Weight of housing debt to suppress disposable income and saving ability for years

According to Canadian Real Estate Association statistics, average national home prices have fallen 10 per cent since the heights of April this year.

Change is attributed in part to the Bank of Canada raising interest rates for the first time in years, as well as provincial legislation in Ontario and B.C. aimed at slowing skyrocketing prices in Toronto and Vancouver.

But is this dip in price a blip, a soft landing, or the bursting of a bubble? Here is a direct audio link.

As we listen to this mainstream discussion about whether ‘bubble’ is a fair term for Canadian realty prices, we can consider this chart comparing Canadian real home price moves (in blue) with the US (in orange) over the past 42 years.  Note the US infamous subprime driven-price peak in 2006 (in orange) and the -40% average decline that followed and has not yet recovered a decade later.

In all the circumstances, Canadians would be unwise to think that our price cycle should be kinder.

Even for those that are able to keep making their debt and upkeep payments as rates rise and/or incomes fall, the cash flow they have left to pay for other living expenses and save for the future will be diminished for years while current debt levels are worked down.

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Musk: here’s how we can power the entire US from solar panels

Doing away with unnecessary friction costs and dramatically improving energy efficiency is a huge part of reducing expenditures and increasing savings again in the economy.

“If you wanted to power the entire U.S. with solar panels, it would take a fairly small corner of Nevada or Texas or Utah; you only need about 100 miles by 100 miles of solar panels to power the entire United States,” Musk said. “The batteries you need to store the energy, to make sure you have 24/7 power, is 1 mile by 1 mile. One square-mile. That’s it.”

See:  Elon Musk says it’s possible to power the entire US with solar

You can also watch a clip of Musk discussing renewable energy, storage and electric transportation here on July 15.

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Danielle on The Financial Survival Network

Danielle was a guest on The Financial Survival Network with Kerry Lutz talking about recent developments in the world economy and markets.  You can listen to an audio clip of the segment here.

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Subprime redux: problems brewing in auto loans

It’s classic subprime: hasty loans, rapid defaults, and, at times, outright fraud.  Only this isn’t the U.S. housing market circa 2007. It’s the U.S. auto industry circa 2017.  A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as they’re bundled into securities for investors worldwide. Here is a direct video link.

“Wall Street has rewarded lax lending standards that let people get loans without anyone verifying incomes or job histories. For instance, Santander recently vetted incomes on fewer than one out of every 10 loans packaged into $1 billion of bonds, according to Moody’s Investors Service. The largest portion were for Chrysler vehicles.  Some of their dealers, meantime, gamed the loan application process so low-income borrowers could drive off in new cars, state prosecutors said in court documents.”  Sound familiar?

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Report on Trump business dealings with Russian investors

Craig Unger discusses his investigative piece in The New Republic, “Trump’s Russian Laundromat:  How to use Trump Tower and other luxury high-rises to clean dirty money, run an international crime syndicate, and propel a failed real estate developer into the White House.”  You can read it here.

Unger discussed his findings on Charlie Rose on Friday.

Here is a direct video link.
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Container farmers

Ian Brown and David Pendergast founded Agora Greens in the beginning of 2016 and quickly began building a successful business growing fresh produce year-round in Walpole, Massachusetts. Using the Leafy Green Machine, the two grow a variety of lettuces, herbs and specialty greens for local restaurants, country clubs and farmers markets.  Here is a direct video link to an interview with them.

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