Gerald Celente ~ Detroit Has Gone From 'Motown' To 'Notown'

Gerald Celente ~ Detroit Has Gone From 'Motown' To 'Notown'






Risk markets are up -- congratulations Bernanke! While the Bank of England said they'd put QE on hold this morning, the S&P 500 edged over 1700 today -- with the help of a key manufacturing report. According to Barron's, one of our key sources, they say -- quote "It's hard to understate the gains in this report." Unfortunately, construction spending collapsed by the largest amount in a year, missing expectations dramatically.

And mortgage rates, the cost of buying a home -- hint: think construction -- are up again -- now just shy of four and a half percent. Just three months ago they were a full percentage point lower. That was about the time Chairman Bernanke threatened to taper off his QE bond buying.

Then there are all the funds that swooped in to buy cheap foreclosed houses and turn them into rental properties. Well, they are selling vis-a-vis IPO's -- in other words, dumping inventory on the middle class. Can't have a bubble without that. As Zero Hedge notes, American Homes 4 Rent just priced at a 44% discount versus its June prospectus offering. Meaning, rats -- both small and New York-sized alike -- are leaving the ship.

New developments with the controversial Durbin Amendment, which we've coined as the swipe fight. A US District Judge kicked back the Federal Reserve's rule capping debit card swipe fees saying they are still to high. The Durbin Amendment has saved merchants billions to date -- which they are not passing onto consumers, and retailers are asking for even more. Meanwhile, banks are loosing revenue and passing those cost onto debit card customers. More than likely the Fed will appeal the courts decision. Perianne breaks down interchange fees in detail. And Bob discusses recent global economic trends with Gerald Celente. Detroit, the Fed, Summers versus Yellen.