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Daily Digest

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Daily Digest 3/5 - ‘Massive Layoffs’ Predicted In Law Schools, The Wealth Beneath

Tuesday, March 5, 2013, 12:20 PM
  • ‘Massive layoffs’ predicted in law schools due to big drop in applicants
  • BOJ nominee Kuroda sets out aggressive policy ideas
  • BMO Lowers Mortgage Rate To Record Low; Flaherty Warns Against Lending War
  • Info boss says B.C. isn't writing down key decisions to avoid public scrutiny, FOI requests
  • Calvin McCraw, Homeless Oklahoma Man, Lets People Vent To Him For 50 Cents A Minute
  • Four Things To Know About The Next Big Budget Battle
  • Zambia, Zimbabwe and Botswana: The wealth beneath
  • China Overtakes the US to become the World’s Largest Oil Importer
  • Shell to build LNG plants in Ontario and Louisiana
  • Toyota's i-Road to debut at the Geneva Motor Show
  • Taiwan tests recycling's limits with bus stops out of bottles
Blog

The Unsafe Foundation of Our Housing 'Recovery'

Overdependence on subsidies, debt, and unfounded optimism
Monday, February 25, 2013, 5:55 PM

What could go wrong with the housing 'recovery' in 2013?

To answer this question, we need to understand that housing is the key component in household wealth. And, that Central Planning policies are aimed at creating a resurgent “wealth effect,” as follows: When people perceive their wealth as rising, they tend to borrow and spend more freely. This is a major goal of U.S. Central Planning.

Another key goal of Central Planning is to strengthen the balance sheets of banks and households. And the broadest way to accomplish this is to boost the value of housing. This then adds collateral to banks holding mortgages and increases the equity of homeowners.

Some analysts have noted that housing construction and renovation has declined to a modest percentage of the gross domestic product (GDP). This perspective understates the importance of the family house as the largest asset for most households and housing’s critical role as collateral in the banking system. » Read more

Blog

Real Estate: Is the Bottom In, or Is This a Head-Fake?

The housing recovery is no sure bet
Thursday, December 6, 2012, 11:32 AM

Everyone interested in real estate is asking the same question: is the bottom in, or is this just another “green shoots” recovery that will soon wilt?

Let’s start by reviewing the fundamental forces currently affecting real estate valuations. » Read more