Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Housing Bubble

Market Insanity

Is Rocket Mortgage making money from a housing bubble?

A dangerous housing bubble could be responsible for Rocket Mortgage’s (NYSE: RKT) stock growth. In 2020, Rocket Companies (NYSE: RKT) began

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Market InsanityOpportunities

North America’s Real Estate Bubble

Both the United States and Canada are in the midst of serious real estate bubbles. Disturbingly, the Canadian bubble is

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You Missed It

Situation in Seattle Shows Why America Has an Unsolvable Housing Crisis and a Real Estate Bubble

What that really means is that the property values of mostly white, upper middle class people are more important than meeting a basic need of working families. It is perfectly okay for waiters to sleep in their cars and the poor to live under bridges as long as the high values of Amazon.com and Microsoft executives’ homes are maintained. Jeff Bezos does not have to worry about anybody constructing an apartment house on his block.

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Long Ideas

Housing Bubble in Canada

One reason why housing is not on the U.S. national agenda is that for most Americans, there is no housing shortage. A quick look at Zillow indicates that prices are actually falling in many markets, including regions in Colorado that are a little over a hundred miles from the red-hot Denver market.

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Market Commentary

Why We Do Not Have a Nationwide Real Estate Bubble

So no, America, we are not in Great Real Estate Bubble Round II; instead, we are in a completely unstable real estate market. My prediction is that housing prices are headed for a major collapse within the next year followed by decades of stagnation. America’s real estate market will end up like Japan’s: plagued by overpriced zombie assets, expensive properties that nobody can afford to buy.

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Good Stocks

Goldman Sachs Is Doing Great, Americans Are Not

The American people are not taking part in the recovery. Almost all the new wealth being generated is going to Wall Street and not Main Street. Goldman Sachs’ revenue increased by $2.38 billion over the past year, while the demand for new housing is 25% lower than it was 10 years ago, according to the National Association of Realtors’ chief economist, Lawrence Yun.

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Long Ideas

Owning a Home Might Not Be a Good Investment

One has to wonder if home ownership has now become so expensive that it has become a drag on the economy. Unfortunately, Zillow’s number crunching indicates that could be the case.

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The Death Spiral

Real Estate Prices Near 2006 Levels or Are They?

A more likely scenario is that the collapse of the bubbles in areas like Denver and the Bay Area will drag down real estate prices nationwide and further depress the market. A real estate market collapse is likely, but it will not be a bubble; instead, it will be deflation as housing costs fall because of lower demand. The factor most likely to trigger that event would be an increase in mortgage interest rates.

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