No, it’s not a good sign that central banks are reducing interest rates.

They’re supposed to do this to pull an economy out of crisis yet we’re being told that everything is awesome?! Something is not right here. For those willing to connect the dots, this is truly a historic time right now. Some are impatient that “it’s taking forever to happen”. In my opinion, for those who wish to prepare, this time is granting you an opportunity. The longer this takes to end the cycle, the worse it will be. Considering this is the longest cycle we’ve seen, we’re in for an interesting future.

Real estate is generally a person’s biggest expense. They see it as an asset and therefore are willing to leverage their purchase for a very long period of time. In recent years, people have been willing to go further and further into the debt trap with no ability to escape. Leverage is a very powerful tool but can be absolutely ruinous when a crisis hits. This is only felt on odd occasions, so the goldfish memory of humanity will eventually bring about disastrous consequences.

 

UBS Global Real Estate Bubble Index 2019 | UBS Global topics

www.ubs.com/global/en/wealth-management/chief-investment-office/life-goals/real-estate/2019/global-real-estate-bubble-index-2019.html

chartoftheday_19556_cities_on_housing_bubble_index_n.jpg (960×684)

infographic.statista.com/normal/chartoftheday_19556_cities_on_housing_bubble_index_n.jpg

haider-moranis-1.png (1000×1354)

financialpostcom.files.wordpress.com/2019/10/haider-moranis-1.png?w=590&h=799&zoom=2

Canada’s housing market is roaring back with black-tie condo launches – BNN Bloomberg

www.bnnbloomberg.ca/canada-s-housing-market-is-roaring-back-with-black-tie-condo-launches-1.1326505

bc-canada-s-housing-market-is-roaring-back-with-black-tie-condo-launches.png (1296×744)

www.bnnbloomberg.ca/polopoly_fs/1.1326506!/fileimage/httpImage/image.png_gen/derivatives/default/bc-canada-s-housing-market-is-roaring-back-with-black-tie-condo-launches.png

Mall vacancy rate at 8-year high | Retail Dive

www.retaildive.com/news/mall-vacancy-rate-at-8-year-high/564296/

Someone is really charging people $1,100 to live in a shed | Daily Mail Online

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www.dailymail.co.uk/news/article-7530589/Someone-really-charging-people-1-100-live-shed.html

Why are these L.A. people sleeping in stacked pods? It’s not just the cost of housing – Los Angeles Times

www.latimes.com/california/story/2019-10-12/when-finding-affordable-housing-in-l-a-means-living-in-a-pod-or-a-bunk-bed

Housing Market Points to Recession By Election Day | Council on Foreign Relations

www.cfr.org/blog/housing-market-points-recession-election-day

Average commute time reached a new record last year – SFGate

www.sfgate.com/news/article/Average-commute-time-reached-a-new-record-last-14497488.php

U.S. Consumer Credit Tops Forecast on Non-Revolving Debt Surge – BNN Bloomberg

www.bnnbloomberg.ca/u-s-consumer-credit-tops-forecast-on-non-revolving-debt-surge-1.1327814

30-Year Fixed Rate Mortgage Average in the United States (MORTGAGE30US) | FRED | St. Louis Fed

fred.stlouisfed.org/series/MORTGAGE30US

Federal Reserve drops toughening liquidity rules on foreign banks | Financial Times

www.ft.com/content/cf529274-ead3-11e9-a240-3b065ef5fc55

Fed eases post-crisis rules for domestic, foreign banks – Reuters

www.reuters.com/article/us-usa-fed-banks/fed-eases-post-crisis-rules-for-domestic-foreign-banks-idUSKBN1WP2OU

 

 

 

 

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