[arnie]

If the definition of “recovery” is that we have one quarter of GDP growth, how are we going to achieve that? It seems that current thinking is to use monetary policy (low interest rates and increase in money supply) to flood the credit market with cash. The problem I see with this is that the American consumer is already saturated with debt. Plus, this recession is the result of an unprecedented credit expansion lasting for almost the entire previous decade. In fact, didn’t this all start with the monetary policy that Greenspan introduced to address the last recession? We had GDP growth mainly because of the huge credit expasion (i.e. this country made money by selling each other houses.) What is going to take the place of credit to grow GDP?

I’m not professing to know a lot about economics – I don’t. But these are the questions that keep nagging me about how credit expansion is supposed to fix what credit expansion broke.

[arnie]

If the definition of “recovery” is that we have one quarter of GDP growth, how are we going to achieve that? It seems that current thinking is to use monetary policy (low interest rates and increase in money supply) to flood the credit market with cash. The problem I see with this is that the American consumer is already saturated with debt. Plus, this recession is the result of an unprecedented credit expansion lasting for almost the entire previous decade. In fact, didn’t this all start with the monetary policy that Greenspan introduced to address the last recession? We had GDP growth mainly because of the huge credit expasion (i.e. this country made money by selling each other houses.) What is going to take the place of credit to grow GDP?

I’m not professing to know a lot about economics – I don’t. But these are the questions that keep nagging me about how credit expansion is supposed to fix what credit expansion broke.

[arnie]

If the definition of “recovery” is that we have one quarter of GDP growth, how are we going to achieve that? It seems that current thinking is to use monetary policy (low interest rates and increase in money supply) to flood the credit market with cash. The problem I see with this is that the American consumer is already saturated with debt. Plus, this recession is the result of an unprecedented credit expansion lasting for almost the entire previous decade. In fact, didn’t this all start with the monetary policy that Greenspan introduced to address the last recession? We had GDP growth mainly because of the huge credit expasion (i.e. this country made money by selling each other houses.) What is going to take the place of credit to grow GDP?

I’m not professing to know a lot about economics – I don’t. But these are the questions that keep nagging me about how credit expansion is supposed to fix what credit expansion broke.

[arnie]

If the definition of “recovery” is that we have one quarter of GDP growth, how are we going to achieve that? It seems that current thinking is to use monetary policy (low interest rates and increase in money supply) to flood the credit market with cash. The problem I see with this is that the American consumer is already saturated with debt. Plus, this recession is the result of an unprecedented credit expansion lasting for almost the entire previous decade. In fact, didn’t this all start with the monetary policy that Greenspan introduced to address the last recession? We had GDP growth mainly because of the huge credit expasion (i.e. this country made money by selling each other houses.) What is going to take the place of credit to grow GDP?

I’m not professing to know a lot about economics – I don’t. But these are the questions that keep nagging me about how credit expansion is supposed to fix what credit expansion broke.

[arnie]

If the definition of “recovery” is that we have one quarter of GDP growth, how are we going to achieve that? It seems that current thinking is to use monetary policy (low interest rates and increase in money supply) to flood the credit market with cash. The problem I see with this is that the American consumer is already saturated with debt. Plus, this recession is the result of an unprecedented credit expansion lasting for almost the entire previous decade. In fact, didn’t this all start with the monetary policy that Greenspan introduced to address the last recession? We had GDP growth mainly because of the huge credit expasion (i.e. this country made money by selling each other houses.) What is going to take the place of credit to grow GDP?

I’m not professing to know a lot about economics – I don’t. But these are the questions that keep nagging me about how credit expansion is supposed to fix what credit expansion broke.

[arnie]

[quote=CONCHO]I’ve got a property well under $200K on the market that can generate $2,000 per month in rents without any HOA or MR fees.

Yep that wouldn’t even be on the market for a day. Let’s look at the numbers.

$40K down – opportunity cost (4% return)- $134/month

$160K loan at 6% – $1000/month

Taxes at 1.25% – $208/month

So basically for a total cost of less than $1400 a month you get $2000 a month of income. SIGN ME UP. Put up the MLS listing right now and I guarantee you that someone here on this board will buy it — assuming of course that it doesn’t need $150K in repairs and updating.[/quote]

Be careful about rental income estimates. My wife works in property management (about 700 units under management) and she tells me that vacancies are up and rents are down.

[arnie]

[quote=CONCHO]I’ve got a property well under $200K on the market that can generate $2,000 per month in rents without any HOA or MR fees.

Yep that wouldn’t even be on the market for a day. Let’s look at the numbers.

$40K down – opportunity cost (4% return)- $134/month

$160K loan at 6% – $1000/month

Taxes at 1.25% – $208/month

So basically for a total cost of less than $1400 a month you get $2000 a month of income. SIGN ME UP. Put up the MLS listing right now and I guarantee you that someone here on this board will buy it — assuming of course that it doesn’t need $150K in repairs and updating.[/quote]

Be careful about rental income estimates. My wife works in property management (about 700 units under management) and she tells me that vacancies are up and rents are down.

[arnie]

[quote=CONCHO]I’ve got a property well under $200K on the market that can generate $2,000 per month in rents without any HOA or MR fees.

Yep that wouldn’t even be on the market for a day. Let’s look at the numbers.

$40K down – opportunity cost (4% return)- $134/month

$160K loan at 6% – $1000/month

Taxes at 1.25% – $208/month

So basically for a total cost of less than $1400 a month you get $2000 a month of income. SIGN ME UP. Put up the MLS listing right now and I guarantee you that someone here on this board will buy it — assuming of course that it doesn’t need $150K in repairs and updating.[/quote]

Be careful about rental income estimates. My wife works in property management (about 700 units under management) and she tells me that vacancies are up and rents are down.

[arnie]

[quote=CONCHO]I’ve got a property well under $200K on the market that can generate $2,000 per month in rents without any HOA or MR fees.

Yep that wouldn’t even be on the market for a day. Let’s look at the numbers.

$40K down – opportunity cost (4% return)- $134/month

$160K loan at 6% – $1000/month

Taxes at 1.25% – $208/month

So basically for a total cost of less than $1400 a month you get $2000 a month of income. SIGN ME UP. Put up the MLS listing right now and I guarantee you that someone here on this board will buy it — assuming of course that it doesn’t need $150K in repairs and updating.[/quote]

Be careful about rental income estimates. My wife works in property management (about 700 units under management) and she tells me that vacancies are up and rents are down.

[arnie]

[quote=CONCHO]I’ve got a property well under $200K on the market that can generate $2,000 per month in rents without any HOA or MR fees.

Yep that wouldn’t even be on the market for a day. Let’s look at the numbers.

$40K down – opportunity cost (4% return)- $134/month

$160K loan at 6% – $1000/month

Taxes at 1.25% – $208/month

So basically for a total cost of less than $1400 a month you get $2000 a month of income. SIGN ME UP. Put up the MLS listing right now and I guarantee you that someone here on this board will buy it — assuming of course that it doesn’t need $150K in repairs and updating.[/quote]

Be careful about rental income estimates. My wife works in property management (about 700 units under management) and she tells me that vacancies are up and rents are down.

[arnie]

Apparently, paramount spoke too soon.

[arnie]

Apparently, paramount spoke too soon.

[arnie]

Apparently, paramount spoke too soon.

[arnie]

Apparently, paramount spoke too soon.

[arnie]

Apparently, paramount spoke too soon.

[Author]

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