U.K. Home Prices Plunge 3.1% In April

By Fergal O’Brien – Re-Blogged From http://www.Silver-Phoenix500.com

Halifax index shows property values plunged 3.1% in April

Less volatile three-month measure also shows a decline

U.K. home prices plunged the most in almost eight years in April, adding to signs of weakness in Britain’s property market.

Continue reading

Advertisements

Damn The Deficits, Huge Tax Cuts Ahead!

By Peter Schiff – Re-Blogged From http://www.Silver-Phoenix500.com

Donald Trump has made good on one of his most audacious campaign promises by submitting what he describes as the biggest tax cut in U.S. History. For once, at least, this does not appear to be Trumpian braggadocio. It really may be the mother of all tax cuts. But if passed, what may this bunker buster do to the economy? While I have rarely met a tax cut I didn’t like, this one just may be more likely to send the economy into a downward spiral than it is to send up to orbit.

Continue reading

The Hidden Cost of Zero Interest Rate Policies

By Laurence B Siegel & Thomas S Coleman – Re-Blogged From http://www.advisorperspectives.com

Should the Fed raise interest rates? Some believe that ultra-low interest rates are good for investors because they drive up the prices of stocks and real estate, fattening household balance sheets. Others counter that zero rates are an insidious tax, transferring wealth from borrowers to lenders, distorting incentives and misallocating capital for individuals and government and making the American investor poorer over time.

Where you stand on the Fed raising rates is likely to depend on which of these two positions you support.

We think the latter. Zero interest rates – which translate to negative real interest rates after inflation – are a massive transfer of wealth from investors to governments and other borrowers around the world. We’ll show that the scale of the transfer is nearly $1 trillion per year in the U.S. alone and will argue that the zero-interest-rate policy lowers expected returns on stocks and real estate as well.

Low interest rates hurt more than just investors. Everyone suffers because low rates distort consumption and investment decisions, potentially causing economic growth to be slower than it otherwise would be. Initially, in 2008-2009, low interest rates were an element or consequence of a policy of liquidity injection needed to avoid a collapse of the banking system and serious depression. Since then, however, they have become a tool of stimulative macro policy with limited success.

They are disastrous as an ongoing strategy.

Continue reading

The Fed’s Bizarro World Economics: Rising Home Prices, Soaring Stocks, Fallen Real Wages

By Anthony B. Sanders – Re-Blogged From http://www.davidstockmanscontracorner.com

I have often wondered when the media would catch on to the REAL story about why the housing market is so slow to comeback, in terms of borrows applying for a mortgage. Particularly since The Federal Reserve has help the holders of capital with it’s monetary expansion.

Continue reading