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Meantime we did have some good news today on the housing market national association of homebuilders -- -- housing market index surging five year high.
In the month of July to Ed -- -- fellow at the American Enterprise Institute to talk about that from DC but also maybe to react to what Peter just reported on.
In the Ben Bernanke testimony as Peter said -- I think undoubtedly an important interest rate you give us some of the reasons why.
What do you make of the fact that when -- stop and think about it we just kind of chairman of the Federal Reserve Telus and confirmed force what I guess many of us may have suspected we don't know if it's accurate or not.
But the little.
It's strange that five years after this was brought up by Barclays and it appears to be.
A classic case of no good deed goes on publish unpunished.
They they reported this is a problem five years ago than they ended up being find a couple of weeks ago.
And we still don't know you know what we have.
That said in the United States.
Half the loans are Fannie Freddie and FHA.
And virtually zero of their -- have Libor the rest of the loans it may end up being 20/20 5%.
It it's a significant.
Index but it's -- most of the loans are not based on Libor.
OK so you're saying that even though the statistics and Peter went through some of them in terms of how many trillions of dollars may or may not be tied to it.
You would minimize the significance.
Of the scandal or still say that hey this is a pretty big story that we have on our hands about the big banks are involved that's.
That they need to get near the bottom -- so people know that it can be relied on but again even what happened back in 07 which Barkley for mineral.
Reported that was a problem ended up.
So consumers benefited from whatever was going on if they were depressing the rates it lowered the rates -- John investors exile is certainly not regulators and wanting to do and people that would have benefited from those rates going in the other direction at some of those is have been pretty well documented and we've talked about at some of those are municipalities and others that lost on the other side.
Of those -- anyway more on that as we continue I do wanna ask you about the housing numbers today because as I said coming in at these are pretty encouraging aren't they would you take away.
That hit this -- clergy numbers.
It's the biggest increase in in quite a few years the trend is is upward.
It's the confidence numbers up to 35.
You have to keep in perspective that -- -- below fifty is still weak confidence and so we have a ways to go right the good news is the trend is up.
The other good news is house prices that are are very affordable.
Throughout most of the country and it appears that most markets are you know pretty -- pretty close to correction assuming we don't have.
Another recession on our hands that's a big if that said in order to really get the housing market going both for new construction and existing.
Homes you really have to deal with the uncertainty that exist.
-- -- The board with taxes regulatory burden -- jobs all of that have to be dealt with and we're not dealing with that.
This is the slowest recovery.
Since the Great Depression so you don't think then fiscal cliff and everything else hanging over our heads of were on the precipice of something we're not about -- take off here's what percent.
I I don't think so I I think what is that did a bottom in the housing market.
And actually having a normal recovery are two different things.
I think this is just indicative of -- bouncing along the bottom 35 is progress but it's still well below.
Optimism thank you read -- to see --
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