On Monday August 29, 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 (15:06)
Louis and Ryan discuss the recent earthquake in the DC metro area and Hurricane Irene. Ryan and Louis discuss Ben Bernanke’s Jackson Hole speech. Ryan notes that the housing sector is normally the driver of economic recovery but this time the rate of new home construction is low. Ryan advocates that the Fed looses up credit. Louis notes that the Fed sets monetary policy but not the credit standards. Louis notes that the central banks are trying to put the burden of fiscal stimulus on the congresses of the various countries. Louis notes that the President will announce a stimulus package with infrastructure projects when he comes back from vacation. Louis notes that the Fed is saying we have to address our long term debt problems but that we also have to address our short term liquidity issues. Louis argues that the solution to the housing problem is to let it go and not try to prop up the market and notes that the homebuyer credit worked only during the time that the credit was in effect. Louis also notes that home builders have little incentive to build new homes in areas where those new homes would compete with foreclosures and short sales. Louis points out that Jackson Hole was not the place last year where they announced QE2 and notes that the next Fed meeting in September will be a two day meeting to discuss “various tools” to stimulate the economy. Louis asks Ryan whether it makes sense to buy a home now where the mortgage payments would be less than your current rent payments even if you think the value of the home will decline in value.