Louis's Blog

The Housing Recovery and the Law of Small NumbersSmall numbers make the recovery look bigger than it isThe current housing recovery is a mirage wrapped inside a delusion. We have rising home prices, rising stock prices and a falling unemployment rate. Sounds great.There is a disconnect, however, ...

Finance advisor to Russia threatens to sell its U.S. dollar reserves if the United States imposes sanctions on Russia. While perhaps not an utter disaster, it would not be good for interest rates. If Russia dumps its us treasury bonds

The U.S. Regulatory agencies along with the IRS, The Department of Justice and the Treasury Department have yet to issue guidelines on how they will treat bitcoin. Aside from the extreme price volatility of bitcoin, a lack of clear regulatory guidance makes transacting in bitcoin very risky. How ...

Mortgage applications dropped to a twenty year low yet the media insists on using the term “recovery” to describe the housing market. People are getting fired by the thousands in the mortgage sector, mortgage applications are down to 20 year low, there are consistently 350K unemployment claims ea...

As fad thin air currency Bitcoin gets more media attention and merchant adoption, the price of bitcoin is falling. Here  is why: most of the Bitcoin accepting merchants are also large sellers of Bitcoin as they are not really accepting Bitcoin; they are processing Bitcoin purchases through compan...

Chart # 1 Annual Existing Home Sales vs. Annual Existing Home Sales By First Time Home Buyers   Chart #2 New Home Sales Take a look at the charts here    

A Stock Market Crash Would End the Housing and Economic Recovery The two pillars of the current economic ‘recovery’ are the stock and real estate markets. That is how the Fed engineered it with their multi-year, multi-trillion dollar quantitative easing (QE) programs. QE has been particularly eff...

    Millennials: Not Part of The Club Yet Failure provides opportunity for new entrants. QE and bailouts, on the other hand, keep economic losers entrenched. It is this dynamic that has kept economic opportunities from millennials. Whether the Fed eventually ceases its QE program, the damage to a...

Here they go again! Outgoing Federal Reserve Chairman Ben Bernanke, Incoming Fed Chair Janet Yellen, and a few regional Fed Presidents have been making the rounds explaining their recent decision to taper quantitative easing  - the Fed's $85 billion a month bond buying program.The theme from the...

    The Fed moved yesterday to decrease its massive Trillion dollar a year money printing scheme to a more modest $900 billion a year. Yesterday, post taper, interest rates didn't move much. This is because yesterday's small taper had been anticipated widely and priced into the market for months ...