..............but does he?
I doubt it, because his rational is absurd!
If the Fed doesn’t cut rates, and soon, we
are all in trouble. In a tight money situation,
The harder it gets for business to expand,
the harder it will be for anybody to find
jobs....... further complicating an already
touchy situation with the housing market.
Builders have basically stopped producing,
because their inventories are not moving.
New buyers are losing their opportunity to
own homes, because mortgage money has
virtually dried up. Those who presently
have ARMs are going to be losing their
houses rapidly, as soon as rates start
going up further. But I am sure that Mr.
Gross is well insulated from that problem,
having been a loud-mouthed "newsman" for
quite some time............ at a probably very
At least the Fed had more brains than Gross
and did Not raise rates again, further
exacerbating an already dangerous situation.
Hopefully, in the next couple of months, they
will see the wisdom of cutting both rates by
at least 50 basis points, in order to spur the
housing and mortgage markets. Which in
turn will spur the furniture, home furnishings,
and home improvement industries.
I would like to ask our resident expert, Mr.
Gross................"What is wrong with turning
the clock back" to a better time? Hopefully
to about 2002 -2003............. and not 2004 -
2005 (as Gross mentioned), when real estate
values were already falling? Weren’t you aware
of that Mr.Gross?
From his overall attitude, I would guess that
he is nearing retirement age, has plenty in
savings and investments, with a house fully
paid for, and lots of spare cash stashed away.
Of course he can’t relate to the rest of those
who are trapped with adjustable rate mortgages,
and in very real danger of losing the biggest
single investment that they have or could ever
make. But hell, it’s only their homes!
He refers to "zillionaires and conservatives" as
though it were a bad thing. How far from a
zillionaire are you Herr Gross?