Main Street USA continues to endure the effects of economic austerity caused by a scarcity of money (as evidenced by declining real wages, declining real home values, and a declining employment to population ratio). However, both fiscal and monetary policy makers are finally taking notice as the Fed pursues QE3 in an effort to reverse Main Street's real estate catastrophe, and the GOP seeks to retrench as a result of their disconcerting election losses.
Allen Street in State College, PA
Although late, the battle to win back Main Street political support is now in full swing as both big government Democrats and military-industrial Republicans create new strategies to address the Main Street depression still raging across the US. I expect the US will go over the fiscal cliff with tacit support from both Democrats and Republicans. The fiscal cliff losers will be the military-industrial complex, medical establishment, and government workers, who will now be required to make sacrifices for the first time since the economic crisis began in 2008.
Wise investors will seek to get involved in real estate development in order to exploit new capital being introduced by the Fed via purchases of mortgage-backed securities. I expect originations of new mortgage-backed securities to accelerate over the coming year, and to continue for at least the next 2-3 years. Main Street USA is finally being thrown a lifeline...
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