Economy

Housing in U.S. Cools as Rate Rise Hits Sales: Mortgages

"After a roller-coaster decade of boom-bust-boom, the U.S. housing market is going downhill just when many economists thought annual sales would be heading up. Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand during what is typically the busiest season for deals. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and investors are now retreating." Continue reading →

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US State Bank Supervisors to Discuss Bitcoin at Public Hearing

"In late February, the US Conference of State Bank Supervisors (CSBS), a membership organisation for state banking regulators that liaises with Congress, announced it would launch a new task force aimed at investigating emerging payments issues, including topics related to bitcoin and other digital currencies. To date, nine state banking officials have joined the task force, including New York Department of Financial Services superintendent Benjamin Lawsky. The organisation’s fact-finding mission will take one of its first steps on 16th May, when the CSBS will hold a public hearing on emerging payment issues in Chicago, Illinois." Continue reading →

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Former US Consumer Finance Watchdog Voices Support for Bitcoin

"Raj Date, the former Deputy Director of the US Consumer Financial Protection Bureau (CFPB), a consumer finance watchdog, said in an interview this week that he supports – and is now investing in – bitcoin. During a segment of Bloomberg Television’s 'Street Smart,' Date commented that, on a personal level, he sees a lot of potential in digital currencies like bitcoin. In the interview, Date said that bitcoin has the potential to deliver faster and more secure payments than is currently possible for most consumers, and remarked that the pace of innovation could result in a broader evolution in digital currencies." Continue reading →

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U.S. Fed’s Kocherlakota says interested in bitcoin

"A top U.S. Federal Reserve official said on Tuesday he is interested in the fast-emerging bitcoin, although he scoffed at the idea that the virtual currency could replace the dollar. Minneapolis Federal Reserve Bank President Narayana Kocherlakota, speaking at a town hall at North Dakota State University, said he is interested in bitcoin as a technology, not as a currency. He speculated that bitcoin could make payments among individuals faster. 'That's where I think the interest of it is, myself, as opposed to a new currency that's going to drive the U.S. dollar out of circulation.'" Continue reading →

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“Everything we are told about deflation is a lie”

"Messrs Yellen, Draghi et al should be careful what they wish for. Inflation targeting is hardly a precise science. Achieving an entirely arbitrary 2% inflation level is bad enough for savers on fixed incomes when deposit rates are close enough to zero as to make no difference, but markets have a tendency to overshoot. Most government bond markets are clearly overbought – but in a QE world given fresh impetus by the looming arrival of the ECB, overbought markets can become even more overbought. When we don’t claim to understand the underlying dynamics (political) or the final destination (though we have our own fears), it’s much better simply not to play." Continue reading →

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The richest man in Asia is selling everything in China

"Here’s a guy you want to bet on– Li Ka-Shing. Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor. Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it. Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago. So what does he see that nobody else seems to be paying much attention to? Simple. China’s credit crunch." Continue reading →

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Getting the Best Rates on Currency Conversions

"Forex trading platforms allow you to convert and transfer your money for minimal charges and are perhaps the best way to do so. You may want to consider Interactive Brokers as a forex platform (but do shop for other forex trading platforms in your jurisdiction). You can do all sorts of currency conversion with Interactive Brokers, and it has extremely competitive spreads. For certain currency conversions involving the US dollar, the spread can be smaller than 1 pip (1/10,000th of dollar or 0.01%). Moreover, you can execute limit orders. These spreads are attractive considering most banks operate at a spread of about 2.5-3%." Continue reading →

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Evidence That Consolidated Global Power Is Wielded by a Tiny Elite

"For the past 12 years an elite cell at the US Treasury has been sharpening the tools of economic warfare, designing ways to bring almost any country to its knees without firing a shot. The strategy relies on hegemonic control over the global banking system, buttressed by a network of allies and the reluctant acquiescence of neutral states. Let us call this the Manhattan Project of the early 21st century. The stealth weapon is a 'scarlet letter', devised under Section 311 of the US Patriot Act. Once a bank is tainted in this way - accused of money-laundering or underwriting terrorist activities, a suitably loose offence - it becomes radioactive, caught in the 'boa constrictor's lethal embrace'." Continue reading →

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