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And Now, the End is Near

And Now, the End is Near

Two events today have indicated to me that the economy is about to go nose dive. One came from Federal Reserve Chairperson Janet Yellen in her prepared remarks in front of the Senate Banking committee.  She announce “Irrational Exuberance 2”, the sequel to Alan Greenspan’s mention that tech stocks are too high based on no backbone. Yes, there is no basis to the valuations on some companies that have not put together dollar 1 in profit, yet have spreadsheets making them worth billions. I am sure there are a few that deserve that price, but many don’t.  Even the people writing the algorithms don’t agree with the numbers that are projected.  In order for free markets to exist, they must have valuations based on realities, not wild speculations. The other came in the form of an email.  Our new hero for ending the economy is Kevin DeLory, Regional Sales Manager at Carrington Mortgage Wholesale.  I received an email from Mr. DeLory today since I am a mortgage broker that...

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Top Reasons the Real Estate Market Could Crash Soon

Top Reasons the Real Estate Market Could Crash Soon

Crash? Don’t be alarmed. Don’t sell your business, but realize that the economic structure and outside occurrences can shape a real estate market. I am a normally upbeat guy, but I do like realism. We have to step away from being happy all the time to an honest view for our clients — both sellers and buyers. Here are the top reasons that the real estate market could fail soon, in no particular order: 11. Rates are dropping. What? Aren’t rates dropping a good thing? Actually, no. The market is telling us based on macroeconomic reports that the economy is not cooking and jobs are not being created to make people buy homes. The only good news that will come from this is that those who forgot to refi, especially the HARP2 eligible, will be able to get better rates. Speaking of HARP, it’s being reported that FHFA Director Mel Watt may waive the eligibility date! 10. Robots. CNBC did a report called “Robots Rising” highlighting the fact that robots will continue to...

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The Flood of Political Reality

The Flood of Political Reality

Thanks to the Senate and all the people that helped push the Senate to pass the first step of the reform to Biggerts-Waters 12.  Now, the focus is now on the House of Representatives. We need a head count. There are 180 members that are for the bill that we know. We need 218 votes to approve. That 38 more yeas.After that, the White House is not on board. We need to send to the White House our concerns. In order to get this through, the WH and probably the House will need to offset the subsidy with other spending. These are the hard choices that politicians make.  this is where negotiation and diplomacy takes over.  Senator Mary Landrieu of Louisiana will be earning her stripes to convince her peers and the President that the flood nightmare that affects many, many Americans that can’t afford the new flood bills. What should we offset in the federal budget to give the flood subsidy? Be prepared for compromise and maybe a loss...

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