Moody’s tends to think so. In a recent article on National Real Estate Investor, Bendix Anderson brings us a chilling discovery of the current state of affair of the Commercial Real Estate sector. The findings are based on Moody’s recent warning regarding the average LTV’s during their recent rating assessment for securitization of conduit loans. … Continue reading »
How to Invest in a New Real Estate Market
by Leon Yang on BiggerPockets A friend of mine recently asked me about how he should start going about when finding a market to invest in. As I answered him on how to approach the market, I noticed his eyes started wandering when I continued to spew information out like a loose fire hydrant for … Continue reading »
The Crucial Fact About Mortgage Lending Today
By Gary North One of the most important aspects of the decline of mortgage rates is the fact that most of the money is not going into the purchase of housing. When we read of falling rates, and then we read about the recovering housing, we naturally assume that the two facts are linked. They … Continue reading »
Why Economists Believe That We Can Get Something for Nothing
By Gary North “You can’t get something for nothing.” All economists say they believe this. With the exception of Austrian School economists, none of them believes this. We are told by everybody except the Austrians that Federal Reserve policy, being loose, is now stimulating economic growth. Yes, this growth is minimal, but it is real. … Continue reading »
No, the Free Market Did Not Cause the Financial Crisis
By Tom Woods In March 2007 then-Treasury secretary Henry Paulson told Americans that the global economy was “as strong as I’ve seen it in my business career.” “Our financial institutions are strong,” he added in March 2008. “Our investment banks are strong. Our banks are strong. They’re going to be strong for many, many years.” … Continue reading »
Let the Housing Market Clear!
By Ron Paul French businessman and economist Jean-Baptiste Say is credited with identifying the fundamental economic principle that aggregate demand for goods in an economy will equal the aggregate supply of goods when markets are permitted to operate. Or in Say’s words, “products are paid for with products.” English classical economist David Ricardo, among others, more fully developed … Continue reading »
What is the broken window fallacy?
The broken window fallacy was first expressed by the great French economist, Frederic Bastiat. Bastiat used the parable of a broken window to point out why destruction doesn’t benefit the economy. In Bastiat’s tale, a man’s son breaks a pane of glass, meaning the man will have to pay to replace it. The onlookers consider … Continue reading »
The Greatest Transfer Of Wealth Ever
A vast number of people think that what we’ve been through during the last four years is just another episode in the economic crises history of the United States. They believe a president has the power to continue the trend or reverse it. So they put their faith in the next presidential elections. They think … Continue reading »
The Three Requisites For A Real Estate Recovery
If your life revolves around real estate you’re probably wondering when will the real estate market bounce back. And even if you’re not directly involved in real estate you’re most likely wondering when will you be able to sell your property for a price above your loan balance. So, if you’re like most people and … Continue reading »
Why You Must Get Out of Your Adjustable Mortgage Today
I don’t have a crystal ball but I follow the fundamentals and the market is screaming to get out of your adjustable mortgage if you have one as soon as possible. Here is why. The federal funds rate is the interest rate at which banks lend their excess reserves to other banks which don’t meet … Continue reading »
A Little Known Financing Method to Buy Real Estate
Not long ago I was having an in-depth conversation with one of my friends on the topic of Real Estate Investing. You see, my friend is a real estate investor who thinks like a real estate investor. His claim was that he liked to make money by using other people’s money (OPM). I can’t fault … Continue reading »
The Allure of Real Estate
By Fred Buzzeo Mises.org These days everyone is sitting at the edge of their seats waiting for a real-estate recovery. Indeed, during the past ten years, everyone has become a real-estate addict. It is hard for me to walk down the street without someone telling me that the market has “hit bottom” or that the … Continue reading »