Most Notably Zero-Interest Rates Following The 2008-09 Financial Crisis Has Set The Stage For The Mother Of All Financial Disasters.

Doug Noland: The Stage Set Is for the Mother of All Financial Disasters

U.S. Home Prices at Least Affordable Level Since Q3 2008 (Home prices rising faster than wages in 64 percent of local markets)

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.

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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.

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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.

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.”