Real Estate Outlook
March 31, 2010
It is March 30th and the Federal Government has committed to purchasing Mortgage Backed Securities until the end of this month. This ends, or at least appears to end at the moment, a $1.2 Trillion program to keep Mortgage interest rates in check. Of course, we’ve been spoiled with interest rates as low as the high 4’s over the last few years; however expect things to change if the Fed really does stop purchasing these bad packaged loans. We very well could see them stop buying them for a little while, but if interest rates increase very much, then expect them to continue throwing more money at the program. If the market suffers even more because of the lack of a purchaser for these loans, then the money spent for the program in the amount of over $1.2 Trillion could be considered another wasteful attempt to pump life into the market. Sooner or later, though, this liberal government will need to realize that we can not sustain to continue spending money that we don’t have in order to carry the burdens. They need to understand that unemployment is the driving force to getting us out of this funk that we are in, and we are in one of the largest funks in recent history. This could turn out to be worse than the 80’s if they don’t get things figured out very quickly. It doesn’t take a rocket scientist to understand that spending more money than one is making is a recipe for disaster, and raising taxes in a recession is another recipe for disaster. People who have gotten themselves into too much debt and weren’t able to make their payments is one reason why this country is in the financial mess that we are in now; and you tell me that the governments solution is go to deeper into debt with China?! How ridiculously ignorant do you have to be?