Money and Finance
- Broyhill Asset Management: On Gold & China
We expect China’s slow down (hard landing) to be much more severe than the consensus and given its disproportionate share of the world’s commodity consumption, the impact will be most uncomfortable for the world’s metal exporters. We continue...
- Short-seller Chanos: Moody's, S&p Wrong On China
(Reuters) - Hedge fund manager James Chanos, who has been a long-time skeptic on the Chinese growth story, is sticking with his gloomy view of ratings agencies Moody's Corp (MCO.N) and Standard and Poor's, saying their rosy outlook on China's...
- Finance News Network Interviews Steve Keen
Lelde Smits: Hello, I’m Lelde Smits for the Finance News Network. Joining me today to cast some light on the global debt situation is Associate Professor of Economics and Finance, Steve Keen. Steve, welcome back to FNN. Now debt has been in the headlines...
- Why Some Housing Bubbles Remain - By Edward Chancellor
Housing bubbles appear pretty similar on the way up. Yet the aftermaths of recent real estate booms in the US, UK, Spain and Australia have been extremely varied. US home prices took a real hammering. The formerly hot housing markets of the UK and Spain,...
- Australian Housing Market 'a Time Bomb'
Thanks to Dah Hui Lau for passing this along. THE Australian and British housing markets are the last two bubbles left in the wake of the financial crisis, and it is only a matter of time before they crash, warns legendary US investor and co-founder of...
Money and Finance
John Mauldin’s Outside The Box: Australia: Running Out of Luck Down Under
While it is summer in the Northern Hemisphere, it is winter "down under." Today we turn our attention to Australia. In Endgame, Jonathan Tepper and I devoted a full chapter to talking about the problems we saw looming in Australia, and for that we have taken some heat! What's not to like about the Land of Oz? In our view, it might be the bubbles that are building. I asked Jonathan to update us on Australia, and in today's Outside the Box he gives us an in-depth look. Let me quote from a point near the end, in case you might decide to look just at the summary:
"The search for yield and essentially diversification out of sovereign debt markets in distress has led to a surge in the foreign holdings of Australian government bonds. According to the latest data from the Australian Office of Financial Management, the total foreign ownership of Australian government bonds now stands at 80% of the total outstanding debt, up from 60% in 2006.
"Although this may sound high, government debt to GDP in Australia is low, at 30% (although is up from 16% in 2008). This low ratio is a result of running a budget surplus for most of the last 15 years. But, even though the situation looks good optically, the fact of the matter is Australia would have to backstop its banks in the event of a crisis, and this low number masks the real debt burden. Two countries that also had low debt burdens before banking crises were Spain and Ireland. They've both required bailouts, so Australian politicians and economists should not be complacent about their public debt levels."
- Broyhill Asset Management: On Gold & China
We expect China’s slow down (hard landing) to be much more severe than the consensus and given its disproportionate share of the world’s commodity consumption, the impact will be most uncomfortable for the world’s metal exporters. We continue...
- Short-seller Chanos: Moody's, S&p Wrong On China
(Reuters) - Hedge fund manager James Chanos, who has been a long-time skeptic on the Chinese growth story, is sticking with his gloomy view of ratings agencies Moody's Corp (MCO.N) and Standard and Poor's, saying their rosy outlook on China's...
- Finance News Network Interviews Steve Keen
Lelde Smits: Hello, I’m Lelde Smits for the Finance News Network. Joining me today to cast some light on the global debt situation is Associate Professor of Economics and Finance, Steve Keen. Steve, welcome back to FNN. Now debt has been in the headlines...
- Why Some Housing Bubbles Remain - By Edward Chancellor
Housing bubbles appear pretty similar on the way up. Yet the aftermaths of recent real estate booms in the US, UK, Spain and Australia have been extremely varied. US home prices took a real hammering. The formerly hot housing markets of the UK and Spain,...
- Australian Housing Market 'a Time Bomb'
Thanks to Dah Hui Lau for passing this along. THE Australian and British housing markets are the last two bubbles left in the wake of the financial crisis, and it is only a matter of time before they crash, warns legendary US investor and co-founder of...