To quote Jim Cramer of CNBC, “Your Nuts, Get in the Game!”
Today, some people may think of Cramer as nuts. He predicted this morning that the 10 year would go to 1% (just like it is in Germany). With that being said, we could see the 30 year mortgage go to the 2’s.
Is he nuts?
Yes, there were bad unemployment creation numbers on Friday. Why? Because of government layoffs to satisfy both budgets and the will of some constituents and the lack of construction jobs nationwide.
Add that to the EuroMess that could make China and the U S suffer even more and what we might see is the flight to quality, the U S Treasury continue.
There is not a lot of reason to buy the broad stock market for return right now and the plethora of spec money goes to tech.
So I say, why not. Get the rates into the 2’s. But, let’s have a full on HARP program, not the joke that Fannie and Freddie has make of it. Repeal HVCC and LO Comp and let the markets handle reality, institute a merger of all the government mortgage agencies into one and have a set of guidelines that private investors can have as just a backstop to finance real loans.
On the other hand, job creating is the primo issue. Can we have a tax credit for those companies that can repatriate say 1000 jobs or more back tot he U S in manufacturing and tech support?
There are many, many smart people with ideas that just can’t seem to get the ear of people in DC. Let their voices be heard, drop the rates and let’s get NUTS together!
Fred Glick's Reality 