Al Goldstein, R.I.P.

Al Goldstein, notorious publisher of the newsprint porn mag
Screw, designed to be a gleefully and proudly crude
Consumer Report of sex” from its 1968
founding, is dead.

While considered the most vile of pornographers by most, he was
well regarded by many independent cartoonists to whom he gave early
work (including Reason‘s own Peter Bagge) and briefly
dallied with the Libertarian Party as well–quite understandable
for an American who faced federal prosecution and arrest just for
publishing a magazine.


William F. Buckley found Goldstein’s presence
as a delegate to
the L.P.’s 1992 presidential nominating convention a sign of the
Party’s downfall. He got
press in 1991 for announcing a run
against Broward County,
Florida, Sheriff Nick Navarro, famous for prosecuting porn rappers
Two-Live Crew; he hoped to
run under the L.P. banner
but as near as I can tell that didn’t
actually happen


The NY Times obituary
. Details from it about his legal
troubles:

With renown came obscenity arrests and lawsuits, which Mr.
Goldstein in turn milked for maximum publicity. (He also wrote
countless scathing editorials accusing his accusers of hypocrisy,
often accompanied by crude photo collages showing them engaged in
humiliating sex acts.) Mr. Goldstein, claiming First Amendment
protection, beat most of the charges, occasionally paying nominal
fines.

In 1973, though, a United States Supreme Court
decision
 made it easier to prosecute pornographers. Before
then, one legal test for obscenity was whether a publication was
“utterly without redeeming social value.” The 1973 decision
broadened the definition to include material that lacked “serious
literary, artistic, political or scientific value,” and it
empowered communities to set local standards for whether such
material was obscene.

This led federal prosecutors to direct some postmasters in
Kansas to order copies of Screw. Upon delivery, Mr.
Goldstein was charged
 with 12 obscenity and conspiracy
counts and faced up to 60 years in prison.

His lawyers argued that the anticensorship diatribes in Screw
made the magazine sufficiently political, though Mr. Goldstein
himself ridiculed this defense, insisting that a reader’s erection
“is its own redeeming value.” After three years and two trials his
conviction in the first was overturned, and the second ended in a
hung jury. Mr. Goldstein’s company, Milky Way
Productions, paid
a $30,000 fine
 in return for the dropping of personal
charges against him and Mr. Buckley.

I find that line about an erection being its own redeeming value
admirably to the point.

My pal Ken Kurson at NY Observer
eulogizes him nicely
:

Al Goldstein was a much more complicated man than the “crude,
obese pornographer” character he himself helped create. He was a
passionate defender of the First Amendment, and not just out of
self-interest—he deeply understood how important it was to
America’s greatness and viewed its defense as the height of
patriotism. 

Al Goldstein was generous, both with his money and time. When I
was new to New York City, he took me under his prodigious wing and
introduced me to a crazy cast of first-rate cartoonists like Danny
Hellman and Sam Henderson, classic NYC has-been celebs like Al
Lewis, and a bunch of over-the-hill porn starlets who were still
something to behold. He was an extremely proud Jew and that made an
impression on me. I also was touched by how proud he was of his
son, and how he wrangled a mention that the boy went to Harvard
into every conversation….

New York City has lost a true character and a good guy.

from Hit & Run http://reason.com/blog/2013/12/19/al-goldstein-rip
via IFTTT

Two Months After Debt Limit Suspension, Borrowing Grows and Grows

On October 17, Congress suspended the statutory debt limit and
let the U.S. government’s spendthrift freak flag fly. As I
wrote at the time
, public debt outstanding jumped overnight by
$328 billion. Woo hoo! Those credit card bonus miles are gonna be
through the roof!

Since then, borrowing has slowed, but certainly not stopped
(hey, we’re talking about the U.S. government, here). Between
October 17, 2013 and December 17, 2013, the total of public debt
outstanding rose from $17.076 trillion to
$17.269 trillion
.

That’s $17,268,587,651,056.23, if you’re a big fan of
commas.

Public debt

If it makes you feel any better, the Congressional Budget Office
expects, in its long-term budget
outlook
, public debt to start dropping a bit, soon, as a
percentage of Gross Domestic Product. Unfortunately, that’s just
before it begins a long, steady metastasis that will devour the
country’s economy.

Public debt

The consequences of that rising debt, the CBO says, aren’t
pretty:

How long the nation could sustain such growth in federal debt is
impossible to predict with any confidence. At some point, investors
would begin to doubt the government’s willingness or ability to pay
U.S. debt obligations, making it more difficult or more expensive
for the government to borrow money. Moreover, even before that
point was reached, the high and rising amount of debt that CBO
projects under the extended baseline would have significant
negative consequences for both the economy and the federal
budget:

  • Increased borrowing by the federal government would eventually
    reduce private investment in productive capital, because the
    portion of total savings used to buy government securities would
    not be available to finance private investment. The result would be
    a smaller stock of capital and lower output and income in the long
    run than would otherwise be the case. Despite those reductions,
    however, the continued growth of productivity would make real
    (inflation-adjusted) output and income per person higher in the
    future than they are now.
  • Federal spending on interest payments would rise, thus
    requiring larger changes in tax and spending policies to achieve
    any chosen targets for budget deficits and debt.
  • The government would have less flexibility to use tax and
    spending policies to respond to unexpected challenges, such as
    economic downturns or wars.
  • The risk of a fiscal crisis—in which investors demanded very
    high interest rates to finance the government’s borrowing
    needs—would increase.

It’s certainly reassuring that lawmakers are diligently
hammering out a budget package that actually causes the federal
government to spend more money
in the future than it
would absent the deal and totally ignores the very real fiscal
problems that beset the leviathan in D.C.

from Hit & Run http://reason.com/blog/2013/12/19/two-months-after-debt-limit-suspension-b
via IFTTT

62 Percent Think E-Cigarette Use in Public Should be Allowed Despite Expected FDA Regulations

Time magazine
says
, “Regulations of electronic cigarettes are expected to be
a top priority for states and cities in 2014.” Indeed, many
districts have placed or are considering placing bans on the
tobacco-free nicotine delivery devices and the Food and Drug
Administration plans this month to issue guidelines regulating
e-cigarettes as a tobacco product. But Americans don’t want the
government interfering with people’s ability to use
e-cigarettes.

The
new Reason-Rupe poll
finds that 62 percent of Americans think
the government should allow people to use tobacco-free electronic
cigarettes in public places while 34 percent say the government
should prohibit this activity.

Non-partisan independents (66 percent) and independents who lean
Republican (68 percent) are more likely than Democrats (58 percent)
to think government should allow people to use e-cigarettes in
public places. Nevertheless, majorities of all political groups
think electronic cigarettes should be allowed, including 63 percent
of Republicans and 61 percent of Independents who lean
Democratic.

Self-identified libertarians are 22 points more likely than
self-identified liberals to say the government should allow this
activity (77 percent to 55 percent).

Older Americans are much more opposed than younger Americans to
e-cigarette use in public.  Forty-two percent of people ages
55 and over favor a government ban on the public use of
e-cigarettes while just 29 percent of Americans under age 35
agree.

Nationwide telephone poll conducted Dec 4-8 2013 interviewed
1011 adults on both mobile (506) and landline (505) phones, with a
margin of error +/- 3.7%. Princeton Survey Research Associates
International executed the nationwide Reason-Rupe survey. Columns
may not add up to 100% due to rounding. Full poll results,
detailed tables, and methodology found here. Sign
up for notifications of new releases of the Reason-Rupe
poll here.

from Hit & Run http://reason.com/blog/2013/12/19/62-percent-think-e-cigarette-use-in-publ
via IFTTT

Drug Warriors Kidnap and Sexually Assault a Woman After Getting Permission From a Dog

In a case eerily similar to David Eckert’s

humiliating ordeal
at the hands of cops in Deming, New Mexico,
a federal lawsuit
charges
U.S. Border Patrol agents with subjecting a U.S.
citizen to six hours of degrading and fruitless body cavity
searches based on an alleged alert by a drug-sniffing dog. The

lawsuit
, filed yesterday by the ACLU chapters in Texas and New
Mexico, says the plaintiff, a 54-year-old New Mexico resident
identified in the complaint as Jane Doe, was crossing the bridge
between Ciudad Juarez, Mexico, and El Paso after visiting a family
friend last December when she was chosen at random for “additional
screening.” This “secondary inspection” involved a pat-down during
which an agent “inserted her finger in the crevice of Ms. Doe’s
buttocks”—a rather startling incursion inasmuch as the agents at
this point had no basis to suspect that the woman was carrying
contraband. But they were just getting started.

The agents instructed the plaintiff to stand in line with other
people who had been selected for additional screening and walked a
dog past her. According to the lawsuit, the dog handler “hit the
ground by her feet, but did not hit the ground by any of the others
in the line,” and “the dog responded by lunging onto Ms. Doe and
landing its front paws on her torso.” Why did the dog do that?
“Because Ms. Doe did not possess any contraband,” says the
complaint, “the dog either did not alert or the response was not a
proper alert.” Yet this possibly manufactured and in any event
erroneous alert was the basis for all that followed.

First the agents strip-searched the plaintiff, examining her
anus and vagina with a flashlight. Finding nothing, they took her
to the University Medical Center of El Paso, where they forced her
to take a laxative and produce a bowel movement in their presence.
Again they found no evidence of contraband. At this point one of
their accomplices, a physician named Christopher Cabanillas,
ordered an X-ray, which likewise found nothing suspicious. Then the
plaintiff “endured a forced gynecological exam” and rectal probing
at the hands of another doctor, Michael Parsa. Still nothing.
Finally, Cabanillas ordered a CT scan of the
plaintiff’s abdomen and pelvis, which found no sign of illegal
drugs. “After the CT scan,” the complaint says, “a CBP [Customs and
Border Patrol] agent presented Ms. Doe with a choice: she could
either sign a medical consent form, despite the fact that she had
not consented, in which case CBP would pay for the cost of the
searches; or if she refused to sign the consent form, she would be
billed for the cost of the searches.” She refused, and later the
hospital sent her a bill for $5,000, apparently the going rate for
sexual assault and gratuitous radiological bombardment.

David Eckert, you may recall, also got a bill (in his case for
about $6,000) after undergoing a similar exploration of his
orifices and plumbing, which likewise continued, becoming
increasingly invasive, precisely because the cops were not finding
any evidence to substantiate their suspicions. And while the police
in his case did obtain a warrant, the main basis for it was a dog’s
purported alert, which in Jane Doe’s case seems to have been the
only evidence that she was smuggling drugs. Although such alerts
are
frequently wrong
and can easily be faked, the Supreme Court

has said
they qualify as probable cause for a search as long as
the dog is properly trained. The burden of showing a dog is not
properly trained lies with the person challenging the search.

Aside from the dangers of putting too much faith in
drug-detecting dogs, this case, like Eckert’s, illustrates the
appalling complicity of doctors in waging the war on drugs, even
when it involves utterly unethical participation in dehumanizing
pseudomedical procedures performed on involuntary and audibly
protesting “patients.” In addition to Border Patrol agents, the
lawsuit names the hospital, Cabanillas, and Parsa. Lest you
think the criminal malpractice described in this complaint is an
aberration, the ACLU offers evidence that it is in fact
commonplace:

During the car ride to the Medical Center, Ms. Doe asked if the
agents had awarrant. One of them responded that they did not need a
warrant….

Medical Center policy L-13 on searches by hospital personnel
does not permit an invasion of a person’s body for purposes of a
search without either consent or a search warrant. However, in
practice, the Medical Center staff and CBP agents routinely conduct
invasive cavity searches without a warrant, consent or sufficient
suspicion to justify the searches. When Ms. Doe expressed dismay
about the unreasonable searches she suffered, a Medical Center
employee responded that these procedures were routinely followed
when an individual is brought in by CBP agents. The employee also
told Ms. Doe that what happened to her was not invasive.

This kind of abuse tends to draw attention only when the victim
is “innocent,” meaning he or she is not in fact smuggling drugs.
But how can any society call itself civilized when it allows human
beings to be treated this way in the name of locating arbitrarily
proscribed substances? Having arrogated to itself the authority to
regulate what people put into their own bodies, the government ends
up forcibly delving into those bodies in search of the chemicals it
has anathematized. To enforce politicians’ pharmacological
prejudices, the government’s agents and their medical accomplices
become kidnappers and rapists. There is nothing noble or decent
about this immoral crusade, and anyone associated with it ought to
be ashamed of himself.

from Hit & Run http://reason.com/blog/2013/12/19/drug-warriors-kidnap-and-sexually-assaul
via IFTTT

Video: The Fed’s ‘tapering’ absurdity in one simple analogy

shutterstock 589582 150x150 Video: The Feds tapering absurdity in one simple analogy

December 19, 2013
Sovereign Valley Farm, Chile

You probably heard the announcement yesterday: the Fed decided to reduce its unprecedented bond-buying program from $85 billion a month to “only” $75 billion.

The reaction all around the world from financial analysts and commentators shows that decisions made behind closed doors by a handful of wise men and women matter more than what the actual productive economy is really doing.

It’s absurd. A tiny group of people controls the US dollar, and the dollar still rules the world, making these shadowy characters the true power behind the throne.

For the past six months the whole world has been trembling at the sounds coming from the Fed about its “imminent” tapering of flooding the world with dollars.

Entire economies and their currencies, from India to Indonesia, have taken a nosedive because of the threat that the punchbowl will be taken away.

In the end what happened is comical. The Fed’s decision to reduce money printing by $10 billion a month means that now they’ll ‘only’ create $900 billion worth of new currency units per year.

And the reaction has spawned epic debates, discussions, and analysis about what’s next.

Here’s the bottom line– the Fed is still driving down a lonely stretch of road, pedal to the floor, steering straight into the great financial abyss ahead.

All of this debate and discussion is simply about whether the Fed is in 4th gear or 5th gear. Ultimately it’s irrelevant… because they no longer have any brakes.

They simply cannot stop. Ever. If they stopped printing, the whole phony financial system in place today would crash miserably and take down whole governments and countries with it.

And that is where this chapter of the financial system will end. Reset. And start anew on a fresh page… this time underpinned by sound money.

If this seems fatalistic, it’s not. It’s just a dose of reality. Printing money has always been the last, desperate attempt of insolvent nations.

History can produce a grand total of ZERO examples of nations that printed their way into prosperity.

And it would be foolish to think that this time is any different.

from SOVErEIGN MAN http://www.sovereignman.com/trends/video-the-feds-tapering-absurdity-in-one-simple-analogy-13318/
via IFTTT

NSA Spying Blowback Continues – Boeing Loses Brazil Jet Order

First CSCO cited Government (NSA)-related cuts for its dismal results and now Boeing, considered the front-runner, has lost a $4.5 billion contract to provide jets to Brazil because, as officials exclaimed, “the NSA problem ruined it for the Americans.” Sweden’s Saab won the contract instead for 36 new fighters to be delivered by 2020. As Reuters reports, one U.S. source close to the negotiations said that whatever intelligence the spying had delivered for the American government was unlikely to outweigh the commercial cost of the revelations. “Was that worth 4 billion dollars?” the source asked.

 

Via Reuters,

Brazil awarded a $4.5 billion contract to Saab AB on Wednesday to replace its aging fleet of fighter jets, a surprise coup for the Swedish company after news of U.S. spying on Brazilians helped derail Boeing’s chances for the deal.

 

 

Aside from the cost of the jets themselves, the agreement is expected to generate billions of additional dollars in future supply and service contracts.

 

 

The timing of the announcement, after more than a decade of off-and-on negotiations, appeared to catch the companies involved by surprise.

 

 

Until earlier this year, Boeing’s F/A-18 Super Hornet had been considered the front runner. But revelations of spying by the U.S. National Security Agency in Brazil, including personal communication by Rousseff, led Brazil to believe it could not trust a U.S. company.

 

“The NSA problem ruined it for the Americans,” a Brazilian government source said on condition of anonymity.

 

A U.S. source close to the negotiations said that whatever intelligence the spying had delivered for the American government was unlikely to outweigh the commercial cost of the revelations.

 

“Was that worth 4 billion dollars?” the source asked.

 

 

“We are a peaceful country, but we won’t be defenseless,” Rousseff said on Wednesday at a lunch with senior officials from Brazil’s military, where she said the announcement was forthcoming. “A country the size of Brazil must always be ready to protect its citizens, patrimony and sovereignty.”

 

It seems the NSA Spying blowback is just beginning…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/pK6hO3PWUwY/story01.htm Tyler Durden

White House Announces $100+ Million in Largely Military Aid to Central African Republic

on the mapThe
French-led intervention in the Central
African Republic
isn’t something the United States wants to be
left out of. US military flights in support of the intervention
began
last week
, and now the White House has
pledged up to $116 million in mostly military aid
to the
country, in addition to the $24 million in aid the federal
government was planning on spending there this year.

From USA Today:

The United States plans to provide more than $100
million in security and humanitarian assistance to the war-torn
Central African Republic, the White House announced Thursday.

“The CAR faces extraordinary challenges to restore security and to
ensure protection of the civilian population,” the White House said
in a statement.

It added: “We are actively working to help end the violence,
protect civilians, prevent atrocities, provide humanitarian
assistance, and help create an environment that allows
constitutional and democratic governance to be
restored.”

See the White House’s  full  statement and “fact
sheet”
here
. Up to $60 million of the aid will be for “defense
services” and “defense articles” for the French forces that arrived
in the Central African Republic earlier this month as well as the
African-led mission deployed in the country. Another $40 million
will go to “Peacekeeping Operations funding” for the African-led
portion of the intervention in the Central African Republic.

No word from the White House if it’ll decide to spend money on
the crisis in nearby South
Sudan
, too. President Obama has also deployed military
personnel across the continent,
from the Niger to Uganda
, but today’s announcement did not
mention troops.

Follow these stories and more at Reason 24/7 and don’t forget you
can e-mail stories to us at 24_7@reason.com and tweet us
at @reason247.

from Hit & Run http://reason.com/blog/2013/12/19/white-house-announces-100-million-in-lar
via IFTTT

Facing Triple-Dip Recession, France Set To Deploy US-Made Drones In West Africa

Take one serving of pre-triple dip recessionary France, add a dash of US-made drones, drop a pinch of Al Qaeda scapegoating and the now generic false flags, and let it all simmer in the latest global conflict in which the uninvited west has decided it is its moral role to intervene, and what you get is the latest hilarious development out of military superpower France, which is now preparing to unleash US drones in West Africa. The comedic possibilities one ends up with are countless.

From Reuters:

France will deploy its first U.S.-made unarmed surveillance drones to West Africa by the end of the year, Defence Minister Jean-Yves Le Drian said on Thursday, as it seeks to “eliminate all traces of al Qaeda”.

 

France’s military intervention in Mali in January exposed its shortage of surveillance drones suitable for modern warfare, forcing it to rely on the United States to provide French commanders with intelligence from drones based in neighbouring Niger.

 

Paris said in June it would buy 12 Reaper reconnaissance drones built by privately owned U.S. firm General Atomics to eventually replace its EADS-made Harfang drones.

 

Two drones that we have bought will be operational by the end of the year in Africa, in the Sahel. That is their main mission,” Le Drian told Europe 1 radio.

 

Niger gave permission in January for U.S. surveillance drones to be stationed on its territory to improve intelligence on al Qaeda-linked Islamist fighters in the region. Le Drian said pockets of militants remained in Mali, whom Paris would go after. They included veteran Islamist commander Mokhtar Belmokhtar, who claimed responsibility for attacks in Niger and on Algeria’s In Amenas gas plant earlier this year.

The humor does not end there:

“We have led successful counter-terrorism attacks in recent days and we will continue to act to eliminate all traces of al Qaeda,” he said. “These terrorist groups come and go, regroup and then disperse, so we need to follow them closely. This will be the role of our forces in 2014. There will be 1,000 soldiers in Mali whose main mission will be counter-terrorism.”

 

French forces killed 19 Islamist fighters during security operations in Mali’s northern region of Timbuktu earlier this month.

 

France intervened in Mali at the start of the year as Islamist forces, who seized control of the north in the confusion following a military coup in March 2012, pushed towards the capital Bamako.

 

Their advance lifted Mali to the forefront of U.S. and European security concerns, with fears the Islamists would turn the country into a base for international attacks.

Such pristine, unrequited nobility…

Of course, what was not mentioned anywhere, is that France, with its multi-decade high unemployment, is on the verge of a recession. And not just any recession, but a triple-dip, which would make it Europe’s first country to undergo a triple dip in the Eurozone’s history. So what is this socialist paradise to do? Why read chapter 1 of Keynes for Idiots of course: when in depression, start – or escalate – a war.

Q.E.D.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Vv90rsqJmOA/story01.htm Tyler Durden

The Multi-Pronged Mortgage Debacle Next Year (So Long, “Housing Recovery”)

Wolf Richter   www.testosteronepit.com   www.amazon.com/author/wolfrichter

The feverishly awaited taper announcement, after months of deafening Fed cacophony, is in the can. The Fed, unless it backtracks again, will cut its purchases of Treasuries and Mortgage Backed Securities by $10 billion in January, and possible every month until it’s done with its money-printing and paper buying binge. The program repressed mortgage rates and inflated the value of MBAs.

But mere talk of ending it has sent mortgage rates soaring – and mortgage applications plunging to the “lowest level in more than a dozen years,” lamented the Mortgage Bankers Association. The Refinance Index has crashed. The all-important Purchase Index is now 12% lower than last year.

People who need mortgages to buy homes – hence, not hedge funds, private equity firms, oligarchs, and other sundry investors – have been throttling back. Sales of existing homes slumped for the third month in a row in November, down 4.3%, to a seasonally adjusted annual rate of 4.9 million, 1.2% below last year – the first annual decline in over two years. It’s just getting too darn expensive. Home prices have soared over the last two years. And mortgage rates have soared since May. A toxic concoction.

The average contract rate for 30-year mortgages with conforming loan balances ($417,000 or less) rose to 4.62%, up from 3.59% in early May. Over a full percentage point. Just on taper talk – though the Fed has continued its bond-buying binge with relentless determination. Where will mortgage rates go when the Fed actually stops trying to repress them?

Interesting times.

Now comes part three of the debacle, after soaring home prices and mortgage rates. It was drowned out by the hullaballoo over the Fed’s taper announcement. It came from our favorite bailed-out, taxpayer-owned Fannie Mae and Freddie Mac that purchase mortgages from banks and then either keep them on their books or stuff them into MBAs that they sell with some guarantees. Biggest buyer? The Fed. It has been plowing $40 billion a month into them – to be reduced to $35 billion in January.

The banks love this system because they get the fat fees from originating the mortgage without having to absorb the risks. The GSEs and the Fed run the show. Banks are involved just enough to cream profits off the transaction. It’s not exactly the paragon of a free market.

But there are some efforts underway to encourage private capital to play a larger role. So last week, the Federal Housing Finance Agency announced that it would impose a 10 basis-point increase (1/10th of 1 percentage point) in guaranty fees that Fannie Mae and Freddie Mac charge banks. And now Fannie Mae and Freddie Mac have announced that they would revamp their risk-based matrix of fees that they charge lenders.

Lenders roll these fees into the mortgage, which drives up monthly payments. The change will hit borrowers with a so-so credit score who cannot come up with a down payment of at least 20% – hence the majority of all borrowers – the hardest.

“What had been an exercise by regulators to systematically attract private capital into the mortgage market has now turned into an attempt to shock private capital back into the system,” explained Mortgage Bankers Association CEO David Stevens. “The timing of this could not be worse, especially with the Qualified Mortgage Rule, which is already tightening credit, going into effect in January.”

And with mortgage rates already jumping.

Based on the Mortgage Bankers Association’s analysis, guarantee fees – Loan Level Price Adjustments, they’re called – could increase by 0.75 to 1.5 percentage points for borrowers stuck in so-so credit-score purgatory.

“As a result, a borrower with a 730 FICO score making a 10% down payment will pay an LLPA of 2.25% for a 30-year fixed-rate loan, up from today’s fee of 0.75%,” the Mortgage Bankers Association pointed out. “These increases are in addition to the 10 basis point ongoing guarantee fee increase. The estimated net impact on this borrower would be a 50 basis point increase in the interest rate costing borrowers thousands over the life of the loan.”

Half a percentage point! On top of the full percentage point that mortgage rates have already increased, on top of any increase in mortgage rates that might occur as a result of the Fed’s withdrawal from binging on MBAs. That’s the first hint of what might happen when a subsidized industry as housing is being encouraged to try to stand on its own wobbly feet.

The Mortgage Bankers Association, which represents banks that have gotten fat by creaming off profits from this subsidized process, is now aggressively lobbying against the change. They want neither the Fed nor the taxpayer to abandon them.

It was a “dangerous and misguided” approach, Stevens said. “These fee increases could have a negative effect on the fragile housing recovery and could harm the very potential home buyers and borrowers that the housing market needs to sustain that recovery.”

Of course, home buyers only have to pay the fees if they want to get the lower mortgage rates that these government guarantees make possible. If they don’t want to pay the fees, they can always pay an even higher rate for a mortgage that is not guaranteed by the GSEs. In either case, owning a home is in the process of getting much more expensive.

Hard-pressed consumers are hitting a wall. So, something will have to give: either mortgage rates (if the Fed were to backtrack) or home sales and eventually prices. And that would be the end of the “housing recovery.”

These hard-pressed consumers are already showing their teeth. Discount retailer Loehmann’s did what other retailers – and a large number of other junk-rated companies – will do once the Fed allows a sense of reality into the markets: it filed for bankruptcy. Read…. Junk-Debt Time Bomb: Ticking Till The Fed’s Money Dries Up


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/HgbNE5QWhWg/story01.htm testosteronepit

Fed’s Economic Projections – Myth Vs. Reality (Dec 2013)

Submitted by Lance Roberts of STA Wealth Management,

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Wg-f98O2mIg/story01.htm Tyler Durden