On Monday October 31, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (13:47)
Ryan notes that in spite of the institution of Operation Twist, interest rates have increased. Louis notes that the Fed can’t totally control interest rates. Louis notes that rates want to and need to go higher. Louis notes that the dollar should be a weaker currency, but the Swiss and Japanese central banks purchased dollars to weaken their own currencies. Louis notes that there is a false concept if there is inflation, employment will increase. Louis notes that in this weak environment, all that happens is that unemployed people pay more for goods and services. Louis notes that the government uses hedonics to supress the actual impact of inflation. Louis notes that long term financing is a gift at low rates. Ryan notes the difference between the federal fund rate and the mortgage backed securities market. Louis notes that the Fed’s pronouncement that they intend to keep interest rates low is sending a false signal to the market as people think that mortgage interest rates WILL remain low until early 2013. The Fed may purchase mortgage back securities. Ryan notes that Obama focused on health care in the first years of his administration and now is only focusing on the housing market. Louis notes that characterization is not entirely fair as the stimulus was passed prior to health care under the idea that the stimulus would solve the housing woes and unemployment. Louis notes that the government programs can not solve economic problems. Louis notes that all the government programs are merely a misguided attempt to re heat a souffle. Louis notes that politicians can not run on the platform that they are not going to do anything about the economy other than let the market sort itself out, even though that may be the best solution.
Part 2 (12:35)
Ryan and Louis discuss the recent poor employment numbers. Louis notes the market has gone up over the false hope over a settlement of the Greece debt crisis. Louis notes that the “safe havens” of gold and silver are volitile which scares away many investors even though year over year they go up every year. Louis notes that gold and silver are a store of wealth-they don’t pay dividends. Louis notes that stock investing is like the housing market-people expect those assets to go up just because they expect them to go up. Louis notes that there is not a bubble in gold or silver in that they are severely under owned assets. Ryan and Louis discuss FIAT currencies. Ryan notes the attractiveness of silver since it is relatively low prices. Louis notes that if gold and silver were to drop 50% that would probably mean that the economy has some how turned around and there fore your stock investment would be doing well. Ryan reviews the requirement qualifications of the new program HARP. Louis notes that it appears that HARP was rush through and not thought out properly. Ryan notes that HARP is not ready to be launched even though it has been announced. Louis notes that if the government is going to release programs that arent going to work, they should at least release them ready to lauch as opposed to launching them incompletely.
Part 3 (12:26)
Ryan gives more information on the requirements of HARP. Ryan explains private mortage insurance. Ryan notes that there is discussion of the government acting as landlord of foreclosed homes. Louis notes how the government creates moral hazzards. Ryan notes that there is no occupy wall street movement in Washington DC because the job market is doing well. Louis asks if there is an occupy Washington movements. Louis notes how the banks benefit from their relationship with government-they take risks with an implied government guarantee-if they win, they win, if they lose,they still win. Louis notes that in capitalism the consumer can “vote” where to spend their money, but in crony capitalism, the consumer has not choice, the government allocates money without the consent of the consumer. Louis notes that there are too big to fail companies and too small to bail. companies. Louis notes that FDIC harms the competitive banking market.
Part 4 (11:44)
Ryan discusses how to complete a short sale and notes that short sales sell at a 21% discount and that one in four homes in the US is underwater.
Listen to other Real Estate Radio shows with Louis Cammarosano
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/
Amazing blog I like it!!
November 16th, 2011 at 12:00 am
If the administration doesn’t focus on creating a new jobs base in this country, by any means possible, then it won’t matter what interest rates are or inflation rates are or any other kind of rates are. The housing industry is not going to come back until there are buyers out there. It’s really quite simple.
November 23rd, 2011 at 7:51 pm