Diary of a Financier

Top Newsstuffs (August 20-26)

In Bookshelf on Sun 26 Aug 2012 at 05:36

Not much to focus on this week–except for the usual jawboning by central banks.  But, enjoy these gems, that’re worth petrification in my annals…

Canadian Real Estate Bubble: The Rise of Subprime | Euro Pacific Capital
Subprime lenders are flourishing in Canada, as lending standards tighten in the traditional banking system. Of the $1.1t mortgage market, >$500b are considered “high-risk” loans.

Rail Traffic Weekly: Growth Maintaining Velocity | Association of American Railroads (AAR)
Carloads -2.1% and Intermodal +3.6 (y/y cumulative ytd volume); -2.4% and +3.6 respectively (vs. this week last year). 10 of 20 carload groups posted gains: Petroleum products +45.6%, Farm products +37.4 & Lumber/wood +16.4; Metallic ores -29% & Waste -25.6.

Fed Studies Show Damage to Labor Market Is Reversible | Bloomberg
Fed says one-third of unemployment from the Great Recession) come from structural issues (i.e. supply/demand mismatch); the rest is a lack of demand, which they think more stimulus can remedy.

America’s Demographic Cliff & Entitlements in a Nutshell | ConvergEx
13% of US population is 65+ with entitlement spending 8.7% of GDP. (Japan has 23.1% 65+; Europe 17.4%.) It’s a significant drag, but positives are lower consumption, higher employment & growing domestic service sector.

–Romeo

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  1. […] out of the country and create an emergency life raft in case China implodes.” [Previously: The rise of Canadian subprime, Canada's real estate bubble & How Canadian regulation avoids crises] #Bearish […]

  2. […] unsustainable, per 7 charts. Worst of all, housing bubble appears to be deflating. [Previously: The rise of Canadian subprime, Canada’s real estate bubble & How Canadian regulation avoids crises] $EWC $FXC $CAD […]

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