FHA insures mortgages where the mortgagor has only put down 3%. It really doesn't take a great deal of mathematical talent to see the most probable outcome.
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Commercial Loans to Small Business are going down like a rock in a pond. The companies in the S & P 500 are masking the disaster under the covers. But you can only cut expenses for just so long... after that they are going to need some top line growth, and the only customer is the &^%$! government.
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Unexpected? By WHOM?
The U.S. does not have the household formation to support the anemic building we have going on in the market - the last thing we need to do is artificially increase demand.
The lunatics are running the &^^%$#!! asylum.
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I may seem like a frustrated "Perma-Bear" - but I think not. I think that we, the World led by the U.S., will be in a monetary-deflation-environment for at least a year or 2. Yes, I am frustrated to have missed the equity rally (not that I would have bought financials or retailers under any circumstance, and they led the rally) but I am as suspicious of the market as I have ever been.
More soon,
Libertariananimal (at) gmail (d0t) com