On Monday December 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 (14:37)
Ryan notes that the Federal Reserve will be buying 90% of the new debt the US issues. Louis notes that governments need to grow and need revenue and can only get so much from taxation and have in recent years have resorted to borrowing printing money to meet its spending obligations.
Louis predicts another round of buying from the Federal Reserve this week.
Louis notes that the US economy is now a debt based economy with 70% of the GDP based on consumer spending of borrowed money and a good portion based on the real estate industry which involves people merely moving in and out of homes. Louis notes that this is not the basis of a sound economy that produces things, saves their money and there fore can afford to buy things and houses.
Louis notes that even though the unemployment rate has gone down, an increasing number of young people are out of work and the number of people out of the labor force has increased by over 500,000. Unemployed people can’t buy houses.
Louis notes that a demand based economy is a loser and that one with productions and savings is sustainable.
Louis notes that the federal reserve over powers the market.
Louis notes that the “tax the rich” issue is a smoke screen that diverts attention from the deficit because taxing the rich does not solve the deficit as the money proposed to be taken from the rich will pay to operate the government for eight days.
Louis notes that the US doesn’t owe $100 Trillion because some rich people made too much money.
Louis notes that taxing the rich often results in receiving less tax revenue and the concept of taxation is that somehow the government own your money and allows you to keep some of it.