The Fed’s mortgage bond purchases have essentially capped mortgage rates at a historically low level. But probably more important, cheap borrowing and low yields elsewhere incentivize investors to buy/build homes for rental..
Is America becoming a nation of gamblers?
The lure of potential cash windfalls is driving rampant speculation in financial markets and record traffic to casinos.
GDP growth is falling in spite of it all, and prices are pillaging us all. It soon won’t matter that I’ve lost my sense of taste because I won’t be able to afford food anyway.
And when ‘priced’ in terms of ounces of silver, the Corvette in 1971 would have cost 3,572 ounces compared to only 3,308 ounces of silver needed to purchase a Corvette in 2020.
The good news is the crisis may mark the beginning of the end of the fiat monetary system and the welfare-warfare state, along with the dawn of a new era of free markets, sound money, and limited government.
Billionaire Peter Thiel's company, Palantir just bought gold bullion bars worth $51 million and specifically cited a 'Black Swan" event as the reason for doing it. We discuss the reasons why they might be doing that.
