Miami Blues, Again?: “Stearns’ predictions for the city’s ‘preconstruction’ condo market have gone from bad to worse to, as of yesterday, apocalyptic”

Real estate people never seem to learn. Especially it seems in Miami.

Didn’t we JUST do this a few years ago?

In the last real estate bust Miami was a bellwether. I watched the market closely along with California and New York in those years. This all seems very very familiar. And it should be noted also that auto loan default rates (generally) are rising.

What do you think happens if rates finally tick up solidly?

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Brazil’s worst-ever recession unexpectedly deepens in late 2016

Before the Olympics

Brazil has been having a tough go over the last few years. A country that was once riding high and peering just barely into the 1st World neighborhood has now stumbled back behind the southern fence. The years and years of corruption under leftist governments (recently) have taken their toll as has the general slowdown in China which is a vital trading partner.

(From Reuters)

The downturn has left nearly 13 million people unemployed,

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To Really ‘Make America Great Again,’ End the Fed!

By RON PAUL

Former Dallas Federal Reserve Bank President Richard Fisher recently gave a speech identifying the Federal Reserve’s easy money/low interest rate policies as a source of the public anger that propelled Donald Trump into the White House. Mr. Fisher is certainly correct that the Fed’s policies have “skewered” the middle class. However, the problem is not specific Fed policies, but the very system of fiat currency managed by a secretive central bank.

Federal Reserve-generated increases in money supply cause economic inequality.

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‘The longer central banks interfere, the worse the crash’

“I smell…Central bankers.”

How this obvious truth eludes so many economists is beyond me.

It’s simple. The central banks seek to goose the economy. They lower interest rates below the real market interest rate. As such people, institutions, everyone takes advantage of the relatively cheap credit. But as this cheap credit is taken advantage of malinvestment (that is investment that would not have happened if the market had set rates) begins to build up. It builds and builds and builds until there is so much malinvestment the economy topples on itself.

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The Keynesian Blessing: Americans Are Broke

Americans are debt addicts. They love to spend. The politicians love to spend. Everyday Americans love to spend. Spend, spend, spend. And we wonder why many things, our society even, feels so cheap.

People live on credit. They finance cars, houses, vacation – cell phones – think about that – PHONES. They don’t save.

And why should they? They get nothing for saving. There’s literally no real return on socking money away in a bank these days.

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Keynes Must Die

Indeed he must. As Hunter Lewis the co-founder of Against Crony Capitalism has said, Keynesianism is the mother of crony capitalism as we know it. Keynesian economic theory gives intellectual cover to politicians and social theoreticians who want to spend the money of a society anyway. It is an excuse. It is a cult. It is destructive and it is obviously, especially as we see at this late date, as the world slowly succumbs to its ever growing debt burden,

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The Fed wants to see what happens if it moves to negative interest rates

It wants to see via a “stress test” of banks. But even with the Fed raising a quarter point recently, so called liftoff, the general trend globally is in the opposite direction. Japan just moved to negative rates. There are smatterings of negative rates to be found throughout Europe. Canada is playing with the idea of negative rates.

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