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Central Missouri | Listen to just the first 1 minute of this and think why didn't the bank take the short sale and get this piece of property off of its books? http://www.calculatedriskblog.com/2009/12/jim-realtor-mcmansion-for...
Looks like real estate prices keep sliding in cali. So I wonder what property tax revenues are doin? Not to mention income tax revenues in cali?
I'm sure glad I live here.
Now look at this .... http://jessescrossroadscafe.blogspot.com/2009/12/trend-in-freddie-m...
They are projecting that the house price index will fall for another 4 years. Oh boy 4 more years of zero percent interest rates to fix the banks balance sheets. All with congress spending 10% more than last year, on the latest appropriations bill, that has 5000 earmarks in it.
Now where will the dollar be? The only way the dollar won't be in the toilet is if the other currencies that the dollar is gauged too; fall faster than the dollar. Where will commodity prices be if we have 4 more years of turbo dollar printing to fix bank balance sheets and fund the yearly 1.5 trillion dollar deficit.
This fiscal year alone the U.S. has to roll over/re-finance 2 trillion of debt plus the 1.4 trillion expected deficit. That is 3.5 trillion in debt financing this year. And it looks like there are 4 more years of residential real estate and commercial real estate reductions in value. These reductions in value go directly on the banks. This is why I have come to the conclusion that either short rates stay at zero or the banking system implodes. And I'm starting to believe that the banking system still MAYimplode
The only way the fed can raise short rates is if it still allows the dollar to be the carry trade currency. I have to study that aspect more. The market will eventually force long rates higher. That may have begun this past week. http://jessescrossroadscafe.blogspot.com/2009/12/todays-us-treasury...
As a note for risk management, Long rates should be locked in on borrowed money. IMO only
Edited by ehoff 12/13/2009 11:47
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More reading between the lines
