Investment Markets Overview – w/e 1 Nov 2103

Higher home ownership poses a risk to employment, according to economists David Blanchflower and Andrew Oswald, in an October policy paper published by Chatham House and the Centre for Competitive Advantage in the Global Economy at the University of Warwick, U.K. They say that as Western governments have intervened in housing markets through subsidies, guarantees or tax allowances, residential property owners have held back development in their areas whilst ownership has restricted job mobility, particularly for the unemployed. The article certainly has a ring to it, albeit that it’s difficult to quantify the authors’ conclusion that, “a 1 percent increase in

home ownership is estimated to lead to a 2.2 percent gain in unemployment over the long term.” That said, they make sense in stating that, “governments should encourage more rentals instead of providing financial incentives to those buying homes.” Better still, government should keep out of market intervention altogether.

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional commentaries:-   

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • Returning to the subject of home ownership,   . . .
     

  • Charts:-
    1. Indices Weekly
    2. US M2 Velocity vs US CPI Y on Y
    3. IMF Euro-Area M1 MS Growth Rate vs Euro-Zone CPI Expectation Y on Y
    4. Japan Housing Starts Y on Y vs Japan Retail Trade Y on Y
    5. Commodity 1 Week Moves
  • Table:-

13 Indices, 11 columns of detailed information, for accurate analysis

Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others.”       Ayn Rand philosopher

Click  HERE to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section

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