I've been thinking. What happens if the mortgage breaks, the tax breaks, the lower rates, and the TALF program are actually starting to kick in? What happens if housing is bottoming? What happens if the consumer is not dead? If retail and restaurants are better? What happens if the stimulus is kicking in?
What happens if Ben Bernanke's got it right? What happens if Tim Geithner got it right? And, most important, why isn't anyone talking about this? Why is it that I never hear talk about a housing bottom, yet it is clearly a rolling bottom that is holding, particularly where housing prices are down 40% or more? (Existing Home Sales Up BIG: Housing Turnaround Underway)
Why is it that a turn is always questioned and the media has never addressed it?
Then today we have the Wells Fargo big upside surprise (Banks are Making Money). Now Wells will end up being the bank that can then buy other banks that are weak. It will be the go-to bank for the FDIC. At last, we have a bank to send other banks to, and we are going to get out of this jam.
I sit here every day and see things happening that are better. But we still have to wait until we see a number from Wells to believe that anything good could be occurring. Have you heard anyone say that Bernanke or Geithner are doing things that are worthwhile? They come in for endless criticism.
Let me tell you what I think. When Bernanke finally slashed rates hard when it was clear that deflation was the enemy, and started to buy mortgage-backed securities by the hundreds of billions, how could you complain? When Tim Geithner when he came in with no plan I was worried. But when he adopted a forbearance plan and advocated private partnerships and shutting bad banks – how could you be against him?
These plans may very well be working. These plans can make a difference. Larry Summers, the chief economic adviser, says today the free fall is over. I would not bet against this man.
You need to be less negative. That has to happen. The facts won't let you be … unless you want to ignore them. It's time to stop worrying and ask youself the same questions I've asked you. And if you believe like I do, that housing will be the biggest turnaround of 2009, then you need to get off the fence and start buying some foreclosures for big discounts right now, while the picking is great. There is "right way and wrong way" to find the best deals and I will show you how to cut through the junk and land the sweetest deals, using none of your own money.
Showing you exactly how to do this in person, is why I have my 3 day Lab in Sacramento Let us help you get your foreclosure business off the ground too. Call Jim or Andy now… 800-310-7730 x2. See you soon!
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{ 4 comments… read them below or add one }
I could be against Bernanke and Geithner burdening my children with debt, subsidizing losers, and supporting housing prices, which should be lower, so people can use their money more productively elsewhere.. You, on the other hand, are in the business of sellling houses, so you will say anything to do just that…
RadG…
Actually we do not sell houses, but people’s interest in buying houses are good for us.
There is some truth to what you say… I am very against the use of printed, or borrowed money to buy our way out of our mistakes. But those are dealt cards and all I can do is play the hand.
The part about the cost of housing and the amount of each of our toil we put towards are housing is something neither of us can control. People will pay to own their own home what they feel they can afford. As long as supply and demand remain the decider of real estate prices it is up to people to decide their price.
What caused the last run up was the ease cheap money could be had. Money cheaper now than ever. Mix the payment with the current values and soon people will be paying more and more for their choice house.
Now we could get the government to say what each house costs… If you think this is a good idea, I know of some nice houses in Bejing and Ho Chi Min City.
Ahh, never mind that the government is setting the rates thereby determining what housing costs. It would also seem that people will sign on for what they cannot afford and banks will lend what money they do not have. Way to go playing that hand.
You would rather fold… while we come up with winning hand solutions.