Category Archives: Economic trends

Remember the Federal Debt? It’s Still There

The following article was written by Simon Black of “Sovereign Man”.  During this election season that just ended, it seems especially appropriate.  Reprinted with permission. The entire world seems fixated on this belief that it actually matters who becomes the President of the United States anymore… or that one of these two guys is going to ‘fix’ things. Fact is, it doesn’t matter. Not one bit. And I’ll show you mathematically: 1) When the US federal government spends money, expenses are officially categorized in three different ways. Discretionary spending includes nearly everything we think of related to government– the US military, Air Force One, Read More

Buy mortgage notes — Cliff Diving for Ice Cream

When my kids were younger, they, like most kids, would have gladly eaten as much ice cream and desserts as they could have gotten their little hands on.  They knew that ice cream tasted good even if they didn’t have an understanding of the consequences, like later having a stomachache and having no energy when the sugar high wore off.  All they knew was that eating ice cream made their taste buds happy. As a society, especially among baby boomers, we have gotten to enjoy a high standard of living and received all sorts of free goodies over the years.  Read More

Sell mortgage — Bubbling Student Loans

Those of you who have been readers of this blog for a while may recall my June 10, 2011 article about the student loan bubble, which included details about the high unemployment rate among recent college graduates and the debacle of defaulted loans to students at for-profit colleges.  Have things changed in the last 14 months?  Well, yes … they have gotten worse. As Dan Amoss explained in The Apogee Advisory, “The real fallout from the student loan crisis will hit in mid-2013, four years after the volume of government funded student loans surged.  Like the infamous option ARMs (adjustable-rate Read More

Mortgage Purchaser — The Sad State of the States

In December of 2010, banking analyst Meredith Whitney predicted a coming wave of defaults by municipalities totaling hundreds of billions of dollars.  Her forecast of urgent problems did not come to pass, so municipal bonds recovered during 2011.  There have been some bankruptcy filings, including several high-profile ones by three California cities over the past month, but nothing huge.  We will eventually know whether her prediction was wrong or just a little early.  Either way, the fundamental financial issues that she outlined for cities and states are certainly true.  The cities and states over-promised benefits, pensions, and other goodies to Read More

How to Sell Mortgages — The Recessionary Gene

As our national and global economies continue to be battered by nasty headwinds, it is useful to step back and gauge the place in which our economy rests.  Is the economy showing real growth, are we in a full recession, or somewhere in between?  In my mind, we can clearly cross out the first option.  Payroll reports, unemployment, exports, manufacturing, etc. are weak, with very few bright lights to reassure us.  Yes, in real estate, rents, home prices, and home sales are up slightly nationwide but keep in mind that these are from depressed prior numbers.  If you use to Read More