"Peter Schiff, president of Euro Pacific Capital, a Darien, Conn. brokerage firm that specializes in overseas investments, said the consumer spending will not be able to continue due to the problems in the housing sector, the continue growth in the trade gap and the nation's negative savings rate, where consumers are consistantly spending more than their after-tax income.
'I think this report is even weaker than the numbers suggest," Schiff said. "Home equity loans have been financing all this consumer spending. We're just at the beginning of the housing slump. Housing is going to collapse, and when it does it's going to take the rest of the economy with it.'"
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Grantham, chairman of Boston firm Grantham Mayo Van Otterloo, has been a voice of caution for years. But he has upped his concerns in his latest letter to shareholders. Grantham says we are now seeing the first worldwide bubble in history covering all asset classes.
Everything is in bubble territory, he says.
. . .
"The bursting of [this] bubble will be across all countries and all assets, with the probable exception of high-grade bonds," Grantham warned. "Since no similar global event has occurred before, the stresses to the system are likely to be unexpected. All of this is likely to depress confidence and lower economic activity."
Friday, April 27, 2007
Weekend Warm Fuzzy Quotes
Posted by Harriet at 6:46 PM
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7 comments:
This was in line with the Israeli piece I found...fascinating stuff!!
Oh yeh, and the house we're leasing here in the Cascades area....well we were worried they would want to sell, turns out they called asking us to sign a new lease for another year. Guess everyone knows that selling is out and re-renting at our price or higher might be difficult too!! glad to be renting~~
Nurseliz,
I'm glad you don't have to move. We are in a similar situation, except our LL picked a bad contract that gave the "buyers" 60 days to sell *their* place. (Which isn't working out -- they priced it 100K over market value).
At some point soon, the "monthly payment" of renting might even *gasp* be equal to *buying*.
If you're ever intereseted in buying in Loudoun, check out the agents at REO Realty:
http://www.famousservices.com/
(They're in Sterling) I've never worked with them, but I do know they saw the foreclosure market as the next "big thing" and geared up quickly to work with lenders like Countrywide to get their REO's off the books. A number of the properties they sell truly are listed at a good discount.
Another one, of course, is Merv Forney who does the "Northern Virginia Real Estate Guide" http://askmerv.choice3realty.com/ who seems to be really knowledgeable and approachable.
Awesome. Thanks for the info. We have no desire to buy for at least two years. My daughter is 21 now and my son just turned 18 and just joined the army reserves this week. He will be leaving in '08 so we want to scale way down from 5/3/2 to a 3/3/2 or something. We're ready to get these kids on their own!!!!
when I checked out REO Realty, they had no listings? Have they sold all the REO's in NOVA or are more just not "down the river" yet?
spunky,
See if this link works for you:
http://tinyurl.com/2rgo34
These are their office listings.
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