expansion.. nothing worse than being asked why you haven t hone into x when competitor is making grillions in it. And the reverse applies. Why are you nursing falling revenue in x when y competitor is out. You could almost set your equity clock by the point houses got rid of their eq bizz at the bottom. So it may be again. It's a bit like a play on one of our favorite sayings "who can tell when it s a bottom.... no one knows as there s no one left to see."

A sort of "everyone has towel chucked .... even the shovel sellers"



Reply
avatar
Polemic
admin
October 21, 2013 at 10:00 PM ×

And lb.. i m going to be gargling kate s wutherings thru a snorkel if you check the weather forecast..

As mrs pol beautifully pointed out as we arrived in the lake district.in monsoon conditions... "well i guess without rain there d be no lakes"

Reply
avatar
Polemic
admin
October 21, 2013 at 10:01 PM ×

But wish i could post a pic here in comments of the roaring fire and pint... oh bliss...

Reply
avatar
Anonymous
admin
October 21, 2013 at 11:48 PM ×

This guy has been minting money lately for his clients.

He is offering a free webinar on Wednesday at 12pm EST:

He answers all questions.

http://www.madhedgefundtrader.com/dont-miss-the-october-23-global-strategy-webinar/

Reply
avatar
Leftback
admin
October 22, 2013 at 1:56 PM ×

Good morning, Mr Bond Bear! It's COLD STEEL for you, sunshine. You luv it, don't you?

It's odd how often the FX charts suggest "a bit more weakness on this one" or "that one can push on a bit". We fancied EURUSD for 1,40 and GBPUSD for 1,65 last week and that's looking more likely now as the Bucky Breakdown continues, even ahead of what is likely to be even more underwhelming US data to come.

Reply
avatar
Leftback
admin
October 22, 2013 at 4:56 PM ×

Fans of the US housing recovery should probably read this dissection of the most recent existing home sales report. Sales plummeted in September, and while this is always a weak month for single family home sales, the sales of condos and co-ops (less seasonal) also fell by about the same percentage. Once markets trade less frequently, they become less liquid, leading to larger price drops when forced sales are made, irrespective of the asset. We have seen this movie before.

Existing Home Sales Worse Than Reported

Reply
avatar
Anonymous
admin
October 22, 2013 at 6:35 PM ×

C Says
I suspect every time rates spike we might see housing respond in a way which gives rise to worry. However, despite that make no mistake if the FED is determined to go longer and lower that in turn keeps financing costs down then do not get short of housing except on a seesaw basis. The issue is this the FED can't get inflation via it's normal channels of energy. That games changed. So it's eventually going to succeed in shutting that employment gap and getting it through incomes as time goes on. In turn that income will look for relative value and utility value just like it always does. So if you fancy low rates because inflation is going nowhere then de facto you are putting a net under housing. After that unless the FED pre-empts real income rises then you will also get further support for housing.
In either case I see no extended bearish case for housing other than the usual sentment overshoots that always prevail. I'm not a "fan" I'm just looking at the policy in play. If we're right on rates then we'll be right on housing.

Reply
avatar
Anonymous
admin
October 22, 2013 at 7:19 PM ×

There is now a .97 correlation in the last 12 months of Fed asset purchases and the price of the SP500…

http://i.imgur.com/kBSVP9A.gif

Chart of M1 Money Multiplier, M2 Money Velocity, labor force participation, real median household income and the MBA’s mortgage purchase application index…

http://i.imgur.com/kyCkIYq.gif

Quote:
“The S&P 500 has posted 13 consecutive months of single digit EPS growth- the last 10 months averaging less than 3%.”
“This is the first time since 1955 that consecutive single digit growth has exceeded a span of 9 months. In those three previous periods, EPS averaged 5 to 7%, not 2.8%!”

http://tinyurl.com/kkssb2n

According to the jobs report private payrolls increased by only 126,000. Not in the labor force increased by 136,000.

Where were the jobs created?
Transportation and Warehousing: + 23K
Government: +22K
Retail Trade: +21K
Temp Help: +20K

There will be no tapering. The Fed will increase their their asset purchases. They have no choice.

Reply
avatar
Leftback
admin
October 22, 2013 at 10:58 PM ×

C,

Basically agreed on all of that - and indeed merely swing trading the sawtooth-like function that is the XHB against a technical backdrop that has the potential for an additional breakdown.

There is still the small matter of the large reservoir of REO properties in the US that must eventually come to market. In that context, the building of millions more new homes seems unlikely to be a profitable avenue, except in the case of those few areas of the US that are actually experiencing organic growth (shale boom in ND, Silicon Valley etc..). But yes, the FED will certainly do its best to defray the effects of the demographic time bomb and to try to offset deflationary forces for as long as it can, by whatever means available.

Reply
avatar
Anonymous
admin
October 23, 2013 at 12:09 AM ×

QE looks to be dis-inflationary at the margin though (other than spoos), so ironically the Fed is accelerating the very cycle they wish to escape (i.e. no escape velocity).

Reply
avatar
Nico G
admin
October 23, 2013 at 1:19 AM ×

about US banks

http://us1.institutionalriskanalytics.com/pub/IRAMain.asp

Reply
avatar
Leftback
admin
October 23, 2013 at 4:26 PM ×

FHFA report this morning showed that prices have actually declined in some areas of the US in August. This is what happened last time, when the big bubble burst, there was first a marginal increase in mortgage rates, then sales dried up and then prices began to fall. This may be the start of the echo bubble popping. Tokyo had a few mini-cycles of recovery in residential real estate. All failed.

New home sales data released tomorrow, even as punters are scooping up the homebuilder stocks, which now seem to be traded as a leveraged derivative of the 10y..... the trading of equity instruments in a manner unrelated to their core business activity never seems to end well.

Reply
avatar
Anonymous
admin
October 23, 2013 at 4:45 PM ×

House prices are increasing in the U.S. while mortgage purchase applications stall...

http://i.imgur.com/AH7KsHl.gif

Reply
avatar
Leftback
admin
October 23, 2013 at 6:50 PM ×

Thanks for the chart. There is a fair amount of activity at the high end of US housing and that has kept prices rising, but there is flipping going on now, so even at the high end it is unsustainable. The fall in mortgage applications shows that the traditional entry-level and move-up buyer isn't really a participant. Cash buyers and flippers are the same Charlies that buy NFLX every day expecting it to go up forever. Not sustainable w/o a real jobs recovery and rising personal income.

Reply
avatar
Leftback
admin
October 23, 2013 at 6:52 PM ×

Also remember that data reflecting the action in housing market is always 2-3 months delayed, b/c of the time taken for deals to close. We will start seeing more weakness very soon.

Reply
avatar
Leftback
admin
October 23, 2013 at 6:55 PM ×

US equities clearly showing short-term overbought conditions here, right across the board.

All Sectors Looking Overbought

Reply
avatar
Anonymous
admin
October 23, 2013 at 8:13 PM ×

Very interesting chart Anon 4.45. What's driving prices if not an increasing mortgage base.

Surely it ain't those increasing working hours and wages?

Reply
avatar
Anonymous
admin
October 23, 2013 at 10:19 PM ×

Anon 8;13
Mortgage purchase applications and declining real Median household income since Q4 2008...

http://i.imgur.com/sd6AlG1.gif

Homebuyer Affordability Index... lowest level since the end of 2008 and the start of QE...

http://i.imgur.com/xlEEh7G.gif

Income is definitely not the driver of increasing home prices.

It's being fueled by the Fed, hedge funds and cash buyers...

http://tinyurl.com/m3ms9b9

http://tinyurl.com/lrd9ah3


Reply
avatar
Anonymous
admin
October 24, 2013 at 12:36 AM ×

Blackstone's home purchases...

http://tinyurl.com/nbqfhw8

Reply
avatar
Anonymous
admin
October 24, 2013 at 3:47 PM ×

via The Institutional Risk Analyst:

"We invented an early warning operating bank stress indicator (BSI) in 2004 that was based on what were then the optimistic visions of Basel II and the global economy. (…)

"We tracked the comings and goings the U.S. banking industry through the 2008 crisis and subsequent recovery. We started giving speaker presentations on the journey this systemic stress showing how as a whole, the banking industry population today has a stress profile similar to where it was just prior to the 2008 crisis. (…)"

http://us1.institutionalriskanalytics.com/pub/IRAMain.asp

Reply
avatar
Leftback
admin
October 24, 2013 at 5:18 PM ×

AAII Bears below 20%. In fact at 17.6% it's the lowest reading of the year and an extreme level only reached 3 times in the last 5 years. Alarm bells ringing?

AA II Bulls Below 20%

Reply
avatar
Ahmed Qasim
admin
October 25, 2013 at 7:25 AM ×

Free Promotion of your Website, Facebook Page, Twitter, Google Plus, StumbleUpon, Youtube Views Likes and Subscribes, Pinterest, MySpace, SoundCloud, Instagram and Much More Social Media Promotions. Just add your Promotion Link to this Website and Get Increase your Visitors, Page Likes, photo likes, photo shares Twitter Follow Tweets and Favorites, Youtube Views Likes and Subscribes and Much More.
GetLikeFast.com

Reply
avatar
Anonymous
admin
October 25, 2013 at 10:39 AM ×

C Says
From a topdown perspective I don't see how anyone could doubt that broad market returns are primarily a function of policy and how it impacts the intermediary system.
The contrast between say China and the UK is a prime example when you look at the returns from equities.
China is pushing down and the UK is pushing up. One is trying to suppress ,or contain risk and the other is trying to encourage it.
One doesn't want inflation and the is willing to take more. etc etc.
In a wider sense I'm a believer in the theory of "ONE". Whilst the "ONE" continues to be where it is I think the market will force Japan and ABE to show it how badly it wants to become the "ONE" and then we can do the seesaw act all over again switching horses.
The fulcrum for this performance is of course the US$ around which Europe(UK) and Japan will dance.

Reply
avatar
Anonymous
admin
October 25, 2013 at 10:45 AM ×

C says
From business insider today I read...
"So obviously the thinking is to buy stocks. Why not?"
yes, good question ,but for me the answer is not "buy" ,but buy where ? Around the "fulcrum" has been the most rewarding answer I think. Where is policy pushing up the most and where extracting the FX risk do you get the most bang for your buck.

Reply
avatar
amplitudeinthehouse
admin
October 25, 2013 at 2:29 PM ×

No Point, since my declaration in the "Central Bankers give the Chinese Burn" I've somehow managed to lift myself out of the realm of micro managing a Yennish market environment that was , and may I say myself , predicted by us and a few around here
,and throw my self into other variables that are likely to pay off in instruments that are closer to the heart. This equals , I'm willing to get out of bed, otherwise not all the chips in the
Macau can make me ever go through the sleepless nights by the screen waiting for movement in a Yennish environment and now knowing that at the end it can all be worthless with just one wrong move at the table.
Don't waste your time and don't waste your money is my new mantra.

Reply
avatar
amplitudeinthehouse
admin
October 25, 2013 at 2:49 PM ×

And with that , let's finish the week in style, whatcha say fella!

http://www.youtube.com/watch?v=asu7A6tTDkU

Reply
avatar
Anonymous
admin
October 25, 2013 at 3:53 PM ×


Emerging Markets Bank Lending Conditions Survey:

"Bank lending conditions in emerging markets have deteriorated to their worst levels in over a year, according to a new industry survey. (…)

"Lending conditions in Asian economies are showing the worst degradation, with wholesale funding conditions rapidly decaying, credit standards tightening sharply and demand for loans falling and non-performing loans rising..."

"It’s not just Asia. The amount of nonperforming loans are rising across the globe, from Latin America to Africa, the Middle East to Europe. “Bank asset quality continues to deteriorate”

http://tinyurl.com/kj5o52p

http://www.iif.com/emr/resources+3110.php

Reply
avatar
Anonymous
admin
October 25, 2013 at 4:11 PM ×

via FT Magazine

J really didn't have a clue...

"(…) But tact cannot entirely mask Greenspan’s deep concern that six years after the leverage-fuelled crisis, there is even more debt in the global financial system and even easier money due to quantitative easing. And later he admits that the Fed faces a “brutal” challenge in finding a smooth exit path. “I have preferences for rates which are significantly above where they are,” he observes, admitting that he would “hardly” be tempted to buy long-term bonds at their current rates. “I run my own portfolio and I am not long [ie holding] 30-year bonds.”

But even if Greenspan is wary of criticising quantitative easing, he is more articulate about banking. Most notably, he is increasingly alarmed about the monstrous size of the debt-fuelled western money machine. “There is a very tricky problem we don’t know how to solve or even talk about, which is an inexorable rise in the ratio of finance and financial insurance as a ratio of gross domestic income,” he says. “In the 1940s it was 2 per cent of GDP – now it is up to 8 per cent. But it is a phenomenon not indigenous to the US – it is everywhere. (…)

What also worries Greenspan is that this swelling size has gone hand in hand with rising complexity – and opacity. He now admits that even (or especially) when he was Fed chairman, he struggled to track the development of complex instruments during the credit bubble. “I am not a neophyte – I have been trading derivatives and things and I am a fairly good mathematician,” he observes. “But when I was sitting there at the Fed, I would say, ‘Does anyone know what is going on?’ And the answer was, ‘Only in part’. I would ask someone about synthetic derivatives, say, and I would get detailed analysis. But I couldn’t tell what was really happening.”

This last admission will undoubtedly infuriate critics. Back in 2005 and 2006, Greenspan never acknowledged this uncertainty. On the contrary, he kept insisting that financial innovation was beneficial and fought efforts by other regulators to rein in the more creative credit products emerging from Wall Street. Even today he remains wary of government control; he does not want to impose excessive controls on derivatives, for example.

But what has changed is that he now believes banks should be forced to hold much thicker capital cushions. More surprising, he has come to the conclusion that banks need to be smaller. “I am not in favour of breaking up the banks but if we now have such trouble liquidating them I would very reluctantly say we would be better off breaking up the banks.” He also thinks that finance as a whole needs to be cut down in size. “Is it essential that the division of labour [in our economy] requires an ever increasing amount of financial insight? We need to make sure that the services that non-financial services buy are not just ersatz or waste,” he observes with a wry chuckle. (…)"

http://tinyurl.com/lndjbb2

They are all the same...

"Ms. Yellen told the Financial Crisis Inquiry Commission in 2010 that she and other San Francisco Fed officials pressed Washington for new guidance, sharing the problems they were seeing. But Ms. Yellen did not raise those concerns publicly, and she said that she had not explored the San Francisco Fed’s ability to act unilaterally, taking the view that it had to do what Washington said.

“For my own part,” Ms. Yellen said, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.” Her startled interviewers noted that almost none of the officials who testified had offered a similar acknowledgment of an almost universal failure.""

Reply
avatar
Leftback
admin
October 25, 2013 at 4:43 PM ×

Ha. The Great Greenspan, communicator, forecaster and Seer, thinks that stocks are "cheap" and he is "not long the 30y bond". Isn't that a BUY SIGNAL for the long bond?

What do TMM and others make of CS and others calling for a potential INCREASE in QE? Does this denote more and more people forecasting a US slowdown this winter, or at least a growth rate that is disappointingly weak?

Given the powerful deflationary forces in play we are not surprised to see the relative ineffectiveness of even QE4 in stoking US inflation, but wouldn't an increase in QE betray an element of panic at the Fed and lead to a possibly disorderly move in the USD? Not to mention Dr Aghi would scream blue murder as EURUSD streaked toward 1,50?

Of all the calls made over the last 5 years, the crowd that called for a "Race to the Bottom" and "Competitive Devaluation" has been the most prescient. Although even this group has been mostly wrong on gold prices and inflation. The trick being, if they are all doing it, you can't have a currency collapse. Mr Mugabe overlooked that fact.

Reply
avatar
Anonymous
admin
October 26, 2013 at 11:33 AM ×

Here's an interesting comparison of trends in 2005 and now (one of them being the price of housing in the US):

http://www.financialsense.com/contributors/sober-look/comparison-to-earlier-period-of-accommodative-monetary-policy

Rossmorguy

Reply
avatar
Anonymous
admin
October 26, 2013 at 6:07 PM ×

The Huffington Post’s excellent article: Here’s What Happens When Wall Street Builds A Rental Empire

"This new incursion by hedge funds and private equity groups into the American single-family home rental market is unprecedented, and is proving disastrous for many of the tens of thousands of families who are moving into these newly converted rental homes. In recent weeks, HuffPost spoke with more than a dozen current tenants, along with former employees who recently left the real estate companies. Though it’s not uncommon for tenants to complain about their landlords, many who had rented before described their current experience as the worst they’ve ever had."

"A former inspector for American Homes 4 Rent who worked in the Dallas office said he routinely examined homes just prior to rental that were not habitable. Though it wasn’t his job to answer complaints, he said he fielded “hundreds of calls” from irate tenants."

http://tinyurl.com/lyzjpoo

Wall Street banks created the largest housing bubble in history.
They then held the American taxpayer hostage to bail them out.
They then proceeded to conduct a massive foreclosure fraud by faking millions of legal contracts.
They then colluded with the government, Fannie and Freddie, to purposefully create an artificial shortage of housing by sitting on millions of foreclosed homes and creating a new “asset class” of buy to rent homes.
With home prices having peaked this past summer and higher mortgage rates making affordability impossible for an average family, these Wall Street rodents are dumping their assets via securitization. Meanwhile, the families they destroyed in 2008/2009 are getting screwed again in 2013 as they rent from the same slimeballs that lured them into buying eight years ago.

Did anyone ever think that the U.S. could become so corrupt?

Reply
avatar
Anonymous
admin
October 26, 2013 at 6:44 PM ×

Stock Market-Percent Deviation from long term moving averages...

http://i.imgur.com/QF7r4DF.png

Reply
avatar
Nico G
admin
October 28, 2013 at 5:11 AM ×

i just got laid!

thanks for the link - great blog

Reply
avatar
Leftback
admin
October 28, 2013 at 1:34 PM ×

Impressive. This really is a full service blog.

Reply
avatar
Leftback
admin
October 28, 2013 at 2:09 PM ×

Pending Home Sales fell 5.6%. We have been telling you this was going to happen. Price will follow as the velocity of the asset decreases. Same principle for tulips, houses or shares of Facebook.

Reply
avatar
Leftback
admin
October 28, 2013 at 4:54 PM ×

A suggestion that the Fed might elect to tighten at the front of the curve before the QE ends.... (this idea is for those who think QE is going to end).

Hike Reserve Rates Before QE Ends?

There might be some point to this if one thinks that one of the purposes of QE is to devalue the USD, to create some inflation. By working on the front of the curve, the USD could be supported, containing inflation, without sending long rates soaring and stopping the economy dead in its tracks. Like much else about QE, of course, nobody knows if it will work b/c it's never been tried.

Reply
avatar