On Monday January 30, 2012, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate 360 radio show on The Big Talker 1580 WHFS AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (11:00)
Ryan discuss a recent interview between Henry Blodget and Robert Shiller.
Part 2 (16:21)
Shiller notes that construction costs should track the cost of housing. Louis notes that Shiller is factoring only the cost of construction without taking into account the value of the land. Louis notes that as inflation rises, home prices should also rise and that getting a long term low interest rate mortgage now will lock in your cost of housing vs a future rise in rents or home prices. Louis notes that the increase in the money supply is inflation and that dollar continues to be devalued.
Ryan notes that the unemployment rate does not include those that have stopped looking for work. Louis notes that housing is viewed as a driver of the economy rather than as an indicator of the health of the economy. Louis notes that the housing market will recover when the economy recovers; vs the economy recovering when the housing market recovers.
Louis notes that the DC market economy is driving the housing market rather than the housing market driving the DC market. Louis notes that the DC market is special because the economy is supported by government spending, contracts and employment. Louis notes that no one is talking about cutting spending, other than Ron Paul who is proposing $1 Trillion in spending cuts, but notes that the only place you will see that is on Ron Paul’s You Tube “Big Dog” ad.
Ryan notes that the issues Ron Paul raises are ignored by the media. Louis notes that in the President’s state of the Union did not discuss cutting spending but rather more spending. Louis notes that its bad enough that the Federal Reserve has to inflate its way out of the deficit, by keeping interest rates low by purchasing treasuries, but that increasing the deficit through more spending is worrisome.
Louis makes the analogy of a creditor who owes $50,000 on a credit card who has no intention of paying it, may, if allowed ,credit spend another $50,000. Louis notes that the credit issues in Greece are helping the US as in that people are viewing the dollar and treasuries as safe havens and this dynamic is also helping keep interest rates low.
Louis notes that India is now paying Iran gold instead of dollars for oil. Louis notes that just because it is inevitable that interest rates will rise, its not necessarily imminent. Ryan notes that Utah made gold legal tender in its state. Louis raises the concept of competing currencies and notes that all other markets have competition except money. Louis notes that sound money backed by gold would win in competition vs FIAT currency.
Ryan notes an article in the Washington Post on wealth in America and notes that according to a study that half of those considered wealthy five years are no longer so considered and that 20% of those considered poor five years ago are no longer. Ryan suggests that if the government wanted to close the gap they should spend money to train low income workers. Louis disagrees and notes that a lot of government money goes to the rich and the poor.
Louis notes that the wealthy receive subsidies and bailouts and the poor welfare and food stamps.Louis mentions that he understands why people might be angry at those who become rich as a result of government subsidies and bailouts. Louis draws the distinction between those people that become rich by government assistance and those who get rich by producing a product that people voluntarily purchase create jobs and should be praised.
Ryan notes that generally people don’t get rich from the government but rather once they become rich they purchase influence. Louis notes that GE is an example of a company that is granted political favors -i.e. legislation that requires the purchase of their light bulbs. Louis notes that regulations hurt small companies and help large companies as only the larger companies can afford to comply with such regulations.
Part 3 (12:05)
Ryan and Louis discuss Shiller’s opinion on home prices. Shiller believes that home prices are subject to momentum-i.e they go up if they are going up and they go down if they are going down. Louis note that this theory is more applicable to stocks as stocks are traded more frequently than homes. Louis notes that in a bubble the concept of momentum pricing is valid, but does’nt apply to the housing market in general.
Listen to other Real Estate Radio shows with Louis Cammarosano
Listen to the Real Estate Radio show of January 23, 2012
Listen to the Real Estate Radio show of January 9, 2012
Listen to the Real Estate Radio show of November 14, 2011
Listen to the Real Estate Radio show of November 7, 2011
Listen to the Real Estate Radio show of October 31, 2011
Listen to the Real Estate Radio show of October 24, 2011
Listen to the Real Estate Radio show of October 17, 2011
Listen to the Real Estate Radio show of October 10, 2011
Listen to the Real Estate Radio show of October 3, 2011
Listen to the Real Estate Radio show of September 26, 2011
Listen to the Real Estate Radio show of September 19, 2011
Listen to the Real Estate Radio show of August 29, 2011
Listen to the Real Estate Radio show of August 15, 2011
Listen to the Real Estate Radio show of August 8, 2011
Listen to the Real Estate Radio show of July 25, 2011
Listen to the Real Estate Radio show of July 11, 2011
Listen to the Real Estate Radio show of June 27, 2011
Listen to the Real Estate Radio show of June 20, 2011
Listen to the Real Estate Radio show of June 13, 2011
Listen to the Real Estate Radio show of June 6, 2011
Listen to the Real Estate Radio show of May 23, 2011
Listen to the Real Estate Radio show of May 16, 2011
Listen to the Real Estate Radio show of May 9, 2011
Listen to the Real Estate Radio show of May 2, 2011
Listen to the Real Estate Radio show of April 25, 2011
Listen to the Real Estate Radio show of April 18, 2011
Listen to the Real Estate Radio show of April 11, 2011
Listen to the Real Estate Radio show of March 21, 2011
Listen to the Real Estate Radio show of March 14, 2011
Listen to the Real Estate Radio show of February 28, 2011
Listen to the Real Estate Radio show of January 24, 2011
Listen to the Real Estate Radio show of November 29, 2010
Listen to the complete archive of Louis Cammarosano on Real Estate Radio shows
Real estate radio interviews also available on Youtube
About the Real Estate Radio Network
The Real Estate Radio Network® is a nationwide alliance of real estate related professionals with a common objective: delivering the timely truth about local Real Estate Markets over local radio stations.
The Real Estate Radio Network brings hard-working and ethical professionals in a community together. We provide the media and forum necessary for Consumers to learn the truth about important aspects of their financial life, which is mostly centered around their biggest investment, the home they live in. The Real Estate Radio Network® brings each radio program to the audience with a “live and local” show hosted by well-respected members in the local Real Estate and Financial community.
About Ryan Sloper
As a highly motivated mortgage consultant, with more than nine years of mortgage lending experience, Ryan Sloper has acquired a solid understanding of the local and national real estate markets. Ryan has been investing in residential and commercial real estate for the last 5 years, where he has first hand knowledge of what it takes to be a successful real estate investor. Ryan also hosts a weekly radio show, Real Estate Radio, which airs every Monday on 1580 AM in the Washington, DC Metro Area. Real Estate Radio also streams live nationally @ http://whfs.cbslocal.com/shows/real-estate-radio-with-ryan-sloper/
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