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 January 23, 2012, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate 360 radio show on The Big Talker 1580 WHFS AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (14:24)
Ryan and Louis discuss the Republican Primary, gold and silver prices and HomeGain’s 2012 Home Ownership Satisfaction Survey. Ryan notes that when mortgage rates move up, they move up fast. Ryan urges rate shoppers to lock in now. Ryan predicts higher mortgage rates in 2012. Louis discusses how the networks were able to project Newt Gingrich the winner of the South Carolina primary based on exit polls.
Ryan notes that Texas governor Rick Perry has dropped out and has endorsed Newt Gingrich. Ryan notes that Romney is attaching Gingrich based on his relationship with Freddie Mac and Fannie Mae. Louis notes that in Iowa and New Hampshire Gingrich was crushed as a result of the focus of voters on Newt Gingrich’s activities with Fannie Mae and Freddie Mae.
Louis notes that during the South Carolina primary process, when the focus moved away from Freddie Mac and Fannie Mae and towards Mitt Romney’s activities at Bain Capital, the voters shifted away from Romney and towards Gingrich. Louis notes that Gingrich benefited in South Carolina from appearing strong in responding to a debate question relating to his personal life. Louis notes, however, that Gingrich won’t be able to win based on those types of answers.
Louis notes that as the attention shifts back to Gingrich’s activities at Freddie Mac and Fannie Mae, Romney will benefit and Gingrich will suffer. Louis notes that Gingrich is the non Romney flavor of the month-his predecessors being Santorum, Cain, Perry and Bachman. Louis notes that Republicans are looking for a conservative alternative to Romney. Louis notes that as people peek under the cover they will notice that Santorum and Gingrich are not as conservative as they claim.
Louis notes that Ron Paul has been consistent in his view for 30 years and that his support in the polls has not fluctuated wildly like the other candidates and has grown steadily. Louis notes that the media constantly discusses Ron Paul’s supposed non electability but never discussed the electability of the other candidates like Herman Cain whose qualifications including running a “pizza palour”, Michelle Bachman who has only been in congress a few years and Mitt Romney who was governor of a state that instituted “RomneyCare” a pre cursor to “ObamaCare” which is anathma to conservatives and Newt Gingirch with 20 years of “baggage”.
Louis notes that Ron Paul has won 12 elections to congress and has increased his vote totals by 4-5X since 2008 in New Hampshire, Iowa and South Carolina. Ryan notes that Ron Paul’s issues, excessive spending, civil liberties, the Federal Reserve have not been discussed much in the campaigns and the debates. Louis notes that the Tea Party came into existence largely as a protest against the bail outs an the irony that the two front runners Romney and Gingrich were in favor of them and the stimulus packages.
Louis notes that Ron Paul has gained currency with younger voters and that younger voters are discovering Austrian economics. Louis and Ryan discuss Ron Paul’s interest in reinstituting the gold standard and that Newt Gingrich has jumped on that bandwagon.
Louis notes that during the debates they have not talked about each candidates plan to cut spending – other than Rick Perry’s attempt to name three Federal Agencies that he would cut. Louis notes that only Ron Paul has a plan to cut spending-$1 Trillion in his first year as President.
On Monday January 9, 2012, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate 360 radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (14:56)
Ryan and Louis offer their predictions for 2012 on the general economy, real estate market, interest rates, the presidential election, the price of gold oil and silver and foreclosures. Louis notes that the beginning of the year will be a continuation of low interest rates, working off inventory and a tepid market but predicts a financial shock at some point in 2012 perhaps based on a European debt crisis or something in the US.
Louis notes that there is no way to solve the housing crisis or the general sovereign debt crisis other than to allow the debt to be liquidated, but notes that the central banks are not willing to allow it.
Ryan notes of a new tax on mortgages that helps Fannie Mae and Freddie Mac which Louis characterizes as a back door bailout of these entities.
Louis notes that many home buyers are holding off on purchasing a home because they think interest rates might go lower or that they will stay low for a long time or that home prices will fall further. Louis notes that more likely rents will rise and that it makes sense to get a long term low interest rate to protect against the rise in the real cost of shelter.
Louis notes that if interest rate rose it would be a disaster for the US government as it would make it even more difficult for the US to pay off the interest. Louis notes that the Fed’s operation twist is intended to keep long term interest rates down. Louis notes that institutional investors purchase US government bonds for their perceived safety. Louis notes that the US is actually printing LESS physical currency as the cost of paper and its components (cotton and ink) are getting more expensive.
On Monday November 7, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (13:55)
Ryan notes that there is a city near Detroit, Hyland Park that has turned off the city’s electricity and pulled out the street lights because they can not pay the electric bills. Louis notes that this is considered “austerity”. Louis notes that local governments should be able to provide the necessities(fire, police, water and lighting) if the money was managed properly.
Instead local governments rely on bond issues and getting money from Washington to pay for government services. Louis notes the irony of hiring local politicians to get money sent to Washington back to the local municipality. Louis also notes that governments generally don’t threatened to cut the non essentials and when they are short on cash, but rather threaten the essential services in order to extract more money. Ryan and Louis discuss the raising of bank fees on consumers and the backlash that it has created, leading to the Bank of America has retracted their intention to charge consumers to use their bank cards.
Louis notes that the entire episode was the unintended consequence of government intervention. Ryan discusses the best way to shop for a mortgage. Ryan discusses factors that impact mortgage interest rates. Ryan notes that the treasury will sell $72 billion of bonds. Ryan notes the change of government in Greece and that the contagion has spread to Italy. Louis notes the the Greek crisis has been lingering because the central bank has been propping them up.
Louis also notes that if more municipalities can not provide services, the Fed may provide a bail out. This would lead to higher interest rates and inflation. Louis predicts that the dollar will out last the Euro in that it can probably print more money and that eventually, entities including sovereigns, must be allowed to fail. Louis notes that the Federal Deposit Insurance Corporation creates a moral hazard. Louis and Ryan discuss fractional reserve banking and its role in creating the potential for bank runs.
On Monday October 10, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (14:28)
Ryan notes the disconnect between where the media thinks interest rates are headed and where they actually are. Louis discusses investors attitudes towards Europe and notes that because the situation in Europe is uncertain that they rush to US dollar denominated assets which pushes interest rates lower. Louis notes that at some point the market will figure out that US treasuries are not really a good investment and that interest rates will head higher. Louis notes that because of the Fed policies and the perceived quality of US treasuries that US interest rates are artificially low. Louis notes that all things considered equal, interest rates are attractive now, especially long term mortgage rates. Louis and Ryan discuss the cost of home ownership vs renting. Louis notes that everything is going up (consumer goods and rents) except interest rates and home prices. Louis notes that rents will rise in the coming years but that a low fixed rate mortgage will stay low over the next few year. Louis notes that you can lock in your lowest cost-shelter-by taking out a long term interest rate mortgage rate. Ryan notes that rate of home ownership is declining and notes that its not necessary to have a 70% home ownership rate. Louis notes that a lot of people have lost their homes and that a new generation of potential homebuyers are not there because the younger generation is facing a high employment rate. Louis notes that the decision to buy a home should not be based on what the home ownership rate is but rather what your personal situation is.
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