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Spotting Real Estate Bubbles in the Top 15 Richest Cities

There’s an easy way to identify the cities with the big real estate bubbles. Just find out where the richest citizens live! Back in late 2016, writer Peter Reegh put together a list of the 15 cities based on population of the wealthiest citizens, which was published on therichest.com. These same 15 cities remain at the top of this list today (only now more inflated than a year ago), allowing us to immediately know what areas to avoid. And, once real estate prices have crashed, which I expect they will begin to do sooner rather than later, we’ll have a […]

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The Real Story Behind Bulging Bitcoin

Did you make $ 20,000 today? Well, you could have. In fact, you could have made tons more money. All you had to do was own some bitcoin, the cryptocurrency. As I write, bitcoin is up 47% for the month, jumping by several hundred dollars a day. What idiot doesn’t want to own this asset? Oh, that’s right. Me. Because I don’t see it as an asset. Bitcoin is an imaginary thing with no official backing. There’s no person or entity that stands behind it. The currency is only as good as everyone who owns it or wants to own […]

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How to Amazon-Proof Your Real Estate Portfolio

I recently heard Amazon, the world’s largest online retailer, described as a “bull in a china shop” for the way it’s disrupted industry after industry. But that’s really the wrong analogy. An angry bull lashes out erratically, goring or trampling whatever happens to be in front of it at the moment. Amazon is far too mechanical for that. The better comparison for Amazon would be a steamroller. Like a steamroller, Amazon slowly and methodically flattens everything in its path. Bookstores? Obliterated. Shopping malls? On life support… and just barely. Department stores? Dying a painful death by 1,000 cuts. Even grocery […]

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The Deregulation Revolution Is Real, But Is It Enough?

I’m not much of a fast-food guy. I’ll pull into McDonald’s for an Egg McMuffin when I’m traveling, but typically I stay away from such fare… except for Chick-fil-A. Occasionally, I’ll lose restraint and drive through the Chicken Shack, but I think that’s part of my DNA. The combination of fried chicken and friendly service is a weakness for most people raised in the South. But, several years ago, I gladly drove through a nearby McDonald’s for lunch. I wasn’t drawn in by a promotional campaign or the seasonal McRib sandwich. I was lured by a protest. The Service Employees […]

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The Real Unemployment Number: 102 Million Working Age Americans Do Not Have A Job

Did you know that the number of working age Americans that do not have a job right now is far higher than it was during the worst moments of the last recession?  For example, in January 2009 92.6 million working age Americans did not have a job, but we just found out that in May the number of working age Americans without a job increased to just a shade under 102 million.  We’ll go over those numbers in more detail in a moment, but first I want to talk a bit about the difference between perception and reality.  According to […]

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Why Real Estate Will Never Be the Same

I expected Japan’s 67% drop in residential real estate to rebound substantially, even with its smaller, but still substantial millennial generation. But that hasn’t happened. So, I went digging to find out what was going on. I’ll admit that this had me stumped for a while… until I began to understand that real estate was different than other consumer sectors of spending. It’s obviously not a consumable like food or clothing. But it’s not like a durable product either, like cars and washing machines. Real estate, with the exception of natural disasters or human insanity (arson, wars, etc.), tends to […]

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Real Interest Rates STILL Negative after Fed Hike

Precious metals markets enter the last trading week before Christmas near multi-month lows. Gold and silver succumbed to another round of selling last Thursday following the Federal Reserve’s rate hike announcement. Bulls are hoping for a Santa Claus rally to take metals into year’s end on a positive note. Bears say “bah humbug” and will aim to keep the intense selling pressure on in the futures markets. The U.S. Dollar Index now trades at a 14-year high. It looks impressive – until you consider all the other currencies that trade against the dollar. Dollar “strength” is really just an expression […]

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The Real Reason Why America Has Been Given A Reprieve

This is one of the most important articles that I have written in a long time.  The strange events of the past year and a half have befuddled and mystified many, and in this article I am going to explain why America has been given a temporary reprieve.  If you go back to June 2015, I warned my readers that major financial problems were imminent, and sure enough in August 2015 we witnessed the greatest financial shaking that we had seen in seven years.  I remember getting emails from my readers applauding me for absolutely nailing that prediction, but we […]

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This Blow-Off Trump Rally Looks Real (Damn It!)

Between late 2014 and November 2016, the markets went nowhere. They made no more than a few, very minor, new highs. It looked like a classic head-and-shoulders, rounded-top pattern, with a break of 1,800 sounding the death knell. All of my research pointed to signs that the end was near. The Dow was set to shed thousands of points in short order. How much has changed since November 8… That rounded-top pattern now looks to be a long 4th wave correction that’s moving into a classic final 5th wave “blow-off” pattern. The market has flipped from seeing Trump as an […]

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China’s Orgasmic Real Estate Bubble

No question about it. China definitely takes the cake when it comes to bubble creation. The government encouraged everyday people to speculate in stocks in late 2014 and 2015 to help offset the slowdown in its gargantuan real estate bubble. The stock market bubbled 160% in one year and then crashed 50% (and you can be sure there’ll be more losses to come after a year of propping up a market that has merely gone sideways…) Then to cushion that 2015 stock crash, the government made loans easier for real estate again. Bank loans surged by 7.5 trillion renminbi (RMB) […]

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