Financial Markets, Cap & Trade and Health Care in the US (Part 1)
Zillow is emerging as a powerhouse of unfettered opinion in the housing sector, based on their love for housing market data. Regional recovery is still mixed so we are going to need more than optimism to believe that this market is beginning to stabilize. Zillow Chief Economist Stan Humphries has been in the public eye in the last few days and he outlined the housing market drivers that could stimulate or stall any recovery on CBS Moneywatch. In the true spirit of journalism, here is a voice that doesn’t have ties to your net worth or your bonus.
Abuse to one person may be fair play to another. Where do you stand today on the field of credit? Many of us have watched our net worth plummet and our retirement savings disappear. Some of us have received handsome performance bonuses for generating substantial profits based on formulas that don’t take into consideration looming write-downs that substantially influence our financial system. Do you think that regulation will help curb the instability?
October 30th, 2009 at 7:41 am
At the rate the Feds have been printing money, I’m worried that interest rates will be headed upwards in a significant way by the end of next year. We may well be facing a case of inflation.
What happens next? We can look back to the 1970′s for a hint at the answer. The Feds, in an attempt to stave-off inflation, raised the interest rates to 20+%.
What happened to those buyers who wanted to purchase a home? We had to be creative. Sellers, together with banks, provided the financing for buyers. Everyone had “skin” in the game. These were often referred to as “wraps” or seller-financed “seconds” to create the original 80/10/10 loans.
It seems the more the government becomes involved and interrupts the free-market system, the more nervous investors/buyers/sellers/”flippers” and upper management of private companies become. Regulating and controlling our incomes, our ability to earn high incomes, the ability to obtain financing, etc. can easily be perceived as over-reaching by the government. The intrusion into our lives by goverment, the more people question “what’s next?” and dig in their heels. We have only history to look back upon to prove this out.
If the free market is allowed to make the market corrections, the more the entrepreneurs and risk takers are likely to bring us out of the economic slump we find ourselves….