A knowledgeable young friend remarked that he though rates were going to go lower then stabilize for the long term. I have just two questions: "How?" and," Where is the money to come from?"
I'm going to ignore the political history of Democratic Presidents, that goes back to the nineteenth century. Certainly reality, history, precedent and logic can't compete with blind optimism.
I'd like to ask how? How can rates go much lower? If the banks are failing with the relatively higher rates we've experienced how can they survive with lower and lower rates?
The only way I can see rates getting much lower is if the source changes! It has been proposed that Big Brother take over the mortgage business and loan home owners money at 4.00% which would mean that for profit institutions couldn't compete. Assuming that the Government doesn't buy or take over all the banks first.
What ever reason if rates fall where will the money come from?
Money use to be finite! Then we abandoned the Gold Standard making money infinite. Infinite money is worthless except for faith! It's that faith spawned the world's most stable and robust economy that made the United States the place for the world's rich to invest. In fact one of our states alone is the world's seventh largest economy! Are we so arrogant or so ignorant that we think we can abandon all that has made us so great and still retain the world's faith?
Are we blind to China and India?
Both promising their people bigger and brighter futures and prosperity while our leaders are telling us we have to lower our expectations! All faith is based on optimism, if we're to pessimistically lower our expectations at a time when other large markets are optimismicly raising theirs where are the world's investors going to put their money? Who are the world's rich investors going to have faith in?
If you need mortgage money or if you make your living selling mortgages, real estate, or as a real estate investor get it now!
Bill
William J Archambault Jr
The Real estate Investment Institute
Bill
William J Archambault Jr
The Real Estate Investment Institute
wja@reii.org Cell 832-259-7078, Houston 832-582-8415, Las vegas 702-516-1569
From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.
Bill, None of it makes sense any more. We do have plenty of money. The only problem is that it's worthless paper. And once lenders are forced to lower principle balances no one any where will want to lend money.
Bill~ I love the post and I love the video. You make ujs know you better each day, and I grow to love you more and more. You are a truth teller, and I love the truth. Thanks for being there for us and with us. God Bless!
Bill - one of the good things to come out of the depression was the amortized mortgage. It transformed the housing outlook for the U.S. So far, I have seen nothing in any of the proposals put forth, that will have the positive impact that this one thing did. Perhaps they can change the laws/rules/regulations on what can be done with loans during the foreclosure process.
The amortized mortgage provides hope! There is always a light at the end of the tunnel. The magic of amortization means that equity will always improve, the only question is time.
It's not the foreclosure process that's the problem. My pet peeve is "due on sale" this evil is designed to profit the lender and defies any other logic.
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Bill, None of it makes sense any more. We do have plenty of money. The only problem is that it's worthless paper. And once lenders are forced to lower principle balances no one any where will want to lend money.
By the way I LOVE the video.