Here are just two data points hinting at big potential movement in the real estate market. Sounds like the click of seat belts to me… buckle-up buttercups.
Royal Bank of Scotland Plcs RBS.L securities unit will now exit its U.S. mortgage trading business after originally planning to shrink it by two-thirds.Exiting mortgage backed-security, commercial real estate and commercial mortgage-bond sales and trading “is a necessary part of repositioning our US business,” an RBS spokesman said in an emailed statement.” – Reuters
…billionaire Tilman Fertitta [issues] …dire warning about the state of the “crazy” US real estate market, which he believes set for an imminent crash… That, and his take on inflation: “There is huge inflation going on right now.” – Bloomberg TV via Zero Hedge
Meanwhile from the rising East we hear the clink-clank of stacking gold bars. I don’t read this as economic war preparations – that’s been going on for a long time. To me it just sounds like more seat belts clicking.
Just as China is buying ‘cheap’ oil with both hands and feet, so Russia, according to the latest data from The World Gold Council (WGC) has been buying gold in huge size. Dwarfing the rest of the world’s buying in Q3, Russia added a stunning 55 tonnes to its reserves, as The Telegraph reports, Putin is taking advantage of lower gold prices to pack the vaults of Russia’s central bank with bullion as it prepares for the possibility of a long, drawn-out economic war with the West.” – Zero Hedge
If you mix in all the news about the world walking away from the U.S. Dollar for trade it’s clear… the global economy is gearing up for a reset – again.
What to do?
- When it pops, don’t panic. Many of us woke-up the last time the bubble popped. I suspect more folks will follow soon.
- Have a transition plan that includes shelter, food, work. Think of this plan as a bridge over the ravine the powers-that-be dug with their artificial stimulus and market rigging.
- Consider extreme downsizing – like a small or tiny house.