NOT A BUBBLE: Homes Values in China Rose 38% From Last Year, In Spite of Crashing Home Sales

Nothing to see here you fucking assholes. If you should live in China and report that +38% gains in real estate values are excessive and somewhat alarming, the government will literally harvest your kidneys and feed the rest of your body to state run pigs.

To be fair, prices have moderated a bit. Prices had surged ahead by 61% last year. Interestingly

The value of homes sold rose 38 percent to 941 billion yuan ($138 billion) last month from a year earlier, according to Bloomberg calculations based on data the National Bureau of Statistics released Monday. The increase compares with a 61 percent gain the previous month.

Local authorities in nearly two dozens cities have since late September rolled out property curbs ranging from raising down-payments for first and second homes to ruling some potential buyers ineligible. China’s banking regulator has told banks to review their business related to mortgage lending and property development loans, after China Minsheng Banking Corp. suspended approvals of some non-standard mortgages in Shanghai.

Slower home sales have helped moderate credit growth. New medium- and long-term household loans, mostly residential mortgages, stood at 489.1 billion yuan in October, down from 571.3 billion yuan in September, according to central bank data on Friday. New yuan loans edged down to 651.3 billion yuan last month from 1.22 trillion yuan in September.

In an interesting side note to these exuberant prices increases is that they’re happening during a MASSIVE 40% decline in home sales in 54 Chinese cities.

This should be played in every journalism class across the nation for the next 100 years, as a lesson to those in the 4th estate. You’re relevance is waning, not because of the internet, but what you represent.

The NIKKEI is higher by 300 or 1.75%. U.S. futures are +104 and the DAX is indicating an open of +0.9%. Gold and silver are lower by 0.7% and 1.7%, respectively. And the dollar is at 9 mo highs versus the euro, higher by 0.7% to 107.7.

Most importantly, bonds are getting knocked out again. The U.S. 2 yr is up an astounding 7bps to 0.98%. The 10yr is at 2.18%, up bigly since Trump got elected. Are people really thinking this through? The rate of change on sovereign yields isn’t a bullish thing.

The US 10yr has moved from 1.75% to 2.18% over the past week.

What’s interesting to note is the widening of spreads between German bunds and PIGS. Portuguese sovereigns are trading at a +316bps premium, Irish +67bps, Spain +120bps and Italy +170bps.

Last week, more than a trillion dollars was lost in sovereign bonds values, while $1.3t gained in equities. Fed policy is looking as hawkish as ever and the dollar strength, which, in the past, was viewed as something of an albatross for exporters, is now something to behold as bullish. In short, we’re undergoing a renaissance, a detente of sorts, for speculators.

Frankly, there is only one logical explanation for all of this optimism: THE TURKEY GODS.

I bet many of you are unaware, but Thanksgiving is next week, a holiday lamented as evil incarnate for American Indians — but celebrated with grande festivals for everyone else. To the winner goes the spoils. As such, markets are moving higher into National Festival and everything is overheated. But this is a good thing for stocks and I mentioned this last week in an Exodus blog.

BTW: Prices for memberships for Exodus and After Hours are rising on January 1, 2017 — so be sure to lock in today’s cheaper rates while you can.

Do they think we’re all idiots and do not have access to the internet? How, with a straight face, can Citi issue a report saying that Trump is now a bullish thing for stocks — when in fact they’ve been warning us that he was going to ruin an otherwise harmonious melt up under democratic leaders?

Before the election, 11/4/16

“A Trump win risks slower growth or recession if trade is restricted and fiscal expansion plans curtailed. Uncertainty alone could hit the economy. Global growth will also be impacted if uncertainty rises, U.S. growth is hit and U.S. financial conditions tighten.”

“If Donald Trump were to win, that outcome would have been unexpected and thereby may cause a jump in the equity risk premium with negative P/E (price –to-earnings) multiple repercussions. We think a Trump victory could spark a 3-5 percent setback in the S&P 500,” summarizes the Citi note.

Today.

“Fiscal easing could be exactly what the U.S. and global economy needs right now, thus lifting real growth expectations but also inflation expectations,” the strategists wrote in a note to clients. “The prospect of stronger nominal growth should bode well for earnings, though we highlight how higher bond yields and rich US equity valuations as a starting point, constrain our optimism.”

While stocks will benefit more from Trump’s policy, investors should avoid emerging markets, Citigroup said, reversing its stance to favor developed countries. The MSCI Emerging Markets Index has slumped 5.5 percent for the biggest three-day decline since August 2015.

“Valuations remain attractive in most emerging market assets, equities included, but economic fragilities remain and the improving second derivative of growth may falter if local currency weakens,” the strategists wrote. “We can’t help but feel a stronger U.S. dollar could dramatically hamper investor flows and, as a corollary, credit and economic growth.”

Citigroup didn’t specify the percentage of money investors should earmark to each asset.

In other words, they were shilling hard for Hillary and were trying to assuage Wall Street to vote for her, otherwise, she might kill them or have their bonuses taken away. But now that Trump won the election, the same shills are trying to suck up to Trump by telling their clients that he’s gonna be the best thing since sliced bread for markets. Moreover, he’s precisely what the market needs!

What about your clients Citi? Do you even care about giving them honest advice any more, or are you just interested in collecting fees and spreading your brand of crony capitalism around the globe?

UPDATE: Apparently, JP Morgan is guilty of the same hypocrisy.

@The_Real_Fly imagine that pic.twitter.com/7K3ji2fmgA

— StockCats (@StockCats) November 14, 2016

If Europe can’t even protect itself from child raping refugees from Africa and the middle east, how in the hell would they be able to withstand an onslaught from Moscow? Supporting NATO is the very definition of averaging down on a bad trade. Generally speaking, continental Europe is fucked — completely neutered of their manhood from two wars which ravaged their people during the 20th century. For the better part of the past 50 years, they’ve been completely dependent on the United States, lazily slothing around the Mediterranean — creating false realities and really bad economies.

All of that is about to change now, as D. Trump makes his way into office. Hopefully, gone are the days when America paid for the check after every dinner and for the welfare and safe being of every catamite on their continent. The United States, Great Britain and Russia, the allies of WW2, are uniting again — opposed to the very evil brand of governance practiced by the Nazis in Germany. The stage is set for WW3 and Germany is going to get destroyed, yet again.

Here is the NATO Commander and former Prime Minister of Norway, making the case for his ridiculous alliance.

Stoltenberg writes: “We face the greatest challenges to our security in a generation. This is no time to question the value of the partnership between Europe and the United States.

“The only time Nato has invoked its self-defence clause, that an attack on one is an attack on all, was in support of the United States after the 9/11 terrorist attacks. This was more than just a symbol. Nato went on to take charge of the operation in Afghanistan. Hundreds of thousands of European soldiers have served in Afghanistan since. And more than 1,000 have paid the ultimate price in an operation that is a direct response to an attack against the United States.”

Stoltenberg, who is a former prime minister of Norway, concedes that America’s Nato allies need to increase contributions, a demand made by Trump during the presidential campaign. America accounts for 70% of Nato spending.

But the head of Nato writes: “Naturally, we have our differences. But leaders on both sides of the Atlantic, and across the political spectrum, have always recognised the unique ties that bind us. Our proud history is one of common challenges overcome together.

“It is all too easy to take the freedoms, security and prosperity we enjoy for granted. In these uncertain times we need strong American leadership, and we need Europeans to shoulder their fair share of the burden. But above all we need to recognise the value of the partnership between Europe and America. It remains indispensable.”

In July Trump had said that Nato was incapable of dealing with terrorism and that he would be willing to tell allies who did not “reimburse” America for its military protection: “Congratulations, you will be defending yourself.”

He also writes that it is Vladimir Putin’s Russia which has become more “assertive” in recent years, and that the tens of thousands of troops the country is amassing across its western border should be treated as a genuine threat to which the west must respond. Trump has claimed that he will be able to build a strong relationship with Putin, and has attacked those who have encouraged a deterioration in relations with the Kremlin.

Stoltenberg writes: “We have implemented the biggest reinforcement of our collective defence since the cold war. And the United States has significantly strengthened its commitment to European security, deploying a new armoured brigade to eastern Europe and delivering equipment and supplies to support future reinforcements if needed. This is deterrence, not aggression. We do not seek to provoke a conflict, but to prevent a conflict.”

“Nato battalions numbering thousands of troops cannot be compared with Russian divisions numbering tens of thousands just across the border. Our response is defensive and proportionate. But it sends a clear and unmistakable message: an attack against one will be met by a response from all.” Stoltenberg’s comments, stressing the vital importance of America in maintaining European security, will be widely seen as a sign of concern over earlier statements by European commission president Jean-Claude Juncker. Last week Juncker claimed the Americans “will not ensure the security of the Europeans in the long term. We have to do this ourselves.” He added: “That is why we need a new start in the field of European defence, up to the goal of setting up a European army.”

George Soros sponsored agitators are fomenting butt hurt rallies from people who oppose democracy and instead prefer to be ruled by fiat dictatorship. These snowflakes are very weak and fragile. They cry often and are unable to hold jobs for very long. Naturally, they’re afraid that once the border wall is erected and Trump restructers welfare, they won’t be able to obtain their narcotics or receive food stamps.

Nothing about this is organic. We’ve seen evidence that the DNC, funded by Soros and others, though O’keefe’s undercover videos and Wikileaks, are nothing more than thugs who agitate society in order to progress their agenda of corporate mercenary globalism, which enslaves the very same idiots who are in the streets tonight. These slack jawed losers don’t realize it is Trump who intends to break the chains of oppression and free the country from crony capitalism which has wreaked havoc across this nation for the past 20 years.

They should’ve been protesting after Hillary stole the primary from Bernie. But they weren’t, because  god damned Soros wasn’t funding them back then, as he was interested in having his pick appointed into office. That didn’t work out too well, did it?

Here they are.

Folks from Reddit went through great lengths to find and upload this. Watch it all the way through.

In it, he explicitly admits to nazi collaboration in seizing property from Jews, and did so in a very apex predator way.

I’ve never seen people so unhinged. I did expect the heroin addicts in Portland to go crazy, but I never thought I’d read about a CEO telling shareholders to sell their stock, if they supported a Presidential candidate that didn’t mesh with her version of the world.

Ever since Election Day, shares of LWAY have been spiraling lower. On the 11th, CEO Julie Smolyansky, tweeted this nonsense.

It’s like this person who walks the earth gets all of her information from fake news outlets, like CNN, MSNBC or Huffington Post. Not only did she call Trump a rapist and a sexist, and of course a racist, she also called you an apologist for voting for him. Seriously, there is a mental illness sweeping the world. But the good news is, saner people, a stronger brand of DNA, have woken up and will not permit the lunacy to continue any longer.

Shareholders heard Julie’s request and punished her with a sharp sell off in the stock — off more than 12% on Friday.

Now the CEO is blocking people on Twitter and deleting Tweets. She also made her account private. Hello, she’s the face and spokesperson for a PUBLICLY traded company. By definition, it is her job to enhance shareholder. Is she doing that now?

No.

As an aside, Julie’s Dad was the founder of the company, up until 2002 when he passed away. Since then, Julie has been running the company, along with her brother Edward. Meanwhile, Mom has been divesting and selling the stock, regularly. In short, she’s a spoiled brat playing with Daddy’s company and feels entitled to say whatever the hell she wants, because her family runs the business like a monarchy.

She should be ousted.

In an effort to cut back on corruption and the black market economy, in a surprise move, India banned 500 and 1,000 rupee note denominations, which is causing people to go fucking haywire, desperate in need of money.

They’re waiting on lines for hours to either deposit their banned notes or exchange them for legal tender. India is in the process of printing new notes and will make them available shortly. In the meantime, people are fucked.

Imagine waking up to learn that $20 and $100 were banned and no longer legal tender and that you had a few days to turn them in, otherwise they’d be rendered worthless?

Source: Bloomberg

People stand in line to exchange now-defunct notes.
Indians rushed to deposit 478.68 billion rupees ($7.1 billion) of cash at State Bank of India after the government’s surprise move to abolish high-denomination banknotes, as customers queued for hours to deposit or exchange the old bills and ATMs ran dry.

With the banned bills accounting for 86 percent of money out of circulation, there is tremendous pressure on India’s banking system to replenish the cash. There’s adequate money in the currency chests at more than 4,000 locations and re-configuration of dispensing machines will be completed within two weeks, Finance Minister Arun Jaitley said at a press conference in New Delhi on Saturday.

India’s banks have been caught out by Prime Minister Narendra Modi’s unexpected and widely-praised announcement late on Tuesday of the withdrawal of 500-rupee and 1,000-rupee notes, part of a crackdown on tax evasion and the underground economy. Jaitley urged people not to rush to banks immediately and wait for a few days and to conduct financial transactions using electronic transfers, cheques and credit and debit cards.

“A big regret is that people are getting inconvenienced, but currency replacement of this magnitude will cause some problems,” said Jaitley. “There are long, but orderly queues. Such a big currency replacement can’t be done overnight.”

State Bank, the country’s largest lender, has handled 543.70 billion rupees of cash transactions, including deposits, withdrawals and exchange of banknotes, starting Thursday through 12:15 p.m. on Saturday, Jaitley said. The state-owned bank and its associates account for about 20 percent to 25 percent of the nation’s banking system, he said.

The government deliberately didn’t reconfigure the more than 200,000 cash machines beforehand to help keep the announcement a secret, Jaitley said. The machines are being re-calibrated so that they can dispense new 500 and 2,000 rupee notes, which do not fit into the existing cash trays in the ATMs.

The central bank’s presses are printing banknotes at full capacity to ensure availability, Reserve Bank of India said on Saturday.

To overcome cash problems people are facing, the government allowed the use of old banknotes to pay court fees and utility bills until Nov. 14. It had earlier also suspended collection of tolls on national highways through the same period.

“The first few days are going to be a period of inconvenience, but long-term advantages of this are to the overall economy,” said Jaitley. “There is no mismanagement at banks, had that been the case then not so many people would have been serviced.”

Taxes will be paid, whether people like it or not.

The great lie of the left is their faux love for freedom and democracy. By definition, the policies of the left are tyrannical and very criminal, as revealed by the sundry of Wikileaks this election.

Over in Portland, the drug addicts have taken to the streets to destroy their own city, because democracy.

An anti-Trump protest escalated into a riot Thursday night in Portland, Oregon https://t.co/hnm1r2GtCP pic.twitter.com/Y4xNfhT6rB

— New York Post (@nypost) November 11, 2016