GEI Newsletter 21 May 2011

Below is the Global Economic Intersection Newsletter for May 21, 2011.
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update with the latest posts for 21May2011

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Weekly Highlights 20 May 2011

This is the table that accompanies the weekly economic review article at Global Economic Intersection: Inflation About to Grab Hold? Continue reading at Analysis→

Shiller Explains How to Use his Trailing PE Ratio

by Jeff Miller Caption photo: Prof. Shiller Yale Professor Robert Shiller is widely celebrated for his Cyclically Adjusted Price Earnings (CAPE) ratio. The method uses ten years worth of trailing earnings to account for the business cycle. This allows you to have a "normalized" growth rate. Prof. Shiller has created a database going back into the 19th century. To my surprise, many of the skeptics in the trading community that would normally disparage such an effort as an irrelevant ivory tower enterprise have rushed to embrace these findings. Read more at Investing �

The Two Mortgage, Two House Trap

Econintersect: According to an article by Kate Ashford at Bundle.com, some people are making a big mistake. The error? Playing roulette with home ownership and buying one home with a mortgage before thay have sold the previous home, which also has a mortgage is always a gamble. In the current real estate markets in many parts of the country it can be a long odds bet. In a strong housing market the bet has much shorter odds of going bad. But the nation has many more weak markets than strong markets today. Read more at News �

Seller Financed Mortgages Make Comeback

Econintersect: They were popular in the 1980s when mortgage rates from banks got as high as 18%. Now they are being used in increasing numbers again. The device, usually called a "seller financed mortgage," covers any time payment by a buyer to a seller. They can be the only way to make a home sale to someone who has very poor credit. Someone who has a bankruptcy or a recent mortgage foreclosure has possibly two options in purchasing another home: (1) win the lottery or (2) make a time payment deal with the seller. Read more at News �

Explosive Fusion of World Geopolitical Dislocation and the Global Economic and Financial Crisis

Editor�s Note: This article is republished with permission of LEAP/E2020. See end of article for credits. Almost a year ago LEAP/E2020 identified the second half of 2011 as a new critical point in time in the development of the global systemic crisis. Just like our February 2008 anticipation highlighted a major shock affecting the US economy in September 2008, our team confirms in this GEAB issue that all the conditions have now been met for the second half of 2011 to be the stage for the explosive fusion of two fundamental trends underlying the global systemic crisis, namely world geopolitical dislocation on the one hand and the global economic and financial crisis on the other. Read more at Opinion �

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