Of course. The banks always scare the sheeple to sell their bonds, which are in massive demand.

Certainly this is all like GDP, it appears to be great. But we know home ownership for the middle class is down. We know rural America is being screwed. We know that main street is not the beneficiary of this. The wealth has shifted upward, which is why we have the public clamoring for fruitcakes like Trump. We get what we deserve as a nation.

Just another reason that Helicopter Money is crucial for the raising of interest rates and for general prosperity. They both must be done to allow rising rates: www.talkmarkets.com/.../responsibly-expand-the-monetary-base-before-it-is-too-late

Danielle shares the frustration of us all. Talking like you are going to raise rates when you aren't is policy. It is amazing how markets believe something that isn't going to happen for so long. You can fool me 10 times if you are Wall Street listening to the Fed. Or maybe even 100 times.

Truth is, the world is descending into negativity. That isn't good. They could raise rates if they did real helicopter money first. They were the ones that pushed money to the top, and helicopter money could level that out and revitalize main street. They could do it and once they did, they could raise rates and reduce the balance sheet.

But it has to be real helicopter money, no bonds no fuss and no excess debt upon the government. We all should know by now that the Fed is not a government agency and we are not its constituency. (See Lewis VS US Government 1982)

But at some point, the Fed will help the banks by helping main street. Even Goldman Sachs can figure that out, I think. So, helicopter money now, and then raise rates and reduce that balance sheet: www.talkmarkets.com/.../responsibly-expand-the-monetary-base-before-it-is-too-late

Of course, you know that bonds as collateral for derivatives clearing houses could stand in the way of this great plan I have, or should I say, Eric Lonergan has. That massive demand for long bonds has to be cooled, somehow.

The issue for me is that interest rates are likely lowered due to demand for bonds, rather than because of artificial action. In the Eurozone appears to be both. But clearly, bonds are in demand as collateral for loans and derivatives. Bonds are therefore, in a perverse sense, drivers of the economy. I wouldn't be too sure that government spending is up. It seems as if we have hit a patch of austerity.

So, Keynes may not even apply to the current situation. I do agree that higher interest rates above zero would spur bank lending. Keynesians don't understand that. Monetarists generally do but the Fed monetarists are do nothing.

While nobody likes her, Trump may be certifiably insane. Having offended almost everyone except my group, he can't win. It is corruption versus a hater. Not much of a choice, but we better not choose the hater.

I just don't think most millennials make enough to drive the housing market. I think optimism about millennials can only be found regarding what they dream about, not what they can attain. I hope I am wrong.

Las Vegas has so many homes for rent and so many empty houses, that only the high priced houses are commanding higher prices.

Well, the Eurozone's prospects remain dim unless Draghi has a plan, Valuewalk: www.talkmarkets.com/.../draghi-and-germany-have-a-secret-plan-to-save-the-eurozone It almost seems as though shafting the periphery, watching German long bonds go down to zero in yield, will ultimately see the funding of the core nations by investors themselves!

So, John, what percentage of the economy is now underground? I think it has never been more than 10 percent or less in the US. I wonder what caused the increase you write about and if it could be measured?