Positive or Negative...It's a Point of View

Bernanke has signaled that QE may be coming to an end. This is being called the Taper. The stock market is upset. They think interest rates will go up (they already are). This will make investment capital more expensive. It will move money from equities into bonds. This is not all bad.

Many fixed income people have been suffering from low interest and low bond yields for several years. This will give them money to spend, which will help retail. It will also reduce their dependence on social programs and charity. It could make it a little harder on home buyers, but it may cause some people to be more open to owner financing. It may even cause investors to put properties on the market to turn rent into mortgage income.

In a sense the central banks are saying, “We can do so much. The politicians need to do their part.” Unwillingness to compromise is ruining the economy. It is a shame that congressmen are not paid on a performance basis. Most of them would have to make a contribution.



David Segrest is an International REALTOR in Charlotte, NC. His email is david@segrestrealty.com , His webpage is http://davidsegrest.com , and his international real estate blog is http://dointernationalrealestate.blogspot.com/

The Rise of the 4th Reich

Two world wars couldn’t do it. Germany’s attempts to rule Europe failed both times. Finally, by way of the Euro, it seems as if they have made it. Austerity, which works fine in Germany, has strangled the rest of the countries in the Euro. Now Germany is suing the ECB (European Central Bank) to back off on quantitative easing, which is the only hope for many of the marginal countries and the economy of the rest of Europe.

After the 2nd world war, it was obvious that Germany’s industrial power house was so strong that they would soon out produce the rest of Europe. That would raise the possibility of a 3rd war. Europe had had enough. There were two choices. The Europeans could wait a few more years and have a German Europe, or they could put together the EU and have a European Germany.

Some economists say that the only way the Euro will work is with a true financial union. If that is achieved, Europe will be German in all but name. Who knows? They may even change the name a little further down the road.



David Segrest is an International REALTOR in Charlotte, NC. His email is david@segrestrealty.com , His webpage is http://davidsegrest.com , and his international real estate blog is http://dointernationalrealestate.blogspot.com/