Tag Archive: Real Estate
Housing Affordability – A Dose of Reality
First, a few quick words on Brexit. Being the always positive and optimistic person that I am (big grin), I see one very positive outcome of Brexit – it is a revolution without bloodshed. For once, I’m not digressing. Brexit has a lot of parallels with housing affordability in the US.
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Panama Tax Haven Scandal: The Bigger Picture
The “Panama Papers” tax haven leak is big … After all, the Prime Minister of Iceland resigned over the leak, and investigations are taking place worldwide over the leak. But the Panama Papers reporting mainly focuses on friends of Russia’s Putin, Ass...
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Need Safe havens: CHF or Gold?
In times of negative interest rates and falling earnings per share, gold is the ultimate safe haven. Due to negative rates, it is not the Swiss Franc.
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Is it Time to Buy Real Estate? Yes and No
Is it Time to Buy Income-Producing Real Estate? No, No, No. Much to the dismay of my real estate buddies, who are complaining about how high prices while watching the cash flow of their portfolios bursting at the seams from a few good years of ren...
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Why is Freddie Mac Reporting a Loss?
A Sudden Turn for the Worse Freddie Mac posted a loss of $354 million this quarter, versus a $2.16 billion gain the previous quarter. Fannie Mae did slightly better with net earnings of $1.1 billion, which were still substantially down from $2.5 b...
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Panama Papers Names Revealed: Multiple Connections to Clinton Foundation, Marc Rich
There has been much confusion, at time quite angry, how in the aftermath of the Soros-funded Panama Papers revelations few, if any, prominent U.S. name emerged as a result of the biggest offshore tax leak in history. Now, thanks to McClatchy more U.S...
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Downwards and Upwards Drivers of Swiss Inflation
In the following we present the drivers of Swiss price inflation. We first present the components of the consumer price index. Then we explain which are upwards-drivers of inflation and which ones cause downwards adjustments.
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9) Markets
We are currently looking for an curator of this category. The aim is explain how to obtain sustainably nice returns on stocks and bonds. The focus here should be also on global macro. Sustainability is key: "buy today and sell far in the future", for example when you get retired. Publicity for own books or publication is allowed.
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Swiss home price to income ratio small in historic and global comparison
Based on four different data source, we find out that Swiss home price to income ratio is small in global comparison. Therefore we wonder why the SNB must contain home price rises, but the Fed must artificially increase them.
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European Wealth Reports: Why “Median” Italians are Far Richer than Germans
We explain why according to the European wealth reports "median" Italians are more wealthy than Germans. The main reasons are high savings and accumulation of wealth for the average family until the 1990s, often invested in homes and real estate. Low ECB interest rates finally let the value of the home rise strongly.
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Credit Suisse Study: Swiss Real Estate Market Needs Higher Rates
A new study by Credit Suisse claims that the SNB needs to hike interest rates in order to avoid excessive risk taking in real estate markets; in particular around the centers of Geneva and Zurich, but also in the Southern Swiss cantons with lower income, but high real estate prices.
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Debt, the Financial Cycle Determinant between 2011 and 2017
Between 2011 and 2017, the reduction of debt , the hunt on the rich and investment into countries with low debt will become the main rational expectation and the determinant of the next financial cycle.
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Warum die SNB nicht Hongkong, sondern Singapur imitieren wird
Im Gegensatz zu Hongkong mit dem USD/HKD-Peg kann die Schweiz ein Currency Board, einen fixen Kurs zum Euro nicht für Jahre durchhalten. Die Gründe auf snbchf.com
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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained
In this post we show that the risks the Fed, the ECB and the Bundesbank incur are far smaller than the one the Swiss SNB takes. The Fed has “just” an inflation risk, that could cost 200 billion US$, 1.2% of US GDP. The ECB and Bundesbank have the risk that the euro zone splits … Continue reading »
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Is the SNB prepared for the black swan ?
Will the SNB printing policy lead to inflation and a housing bust when Germany leaves the Euro ? Recently the voices for a German euro exit have become louder and louder. The most recent voice comes from Biderman , the FT says that the rise of German Bunds holds the secret how the eurozone crisis will … Continue reading...
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The German supply-side reforms or will German companies take over the PIIGS ?
Words heart on German street in 2010 during the first Greek bailouts were that Germany should obtain the Greek islands as collateral if Greece is not able to pay back the debt to Germany. But even today German n-tv is reporting about many Greek real estate brokers that are currently delling islands. If it is not that type … Continue...
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The latest bubble: Real estate in Russia
Still a draft, From Barnaul, Siberia, Russia Inna, 28, is a high-school teacher, she has one child. Her monthly salary is 8’500 Russian Rubel, about 257 USD. Similarly as many state employees her salary is very low. Recently the state doubled the salary of policemen and soldiers from 20’000 RUB to 40’000 RUB. A main …
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