Tag Archives: Interest Rates

A Random Walk Through the Minefield

In the last 48 hours, so much news has come out of Europe that has me frankly shaking my head. It is a strange game of brinksmanship they are playing, and it is one we should be paying attention to (as if the brinkmanship played by US politicians over the debt ceiling is not enough). This week we look at what seems to be European leaders taking random walks through the minefield at the very heart of the European Experiment. Continue reading

Posted in Economic News, Fresh Perspectives | Tagged Debt, GDP, Greece, Greek Default, Interest Rates, Ireland, Portugal, Spain, The Euro, The Fed | Leave a comment

The “Miracle” of Compound Inflation

Higher inflation means US debt is easier to pay back, as nominal GDP is what we pay taxes on, not inflation-adjusted. Inflation is a tried and true method of dealing with too much debt. Inflation is also just another word for default, but it sounds so much better to the ear. Continue reading

Posted in Economic News, Fresh Perspectives | Tagged Debt, GDP, Inflation, Interest Rates, The Dollar | Leave a comment

What If Home Prices Were Counted In Inflation?

The Fed makes banking policy decisions, largely influenced by the level of inflation, yet home prices are excluded from the calculation. As home prices skyrocketed, inflation – as it felt to people on the street – was probably underestimated. With today’s falling home prices, we could be in a more deflationary environment than economists give credit. Continue reading

Posted in Home Economics | Tagged Deflation, Home Prices, Inflation, Interest Rates, The Fed | Leave a comment

Lack of Pendulum Swing

If we want home prices to bottom, well then we must let them fall. Continue reading

Posted in Fresh Perspectives, Home Economics | Tagged Buying vs. Renting, HAMP, Home Prices, Housing Bubble, Interest Rates, Stimulus, Tax Credits | Leave a comment

Housing: 2010 Bright Spots Fading

The few bright spots appear to be a result of government stimulus, the homebuyer tax credits in particular. However, rather than jump-starting the market, the government’s interventions seem to have only had a temporary effect that evaporated as the stimulus expired.

Housing supply vastly outstripped demand in 2010, especially when one considers the shadow inventory of homes with mortgages in default or foreclosure. This state of affairs continues into 2011. As a result, RPX metrics continue to show weakness. Continue reading

Posted in Newsletter, Real Estate Data | Tagged Home Prices, Interest Rates, Stimulus, Tax Credits | Leave a comment