Capital Gains Tax Hinders Senior Home Sales

 

High capital gains taxes on home sales are preventing many older Americans from downsizing, exacerbating housing shortages. A couple, Joel and Kathryn Friedman, are delaying selling their $4.5 million California home due to this tax. President Trump is considering eliminating the tax, a move supported by some Republicans...

Stocks Surge Despite Looming Tariffs

 

Despite looming tariffs, US stocks are at record highs. The economy has proven more resilient than anticipated, with strong corporate earnings and continued consumer spending. While some sectors struggle, notably small businesses, investors are relieved that tariffs haven't been as severe as initially feared. However, concerns remain about...

High Home Prices Despite Sales Slump

 

Despite a nine-month low in home sales, June saw record-high median home prices at $435,300. This disparity is due to wealthy buyers with equity leveraging high prices, particularly in the luxury market (homes over $1 million saw a 14% sales increase). High mortgage rates (averaging 6.74%) are deterring...

UK to Consider Annual Budget Assessments, Says IMF

 

The UK government is considering reducing the frequency of public finance assessments from twice yearly to once yearly, following a suggestion from the International Monetary Fund (IMF). The IMF believes this would prevent frequent policy shifts to meet borrowing targets. Currently, the Office for Budget Responsibility (OBR) conducts...

ECB Holds Rates Amid US-EU Trade Uncertainty

 

The European Central Bank (ECB) held interest rates steady at 2% on Thursday amid significant economic uncertainty stemming from ongoing US-EU trade negotiations. While inflation met the 2% target last month, the ECB cited exceptional uncertainty, particularly concerning potential US tariffs on EU imports. ECB officials suggest their...

US Home Sales Slow to September 2022 Levels Amid High Rates

 

Existing US home sales dropped 2.7% in June to 3.93 million units, the slowest pace since September 2022, due to high mortgage rates (around 7%) and record-high median sales prices ($435,300). This marks a lackluster spring selling season, despite a 16% year-over-year increase in available homes. While inventory...

China's Rare Earth Dominance Creates Global Supply Crisis

 

China's near-monopoly on rare earth element refining has given it significant leverage in global trade. This dominance, built over decades, involved initially chaotic, polluting domestic mining, followed by a government-led consolidation into six state-owned firms. China's recent restrictions on rare earth exports, implemented this spring, have disrupted global...

Milei's Economic Policies Revitalize Argentina

 

Argentine President Javier Milei's unconventional approach is revitalizing the nation's struggling economy. Since his December 2023 inauguration, Milei has tackled Argentina's long-standing economic woes, including shrinking GDP and massive public debt, particularly a $40 billion debt to the IMF. His unique policies, reminiscent of classical economic principles, offer...

US, China to Extend Trade Deadline in Stockholm Talks

 

US Treasury Secretary Scott Bessent anticipates extending the trade deadline with China beyond August 12th. Discussions in Stockholm next week will focus on extending a 90-day tariff suspension and broader issues. These include encouraging China to shift from manufacturing-heavy growth to a consumer economy, reducing reliance on sanctioned...

Weakening Housing Market Poses Economic Threat

 

Moody's Analytics chief economist Mark Zandi warns of a significantly weakening housing market, poised to hinder overall economic growth. He cites slumping home sales, new home construction, and price declines as mortgage rates hover near 7%. Builders are reducing sales and delaying land purchases due to high costs....