Hilton, United States, Three Percent discussed on Marketplace

Automatic TRANSCRIPT

Hilton is the one who is of interest to us today because she has been a proponent of the United States going back on the gold standard a not shall we say universally embraced economic point of view but on the theory that as Shelton's presume that nomination makes its way through the confirmation process and because it's been almost fifty years since Nixon took us off the gold standard we as market place's got time to explain why it's making a comeback now the amount of money sloshing around in the economy should be tied to how much gold is in the government's vaults that's the view of so called the gold bugs they'd rather trust those forces then central bankers economist George Selden is with the libertarian Cato Institute is gold standard types tend to be libertarian or conservative they want to limit how much money the central bank can print so dollars can hold their value in inflation can stay low the long run performance of the historical gold standard in maintaining the purchasing power of money was actually quite good once upon a time every dollar was worth one twentieth of an ounce of gold but tying the hands of the federal reserve may not always be a good idea this monetary historian very I can green at UC Berkeley in his book Golden fetters he argues that in the nineteen twenty central banks were on the gold standard and couldn't use their economies when they needed to know gold no printing money we ended up with the Great Depression and up and I would argue was not related to the fact that we were on the gold standard at that time and that the newly created Federal Reserve couldn't do anything still the likely fed nominee Judy Shelton has argued that central bankers can be fallible and should be restrained by the gold standard Peter Holmes teaches economics at the university of Sussex in England she's been critical of the fed in ways which accord with the president's views I don't think one can say that the nomination represents a massive conversion to the theory of the gold standard still if Shelton is confirmed that will give the idea more currency in Washington I'm Scott Tong for market place for the history buffs out there by the way Nixon announced he was taking us off the gold standard in a Sunday night speech August the fifteenth nineteen seventy one that Monday the sixteenth of August Dow closed up almost four percent just thirty three points actually in the power of the day all right off the real estate we go the new report showing demand for apartments the past couple of months is at a five year high and because you listen to this program you know what happens when a man goes up yes so to to price is the data analytics firm real page says renter up three percent on average compared to a year ago despite an overall decline in renter's market place Amy Scott explains what's going on a lot of the demand for apartments is coming from two very different groups as real page chief economist Greg will it's low and middle income people priced out of buying they would have a hard time affording home prices and there's little product available at that starting price point and higher paid folks who choose to rent a lot of times it's a more appealing lifestyle to live in some of these luxury apartments and it would be to live in a single family home overall the share of renters is actually falling for the past two years as home ownership has increased according to Harvard's joint center for housing studies but that's after years of growth and renters following the recession in foreclosure crisis does the center's managing director Chris Herbert we also have household growth that's getting back up to levels that we would expect and so the number of those are choosing to own this still leaves plenty of people who are opting to rent as well so it's possible to have both markets on sound footing at the same time sounder footing means landlords can keep jacking up rents the average increase was three percent but in Pensacola renters are paying six percent more than a year ago in Tucson seven percent more and good luck if you rent in Las Vegas or Phoenix up more than eight percent clear Meyer is a tenant advocate in Phoenix where her rent has gone from eleven hundred dollars to thirteen seventy five in three years she's looking for a cheaper place it looks like it's going to be more cost effective to have to to pack to move to pay a new security deposit a new first month's rent instead of me able to stay in a property that we actually really love the longer she stays she says the harder it will be to save up to buy a place my name is Scott for market place if you've been in the market for a new car of late you've probably picked up on a trend toward to you might have even been a trend of participants if you were shopping for a car or an S. U. V. as more and more consumers are that's true number one bigger cars the bigger the car of course the bigger the price tag trended number two both of which as market place Jack Stewart reports help explain the drop in new car sales that automakers are reporting for the first half of the new car and truck sales in the U. S. are expected to drop below seventeen million vehicles this year for the first time since twenty fourteen this is Ben on unprecedented expansion and we know it had to end at some point Michelle Krebs analyst at auto trader says during the Great Recession people put car purchases on hold and we've been playing catch up since time but now the pent up demand from the Great Recession has been pretty much stopped up GM's US sales are down four percent for the down three fifth Chrysler's declined to percent this year so far foreign automakers show similar numbers and while mortgage interest rates might be low auto loan rates all relatively high at the moment says Chris Hopson of IHS markets consumers are facing higher interest rates when they were the previous two years or three years that makes the bigger more expensive crossovers and SUVs which people once even less affordable used car sales are seeing a bump says longtime auto analyst Rebecca Lindland and precisely because of those strong recent sales and leases which are now being turned in there are plenty of options you can have a really really nice twenty fourteen twenty fifteen model your vehicle and it's two thirds of the price of a new car bucking trends as usual tessellate reported a record quarter selling ninety five thousand because in the last three months but the road ahead is likely to be bumpy for the whole auto industry and its global supply chain as fears loom over tariffs and trade wars on Jack's euro for marketplace shore day it's gonna Wall Street and brought in lower Manhattan but that did not stand in the way record highs we'll have the details when we do the numbers.

Coming up next