Interest rates seem to be at a historic low, both in Europe and the U.S.
30-year mortgages are being made available at 2.99 percent in the U.S., according to some commentators. This is a fresh low and very attractive rate, but also suggests that the market is tuned into the confidence in the growth of jobs, on which house purchases will depend. But at such times is the best opportunity for prospective house buyers. 149,000 new jobs being added in the U.S. in November seems a great figure, given the disruption of Superstorm Sandy. Once the question of the fiscal cliff is traditionally put to rest, the economic Recovery will be even stronger.
The decisions by the ECB and the Bank of England to leave the rates on hold, at 0.75 and 0.5 percent respectively, indicates more stimulus is not necessary, and the halt on further quantitative easing by the Bank of England suggests that maybe enough has been done in the way of stimulus, and the feed through needs some time to work. That is sound common sense.
The Prime Minister was today visiting the heart of the industrial north, especially the car manufacturing plants. He noted that British car exports have picked up, the best numbers since the 1970s being currently achieved, and a broad based Recovery will take shape as the manufacturing base is brought back into expansion. Colleges are being encouraged to ask local manufacturers what the students should learn for the jobs that can be created. This is a sound approach where supply can be created to the demand. The harsh recession and then a dip in the puddle of another recession has woken everybody up, and obviously all solutions are being explored and implemented. There seems a resurgence of confidence that Britain can make the best and there is a demand for it in the world.
So long as peace prevails and Oil remains at around current levels or lower, WTI at $85 and Brent at $105 or lower, the world seems synchronized for production and growth, with improving living standards for more and more people. For that I pray.