Time for deflation? Yes of course for the inflated job titles in the Investment banking arena, is finally a new bubble bursting? Goldman Sachs Just Says ‘Vice President’ to Be Polite

Time for deflation? Yes of course for the inflated job titles in the Investment banking arena, is finally a new bubble bursting? Goldman Sachs Just Says ‘Vice President’ to Be Polite

Goldman’s theory, on the other hand, is that “vice president” is a “courtesy title” handed out to roughly one-third of its employees, and of course they’re not all officers

There are thousands of them, and they are called that mainly to reassure clients that the awfully young-looking person running their merger is a senior executive and global head of something or other, and can therefore be trusted to make important decisions with no adult supervision

Global (or U.S., or European, or …) head of something or other is an even more abused title than vice president. At this point people have mostly figured out that there are a lot of VPs, but the benefits of the global-head title are that:

It is unique, in the sense that there can be only one global head of any particular thing,

It is infinitely expandable, in the sense that there are unlimited things to be global head of, and

It is entirely informal and can be made up on the spot.

So, well…….time for deflation indeed

http://www.bloombergview.com/articles/2014-09-04/goldman-sachs-just-says-vice-president-to-be-polite?alcmpid=view

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Bubbles in world’s housing markets… it depends on Location, location, location….is Malta an exception?

Bubbles in world’s housing markets… it depends on Location, location, location….is Malta an exception?

Economist interactive guide to the world’s housing markets

HOUSE prices are going through the roof. They are rising in 18 of the 23 economies that we track. And in eight of them, prices are increasing at a faster pace than three months ago. Yet there are also weak spots, particularly in Europe. Prices in Spain, which had one of the biggest property bubbles before the crisis, are still falling. They have kept declining in France and Italy too. In contrast, housing markets are buoyant in some northern European countries, notably Britain and Sweden, and especially so in their capital cities.

Since some form of recovery was bound to occur after the housing slump, how worrying are the renewed signs of exuberance? To assess whether house prices are at sustainable levels, we use two yardsticks.

  • First is affordability, measured by the ratio of prices to income per person after tax.
  • Second is the case for investing in housing, based on the ratio of house prices to rents, much as stockmarket investors look at the ratio of equity prices to earnings.

If these gauges are higher than their historical averages then property is deemed overvalued; if they are lower, it is undervalued.

Based on an average of these measures, houses are at least 25% overvalued in nine countries. Judged by rents, the most glaring examples are in Hong Kong, Canada and New Zealand. The overshoot in these economies and others bears an unhappy resemblance to the situation that prevailed in America at the height of its boom, just before the financial crisis. Explore the data in our interactive chart below (updated on August 27th 2014) and try to spot which bubble might pop next

Malta is a small country, at the moment far from the crowds’ minds with a relatively cheaper property’s price…….the limited offer, due to the size, is in strong contrast with an exploding demand driven by 3 factors:

  • large global projects and investments in the island
  • increasing demand from foreigners, individuals and companies, for living, working, investing, vacation, etc
  • steadydemand growth from local people, due to a good buying power and continuous investment in real estate, a real asset almost tax-free, with high cashflow expectations from short and long term lets

http://maltaway.wordpress.com/malta-mercato-immobiliare/

http://www.economist.com/blogs/dailychart/2011/11/global-house-prices?fsrc=nlw|newe|2-09-2014|5356c450899249e1ccb3081a|

http://www.economist.com/news/finance-and-economics/21614165-house-prices-europe-are-losing-touch-reality-again-deflating-bubbles

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European Bond Market: Bubble of all Bubbles!

European Bond Market: Bubble of all Bubbles!

 

Some exceptions apart, like Malta (see the last GDP data), no competitiveness without structural reforms

Mario Draghi even alluded to this in his speech last week, that he can only do so much for what ails Europe, and the real solution for European growth must come in the form of structural reforms, and making these countries more competitive like South Korea, China and the United States on a global competiveness scale; shoot even Mexico is starting to get their act together compared to Europe

 

http://www.zerohedge.com/news/2014-08-27/european-bond-market-bubble-all-bubbles

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