The war on savers

Johnny O pointed out this CBC feature on ‘the Monarchs of Money‘.

Central Bankers pulled the global economy back from the brink of a debt laden collapse by printing money.

Where does this lead and who benefits?

Quietly, without much public fuss or discussion, a new ruling class has risen in the richer nations.

These men and women are unelected and tend to shun the publicity hogged by the politicians with whom they co-exist.

They are the world’s central bankers. Every six weeks or so, they gather in Basel, Switzerland, for secret discussions and, to an extent at least, they act in concert.

The decisions that emerge from those meetings affect the entire world. And yet the broad public has a dim understanding, if any, of the job they do.

In fact, these individuals now wield at least as much influence over the lives of ordinary citizens as prime ministers and presidents.

Read the full article over at the CBC.

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Coucou tout le monde,

real_professional

Strange – A family member in Burnaby purchased a house two years ago before the So-called Chinese Real Estate Boom. A realtor came to the door on the weekend and said they had a buyer looking in the area and is willing to, “over pay”. I heard this with my own ears – I kid you not. The realtor came back today and said that they have a buyer looking to buy for $888,000. Now, this is a very average small bungalow in Burnaby/Vancouver area, well maintained and in a nice neighborhood but the thought of spending that type of money on that type of house dumbfounds me. The family member said he wasn’t interested and that he would be interested in selling for $950,000 range…. ??????????? I give up, this is just Bizarro world or there is something really… Read more »

Short'em High

@bon jovi #46. It is easy enough to set up financial power of attorney account structures and invite subscribers but to really make it worthwhile it gets complicated. My trading is mostly defensive and opportunistic on the actions of central bankers and the resulting herd of idiots who think they can get ahead of their neighbors without considering risk. However, being on offense takes more effort. In my estimation starting a hedge fund and raising money takes more effort than I would want to put in at the moment. I also don’t have a specific recommendation for a fund, but if I were to look for myself I would pick one which is able to make a credible statement about risk of loss. Only a systematically managed fund would be able to do so and the statement would read something… Read more »

mclovin

How much are average prices down from April 12 to April 13?

Dyugle

The current sales levels do not support the current construction levels. If sales stay at these levels it is just a matter of time.

bubbly

qbert, you could have looked at least at Wikipedia: http://en.wikipedia.org/wiki/History_of_monetary_policy_in_the_United_States
And average inflation is one thing, and inflationary episodes is other.

But don’t let facts get in the way of your demagoguery.

jesse

“market is pretty much the same as last year.”

Yup, pretty much hahahahaha

BWilson

I agree with aggregator. The final REBGV number will come in down approx. 10% y/y for April despite a much more favorable calendar this year with 21 selling days compared to 19 last year. Most of the Easter weekend being pulled into March helped a lot. If you follow any publicly traded hotel REITs the timing of Easter can have a big impact on a full quarter, and we’re talking about just one month. I think there’s a good chance the year over year sales decline for May will actually be worse than April. But at some point I expect we will close the gap with 2012 in terms of y/y sales declines but I think that time will likely be in July, August or September. The rules changed on July 1 last year and this June has fewer sales… Read more »

Groundhog

I don’t expect LARGE decreases in sales. In fact, I think just tracking last years sales from this point forward would be bad enough.

Aggregator

@Groundhog “y/y sales decreases might end”

There’s nothing that suggests Van’s YoY sales decline trend will end soon. We’re all looking for a fundamental bottom, but it’s not happening. What it may suggest is that many sellers are so levered, selling at a loss isn’t an option for them. So they wait.

Sellers testing the market is a dangerous game; especially when sales can decline longer then they can stay solvent.

mac

Someone, You sound married to AIDS as the worstest most awful disease in the history of humanity. Frankly, it takes a back seat to some of the other doozies we’ve dealt with because treatment was found relatively quickly although there is no cure as yet. The interesting thing about the article on gonorrhoea, as I perused it, because I don’t have much interest in the article until you flipped out, is that it’s a disease that is jumping the antibiotics barrier. Once that happens we have… wait for it… no cure. No treatment. No cure. I don’t like playing ‘what happens if’ but what will happen if & when the black plague becomes antibiotic resistant. It’s not a pleasant thought because unlike STDs, diseases like the plague are airborne and spread like wildfire. Combine that with antibiotics resistance, which is… Read more »

Bull! Bull! Bull! @Groundhog

what’s the point of these posts? sales are lower, but so are listings.

the sales to list ratios are similar and so is inventory.

the market is pretty much the same as last year. inventory isn’t building up versus last year. it’s the same market, and people should expect the same result: no crash.

jesse

“everyone is lending at low risk rates for low risk activities”

I think there are a few who are lending at low risk rates for high risk activities. Credit agencies still issue Bs and Cs.

crabman

@Lifetime Renter – It’s all about income inequality. When the wealthy get too big a piece of the pie, demand suffers while there is a glut of investment capital.

We had the opposite situation in the late 70’s which gave rise to the Thatcher/Reagan supply-side economic policies which continue to this day. It’s time for some real leaders to push us back in the other direction.

Ketel one

http://money.cnn.com/2013/04/30/real_estate/home-lotteries/index.html?iid=GM

Lottery for right to buy a house…here we go aginn. Thanks to jackals at central banks

Ketel one

Yes liftime w renter.
Just today i read article about lottery wars in buying houses in california and florida. Central banker cabals are trying and succeding in inflating another housing bubble. It is just bubbles around us.

Lifetime Renter

Burbs Boy is absolutely correct. The world is awash with capital with ever fewer outlets for profitable investment in actual production. Check out the profound levels of overinvestment in productive capacity throughout the world. One example – for 2012 Chinese factories ran at 57% capacity! This trend away from investment in production began in the late 70’s with the end the post-war period of capitalist expansion. Since then the proportion of capital invested in actual production has rapidly trended downward. One aspect of this is the investment of vast quantities of capital, desperate to find profitable outlets, in various forms of speculation. This includes the investment of bank capital in credit based economic bubbles such as the present housing bubble that is beginning to pop. It is one of the great contradictions of capitalism that while those at the top… Read more »

Amanda Li

Anonymous Says:

“What is wrong with this ad?”

it’s a white couple in the photo?

BINGO

It is RICHMOND, and it is in ENGLISH

Groundhog

y/y sales decreases might end, but y/y price decreases are just starting.

Groundhog

Compared to last year:

paulb. Says:
April 30th, 2012 at 5:42 pm 18
New Listings 316
Price Changes 179
Sold Listings 124
TI:17530

I remember at this time last year the market was clearly not looking good. New rules came in June 1 but I remember May was already ugly. I think the large y/y sales decreases will end here.

paulb

New Listings 272
Price Changes 143
Sold Listings 117
TI:17819

http://www.paulboenisch.com

Anonymous

“What is wrong with this ad?”

it’s a white couple in the photo?

bon jovi

@short
congrats on trades. have you thought of trading with someone else money? how complicated that would be?

Anonymous1

While you guys are arguing…

Bond yields approach record lows.

Divided, you WILL fall.

Start here, together:

1) End the TFW worker program
2) Limit Intra-company transfers to Net-ZERO
3) Maintain regular immigration at slightly below current levels. say 200,000 per year.

Bam! Domestically protected companies will lose their ponzi scheme profit increases. RE, Telecom, Cable, Airlines, Gasoline, Banks will all fall in line.

Limit this addition of population and everything else will fall in place. Just got to think with your eyes open.

Burbs Boy

Jesse… yes idle… idle in the sense that it is not being used to its productive capacity at full risk. Let me put it this way.. the banks are able to “do” something with it… but only when they are essentially giving it away for free. If the banks all of a sudden said “well we have Apple’s 300 billion sitting here, I think we should only lend this out at a “reasonable” rate, no more of this 3% garbage we want 8% or we won’t lend”. Do you know where that money would be? Still sitting on the banks balance sheet. No one wants to touch it at those rates, because there is fear that they can’t turn it into something that has real world productivity that can compensate. So essentially it is “idle”… everyone is lending at low… Read more »