Presenting the chart of the week: It’s even Full Doppler Radar Style. This animated chart shows just how fine and dandy everything is in real estate, but there’s a reason for all the excitement…

houseIn a further demonstration of the socially destructive and ever widening gap between the haves and have nots, we see that the affluent are buying second homes at an ever increasing clip (up 30% last year), while first home buyers recede into the abyss as private equity and Chinese buyers make purchasing a home unaffordable for the average American.
Specifically, a recent study from Zillow showed that more than half the homes in seven major American cities are unaffordable based on historical standards. Those cities are: Miami, Los Angeles, San Diego, San Francisco, Denver, San Jose and Portland, Ore.
Nationwide, it found that 1 in 3 homes were unaffordable.

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gold vaultOn this week’s SD Weekly Metals & Markets Dave Kranzler (Dave in Denver) joins the Doc and Eric Dubin for a discussion on real estate, the economy,  & the gold and silver markets. This week’s show covers:

  • This week’s trading: hedge fund short covering going into end of week;
  • 10 year T-bond breaks 3% and closes the week above the critical level!
  • Massive Chinese gold imports continue as 57 tons of gold drained from Shanghai vaults in past week!
  • Kranzler states the real estate market is rolling over- will give up entirety of bear market bounce over Q1 2014!

The SD Weekly Metals & Markets Wrap With The Doc, Eric Dubin, & Guest host Dave Kranzler is below:

worst-is-yet-to-comeA few weeks ago, when Federal Reserve Chairman Ben Bernanke suggested that the Fed may start to “taper” the rate of quantitative easing eventually, the bond market had a conniption and the yield on 10 year U.S. Treasuries shot up dramatically.  In an attempt to calm the market, the Fed stopped all talk of a “taper” and that helped settle things down for a brief period of time.  But now the yield on 10 year U.S. Treasuries is starting to rise aggressively again.
This wasn’t supposed to happen.  Federal Reserve Chairman Ben Bernanke said that he could use quantitative easing to control long-term interest rates.  He assured us that he could force mortgage rates down for an extended period of time and that this would lead to a housing recovery.
But now the Fed is losing control of long-term interest rates.  If this continues, either the Federal Reserve will have to substantially increase the rate of quantitative easing or else watch mortgage rates rise to absolutely crippling levels.
If mortgage rates keep rising like this, another great real estate crash is inevitable.