- Opps! Seems all those banks that suspended mortgage foreclosures were not doing it out of the goodness of their hearts. Robo-signers mass exited thousands of home owners with nary a human glance at the documents. Now the slow and methodical legal system clashes with the quick as a flash banking industry to create a mess that, according to Bloomberg BusinessWeek, may take years and years before its settled.
- This week several banks restarted the foreclosure process by replacing robo-signed documents with actual paperwork creating a howl from mortgage bondholders.
- This latest mess may hold home prices down until the next decade. Having lunch up north with some real estate friends who shared that the only business they were doing was foreclosures and short sales. Home prices lower today than they were 2 years ago.
- Cotton hits all time high. Prices not seen since the Reconstruction. Forget cheap tidy-whities. While labor cheap King Cotton may be back.
- No Social Security hike for second year in a row. Blame the fact that food and energy not used in the COLA calculation. (Just wait my senior friends, just wait and double digit increases are on the horizon).’
- Last week gold stumbled. Metals fall as confidence shaken with banking problems.
- Investors the world over wait for ‘QE2’ or Quantitative Easing Two by the Federal Reserve. According to CNBC the Fed is attempting to spur financial speculation which, they hope, will lead to real investment and growth. With QE the Fed doesn’t print money or destroy the dollar. In fact the dollar and inflation may strengthen and create a ‘Goldilocks’ economy where there are low rates and a politically safe environment to invest.
- Finally, the consumer is still alive. September retail sales increased 0.6% on cars, appliances and electronics.
Questions call Paul @ 877 783 7080 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.
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