US trade deficits seem to be expanding, placing pressure on the dollar. However, central banks around the world are just as irresponsible as the Fed, masking the relative devaluation of US money.
Original Article: "US Trade Deficits Are Growing Larger. Or Are They?"
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Read More »Like the USA, Canada has had a central bank–fueled housing boom. Like all other booms, it also has an inevitable ending.
Original Article: "Canada’s Housing Boom Was a Bubble. Now Comes the Bust"
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The latest Canadian housing data showed a slight uptick in prices and a pause from 2022’s correction, and a new wave of dip buyers has already begun to call this a buying opportunity, as if valuations at ten times average annual income and 50 percent more expensive than their cash flows were anything but still extremely overvalued.
This is merely the most recent development in what appears to be the end of Canada’s massive housing bubble and the beginning of a potential 2008-style recession for the Canadian economy.
Statistical Evidence
Following the 2008 global financial crisis (from which Canada emerged relatively unscathed), the Bank of Canada’s record-low interest rate policy fueled an unprecedented bull market in Canadian real estate.
While prices showed
The standard narrative around current bank failures is that they occur because of a lack of regulation. Credit Suisse was heavily-regulated; that was the problem.
Original Article: "Credit Suisse Collapsed Because of Government Intervention, Not Despite It"
This Audio Mises Wire is generously sponsored by Christopher Condon.
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Credit Suisse, one of the fifty largest banks in the world, has joined the long list of Western banks over the past two decades that have been rescued from the brink of failure and subsequently acquired by a larger financial institution.
After comments from the chairman of the Saudi National Bank triggered the evaporation of almost a third of the megabank’s market capitalization, the Swiss National Bank (SNB) announced the creation of a new facility to preemptively strengthen Credit Suisse’s liquidity (i.e., bail the bank out in order to prevent a full-blown financial crisis).
This was followed over the weekend by the announcement of UBS’s intentions to purchase the bank at a significant discount with the full support of the SNB, while over fifteen billion dollars
