Is Commercial Real Estate Over-Leveraged?

Moody’s tends to think so.  In a recent article on National Real Estate Investor, Bendix Anderson brings us a chilling discovery on 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

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