Doug Noland: The Stage Set Is for the Mother of All Financial Disasters
Yesterday, I discussed how the median price YoY on existing home sales is almost 2 times average hourly earnings growth, a sign of the growing housing affordability problem in the US.
Of course, housing affordability varies across the country. According to Attom’s Home Affordability Study, the west coast (California, Oregon and Washington) is unaffordable for many households. Florida also is losing affordability compared to historical affordability.
Annual growth in median home prices outpaced average wage growth in 275 of the 432 counties analyzed in the report (64 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.
Median home prices not affordable for average wage earners in 75 percent of local markets
An average wage earner would not qualify to buy a median-priced home in 326 of the 432 counties (75 percent) analyzed in the report based on a 3 percent down payment and a maximum front-end debt-to-income ratio of 28 percent.
Counties where an average wage earner could not afford to buy a median-priced home in Q2 2018 included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.
Rosenberg Says S&P Has Peaked U.S. – Possible Recession in 12 Months
A U.S. recession may start in the next 12 months, said David Rosenberg, chief economist & strategist at Gluskin Sheff & Associates Inc.
Volatility in these types of gauges notwithstanding, the Philly Fed's gauge of expected prices received over the next six months shot up in June to the highest level since 1988. #inflation #economy pic.twitter.com/2fd6KN2l7A
— Vince Golle (@DoubleTGolle) June 21, 2018
If you are a Silky Johnston hater and hate on others for having things you don't, next time you see a person in a nice car just know there's a chance there delinquent on their loan payments. Playaaaaa Hateeerrrrrr pic.twitter.com/15n0kmdrhm
— TheMoMoneyShow.com (@McMo91) June 21, 2018
Americans Still Aren’t Saving, Despite the Booming Economy
23 percent Americans have no money readily available in either a checking, savings or money market account.
America’s Debt Dependence Makes It An Easy Economic Target
The Federal Reserve, once the No. 1 buyer of U.S. debt, has essentially declared it is cutting off support and has begun dumping assets from its balance sheet.
Global Debt Has Hit a High – Can Financial Regulators Cope?
IMF figures show the world is more indebted than during the financial crisis & needs more borrowing to create growth
The Smart Money Gets Ready for the Next Credit Event
“It feels like we’re about 12 months away, but we could get into extended innings.”
Singapore, Hong Kong, Shanghai Equity Indexes are imploding pic.twitter.com/A7LFMQ6LPf
— Alastair Williamson (@StockBoardAsset) June 21, 2018
EM #equities struggling again… pic.twitter.com/LGbAvhb0On
— jeroen blokland (@jsblokland) June 21, 2018
Dow Asia & Dow Europe are warning that all is not well in the global economy pic.twitter.com/KHrbB5575g
— Alastair Williamson (@StockBoardAsset) June 21, 2018