Juggling Dynamite

This video offers an excellent overview of the compounding cost of short-termism and entitlement thinking in a world of corporations and households who expect endless government support and lower taxes.

The U.S. Government is facing some serious fiscal and monetary issues that don’t seem to have a positive outcome. In this video we will see the problems the U.S. is facing with debt, entitlements, and savings as well as the potential (negative) solutions they can attempt. Here is a direct video link.

The rapid cooldown in real estate threatens to worsen a global economic downturn and is emerging as a key variable for central bankers who want to tamp down inflation. Here is a direct video link.

Also, see The World’s Hottest Housing Markets Face a Painful Reset

In Australia and Canada — two of the world’s bubbliest markets — economists anticipate a notable crunch…

Variable-rate mortgages accounted for nearly 60% of all new [Canadian] home loans at the height of the country’s real estate frenzy earlier this year.

Of the roughly half a trillion Canadian dollars’ worth of variable mortgage debt outstanding, about a third have seen their monthly payments go up in line with the central bank’s benchmark rate, according to research from the National Bank of Canada. Combined with things like lines of credit and fixed-rate mortgages coming up for renewal, these rising interest payments could collectively shave 0.65% off Canadians’ collective disposable income over the next three years, the research shows.

Central banks, like the Bank of Canada and U.S. Federal Reserve, “have their head in the sand because they’re focused on fighting yesterday’s war,” according to David Rosenberg, founder and president of Rosenberg Research.

“All the things (commodities) that were producing the inflation that occupied our minds for the past a year and a half, they’re all unwinding in spectacular fashion as if these central banks have their head in the sand because they’re focused on fighting yesterday’s war,” Rosenberg said in an interview Thursday.

“I imagine a lot of it is because they are so ashamed and so embarrassed of having missed this mini inflation cycle that they’re trying to make up for by being unduly aggressive, just as these inflation indicators principally in the commodity markets are rolling over in significant way.” Here is a direct video link.