Housing

Housing bubbles may crowd out credit from other sectors, but they may also have a crowding-in effect by providing collateral to real estate-owning firms or generating attractive assets which banks can securitise and use to increase their…

Yesterday, I connected the end of the carry trade and stress on Australian bank margins. The point was that the withdrawal of global liquidity wasn't just affecting emerging markets in our interconnected global financial system. Australia…

A lot of people are still watching the flattening yield curve and distress in EM. And while I think both of these events are important, I am looking at a lot of other market signals, particularly US domestic credit markets. Here are some…

Danielle's conclusion seems spot on: residential property in the US may not be in a bubble, but houses are certainly no bargain. Her view on housing is that housing affordability at the entry level has declined significantly.

Recently I have indicated I see a lot of problems in asset markets despite the economic acceleration in Europe, Japan, and the US. Commercial real estate is a problem that I want to highlight briefly since I believe it will be a locus of…

I don't know if there is a German housing bubble or even whether there will be one. I do know that we hear a lot about it in the press - the result of zero, even negative, interest rates. So let me give you a little anecdote from my trip to…

This is going to be a quick hit post to get some thoughts down on paper because a few threads are coalescing for me that I want to give some coherence to. The essence of the threads revolves around the tension at the Fed between normalizing…

Between the first quarter of 2013 and the end of 2015, London property prices rose rapidly, the exchange rate appreciated, and the current account deficit widened. This column argues that the rise of the pound was in fact a financial…

No one story sticks out for me today. So I thought I would make a few comments on the stories making the rounds today in the Internet. Let’s start in the U.S.

A couple of weeks ago I told you about two properties in London that I was familiar with as background for my post on house price inflation in the UK. What was clear from those two examples and dozens of others I found is that rental yields…