Demand for new housing set to pump market bubble bigger

The debate begins at 4 p.m. EST. VANCOUVER — Federal Liberals get their first chance today to directly compare and contrast the nine candidates promising to lead their once-mighty party out of the political wilderness.

  The markets moved higher yesterday because frankly Tuesday is the day for upside moves: thus far in 2013, we’ve had 13 straight Tuesday gains. This, combined with the very short-term oversold basis of several markets, mainly Gold and commodities, gave the “risk on” trade a bump.   From a technical perspective, the S&P 500 is in danger of breaking several critical trendlines:  

Economic and financial market bubbles are scary things. Last spring, we reviewed a list of asset classes that experts considered to be in bubbles. Did any burst? We asked some of our favorite economists and analysts for their assessments of the world of bubbles. Most agreed that the fear bubble in Europe finally burst.

At the end of Wednesday night’s Maple Leafs game, the general manager of the Air Canada Centre was chasing a Boston Bruins fan. Thousands of supporters converged on Maple Leaf Square on Wednesday to watch Toronto lose 4-1 to the Bruins on a 30- by 50-ft. screen projected onto the facade of the ACC.

By Dr. Duru: Zillow's Q3 negative home equity report helps to shed more light on the underlying factors supporting the housing recovery. According to Zillow (Z):

Mayor Rob Ford gave the soundbite of the week when he railed against revelations of fraud in the civil service. “We can’t have employees getting paid to sit there and watch porn,” he told reporters after touring the Toronto Sportsmen’s Show. The chief magistrate was reacting to a new report from Auditor General Jeffrey Griffiths that uncovered instances of fraud by employees or those dealing with the city. It’s the latest in a string of alleged or confirmed misused tax dollars.

The Australia housing market did not bust when it should of and the delay is going to be painful. The bigger the bubble, the bigger the crash, and the Australia bubble is bigger than we saw in the US. On a timeline basis, Australia is about where the US was in 2006, essentially  a state of denial. Developers are offering massive incentives such as cars, furniture, and vacations to move homes while chanting the ever-popular "now is a great time to buy a house" mantra. Gifts Galore