Lead Story: What goes up, must come down. China’s stock market went on an absolute tear over the past year appreciating well over 100% in valuation and drawing in all sorts of speculators and highly leveraged thrill seekers along the way. The fun came to a screeching halt back in June and the market has been in free fall ever since, dropping approximately 40% leaving leveraged day traders saying this. The Chinese are blaming short sellers and “foreign devils” – which is interesting given that the Shanghai market is highly restricted to foreigners and they only make up about 1% of the total market. The Chinese government responded by banning short selling and, in some cases, banning selling altogether since that has worked so well in the past when others have tried it. China is obviously a whole lot larger and more important that Greece (or Puerto Rico) but it certainly doesn’t help to have all three imploding at the same time. The global fallout could be headed your way.
Greek Tragedy: In the never ending Greek drama, creditors have given the broke nation until Sunday to come up with an acceptable financial reform package or else it will get kicked out of the Euro for good. They allegedly really, really mean it this time too…. As Greece runs out of money, one beneficiary from this ongoing mess has been digital currency bitcoin which is apparently not just for drug dealers, hackers and video game nerds anymore. One group that is most certainly not benefiting is Greek small business owners.
Least Dirty Shirt in the Hamper: The economic chaos in Greece and China is starting to weigh on the Federal Reserve and may be making them more reluctant to raise rates. Economist Tim Duy accurately describes the slow and steady US Economy as an “island of mediocre tranquility in the midst of the stormy sea of the global economy.”
China Crash Question: The verdict is still out on whether the collapse in the Chinese stock market will lead to an increase or decrease in foreign buyer demand for US real estate.
Double Dog Dare: According to John Burns Real Estate Consulting, landlords in certain cities are raising rents so aggressively that they are daring renters to become home buyers. JBREC believes that more renters might start accepting that dare.
Reading the Tea Leaves: One good sign that the home building market is staging a comeback – A large private land developer is planning an IPO.
Celebrity Drought Shaming: I have to admit that celebrity droughtshaming is only thing that I actually enjoy about this drought. There is just something great about watching vapid, hypocritical Hollywood folks get called out for their water use excess in national news outlets. Tom Selleck was in the news yesterday for allegedly stealing hydrant water. Classy.
Image of the Day
The US as mapped by total housing value. Click on the link below for animated version. It’s fascinating.
Incest: A new study done by AncestryDNA found that there is roughly a 1 in 30 chance that you will have sex with a cousin in your lifetime. In Alabama, the odds are more like 1 in 5.
Game Shows: Japanese game shows sound like a lot of fun.
Wannabe Walter White: Former Miss Nevada Katie Rees was arrested for trafficking meth.
Video of the Day: Watch a BBC reporter get urinated on by a sheep while on TV.
Weird News: How oddball items came to dominate the news business. For some anecdotal evidence, I can see which links get clicked the most on this blog and can assure you that WTF items are the most popular.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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