On Monday September 10, 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 (14:26)
Louis and Ryan discuss what the Fed might do this week. Louis notes the unemployment rate and the labor participation rate. Louis predicts that the Fed will not act in September, but notes that QE is inevitable because it supports the spending and debt levels of the government.
On Monday July 23, 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 (14:42)
Ryan discusses the Spanish debt crisis. Ryan and Louis discuss the low interest rates of German and US bonds. Louis notes that the low rates highlight investors’ demand for “safety” even though yields are below the stated official inflation rate. Louis notes that because rates are artificially low, it is good for those who want to take out long term low interest mortgages.
Louis and Ryan note that the US interest rates are being kept low because the US government can not afford to pay its debt if interest rates were higher. Louis notes that the US treasuries becomes by default the safe haven because the US is the largest sovereign and also because gold, silver and real estate (arguably safer investments) are more thinly traded and less widely held.
Louis notes that even municipal bonds are being preferred by investors seeking safety even though municipalities have limited means of raising revenues and are bankruptcy risks.Louis notes that Spain’s 7%+ interest rates are an example of what a sovereign must pay if its investors are concerned about its inability to pay principal and interest back.
Louis notes that the US rates are not near 7% because the US can print the difference. Louis notes however by doing so becomes in effect a default as the investors received debased currency in return. Louis notes that low interest rate punish savers who would help their economy by savings and that low interest rates encourage consumption which does not help the economy because people consuming are doing so with borrowed money.
Louis notes that the low interest rate environment helps the banks, the government and the rich. Louis notes that perhaps deflation is preferable for those on fixed incomes. Louis notes when prices go higher the only way to afford higher prices is to take out a loan. Continue reading this post
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. Continue reading this post
On Monday June 11, 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 (14:33)
Ryan and Louis discuss the debt crisis in Europe and note the $100 billion bailout of Spain.
Louis and Ryan discuss plans that the European Union are considering to centralize the finances of the member states. Louis notes that investors have confidence when the sovereign can pay back the debt by printing money even though that has the impact of debasing the value of the payment and could be considered a partial default. Louis notes that higher interest rates put a restraint on sovereign spending.
Louis notes that bailouts only paper over the debt problem and predicts confidence will eventually be lost. Louis predicts eventually money will flow into gold and silver. Louis argues that gold and silver are not in a bubble.Louis discusses the potential impact of inflation on home values in the coming years. Continue reading this post
On Monday May 14, 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 (14:47)
Ryan notes that one of the Facebook co-founders is renouncing his US citizenship to avoid taxation. Louis notes that the US is the only country that lays a claim on its citizens’ world wide income. Louis notes that if the US wants to be competitive world wide they need to reconsider their taxation policies.Louis that for over 100 years people from all over the world wanted to come to the United States.
Louis notes that the powers in Europe are spending a lot of money to keep Greece in the Euro. Louis notes that RE Radio discusses events in Europe because they have a direct impact on US interest rates. Louis notes that opposition parties in Europe are against austerity programs and that the situation in Europe helps the US as Europe has to debase the Euro by printing more money to bail out its member states. Louis notes that the US is also in the race to debase.
Louis notes that JP Morgan’s losses are probably greater than the $2 billion stated. Louis notes that this situation may pose the need for another bailout, which if were to occur would probably drive more investors into the “safety” of US treasuries and drive interest rates lower.
Louis notes that the journalist coverage of JP Morgan’s trading loss is general and that the specifics are not know. Louis speculates that the loss if probably far greater than reported to date. Louis notes that JP Morgan’s CEO Jamie Dimon is on the board of the NY Federal Reserve. Louis notes that the Federal Reserve is a private bank. Louis notes that depositors don’t keep tabs on their banks’ trading activities because they are satisfied with FDIC insurance. Louis notes the revolving door between the big banks and the US government.
On Monday May 7, 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 (14:54)
Ryan discusses the issues in Europe relating to the Euro and austerity plans. Louis notes that austerity is always difficult and notes the Austrian economists make the analogy that liquidating debt is painful and is like withdrawal from heroin but it needs to be done.
Politicians and populations given the choice will avoid the pain of austerity and kick the can down the road. Louis notes that the US is in a similar situation with politicians not advocating spending cuts but rather just a slow down in the rate of growth of spending. Louis notes that Ron Paul is the exception and has proposed $1 trillion worth of cuts in the first year of his administration.
Louis notes that Ron Paul is only promising freedom and liberty and is not promising benefits or increased government support which get politicians votes. Louis notes that a majority of the population is a recipient of government spending. Louis notes that Ron Paul will be holding hearings to End The Fed this week.
Louis notes that the bulk of US spending doesn’t come from tax receipts but from the issuance of debt that the Fed buys. Ending the fed would not be popular with big government types because it would mean that money would not be available to fund government programs. Ryan notes when there is trouble in Europe there is a “flight to safety” in US securities which drives interest rates down.
Louis doesn’t think there will be any discussion in the US to cut spending, unless Ron Paul ends up in the limelight challenging Romney. Louis does not think QE3 will happen prior to the election. Louis and Ryan discuss how the unemployment rate is calculated.
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