Here we go again. Having just recently
endured a one-hour phone conversation with my friend Steve, a mortgage broker,
I’m a little bit confused and somewhat worried. Since most of the houses
sold in the past year have been “all-cash” transactions, combined with the fact
that mortgage applications have fallen off the cliff, I asked Steve if that
means that the average person is no longer a buyer. Steve replied, “Define
the average person.” I articulated, “It’s not someone who pays
“all-cash” because I know that’s the technique on Wall Street, and I also know
it’s a select few because mortgage applications are few and far between.”
Steve then pressed me, “Define average.” I replied, “In
the past, it’s always been a young man with a good job, he has a wife and two
kids, and he’s looking for a nice home.” Steve laughed, “Really
Opie, how’s Aunt Bee?” Taken slightly aback, I said, “Okay, Andy,
who’s the new buyer?” Steve answered with the sound of deep concern
in his voice, “Think 2006 all over again. The NINJA loan, which
had been languishing in the auto sales arena, is starting to get life again.
The so-called house ‘flippers’ are back with a vengeance. And those
that walked away with a short-sale are now well rested, they’re alive and well
and back in the game. In other words, it’s déjà vu all over again.”
It would appear to me — with all political rhetoric aside — that the players who benefitted the most from the last housing debacle are definitely back in action. It’s a notorious group that includes the brokers, the banks, and of course, Wall Street. This infamous gang is also currently singing the familiar song of “this time, it’s different,” and regrettably, it appears that the general public has once again fallen in love with this very memorable tune.
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.
In Other News: Verizon Releases Statement on FCC’s “1930’s Era Regulations” in Morse Code | Michael Schaus