On Monday July 2, 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 (15:51)
Ryan reviews the unemployment numbers. Louis notes that people are looking to central planing and stimulus QE1 and QE2 to solve economic problems rather than the free market. Louis notes that printing money just adds to the money supply and causes inflation. Louis notes that because interest rates are lower people put their money in the stock market causing the stock market to go higher and making people believe that the economy is better. Companies also buy back their shares instead of investing their cash which also raises stock values. Louis notes that an economy grows from investing savings not from borrowing money to buy things. Ryan notes John Williams San Francisco Fed President’s remarks that predict a stronger dollar low inflation and high unemployment. Louis notes that increasing taxes will harm the economy as it will not go towards deficit reduction but towards more spending. Louis notes that if government spending were cut, the private sector would get that capital and allocate it more efficiently than the government. Louis notes a recent survey where a majority of people said they would take reduced government for a reduction in taxes. Ryan and Louis discuss the recent government food stamp commercials. Louis and Ryan discuss the student debt issue and how it an high unemployment rates among young people will prevent them from buying homes.
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