The stock market reversed its previous losses from yesterday’s ‘September’ disaster. The DOW was up 0.91%. The S&P 500 was up 1.08% The Nasdaq was up a whopping 1.30%. Gold barley eked out a gain and silver was up 0.55%.
The reason for the rebound was due to easing tensions in Hong Kong. Furthermore, there is less of a likelihood of a Brexit – at least for now. Investors are likely thinking the world is not coming to an end just yet.
In other disastrous news, the UK is considering an arrangement to allow renters buy the homes they are renting below fair value. The plan is supposedly going to force landlords to sell unmaintained properties to their renters.
I don’t think the Labor government in the UK has properly assessed the impacts of this disastrous idea. Renters are renting for a reason. For whatever reason that is, all in all, renters did not want to risk their own capital in owning an asset such as a home. Landlords have taken that risk upon themselves.
Also, who is going to lend money to the renters? Will there be a specific bank that will lend exclusively to renters for them to purchase a house they might not even want? Or will the government force banks to lend to renters? No matter, forcing someone to sell an asset to someone else is against the capitalist creed. There will be unforeseen consequences to this ‘scheme’ if passed.
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