Bubble

News

Toronto Housing Bubble: Average Selling Price Soars 28% y-o-y in February!

BMO Capital Markets Chief Economist Doug Porter told BNN via email Friday, in response to fresh data from the Toronto Real Estate Board showing the average selling price across the Greater Toronto Area soared 27.7% year-over-year in February to $875,983 that: 

“Toronto is not a market operating normally. My biggest concern here is that speculation will now take full command and the market will absolutely run out of control, eventually ‎leading to a serious correction. Better for policymakers to take steps to cool things now, before conditions completely get out of hand.”

DYI:  A day late and Canadian dollar short.  Canadian real estate has been in a speculative frenzy for 5 years plus.  This will be seen as Toronto’s parabolic speculative blow off as gains such as these all within a one month period are unsustainable on top of the past 5 year plus madness.  A fifty percent drop is in the cards for residential single family homes for their major cities plus 70% decline for hyper inflated condos.  All told this is a MASSIVE Canadian debt bubble having its last speculative frenzy before it bursts.  The soon to arrive Canadian depression/recession could very well last 10 to 15 years.

DYI

******************************

The Ever-Growing List of ADMITTED False Flag Attacks

DYI:  An excellent list of false flag operations from around the world. 

********************************

A Third Of All U.S. Shopping Malls Are Projected To Close As ‘Space Available’ Signs Go Up All Over America

I didn’t realize how truly horrific things were for the retail industry until I came across an article about mall closings on Time Magazine’s website…

About one-third of malls in the U.S. will shut their doors in the coming years, retail analyst Jan Kniffen told CNBC Thursday. His prediction comes in the wake of Macy’s reporting its worst consecutive same-store sales decline since the financial crisis.

Macy’s and its fellow retailers in American malls are challenged by an oversupply of retail space as customers migrate toward online shopping, as well as fast fashion retailers like H&M and off-price stores such as T.J. Maxx. As a result, about 400 of the country’s 1,100 enclosed malls will fail in the upcoming years. Of those that remain, he predicts that about 250 will thriveand the rest will continue to struggle.

If the U.S. economy was actually doing as well as the stock market says that it should be doing, all of these retail chains would not be closing stores and going bankrupt.

But of course the truth is that the stock market has become completely disconnected from economic reality.

We live at a time when middle class consumers are tapped out.  According to one recent survey, 57 percent of all Americans do not even have enough money in the bank to write a $500 check for an unexpected expense.

And people are falling out of the middle class at a staggering pace.  The number of homeless people in New York City recently set a brand new record high, and city authorities plan to construct 90 new homeless shelters within the next five years.

 

The Most Broadly Overvalued Moment in Market History

John P. Hussman, Ph.D.

For our part, we’ve always given more weight to a century of observable evidence than to anyone’s verbal arguments, even those who we hold in high esteem. Still, as long as investors are comfortable with expected S&P 500 10-12 year total returns of less than 1% annually, with likely interim losses on the order of 50-60%, investors are free to label this situation as “fairly valued” or with any other phrase they wish.

Recall that the 2000 market peak was dominated by breathtaking overvaluation among a subset of very large capitalization stocks, while the broader market was less extreme, particularly among smaller capitalization issues. That didn’t prevent the S&P 500 Index from losing half of its value, or the Nasdaq 100 Index from losing 83% of its value, but it did create the basis for a long period of relative outperformance by small cap stocks. By contrast, we presently observe, by far, the most extreme median valuations in history. The chart below shows the median valuation of S&P 500 components, which is now well beyond levels observed at the 2000 and 2007 market peaks.

DYI