A roundup of what the Globe and Mail's market strategist Scott Barlow is reading this morning on the world wide web.
Using Goldman Sachs research, the FT's Alphaville site has declared the Canadian housing market "barmy." Any argument can be made about the domestic real estate market at this point. The important distinction for me is "stock versus flows." In terms of flows, Canadian homebuyers are still able to afford their mortgages based on current incomes and mortgage rates. But stock – total household debt to income – looks unsustainable.
A U.S. report on 2008 auto bailouts highlights the auto industry as a policy thorn in the side for developed world economies. The industry is hyper-competitive, over-supplied and ripe for contraction but no national government will allow the job loss that comes from removing subsidies.
The Fly is a persona developed by a U.S. hedge fund manager. His blog is not for the squeamish – he's purposefully offensive for comedic purposes, so it's not to everyone's taste. But, it's also the most honest, detailed, transparent look at aggressive stock picking and portfolio management available on the Internet. Mr. Fly detailed his new investment strategy yesterday.
I won't have anything to say publicly about the latest Rob Ford revelations, but every period of heightened political emotions has me going back to read my favourite essay, "The Wrong Lessons of Iraq."
So, you thought London house prices were barmy… - Alphaville
U.S. lost $11.2-billion in GM bailout, TARP report says – Bloomberg
Is Apple the harbinger of a bond market crash or just extremely clever/lucky with its timing? – WSJ Moneybeat
Australia warned of looming debt crisis – WSJ (paywall, but headline is telling)
It's a lot simpler than I thought – The Fly
Diversion: The wrong lessons of Iraq – The Last Psychiatrist