Yale economist Robert Shiller says long-term low interest rates alone won’t be able to “fix” the nation’s housing slump and might even hurt demand. Here is a direct link.
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Yale economist Robert Shiller says long-term low interest rates alone won’t be able to “fix” the nation’s housing slump and might even hurt demand. Here is a direct link.
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Monetary intervention is not a science and it is not an art, rather it is an idiosyncratic formula which will destroy the free enterprise system it purports to support.
Note to Goldbugs….contrary indicator alert…..“I want to own gold and short other things,” Gartman said…..
http://www.indexuniverse.com/sections/features/14784-gartman-buying-gold-but-not-a-gold-bug-.html
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If someone is in the US market to buy a home or other real estate, he or she needs to pay attention – a major turn is now underway. Watch to see the inflow of funds from offshore. This is not only funds returning but investors around the world looking to exchange their dollars for tangible assets to protect themselves from debasement of the dollar denominated deposits and securities they hold. Watch to see what the renegotiation of federal tax policy and the re-engineering of the federal budget in response to the “fiscal cliff” do to reposition housing and real estate prices and cost of financing for an inflow looking for large accumulations.
The way the Fed has engineered the Slow Burn to date is to continually offset monetary inflation with labor deflation. It is worth contemplating how much labor deflation will be required to offset QE3 and how sufficient additional labor deflation might be engineered. Ben Bernanke was quite clever to tie QE3 to unemployment. The problem has become the solution, which is the basis for QE-Infinity.
Also, pay attention to U.S. inflationary pressures because they were were higher in September, as the U.S. future inflation gauge climbed to 103.4 from an upwardly revised 101.0 in August, originally reported as 100.6, according to data released on Oct.5 morning by the ECRI.
“The USFIG jumped in September to an 18-month high,” ECRI Chief Operations Officer Lakshman Achuthan said in a release. “Thus, U.S. inflation pressures have moved up a notch.”