On Monday March 19, 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 (14:56)
Louis notes that interest rates are artificially manipulated as are the unemployment and inflation rates and that the economy is not good. Louis notes that there is still a lot of debt in the system and until that debt gets flushed out of the system there won’t be much of a recovery. Louis notes that the interest rates are low not for the benefit of the consumers who want to borrow but for the benefit of the banks and the Federal government who need interest rates to remain low.
Louis notes that low interest rates force savers and investor to put money into the stock market and other risk assets as bank deposits pay less than even the official stated rate of inflation. Louis notes that the gold silver and real estate markets are not as liquid. Louis says there is a bubble in the bond market but NOT in gold and silver as gold and silver are not overbought. Louis notes that the average person probably could not name a few gold or silver mining stocks.
Louis also notes that the average person also does’nt have much money to invest. Louis discusses unintended consequences. Louis predicts that central banks will continue to print money-i.e. kicking the can down the road, which eventually is a dead end. Louis notes you can’t solve a debt problem by issuing more debt. Louis notes that central planning and officious intermeddling in the market does not work.