Showing posts with label Feds. Show all posts
Showing posts with label Feds. Show all posts
Monday, January 31, 2011
Will Hyper Inflation Follow?
Click on the title to link. You are going to have to register on this site in order to read this article, but I assure you it is worth it. Inflation is one of those things we have been warning is coming. You have got to be realistic and prepared for it. Check out this article discussing what hyper-inflation may look like for us.
Thursday, January 20, 2011
Our Next Economic Worry: Inflation
Click on the title to link. We have been warning folks that this was coming, but you should be informed. Inflation is the "elephant in the room" that nobody seems to be talking about, until now. With the Feds doing what they are doing (which they clearly don't know what they are doing), inflation is inevetable. Stay alert and educated.
Wednesday, January 12, 2011
8 Keys to the Mortgage Market in 2011
Click on the title to link.
We find it quite funny how the government seems to think that more and more regulation is the answer (see Keys #1 and #2). This has proven so far to help some, yet make doing and getting mortgages extremely difficult. At times it has prevented folks from getting a mortgage that would be very helpful to them, or has punished folks by making it more expensive for the customer or us. It's not right. Does the government honestly think that "mortgage disclosure reform" is the answer? Are you kidding me? Yeah, that was the reason for the real estate/mortage mess. If they honestly think that then we are in big trouble.
Numbers 3-8 are so "pie in the sky" right now that it is almost laughable. Basically they are saying everything needs to get back to what it was and then it will be alright. Wow, that really insightful "keys" you all came up with. Not going to happen, folks.
There is one primary key to the mortgage market this year and that is the Federal Reserve (Key #8). Their "Quantitative Easing" plan is so full of holes that it could not hold water if it wanted to. Frankly, we are relatively convinced that the Reserve does not know what exactly to do because they are running out of options. Flooding the economy with Billions of dollars is not going to lower rates. It is, in fact, going to raise rates (as it has quickly done). Then when inflation kicks in what is going to happen? Rates will go higher, faster. Why the Feds do not seem to get this is utterly beyond us. But it's simple economics.
We find it quite funny how the government seems to think that more and more regulation is the answer (see Keys #1 and #2). This has proven so far to help some, yet make doing and getting mortgages extremely difficult. At times it has prevented folks from getting a mortgage that would be very helpful to them, or has punished folks by making it more expensive for the customer or us. It's not right. Does the government honestly think that "mortgage disclosure reform" is the answer? Are you kidding me? Yeah, that was the reason for the real estate/mortage mess. If they honestly think that then we are in big trouble.
Numbers 3-8 are so "pie in the sky" right now that it is almost laughable. Basically they are saying everything needs to get back to what it was and then it will be alright. Wow, that really insightful "keys" you all came up with. Not going to happen, folks.
There is one primary key to the mortgage market this year and that is the Federal Reserve (Key #8). Their "Quantitative Easing" plan is so full of holes that it could not hold water if it wanted to. Frankly, we are relatively convinced that the Reserve does not know what exactly to do because they are running out of options. Flooding the economy with Billions of dollars is not going to lower rates. It is, in fact, going to raise rates (as it has quickly done). Then when inflation kicks in what is going to happen? Rates will go higher, faster. Why the Feds do not seem to get this is utterly beyond us. But it's simple economics.
Tuesday, November 9, 2010
Has The Fed Done It, Again?
Click on the title to link. The short answer is, yes. This is an article I found today by Jim Jubak which adds to the foder of what we posted yesterday. The Fed's, in our opinion, have no clue what they are doing and have made a huge mistake in flooding US dollars into the economy (unless, of course, you want to devalue the dollar). This is a huge issue that is coming down the pipe, people. You need to educate yourself on this so you are prepared. We do not mean to sound gloom and doom, but this is a major concern.
Monday, November 8, 2010
Will The Fed Self Destruct?
Click on the title to link. The fact that the Feds are flooding the economy with $600 billion to "revive" the economy will, in our opinion, only kill the economy. Why? Because you cannot devalue the dollar like the Feds are going to do with their plan. Inflation will go through the roof, rates will go up, the cost of goods will go up, people will have to spend more to get less, etc. This is a stupid move by the Feds.
And just to be clear, it does not matter whether you are a Rep or Dem. You better wake up to reality regardless because this is a bad move by the Feds that may show temporary, early signs that are positive. But the storm is coming (unfortunately).
And just to be clear, it does not matter whether you are a Rep or Dem. You better wake up to reality regardless because this is a bad move by the Feds that may show temporary, early signs that are positive. But the storm is coming (unfortunately).
The Jobs Picture Continues to Worsen
By Robert McHugh, Ph.D.
November 6th, 2010
Let’s look at some of the Fundamentals of the economy which eventually leak into the market at some future equilibrium price in the future:
The Bureau of Labor Statistics, a division of the Labor Department, announced Friday, November 5th the results of their employment survey and statistics for the month of October 2010. Using just their numbers, they reported that non-farm payrolls rose 151,000 in October. However, they goosed this figure by 61,000 make believe, guestimated, assumed, non-counted fictitious jobs they presume were created by new businesses they think started up, net of businesses that closed down. That brings the non-farm payroll figure down to 90,000. But, of that 90,000 reported new jobs, 35,000 were in temporary service jobs. So, if we take that figure out, we are down to 55,000 new jobs created in October. However, the U.S. needs to create 150,000 new jobs every month just to accommodate population growth, which means that once again, job creation fell short by 95,000 in October. In other words, the employment picture got worse.
The BLS reported that the unemployment rate, by their convoluted calculations, remained at 9.6 percent, 14.8 million good folks out of work. However, they purposely chose to not count 2.6 million unemployed folks who wanted work, looked for full time work within the past 12 months, but did not look during the most recent 4 weeks for one reason or another. For 1.2 million of those 2.6 million, the reason was they were so discouraged, they figured, “why bother.” The BLS 9.6 percent figure would have risen to 11.28 percent by including those 2.6 million, no arguing the truth there. That is really the number that should be reported. But worse, the BLS does not count the underemployment rate. There were 9.2 million folks who wanted to work full time, but were denied that opportunity involuntarily, by having their full time hours cut back, or by settling for a part-time job while they continue their search for full time work. If we add those good folks to the unemployment ranks, we find that the underemployment rate was 17.2 percent. That means more than one out of every six employable people were either unemployed or stuck in a part-time job when they wanted full time work.
Then there is the immeasurable group of folks who have full-time work, but in a job that is below their skill level, and at a pay rate below what they had in previous full-time work. Add to them those who have full time work on salary (do not qualify for hourly overtime pay), but work more hours now than they did before to cover the responsibilities of fellow workers who got laid off, but also did not get a salary increase. Not sure how many of these good folks are out there, burning out, giving up quality of life just to keep their jobs. Then there are those who have full time work, but have not been given raises because their employers suggested they be happy at their current wage or else they will be replaced by someone else willing to work the same job for less. Call this entire paragraph the “quality of work” work decline, which I do not believe anyone has a handle on. But if you talk with friends and neighbors, empirically there are a ton of folks in this category, a category whose numbers have increased dramatically since the Bear Market started.
All this adds up to an employment picture that is grim, and getting worse. The impact of course is on consumer spending, which accounts for 70 percent of GDP. The only solution out of this mess is a massive income tax rebate and tax cut, placing the QE2 Dollars the Fed is printing, into the hands of households, and not Wall Street where QE2 is going. If households got the money, they would lower their debts, and increase their spending. That increase in spending would boost small business revenues. Small businesses (who are responsible for 70 percent of hiring) would then start hiring to handle the increase in sales. Small businesses would then spend more, boosting sales of large corporations. Large corporations would then add jobs and go to Wall Street for capital. Wall Street’s profits would grow from investment banking operations, rather than the Trading accounts QE2 are designed to goose. At every level, government tax revenues would get a piece of the action. Voila, prosperity for all!
If I were king, this is what I would do. I would cancel QE2, as that will have no positive impact on the economy or employment. I would then do QE3, a one time only event. It would be designed to choke start a dead economy and deteriorating employment picture that will eventually lead to a Great Depression.
I would have the U.S. Treasury issue at least $5.0 trillion of new Treasury note securities, short to intermediate term, up to 5 years in maturity. This term is chosen because this economic “trickle up” plan would reap returns to the Treasury in the form of massive tax revenues by year five without the necessity to raise income tax rates, rather while actually lowering income tax rates, when this debt could be retired. I would then sell these $5.0 trillion of securities in the open market, with the Federal Reserve as buyer of last resort, providing demand if necessary. Even if the Fed buys all of these securities, it is okay because the Treasury will be retiring them within five years anyway from the increase in tax revenues it will accrue from a growing and prospering economy.
Then I would take that $5.0 trillion and rebate 1 to 2 years of income taxes to households (not businesses), with a minimum rebate of $25,000 since many folks were unemployed and do not have income over the past two years. Small businesses would end up getting the rebate because there are many who file subchapter S returns that flow to household tax returns. I would then require that half the rebate be used to pay down debt. This would result in stronger financial balance sheets for households and lending institutions. Banks getting their loans repaid would see their non-performing assets decline, and see their loan portfolios decline. That would improve their capital ratios and their liquidity. In conjunction with improved household financial positions, this would put banks in the mood to be accommodative in lending practices, which would help the economy. This would strengthen the FDIC’s reserve position as fewer banks would fail.
Households would then take the rest of the money, and feel more confident about the future, and likely spend on items they have been holding back on due to necessary austerity. This would boost small business sales, which would result in job creation to accommodate the increase in sales. This would increase small business’ demand for the products and services of large corporations. Large corporations would then turn to Wall Street firms for capital and loans, boosting Wall Street’s profits, not from Trading schemes courtesy of the Fed, but from growth in aggregate demand, the economy. Local, State and Federal government entities would get a piece of the action at each level, increasing their tax revenues, allowing them to retire debt and increase infrastructure spending which would create more jobs.
This results is prosperity for all, a growing pie, growing aggregate demand. With the increase in tax revenues, the Treasury then retires the $5.0 trillion of newly issued debt that kick-started this economic recovery plan. The Fed sells its securities back to the Treasury, and the U.S. Dollar retains its value.
This will not happen, because both political parties seem intent on solving economic problems with a top-down approach, where they give trillions of Dollars printed out of thin air to Wall Street who then take the money and earn increased Trading Account profits with mega-purchases and profit-taking sales of stocks and other financial instruments, like some wealthy drunk at the casinos. A great deal of this money will get destroyed, disintegrate at a coming stock market plunge, and the wealthy Wall Street Trading machine will end up leaving the gambling table broke once again, with all the money from the Fed gone for good, leaving a trail of a devalued Dollar, rising unemployment, falling home prices, failing banks and businesses, bankrupt families – the next Great Depression. That will lead the Central Planner’s to the bright idea where sovereign nations merge into a new Union of Western States, including North America and Europe, in an attempt at one world government they falsely hope will fix the mess they created. Unfortunately this is probably the path we are on.
November 6th, 2010
Let’s look at some of the Fundamentals of the economy which eventually leak into the market at some future equilibrium price in the future:
The Bureau of Labor Statistics, a division of the Labor Department, announced Friday, November 5th the results of their employment survey and statistics for the month of October 2010. Using just their numbers, they reported that non-farm payrolls rose 151,000 in October. However, they goosed this figure by 61,000 make believe, guestimated, assumed, non-counted fictitious jobs they presume were created by new businesses they think started up, net of businesses that closed down. That brings the non-farm payroll figure down to 90,000. But, of that 90,000 reported new jobs, 35,000 were in temporary service jobs. So, if we take that figure out, we are down to 55,000 new jobs created in October. However, the U.S. needs to create 150,000 new jobs every month just to accommodate population growth, which means that once again, job creation fell short by 95,000 in October. In other words, the employment picture got worse.
The BLS reported that the unemployment rate, by their convoluted calculations, remained at 9.6 percent, 14.8 million good folks out of work. However, they purposely chose to not count 2.6 million unemployed folks who wanted work, looked for full time work within the past 12 months, but did not look during the most recent 4 weeks for one reason or another. For 1.2 million of those 2.6 million, the reason was they were so discouraged, they figured, “why bother.” The BLS 9.6 percent figure would have risen to 11.28 percent by including those 2.6 million, no arguing the truth there. That is really the number that should be reported. But worse, the BLS does not count the underemployment rate. There were 9.2 million folks who wanted to work full time, but were denied that opportunity involuntarily, by having their full time hours cut back, or by settling for a part-time job while they continue their search for full time work. If we add those good folks to the unemployment ranks, we find that the underemployment rate was 17.2 percent. That means more than one out of every six employable people were either unemployed or stuck in a part-time job when they wanted full time work.
Then there is the immeasurable group of folks who have full-time work, but in a job that is below their skill level, and at a pay rate below what they had in previous full-time work. Add to them those who have full time work on salary (do not qualify for hourly overtime pay), but work more hours now than they did before to cover the responsibilities of fellow workers who got laid off, but also did not get a salary increase. Not sure how many of these good folks are out there, burning out, giving up quality of life just to keep their jobs. Then there are those who have full time work, but have not been given raises because their employers suggested they be happy at their current wage or else they will be replaced by someone else willing to work the same job for less. Call this entire paragraph the “quality of work” work decline, which I do not believe anyone has a handle on. But if you talk with friends and neighbors, empirically there are a ton of folks in this category, a category whose numbers have increased dramatically since the Bear Market started.
All this adds up to an employment picture that is grim, and getting worse. The impact of course is on consumer spending, which accounts for 70 percent of GDP. The only solution out of this mess is a massive income tax rebate and tax cut, placing the QE2 Dollars the Fed is printing, into the hands of households, and not Wall Street where QE2 is going. If households got the money, they would lower their debts, and increase their spending. That increase in spending would boost small business revenues. Small businesses (who are responsible for 70 percent of hiring) would then start hiring to handle the increase in sales. Small businesses would then spend more, boosting sales of large corporations. Large corporations would then add jobs and go to Wall Street for capital. Wall Street’s profits would grow from investment banking operations, rather than the Trading accounts QE2 are designed to goose. At every level, government tax revenues would get a piece of the action. Voila, prosperity for all!
If I were king, this is what I would do. I would cancel QE2, as that will have no positive impact on the economy or employment. I would then do QE3, a one time only event. It would be designed to choke start a dead economy and deteriorating employment picture that will eventually lead to a Great Depression.
I would have the U.S. Treasury issue at least $5.0 trillion of new Treasury note securities, short to intermediate term, up to 5 years in maturity. This term is chosen because this economic “trickle up” plan would reap returns to the Treasury in the form of massive tax revenues by year five without the necessity to raise income tax rates, rather while actually lowering income tax rates, when this debt could be retired. I would then sell these $5.0 trillion of securities in the open market, with the Federal Reserve as buyer of last resort, providing demand if necessary. Even if the Fed buys all of these securities, it is okay because the Treasury will be retiring them within five years anyway from the increase in tax revenues it will accrue from a growing and prospering economy.
Then I would take that $5.0 trillion and rebate 1 to 2 years of income taxes to households (not businesses), with a minimum rebate of $25,000 since many folks were unemployed and do not have income over the past two years. Small businesses would end up getting the rebate because there are many who file subchapter S returns that flow to household tax returns. I would then require that half the rebate be used to pay down debt. This would result in stronger financial balance sheets for households and lending institutions. Banks getting their loans repaid would see their non-performing assets decline, and see their loan portfolios decline. That would improve their capital ratios and their liquidity. In conjunction with improved household financial positions, this would put banks in the mood to be accommodative in lending practices, which would help the economy. This would strengthen the FDIC’s reserve position as fewer banks would fail.
Households would then take the rest of the money, and feel more confident about the future, and likely spend on items they have been holding back on due to necessary austerity. This would boost small business sales, which would result in job creation to accommodate the increase in sales. This would increase small business’ demand for the products and services of large corporations. Large corporations would then turn to Wall Street firms for capital and loans, boosting Wall Street’s profits, not from Trading schemes courtesy of the Fed, but from growth in aggregate demand, the economy. Local, State and Federal government entities would get a piece of the action at each level, increasing their tax revenues, allowing them to retire debt and increase infrastructure spending which would create more jobs.
This results is prosperity for all, a growing pie, growing aggregate demand. With the increase in tax revenues, the Treasury then retires the $5.0 trillion of newly issued debt that kick-started this economic recovery plan. The Fed sells its securities back to the Treasury, and the U.S. Dollar retains its value.
This will not happen, because both political parties seem intent on solving economic problems with a top-down approach, where they give trillions of Dollars printed out of thin air to Wall Street who then take the money and earn increased Trading Account profits with mega-purchases and profit-taking sales of stocks and other financial instruments, like some wealthy drunk at the casinos. A great deal of this money will get destroyed, disintegrate at a coming stock market plunge, and the wealthy Wall Street Trading machine will end up leaving the gambling table broke once again, with all the money from the Fed gone for good, leaving a trail of a devalued Dollar, rising unemployment, falling home prices, failing banks and businesses, bankrupt families – the next Great Depression. That will lead the Central Planner’s to the bright idea where sovereign nations merge into a new Union of Western States, including North America and Europe, in an attempt at one world government they falsely hope will fix the mess they created. Unfortunately this is probably the path we are on.
Tuesday, October 19, 2010
NY Fed Suing B of A
Click on the title to link. Remember how we said just this morning that the whole foreclosure fiasco that came out the last few days was only the beginning? And that just because B of A and GMAC went back to "foreclosures as usual" did not mean the dominoes where done falling? Well, here's the next domino...
More on the Forclosure Mess
Click on the title to link. This is a great article by Jim Jubak about the foreclosure fiasco with banks right now. Like we said before, it is going to be really interesting to see what comes of this. Just because B of A and GMAC pulled their "holds" on foreclosures today does not mean it is business as usual. This article does a good job of looking into the back end to show you the real problem at hand. Bank may be in big trouble. Of course, they are cash rich right now because they have been storing away the "stimulus" money they received instead of actually lending it out.
Wednesday, October 13, 2010
Recession or Recovery?
Click on the title to link. This is an interesting article as it talks about how this "recovery" sure feels and looks like a recession. Don't kid yourself into believing that we are in "recovery" mode. We are smack-dab in the middle of a recession still. Do you feel recovered? This is one of the first articles we can remember seeing that actually admits to this.
Adding more reason to believe this...the Fed Reserve is desperate to get the economy going. So much so that they are talking about printing 6-7 trillion dollars worth of money to flood the economy with cash in the hopes that it will stimulate people to spend. The problem with that stupid idea? Inflation will sky rocket, rates will go with it, and the value of the dollar will plummet. They are in a mess and don't know what to do.
Adding more reason to believe this...the Fed Reserve is desperate to get the economy going. So much so that they are talking about printing 6-7 trillion dollars worth of money to flood the economy with cash in the hopes that it will stimulate people to spend. The problem with that stupid idea? Inflation will sky rocket, rates will go with it, and the value of the dollar will plummet. They are in a mess and don't know what to do.
Friday, September 24, 2010
Need To Refi, But Your House Is Underwater?
Click on the title to link. This is an article about two government options if your house is underwater. The thing about these two options is they are not as easy to get as they may make them sound. There has been numerous articles about how these two programs have not really accomplised what they were intended to. But they are, none the less, options.
If you are currently on an FHA or VA loan then you can also refi onto another VA or FHA loan at a lower rate without having to get an appraisal. This would eliminate any "underwater" issues.
If you are currently on an FHA or VA loan then you can also refi onto another VA or FHA loan at a lower rate without having to get an appraisal. This would eliminate any "underwater" issues.
Wednesday, August 25, 2010
Appraisal Under Scrutiny
Click on the title to link. Our poor intentioned, poor planning government has so screwed up the appraisal process for loans it should be a case study in college of what not to do (any questions about where we stand on this issue?). They revamped the appraisal process to "protect the consumer" from over inflated appraisals. Instead it has:
1. Driven up the costs for appraisal because competition is over.
2. Caused appraisals to come in under value because the appraisers are so scared of the lenders over analyzing their work and not giving them move orders.
3. Made it so that you, the consumer, can no longer get at least a "feel" for what your house may appraise before dropping 500 bones.
The current appraisal system is the poster child for anti-government interference.
1. Driven up the costs for appraisal because competition is over.
2. Caused appraisals to come in under value because the appraisers are so scared of the lenders over analyzing their work and not giving them move orders.
3. Made it so that you, the consumer, can no longer get at least a "feel" for what your house may appraise before dropping 500 bones.
The current appraisal system is the poster child for anti-government interference.
Monday, August 23, 2010
Mortgage Reality Check
Some of you may have seen this on ABC News. It is a good video about the difficulties of getting a mortgage now-a-days with all the new regulations, and stingy banks. Now is, without a doubt, the most frustrating time we have seen in 9 years to obtain a mortgage. We hae always told our clients that lenders do not lend in logic, they use guidelines that often make no logical sense. The problem now is many of they have transitioned into the illogical. Not only do they use strict guidelines they are now venturing outside of the guidelines and asking for stupid things (and we mean really stupid sometimes). And often, unfortunately, it is due to laws that our terrible Congress has passed that are intended to make it "safer and easier" on you the consumer. Instead it has done the exact opposite (typical).
All of this said, you have to be careful not to let this video (and our statements) prevent you from pursuing a mortgage. There may never be another time when the perfect storm hits like it has right now. What is the perfect storm? Increadibly low rates and a dismal sellers market. You can get more house for the dollar than ever before. So from a purchase stand point it has never been better.
The same applies to refinancing. Yes, getting a mortgage can be (will be) a pain in the butt. But (no pun intended) rates are so low that you just cannot pass them up. We have seen our fair share of stupidity by lenders and law makers. However, we are here to help you navigate through the rough waters. This is why it is important you work with somebody who has your best interest at heart. You can work with a bank, but you have no buffer to help you understand why they are needing what they need. And you have nobody there to walk you through it. We often explain to people up front what issues may arise because we have seen it so much. Surprises come, no doubt. But if we can anticipate most of the garbage thrown at us all then it makes for a much smoother loan. That's our role for you.
Another Market Crash?
Click on the title to link. This is an easy to read article on some signs that indicate the possibility of another market crash. Our two cents...it's definetely coming.
Wednesday, August 18, 2010
"Sorry, No We Can't Lower Your Rate"
Huh? Here's another example of over-regulation by a government. We recently had a client who was purchasing a house. A couple of days before closing rates really dropped to where we could have gotten them a lower rate and, consequently, a lower payment. However, we could not do it because we now have a regulation where we cannot change the rate without there being a 3 day period before you can close on the loan; this includes lowering the rate!! Since this was a purchase, we could not do anything because the sellers would not budge on the closing date. So our client lost out on a lower rate and payment.
Make you mad? It should. It's not the first time this has happened for us. Now write your congress folk and tell them to fix it.
Make you mad? It should. It's not the first time this has happened for us. Now write your congress folk and tell them to fix it.
Fees Are Up...Thank Congress
Just watched a video talking about how the average amount of closing costs this year is up 37% from what it was last year! And this after the Feds came out with the new and "improved" Good Faith Estimate, which was suppose to stop lenders from adding on last second fees. Well, that has happened, no doubt. But for us honest lenders out there who never did something so stupid in the first place, it just complicated things for everyone. Now we use the old Good Faith to explain the new one. If that's not proof that people making laws that have no clue what they are doing then I don't know what is.
Why are costs higher? Simple...more regulation = more overhead to be compliant = more costs = higher fees to the consumer. It's simple math really; it's only hard to understand for those residing in Washington D.C. Just wait 'till the new health care goes into effect, especially for these large companies.
Don't like it? Write your congress folks and let them know what you think of it.
Why are costs higher? Simple...more regulation = more overhead to be compliant = more costs = higher fees to the consumer. It's simple math really; it's only hard to understand for those residing in Washington D.C. Just wait 'till the new health care goes into effect, especially for these large companies.
Don't like it? Write your congress folks and let them know what you think of it.
Friday, August 13, 2010
Low Rates Are Dangerous
Click on the title to link. This is a very good article about how one guy has finally come out about the unsustainability of the current low rates. We have been saying that inflation will kick in and rates will go up. We certainly thought it would be sooner, but we cannot sustain the current landscape; no way. Take the time to read this because this will happen.
Refinancing Options If Your Under Water
Click on the title to link. We do not do either of these loans; you would have to go through your current mortgage holder. But they are resources for you if it is a last option, and you want to view these as last resorts.
Thursday, August 5, 2010
Mortgage Brokers Regulations
We have mentioned this before, but it has been a while. Plus the linked article is a good summary of what is required of us now. Click on the title to link to it.
In the past, pretty much anybody could become a broker overnight. It really was ridiculously easy. That has all changed, and it is a fairly intense process now that includes getting finger printed, tested and registered. It is something long over due, and we are all for it.
In the past, pretty much anybody could become a broker overnight. It really was ridiculously easy. That has all changed, and it is a fairly intense process now that includes getting finger printed, tested and registered. It is something long over due, and we are all for it.
Tuesday, August 3, 2010
Next Up For Fannie & Freddie?
Click on the title to link. This is a great article discussing what may happen next with Fannie and Freddie. Ever since these institutions were officially taken over by the Feds they have been nothing short of a disaster. Once again, Congress may be ready to start mingling, and if they are not careful it may have much more serious implications than our already struggling economy.
Click here for a video on the same topic.
Click here for a video on the same topic.
Friday, July 30, 2010
Higher Inflation
Inflation is going to be going up. It is inevitable because the government has to do something to try and pay for all the garbage legislation they are passing. When you combine higher inflation with higher taxes you get poor people with no jobs. This is a major issue staring us in the face. Here is a quote by Federal Reserve guy, ...
what we're trying to do is encourage output growth and production, and through that channel, get inflation to move higher.Not good at all, but it's comin'.
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