07.03.12 Tuesday Talk "Ben get his money, US get his Independency,and the French have to eat their debt until it explode."

by qinfovio 3. July 2012 16:49
Good afternoon,
We had a good meeting last week with Leslie Appleton-Young our California Association Realtor "Chief Economist".
She was very neutral, just sharing analysis and data.
She started with the bankruptcy with the City of Stockton and then she move to a larger issue concerning
the economy in Europe. I now understand why the US is so concern with the economy over there,
since they represent 90% of the US export.
GDP for the first quarter at 1.6%, second quarter 1.9%. California unemployment at 12%,
and we lost over 500,000 jobs since the crisis, mostly in construction, lending, real estate area.
She mentioned that we should expect a lot of government cutting job.
California new housing permits are up from 20.6% from 2010. Under water mortgage represent 29.9% of home owners and another
4.7% that have negative equity. It is one on the main reason to our low inventory. 
She mentioned no inflation for 2013 and not to pay attention with the media with the real estate market. The real estate market
is very local and the best way to find out is to go by zip code.
Another bigger concern is what is going to happen with Fannie Mae, Freddy Mac and FHA. All these low
down payment loans have been bought back through bonds. To be able to sell these type of loan through the banks,
it will take a larger down payment and through more strict regulation.
She mentioned that not every body should be a home owner,and you should be able to save so you can put a larger down payment.
The No Down payment that come with VA loan or 3.5% with FHA is not much of a collateral!
You can check on the link below for the complete information.
The message that I received is that we are going to go back like we used to do loan.
It is going to take time for real estate to goes up, just like it was. it will goes up accordingly with CPI and GDP.
When it comes to Fourth of July, I did improved my American history a lot. I really enjoyed the book and biography
of Benjamin Franklin. At one time of his life, he spent a lot time in France for the only purpose to get some
money to finance the American Independence from the British.
Ben get his money, US get his Independency,and the French have to eat their debt until it explode.
The 1774 - 1789 was one one the worst financial/fiscal crisis in the world and it was cause to excessive debts
that tax payers have to pay.
Happy 4 Th of July!


Christian Viollaz
License 1318338
9 Buyer Traps and How to Avoid Them


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