As the builders keep adding to the supply glut in the real estate market they are only compounding the problem. A nasty little twist has occurred as foreclosures mount and homebuilders try to compete with ultra low pricing available in the existing home market. The builders are not only adding to the supply glut, but forcing prices down as they do so….
Category: Chart Of The Day
(Just Charts)
CHART OF THE DAY: COCAINE PRICES
The Economist notes: THE street price of cocaine varies enormously. The drug costs less in South and Central America, where most cocaine is produced, but it is also low in [ … ]
THE U.S. CREDIT CRISIS: JAPAN ON FAST FORWARD?
The U.S. credit crisis has some striking similarities to the Japanese credit crisis of the 90’s. The one glaring difference is that the U.S. appears to be doing everything at mach speed:
CHART OF THE DAY: REVISITING THE MARCH LOWS?
According to Bloomberg and Jim Reid, we’re likely to see much lower valuations (and stock prices) at some point in the next few years: June 22 (Bloomberg) — U.S. and [ … ]
IS THE CURVE STEEPENER TRADE OVER?
Bloomberg’s chart of the day notes the extreme spread between10 year treasury yields and CPI. We’ve noted before that the reflation trade is overdone and the inflation fears are unfounded [ … ]
CHART OF THE DAY: GLOBAL FOOD PRICES
The Economist notes: CHANGES in global food prices are affecting some countries much more than others. Despite a big fall from peaks in 2008, food-price inflation remains high in places [ … ]
CHART OF THE DAY: THOUGHTS ON CORPORATE SPREADS
Great thoughts here from David Rosenberg: Chart 2 is a bar chart of Baa corporate spreads comparing where we are (374bps) to where we were (611bps at the end of [ … ]
CHART OF THE DAY: TOBIN’S Q
The stock market is undervalued according to Tobin’s Q:
CHART OF THE DAY – HOME PRICES TO DECLINE UNTIL 2012?
Great chart here from Bloomberg. This recession is so powerful that the usually invulnerable high end consumer might actually be at greater risk than the low end. The more expensive your home is the greater the likelihood of a prolonged price decline: