It was an fascinating end to the primary half of the yr. Absolutely the markets of Spain and Italy have introduced extra challenges and obstacles than the Italian protection within the Euro Cup Last that matched the 2 international locations. If we have a look at the place we stand right here on the finish of June in comparison with the yearend 2011, has a lot modified? It looks like an terrible lot has occurred, debt disaster, well being care declared constitutional, Spanish banks going bankrupt. A couple of cities in California have determined for chapter safety, and but the Dow Jones Industrial Common continues to carry at 13,000. Issues have modified; economically and politically they’re worse. Numbers don’t lie and globally issues have slowed down dramatically, retesting 2009 development lows. Wasn’t the Dow 7000 in 2009? I am undecided what the disconnect is or that the fairness markets proceed to carry out hope for continued stimulus, and that unhealthy information truly drives the market increased, hanging it is hope on the Fed. Politically Washington is just like the rink at Rockefeller Heart throughout the vacation season; FROZEN STIFF. The shortage of compromise by each side is sort of disheartening, contemplating that so many Individuals are struggling. Not solely the poor, however the blue collar center class. On the finish of the day they’re the spine of this nation and so they constantly do the suitable factor. They go to work day-after-day, pay increased costs for meals and fuel, pay increased pupil tuitions, and make mortgage funds on homes which are value 50% lower than they had been four years in the past. But they’re resilient, it’s the working class that’s placing this economic system on its again and preserving it the place it’s at, low development, and teetering on flat-lining. If it had been as much as Washington, we might be hopeless and in larger hassle. They sit in Congress and the White Home, dwelling the excessive life on the again of the tax payer and broadcast their dedication to assist America, and the working women and men. The gridlock is disgraceful; the shortage of ingenuity and pleasure to do what is true is disappointing. Nothing is getting completed; at the least in Europe they give the impression of being busy, properly for two extra weeks, till they go on trip for a month. Politicians by no means had the reply, and so they by no means will. For probably the most half they do not know what it’s to work within the second, in that day. They may have years in the past, however they’ve turn out to be so purchased and battered by their very own social gathering they’re eliminated tenfold from actuality. The place does this depart charges? I’ve no selection however to say charges go decrease. I hold saying there’s a flooring and issues will reverse course, as a result of my perception within the working class issues will enhance. The 800 lb gorilla within the room with the remainder of the world could show to be immovable nonetheless. This mountain of crap debt that was bought to the world will take years to digest. Till then what’s the stimulant? Obama Care? Romney’s plan on the economic system? Extra Fed Stimulus? Sure, stimulus has helped however evidently the one approach it will likely be lengthy lasting is to have the Fed put the pedal to the steel and never take it off till we now have four% CPI and PPI and the cash provide is rising exponentially. Possibly then the hearth will catch and unfold prefer it was 1999. As for now we are going to proceed to bump alongside the underside, maybe take a look at a bit decrease, and if the ground drops out of Europe, look out under. 1.00% 10 yr Treasury bond could also be in our future. We’ve an excessive amount of debt you say? Have a look at Japan; they’re borrowing 10 yr cash at .79%! That is really historic, and in the end it’ll get the true property business again on its toes, however for now count on extra of the identical, and if we see 1.5-2% development, BE HAPPY! Charges keep low, most likely go decrease, and if the economic system flatlines, be careful for a falling inventory market. James DiPiazza is the CEO of Bond Road Loans a number one lending and mortgage establishment in New Jersey. They’re situated on 95 Route 17 South, Suite 302, Paramus, NJ 07652 and could be reached at 201 282 5016 by way of cellphone or jdipiazza@bondstreetloans.com by way of e-mail. James DiPiazza, CEO, Bond Road Loans BondStreetLoans.com
