On Monday November 26, 2012, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate 360 Live radio show on The Big Talker 1580 WHFS AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (14:35)
Ryan and Louis discuss the fiscal cliff. Louis predicts that Congress will come up with a solution and that we have already gone off the fiscal cliff, they just don’t want to pull the parachute. Louis notes that the deficit is $16 Trillion and unfunded liabilities are $86 trillion and no amount of taxes or growth will be able to pay off that amount of debt.
Louis notes that Congress is worried about avoiding the automatic spending cuts and taxes increases scheduled to prevent a recession. Louis notes that there would be a recession, but that the recession is the cure to the poor economy, but that Congress will have no interest in really cutting spending. Louis notes that if Congress avoids the “fiscal cliff’ the markets will rally.
Louis notes that most of the revenues don’t come from taxes but from borrowing from foreign sovereigns and from the Federal Reserve buying US Treasuries with money they print out of thin air. Louis notes that on top of printing money to fund deficits, the Fed also attempts to stimulate the economy with QE1, 2 & 3 which involves printing money out of thin air to buy US treasuries and mortgage securities.
Louis notes that all the printing and spending will end badly but there is no appetite to stop it because government always needs money and its citizens are always willing to take the money that government redistributes.
Louis predicts that taxing the “rich” will also be part of the solution to the fiscal cliff. Louis notes that this will not solve the deficit problem and only gives expression to envy. Louis notes that people are always in favor of higher taxes -on somebody else. Louis notes that taxing the rich is a slippery slope as 90 percent of the population can vote to raise taxes on the top 10% , then 80% to raise taxes on the top 20% and eventually 51% to raise taxes on the top 49% which Louis views as mobocracy.
Louis notes that as part of the fiscal cliff solution there won’t be spending cuts, just cuts in the growth in the rate of spending.
Ryan describes this type of solution as just kicking the can down the road. Ryan notes that taxing the rich will back fire as they will cut their workforces. Ryan notes that politicians don’t understand economics 101. Louis notes that politicians may or may not understand economics 101, but they do understand politics 101. Louis notes that people don’t understand that you can take ALL of the wealth from the wealthy and that would run the government for just a few hundred days.
Louis notes that the problem is spending and that people want things from government and they want someone else to pay for it.
Louis notes that the Fed is Congress’ best friend as it enables them to continue spending without having to go back to the tax payers to ask for more money.
Louis notes the market will eventually the Fed, once borrowers realizes that the Fed will continue to devalue the currency that its bonds are denominated in and when that happens interest rates will rise and the dollar drops and the spending won’t be able to continue. At that point there will be inflation and you will be lucky to own commodities and real estate.
Louis predicts that if Congress avoids the fiscal cliff, the rating agencies may down grade the US debt rating and that may cause the dollar to drop and interest rates to rise.
Louis notes that taxing the rich can not pay off the deficit and that taxing the rich is a populist concept, not an economic one
Part 2 (12:11)
Ryan notes that the Fed is committed to backstop the mortgage market to keep rates low by purchasing mortgage backed securities. Louis notes that market forces don’t move the market the Fed does.
Louis notes that the US still is viewed as a safe haven because in contrast other fiat currencies like the EURO and Japanese Yen are in worse shape. Louis notes that the US and other countries have never been this far in debt all at once. Louis notes that the central banks are admitting that they are trying to create inflation.
Louis notes that when you lose confidence in sovereign debt or you get little or no interest on your savings, you have to put it in the stock market, hard assets or real estate, which will eventually lead to a bubble in those assets classes. Louis gives an overview of the Japanese economy and the Bank of Japan’s response.
Louis notes that when sovereign entities can print money at will and there is a limited amount of hard assets then the value of the hard assets denominated in the ever increasing supply of currencies will rise.
Louis notes that there is already an increase of inflation as defined as an increase in the money supply and credit but notes that prices for all items have not risen yet-other than commodities, like oil, gold and silver and that when the velocity of money increases the prices of all finished goods and wages will rise.
One twinkie for the price of two!
Part 3 (12:30)
Ryan discusses rising FHA mortgage insurance premiums. Louis notes that FHA has a large deficit and may need a bailout. Louis notes that due to the government sponsored monopoly they can raise fees and the consumer pays the higher fees and higher taxes
Part 4 (11:30)
Ryan and Louis discuss Realtor’s report on 2012 home buyers and sellers. Louis and Ryan discuss the need to have a qualified Realtor to assist in the buying or selling of a home. Louis reviews the HomeGain Find and Compare Realtor product.
Listen to other Real Estate Radio shows with Louis Cammarosano
Listen to the Real Estate Radio show of November 19, 2012
Listen to the Real Estate Radio show of November 5, 2012
Listen to the Real Estate Radio show of October 22, 2012
Listen to the Real Estate Radio show of October 15, 2012
Listen to the Real Estate Radio show of October 1, 2012
Listen to the Real Estate Radio show of September 24, 2012
Listen to the Real Estate Radio show of September 17, 2012
Listen to the Real Estate Radio show of September 10, 2012
Listen to the Real Estate Radio show of August 27, 2012
Listen to the Real Estate Radio show of August 20, 2012
Listen to the Real Estate Radio show of August 13, 2012
Listen to the Real Estate Radio show of August 6, 2012
Listen to the Real Estate Radio show of July 30, 2012
Listen to the Real Estate Radio show of July 23, 2012
Listen to the Real Estate Radio show of July 16, 2012
Listen to the Real Estate Radio show of July 9, 2012
Listen to the Real Estate Radio show of July 2, 2012
Listen to the Real Estate Radio show of June 25, 2012
Listen to the Real Estate Radio show of June 18, 2012
Listen to the Real Estate Radio show of June 11, 2012
Listen to the Real Estate Radio show of June 4, 2012
Listen to the Real Estate Radio show of May 14, 2012
Listen to the Real Estate Radio show of May 7, 2012
Listen to the Real Estate Radio show of April 30, 2012
Listen to the Real Estate Radio show of April 23, 2012
Listen to the Real Estate Radio show of April 16, 2012
Listen to the Real Estate Radio show of April 9, 2012
Listen to the Real Estate Radio show of March 26, 2012
Listen to the Real Estate Radio show of March 19, 2012
Listen to the Real Estate Radio show of March 12, 2012
Listen to the Real Estate Radio show of February 27, 2012
Listen to the Real Estate Radio show of February 13, 2012
Listen to the Real Estate Radio show of February 6, 2012
Listen to the Real Estate Radio show of January 30, 2012
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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