Rates of 0.25% and the word “recovery” do not belong together. The Fed is currently maintaining rates at levels usually reserved for dealing with Crises, NOT recoveries. Heck, the Fed kept rates higher than current levels during the recession following the TECH BUST
Fabio De Masi, a German lawmaker from the Die Linke party is pushing the ECB to consider alternative policy options because QE combined with austerity "will only inflate asset bubbles as nobody invests despite ultra-low interest rates", adding "we hence need to spend directly into the economy. Funding public investment via EIB would be my preferred option but helicopter money to low income households would definitely work."....
From the FT
“You recently cited the potential legal obstacles to the deployment of helicopter money,” the MEPs say in the letter, which will be sent to Mr Draghi on Friday. “However, several eminent economists have already outlined how helicopter money could be distributed directly by the ECB, without going through government accounts and remaining in compliance with the EU Treaties.”
5--Housing bubble or housing prosperity?
I believe today’s housing market represents housing prosperity. While it’s true that the powers-that-be reflated the old housing bubble with interest rate stimulus, this only represents a bubble if house prices crash. As long as mortgage rates remain low, the likelihood of a severe price crash like 2007-2012 is highly unlikely. Further, I don’t believe mortgage interest rates will be allowed to rise because of the disruptive effect such a rate hike would have on housing. So no, this is not a bubble.
6--Banks reeling as bubble-era HELOC delinquencies double in one year
When mortgage mania was at its peak in 2005, millions of homeowners tapped the equity in their homes through home equity lines of credit.
It’s now time to pay the piper.
HELOCs come with 10-year grace periods, so 2015 marked 10 years after the frothiest borrowings. In March, delinquencies were up 87% compared to a year ago among 2005 second lien HELOCs – those that stand behind a mortgage on the property – data provider Black Knight said Monday.
7--San Francisco’s Housing Mania May Finally Have Reached Its Limit
San Francisco no longer ranks on a list compiled by brokerage Redfin of the 20 hottest U.S. housing markets. Denver, Seattle and Portland, Oregon, are now taking the lead, according to a June 9 report that tracks listed homes expected to sell within two weeks. The California city surpasses those markets in the percent of homes sold above the list price and the average sale-to-list price ratio
Before the revolution, Libya was a secure, prospering, secular Islamic country and a critical ally providing intelligence on terrorist activity post–September 11, 2001. Qaddafi was no longer a threat to the United States. Yet Secretary of State Hillary Clinton strongly advocated and succeeded in convincing the administration to support the Libyan rebels with a no-fly zone, intended to prevent a possible humanitarian disaster that turned quickly into all-out war...
Despite valid ceasefire opportunities to prevent “bloodshed in Benghazi” at the onset of hostilities, Secretary Clinton intervened and quickly pushed her foreign policy in support of a revolution led by the Muslim Brotherhood and known terrorists in the Libyan Islamic Fighting Group. One of the Libyan Rebel Brigade commanders, Ahmed Abu Khattala, would later be involved in the terrorist attack in Benghazi on September 11, 2012. Articulating her indifference to the chaos brought by war, Secretary Clinton stated on May 18, 2013, to the House Oversight Committee and the American public, “Was it because of a protest or was it because of guys out for a walk one night and decided they’d go kill some Americans? What difference, at this point, does it make?”