News Story of the Day: In the United Kingdom, the property boom is now larger than the 2007 housing bubble in the United States. Those are the words from Bank of England (BoE) governor Mark Carney, who noted that he’s concerned about the rise in buy-to-let (BTL) mortgages in Great Britain.
Speaking to a panel of Members of Parliament (MPs):
“We think developments in the buy-to-let market have warranted heightened scrutiny and have done so for some time.
“As a general rule, any time you see a very sharp and sustained increase in activity in one area … it at least bears heightened scrutiny.”
Why is he concerned about BTL mortgages? BTL mortgages reset their interest rates at higher rates once the central bank changes the rates. These types of mortgages are given to borrowers who have lower credit ratings than the typical regular homeowners.
Chart of the Day: Is oil today really as cheap as it’s ever been? On a historical basis, dating back to more than a century ago, no.
According to a new chart by Deutsche Bank (via MarketWatch), on a historical level, black gold isn’t really that cheap. Since then, a barrel of oil has averaged about $47, which is only $17 more than the price today.
“So current levels are low but not exceptionally low relative to long-term history,” said Jim Reid, macro strategist at Deutsche Bank, in a Wednesday note.
Illustration of the Day: Bernie Sanders, the Vermont self-identified socialist senator, is gaining tremendous momentum in his campaign for the Democratic nomination. Sanders is leading in the state of New Hampshire and is tied in Iowa (SEE: Boston Globe endorses Hillary Clinton – shows it likes statists, cronyists, hypocrites), and it’s likely because he’s promising free stuff for all. It’s a far cry from the other anti-establishment candidate, Ron Paul, in 2008 and 2012 who wanted freedom and liberty for all. This illustration (via Mark Perry of American Enterprise Institute) provides a different take on the “fish for a day” adage.
Quote of the Day: Today’s quote comes from Ayn Rand in her book “For the New Intellectual.” Here she writes:
“When a man, a business corporation or an entire society is approaching bankruptcy, there are two courses that those involved can follow: they can evade the reality of their situation and act on a frank, blind, range-of-the-moment expediency – not daring to look ahead, wishing no one would name the truth, yet desperately hoping that something will save them somehow – or they can identify the situation, check their premises, discover their hidden assets and start rebuilding.”
Video of the Day: A new video shows migrants attacking residents in Calais, France on their own property.
From InfoWars:
The footage, shot this past weekend, shows a horde of migrants aggressively marching towards a residential street as two men stand outside the gate of their home.
Some journalists and pro-migrant protesters attempt to stop the assault, but it soon escalates as the “refugees” begin throwing tires, pieces of wood and other objects at the two men.
The two men retreat into the front yard of their property as more objects are thrown. One of the men is clearly enraged by the assault and gestures aggressively towards the migrants.
The other man then displays an airsoft rifle in defense of his property while more objects continue to be hurled.
Some of the left-wing pro-migrant demonstrators attempt to deter the attack but others encourage it, with one chanting, “Nazi scum” at the residents.
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