On Monday May 16, 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 (24:12)
Ryan and Louis talk about the economic events of the week. Ryan mentions the Mississippi flooding. Ryan and Louis discuss the debt ceiling issues and that Timothy Geithner, U.S. Treasury Secretary has a few loopholes to avoid the government defaulting. Louis also notes that the US will have to raise interest rates to attract investment. Louis notes that raising the debt ceiling is a matter of course for Congress rather than cutting spending to avoid hitting the debt ceiling. Louis notes that it is considered an “extreme” position to want government to not spend more than it takes in. Ryan notes that China owns $1.14 trillion in US debt and is trying to diversify its assets away from the U.S. Louis notes the dilemma that China is in if they stop purchasing US Debt as the US may not be able to meet paying the interest payments to China without the proceeds from the sale from further US treasuries. Louis notes the fallacy that spending more money when you owe money can solves a debt issue. Louis mentions that the US is the largest debtor nation in the history of the world. Louis notes the practical impact of a government shut down;Ryan and Louis discuss the number of home owners that are underwater on their mortgages;Ryan discusses mortgage and refinance options for such home owners;Ryan notes that business confidence is at a seven month low; Louis mentions that employers get more productivity out of existing employees rather than higher additional employees; Ryan notes the top three areas of job growth over the last year: health care, government and education; Louis notes that state governments, however, are cutting employees to try and close their budget deficits; Federal government job and government contract job growth remains robust;Louis notes that states are limited in their ability to raise revenue by printing money or raising taxes;Ryan reviews current mortgage interest rates;Ryan notes that for the week ended May 7 unemployment benefit decreased and that oil prices decreased, CPI rose 3.25% the most since 2008 but without food and energy prices included prices rose just .2%. Louis and Ryan note that food and energy prices are the largest components of peoples’ budget and discuss whether the rise in food and energy prices are “transitory”;Louis notes that the Federal Government gives no consideration for the various cost of living differences across regions of the United States, noting that a couple earning $250K in the DC metro area is not rich while a similarly situated couple in Alabama might be so considered; Louis and Ryan discuss the direction of oil prices this summer;Louis notes that governments make more in taxes when gas prices rise.