by Mish

“I think we don’t expect prices to continue to rise at this pace, however, we don’t see a bubble bursting either,” he said. “I don’t recall a real estate bubble ever bursting that wasn’t preceded by bad economic conditions or some dramatic shock, and nobody is predicting any of that right now.”

“The interesting thing we’re seeing is, it’s a very stable, brisk market,” said Steven B. Schnall, the president of the New York Mortgage Company, a mortgage lender. Mr. Schnall pointed to continued low interest rates as the most important factor in the market. “I don’t see prices continuing to skyrocket,” he said. “They’ve reached a very high level and this almost appears to be a new normal, and interest rates are helping that.”

Flashback …
“Stock prices have reached what looks like a permanently high plateau.”–Irving Fisher, esteemed economist, October 1929

For a visual picture of where the arrow now sits, please consult this chart and mentally adjust the arrow a notch to the right.

In case you missed it, here was the Home $weet Hometop call.

Local markets may vary slightly.

Mike Shedlock / Mish /

Don’t Worry: “It’s Only 1997” Besides “It’s Different This Time”

Two articles in the last two days, one on Bloomberg, the other on the Wall Street Journal, provided key reasons we should not worry about stock market bubbles. 1. It’s only 1997 (P/E valuations have not exceeded the dot-com bubble in 2000 yet) 2.It’s different this time (always a classic argument)

Bitcoin Silliness, Myths, and Fatal Flaws

Over the past months or so I accumulated a number of articles regarding Bitcoin and ICO (initial Coin Offerings) myths and hype.

Brexit Optimism Misplaced: Time for Hardball

I do not understand the optimism in some corners that a deal will be reached. Events in the last two days should open some eyes to the large and increasing chance there simply is no deal.

It’s a Totally New Paradigm

The “nothing can possibly go wrong” talk is rampant again. It’s not stocks this time but Real Estate.

Honeywell Internal Email Shows Airplane Boom Time Over, More Layoffs Coming

A Mish reader who works at Honeywell informed me last week that a huge slowdown was coming in the aerospace/aircraft business.

Time to Panic in Australia

Australians’ private debt has soared to 187 per cent of their income. Debt is up from about 70 per cent in the early 1990s.

Hyperinflation Silliness (Times Two)

The hyperinflation proponents are back at it. This time in two parts, led by Jeff Nielson. The most absurd part of Nielson’s claim is his statement “Hyperinflation has already occurred“. His claim is in reference to the US, not Zimbabwe.

Not Getting It: Michael Moore, Hollande, Merkel, Financial Times, Stephen Colbert

The parade of politicians and media pundits who are totally clueless about what happened and why is miles long.

Hard Times: Sweden Complains It Collects Too Much Tax

As a direct result of Sweden’s tax laws in conjunction with negative interest rates by the central bank, Sweden’s citizens now purposely overpay their tax bills in record amounts as a savings vehicle.