On Monday February 13, 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 (14:38)
Ryan noted that Apple topped $500 a share and the passing of Whitney Houston. Ryan discusses the robo signing settlement with the banks. Louis notes that the banks now have to give back some of the money they received in the bailout.
Louis notes that the low Federal Reserve rates, the Community Reinvestment Act and policies of Freddie Mac and Fannie Mae encouraged excessive lending by the banks which caused the housing bubble. Louis notes that the settlement also involves more money being spent on the housing market. Louis notes that if banks lose money as a result of the foreclosure settlement, they will probably raise fees or interest rates. Louis notes that the onerous regulations that the banks are subject to keep competitors out.
On Monday February 6, 2012, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate 360 Live radio show on The Big lowTalker 1580 WHFS AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (15:37)
Louis and Ryan discuss the Superbowl and the ads that played. Ryan reviews the 10 bond interest rates, the level of the Dow and the situation in Greece. Louis notest that Greece should just default and send a message to the market, rates would go up and governments would have to spend less as they could not afford to borrow money at the higher rates.
Louis notes the irony of a Greek default-it won’t draw attention to the US being in a similar situation, but rather will draw investors to the US as a safe haven. Louis notes that the debt crisis will end up on the US doorstep last and notes that the US won’t default but rather will print up the difference.
Louis notes that printing the difference is inflationary and is in effect a default as the investors will receive less value than they were anticipating. Louis notes that investors have become used to receiving 100% of their funds back from soverigns as they expect a trouble sovereign to be bailed out .
Louis notes that a potential bailout is priced into the risk, thereby reducing the risk and interest rates. Louis notes that accounting rule encourage banks NOT to do short sales.
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 14, 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 (15:00)
Ryan notes a curious answer by Newt Gingrich about housing during the recent Republican debate. Louis notes the problem of having a real debate with nine candidates in an hour and noted Ron Paul, for example only spoke for 90 seconds in the most recent debate. Louis notes that there is no free market in real estate as the government is so involved in the real estate market. Louis notes the absurdity of giving the executives of Freddie Mac and Fannie Mae bonuses.
Ryan discusses the issues that Private Mortgage Insurance companies are having and their impact on Freddie Mac and Fannie Mae. Louis notes the analogy during the financial crisis when AIG was unable to meet its insurance obligations to Goldman Sachs and the Fed had to bail them out. Louis notes that the government caused the housing bubble with low interest rates.
Louis notes that the government also causes the cost of education to go higher by guaranteeing loans. Louis note that when the government sponsors services by guaranteeing loans, prices go higher but the quality does not go up. Louis notes that students with excessive loans will have a hard time getting a job and even if they get one will have a hard time getting a loan to buy a home. Louis notes that 70% of the U.S. economy is based on spending-spending with borrowed money.Continue reading this post
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