TEA PARTY ECONOMIST

The TEA PARTY ECONOMIST Ron Paul's original staff economist, Dr. Gary North! Saturday, February 16, 2013

WEEK IN REVIEW: The top stories of the week Americans Are Tapping into Their Home Equity for Loans. Americans are borrowing against home equity once again. These loans were up by almost 20% in 2012. Some of these ignorant people are converting their home mortgages into personal loans. If they live in states where mortgages are non-recourse loans, where the lender cannot come after them if they default, they lose this legal protection... READ MORE 3% Down Payments: The Government Wants Another Housing Bubble The government is pushing for loosened rules governing down payments. The idea that a borrower should pay 20% down is anathema. What about 10%? Too high. I think 3% will satisfy legislators. Maybe 5%. But not much over 5%. They want another bubble. Without government subsidies, the housing market would be very different. But voters... READ MORE New Housing Boom: Duplexes, Triplexes, and Quads We have heard the good news. The housing new home market is booming. It is, indeed: for rental units. But what about single-family homes to sell to the middle class? Not so much. Home ownership is lower now than it was in 2007. This means that the construction boom is targeting renters. Why? Because the... READ MORE Currency War: You Lose, Exporters Win A currency war is in progress. Central banks are inflating. This lowers the value of their currencies. Then other central banks inflate. “We will win the war of currency debasement!” Who wins? Exporters. Who loses? Consumers. When a nation’s currency increases in value compared to others, its consumers can buy foreign goods cheaper. This is... READ MORE House: $58m in 2006. Sold for $29m, 2012. Property Tax, 2011: $7,900. Hmmmmm. Someone thought he had a really good deal in 2006. It was listed for sale in 2006 in San Francisco in for a mere $58,000,000. A steal! A once-in-a-lifetime opportunity. “Don’t rent. Own.” It just sold for a little under $29 million. Easy come. Easy go. But there is the matter of property taxes. The... READ MORE