China is the ultimate crony capitalist state. It is a country which is built on lies on top of more lies on top of more lies on top of more lies.
The economy is addicted to easy money. Just the slightest hint that the Fed will end, or even just reduce its extraordinary bond purchase program, and rates tick up and buyers run from the market.
Most news stories take this for granted. They shouldn’t.
Zoning is a powerful tool.
Providing some relief to underwater homeowners seems like a reasonable thing to do. But using eminent domain to seize mortgages (which likely is unconstitutional – but hey who knows anymore) and then refinancing them through a politically connected company with long tentacles in California and national government isn’t right.
Nothing shady ever goes down in Las Vegas.
Wait, what I meant to say is that the city is a seething cauldron of corruption where the American dream goes to die.
The bailouts have benefited those closest to the fiat money spigots. Those in banking and in government around the world have seen their wealth rocket up thanks to loose money from the central banks. Times have been very good for the connected, and they’re buying mansions hand over fist in South Florida turning that fiat money into little pieces of coconut palm lined paradise.
Now comes a new bailout for our lucky friends who may not now have to pay market rates for insurance premiums. In Florida and many other places this is serious money, which will soon be the responsibility of the US taxpayer.
Charles Hugh Smith asks this. The answer is simple.
All hell breaks loose.
I can attest to this. I live outside of Washington DC and houses are moving. This is the land of guaranteed employment and home to the wealthiest households on average in the United States. The main reason? The primary industries here are regulation, wealth extraction, and war. “Growth” industries as of late.