Posts Tagged ‘ taxes ’

Real Estate 360 Live With Louis Cammarosano 12/10/12

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.

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Posted by: Louis Cammarosano on December 20th, 2012 under Louis Cammarosano on Real Estate Radio

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Real Estate 360 Live With Louis Cammarosano 11/26/12

On Monday November 26, 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 (14:35)

Ryan and Louis discuss the fiscal cliff. Louis predicts that Congress will come up with a solution and that we have already gone off the fiscal cliff, they just don’t want to pull the parachute. Louis notes that the deficit is $16 Trillion and unfunded liabilities are $86 trillion and no amount of taxes or growth will be able to pay off that amount of debt.

Louis notes that Congress is worried about avoiding the automatic spending cuts and taxes increases scheduled to prevent a recession. Louis notes that there would be a recession, but that the recession is the cure to the poor economy, but that Congress will have no interest in really cutting spending. Louis notes that if Congress avoids the “fiscal cliff’ the markets will rally.

Louis notes that most of the revenues don’t come from taxes but from borrowing from foreign sovereigns and from the Federal Reserve buying US Treasuries with money they print out of thin air. Louis notes that on top of printing money to fund deficits, the Fed also attempts to stimulate the economy with QE1, 2 & 3 which involves printing money out of thin air to buy US treasuries and mortgage securities.

Louis notes that all the printing and spending will end badly but there is no appetite to stop it because government always needs money and its citizens are always willing to take the money that government redistributes.

Louis predicts that taxing the “rich” will also be part of the solution to the fiscal cliff. Louis notes that this will not solve the deficit problem and only gives expression to envy. Louis notes that people are always in favor of higher taxes -on somebody else. Louis notes that taxing the rich is a slippery slope as 90 percent of the population can vote to raise taxes on the top 10% , then 80% to raise taxes on the top 20% and eventually 51% to raise taxes on the top 49% which Louis views as mobocracy.

Louis notes that as part of the fiscal cliff solution there won’t be spending cuts, just cuts in the growth in the rate of spending.

Ryan describes this type of solution as just kicking the can down the road. Ryan notes that taxing the rich will back fire as they will cut their workforces. Ryan notes that politicians don’t understand economics 101. Louis notes that politicians may or may not understand economics 101, but they do understand politics 101. Louis notes that people don’t understand that you can take ALL of the wealth from the wealthy and that would run the government for just a few hundred days.

Louis notes that the problem is spending and that people want things from government and they want someone else to pay for it.

Louis notes that the Fed is Congress’ best friend as it enables them to continue spending without having to go back to the tax payers to ask for more money.

Louis notes the market will eventually the Fed, once borrowers realizes that the Fed will continue to devalue the currency that its bonds are denominated in and when that happens interest rates will rise and the dollar drops and the spending won’t be able to continue. At that point there will be inflation and you will be lucky to own commodities and real estate.

Louis predicts that if Congress avoids the fiscal cliff, the rating agencies may down grade the US debt rating and that may cause the dollar to drop and interest rates to rise.

Louis notes that taxing the rich can not pay off the deficit and that taxing the rich is a populist concept, not an economic one

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Posted by: Louis Cammarosano on December 7th, 2012 under Louis Cammarosano on Real Estate Radio

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Real Estate 360 Live With Louis Cammarosano 11/19/12

On Monday November 19, 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 (15:38)

Ryan and Louis discuss the issues post election of Obama-taxes and the fiscal cliff. Ryan predicts nothing will happen other than taxes on the wealthy and that business will be hurt and there will be plentiful layoffs.

Ryan discusses the Hostess bankruptcy.

Louis notes that we went over the fiscal cliff years ago as the deficit is over $16 trillion and unfunded liabilities including social security and medicare total $84 trillion that can never be paid back. Louis defines the cliff as something congress came up with a year and a half ago which would force the government to automatically cut spending and raise taxes.

What they are doing now to avoid the fiscal cliff is stop the automatic cuts and tax increases from letting the Bush tax cuts expire because spending cuts and tax increases would cause a recession (or cause the politicians to get unelected).

Louis notes they Obama wants to extend the Bush tax cuts for everyone but the “wealthy” and the Republicans want to extend them for everyone. Louis notes that taxing the wealthy will not solve the deficit problem and will only make the envious feel better. Louis notes that taxing the rich just transfers the money to the government and takes that money out of the private sector where it might be better saved, invested or spent.

Ryan predicts that if taxes increases companies won’t grow. Ryan and Louis discuss the impact of Obama care on the businesses.

Louis notes that when small businesses, that create most of the new jobs in the country, are hurt it allows the larger companies to become more powerful and more able to corrupt the government.

Louis notes that many of the government programs to make housing more affordable and to increase home ownership have had the reverse impact.

Louis notes that resources and capital goods are limited in contrast to today’s money that increase incrementally with no effort at all.

More money chasing a fixed amount of goods

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Posted by: Louis Cammarosano on December 7th, 2012 under Louis Cammarosano on Real Estate Radio

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Real Estate 360 Live With Louis Cammarosano 7/9/12

On Monday July 2, 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 (15:51)

Ryan reviews the unemployment numbers. Louis notes that people are looking to central planing and stimulus QE1 and QE2 to solve economic problems rather than the free market. Louis notes that printing money just adds to the money supply and causes inflation. Louis notes that because interest rates are lower people put their money in the stock market causing the stock market to go higher and making people believe that the economy is better. Companies also buy back their shares instead of investing their cash which also raises stock values. Louis notes that an economy grows from investing savings not from borrowing money to buy things. Ryan notes John Williams San Francisco Fed President’s remarks that predict a stronger dollar low inflation and high unemployment. Louis notes that increasing taxes will harm the economy as it will not go towards deficit reduction but towards more spending. Louis notes that if government spending were cut, the private sector would get that capital and allocate it more efficiently than the government. Louis notes a recent survey where a majority of people said they would take reduced government for a reduction in taxes. Ryan and Louis discuss the recent government food stamp commercials. Louis and Ryan discuss the student debt issue and how it an high unemployment rates among young people will prevent them from buying homes.
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Posted by: Louis Cammarosano on July 17th, 2012 under HomeGain on Real Estate Radio, Louis Cammarosano on Real Estate Radio

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Real Estate 360 Live With Louis Cammarosano 2/13/12

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.

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Posted by: Louis Cammarosano on March 12th, 2012 under HomeGain Radio, HomeGain on Real Estate Radio, Louis Cammarosano on Real Estate Radio

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