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China Moves Toward Recession, as Austrian Theory Predicts

Written by Gary North on November 23, 2011

The Austrian theory of the business cycle is clear: when a central bank inflates, it will produce a boom. When it slows the rate of monetary inflation, the result is economic recession. I have written about this here. China’s central bank has been the most inflationary of any industrial nation. Now it has slowed, because […]

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Should I Buy an Investment House for $30,000, Cash?

Written by Gary North on November 18, 2011

I plan to do this. It’s in a nice neighborhood in a bedroom community 40 minutes from Atlanta. It’s a foreclosure. But aren’t housing prices likely to fall? Yes. The latest data indicate that foreclosures rose by 14% between the second quarter and the third. This indicates that the inventory of unsold homes is rising. […]

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Housing Starts Remain Deep in the Tank — Falling

Written by Gary North on November 18, 2011

Housing starts in October were 628,000, down from September’s revised figure of 630,000. Let’s be clear here. These are annual figures, not monthly. In 2005, the rate was over two million per year. The 628,000 included apartment houses. Single-family dwellings were 430,000. This is what people with the credit to buy want to buy. There […]

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Sweet Deal: Fannie Mae/Freddie Mac Heads Make $6m a Year

Written by Gary North on November 16, 2011

And you think a government job doesn’t pay well.  Think again. The top six executives at the two busted, bailed-out, nationalized outfits got $35 million for two years of hard, hard work. The two heads got half of that. This year, they may clear $6 million each. “Nice work if you can get it, and […]

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In Need of Repairs: Profits Collapse at Lowe’s

Written by Gary North on November 16, 2011

Profits at Lowe’s, one of the two major home repair suppliers, fell by 44% in the third quarter. Lowe’s sells to customers who are improving their lifestyle by upgrading their homes. This is necessary when selling a home. But homes are still not selling. Owners are out of money to make repairs. They sense that […]

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A Little Good News on Housing

Written by Gary North on November 14, 2011

Inventories of existing homes fell 16% over the last 12 months. This means that the number of sellers of homes competing with each other has fallen. This points to stabilization of prices. Problem: this does not count “shadow inventory”: repossessed homes, abandoned homes, and other non-traditional sources of housing. But this does point to some […]

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