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Please, do not believe the propaganda. Yesterday’s Wall Street Journal report regarding the possible rise in rates due to “the end of QE2” is just so much hog swallop over the septic tankard.
How do I know this? Because I took a gaggle at this morning’s Case-Shiller Housing Price Index, which — unsurprisingly — continues to suck giant rare Tibetan albino gorilla-monkey balls. Why unsurprisingly? Because the Fed has been using your fake money to sterilize bad mortgage debt securities for the last two years now, which has basically hidden the problem of overinflated real estate. That in turn has prevented the market from deflating in the more precipitous fashion it would take in a more natural setting.
Therefore, we are experiencing the slow hiss of the deflating tire while Bernanke and Co. continue to paste their hastily chewed Wrigley’s Spearmint gum over the hole in the form of reams and reams of newly issue Benjamins. Patch-by-Benjamin, however, is a crude form of assisting the real estate market, however, and it will almost definitely end in over-inflation of the other asset markets — including most commodities.
We’ve already been seeing that in cotton, oil, coal and certain industrial metals and agricultural food items, but this bubble will not give our Fed and Treasury masters pause. They are in thrall to the banks, you see, and when the third or fourth largest banking market in the country is experiencing an eleven year loss in housing equity value, that means the banks are still on the table, with their chests cracked…
And the paddles are out.
Silver and gold are already recovering today. Be not afraid of “the Shakers.”
Let them be afraid.
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You all be well. I will be on my way south again today and this evening, so I will try to check in via Crackberry. You know the drill.
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When are you going to get a phone made for gentlemen?
Safe travels & nice post.
Great pic.
Sometimes there’s some crazy shit flying over Flyover Country.
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Picked up some $XG @ $5.70 off the bounce of the 50ema. Recovered nicely with good volume. Thanks for the heads up on this one Jake. Safe travels.
These updates are very much appreciated. Can you say Apple?
The dollar will shrink until houses are worth their market value. That’s the solution to mortgage debt.
I think that’s the plan, actually. However, such an act is impossible without thieving from the majority to assist a select favored interest group.
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Housing prices will shrink with the Qualified Residential Mortgage guides that were just voted on.
Need to have equity in house and much lower debt-to-income ratio than previously
And the too big to fail banks would be the select favored interest group and community/regional banks will be the losers
http://www.bloomberg.com/news/2011-03-28/lenders-said-to-get-exemption-option-under-risk-retention-rule.html
Unbelieveable.
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I have more details (ibank reports, etc) if anyone is interested in seeing more
right on
Excellent analysis. Love the Old Testament photo, too.
Safe travels.
Jake
Some solid discussion going on over at Cains blog, if you’re interested.
Great post.
Jake is Dr. Goldfinger
I had a story up that was about 4 states trying to pass laws so that distressed sales cannot be used as comparables for non-distressed sales! Who the F is going to buy that way? Whole thing is too funny, but sad like a clown.
Indeud
JG – Here’s a fun fact you Can-tuck-EEE-york-ians.
The Kentucky Wildcats have won the NCAA Tournament 7 times. And every time they did, the New York Yankees went on to win the World Series that same year.
Go Cats!
(…Unless they are playing VCU)
I fear they will be playing VCU in the final game…
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Jake thank you for all of your work. Do you mind charting ANV again please? I have been a holder for quite a few months now.