Category Archives: Economic trends

Commercial note buyer — A Lack of Certainty

Uncertainty rules the land – in the U.S., in Asia, and most especially, throughout Europe.  Anyone who has followed government bumbling over the last few years knows national policymakers will continue to make the wrong economic decisions, but we don’t know which wrong policies they will implement.  The Fed, which just this week extended “Operation Twist” to keep long-term interest rates low, has spent trillions of dollars to stimulate the economy, including sizable loans to their Wall Street buddies.  What has this gotten us?  Has unemployment come down to normal post-recession levels or has income and wealth increased for most citizens Read More

Recognizing Problems- San Diego real estate note buyer

The sunny optimism about the European financial situation has all but disappeared.  For many months, various European bureaucrats and central bankers had climbed the podium to tell their trusting citizens that everything was okay and that the situation was under control by the “experts.”  Of course, the opposite was true.  Manufacturing output in even Germany and France is down, and it seems clear that the Eurozone recession will be long and deep.  Greece is on the verge of default as it plays a game of chicken with Germany, and several of the other PIIGS (Portugal, Italy, Ireland, Greece, and Spain) Read More

Growing Somewhere — Texas mortgage buyer

Is your washing machine working properly?  Yes?  Why not pay a repairman to come out anyway?  You should also repaint your house and maybe add a pool.  Oh, and you need to eat out more often and then go to the movies.  Why?  Well, you see, Uncle Sam needs you to spend, spend, spend.  The Fed and our politicians figure that by them printing money and you spending more money than you have, this charade of a healthy, recovering economy can continue at least until the end of their terms. If you’re up for travelling, the Europeans would appreciate getting Read More

Debt Does Matter — California note buyer

If you borrow $10,000 from a family member or friend, should you pay back the loan as promised?  What if you borrow that same amount from a bank or from a stranger?  I think that most people would give an unqualified “yes” to the first question and an only slightly less positive answer to the second one. What if you have the money to make payments against a loan but choose not to pay?  In real estate, borrowers who could pay but choose not to because their house is worth less than what they owe on the mortgage are known Read More

A Massive Financial Cliff-California mortgage buyer

On New Year’s Eve this coming December, there are extra reasons for you to imbibe heavily to escape reality.  Fed head honcho Bernanke tells us (correctly, for once) that the U.S. economy could fall over a “massive financial cliff” on January 1, 2013.  That day marks the end of the Bush-era tax cuts and the security payroll tax cuts, as well as the activation of the Congressionally-mandated $1.2 trillion in spending cuts and the kicking in of a whole new set of fees and taxes related to Obamacare.  A “perfect storm” has been a vastly overused term, but would apply Read More