Fed Chairman Ben Bernanke today suggested that lenders may want to start reducing their existing loan amounts for homes which now may be considered "upside down" (negative equity). This is similar to a "Short Sale' in which lenders agree to discount their existing loan balances so that homeowners may sell their homes at a loss.

The main difference between a Short Sale and Bernanke's suggestion today is that he thinks that lenders should offer it to homeowners so they can stay in their homes. 

He also said U.S. lenders averaged losses greater than 50% of their original principal loan amounts for all of the homes which foreclosed in the 4th quarter of 2007. These numbers may continue to worsen as time goes on. 

I am still expecting an emergency rate cut prior to the next scheduled Fed meeting on March 18th. Will it be 1/2, 3/4, or a full point this month? The Fed and the banks must do everything that they can do stabilize the U.S. housing market.

With the latest sluggish economic data as well as the talk of several "smaller" U.S. banks going out of business (even talk from Fed Chairman Ben Bernanke last week), I am expecting at least a .5 or .75% rate cut on or before the scheduled March 18th Federal Reserve meeting. Will the Fed hold another unscheduled rate cut meeting before March 18th as they did in January?

I still think that the Fed will cut rates down to as low as 1% within the next few months. Will we eventually hit 0% like in Japan? Only time will tell. The Fed has got to be more concerned abou massive asset DEFLATION than rampant INFLATION.

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Yesterday, I saw a single family home in a great region of Southern California sell for a fraction of the existing loans. The property went all the way to the final Trustee's Sale. 

The only bidder was someone who paid just over $280,000. The existing mortgage loans on the property were about $660,000. Our internal foreclosure software analysis system found this deal. 

These are the types of deals that may be readily available over the next several years. I will keep you posted on future deals as they become available.

Today's inflation numers were higher than what many analysts were expecting. In data released from the U.S. government today, wholesale inflation rates increased about 1% in the month of January alone. Many analysts expected an increase of only .5% for January.

As the U.S. Dollar continues to decline, and commodities and precious metals continue near or above all time highs, we may continue to see high inflation numbers. 

I still expect the Federal Reserve to continue to cut interest rates down to the 1% to 2% range (currently at 3% for the Federal Funds rate). The Fed's number #1 job function is to save or strengthen the U.S. economy so I expect further rate cuts and higher inflation. 

Welcome! Today (Feb. 25, 2008) is the first day that our website has been operational. The purpose of this website is to continually update you with blogs, posts, articles, videos, real time webcast video updates, as well provide you information from my new book - The Credit Crisis: Survive & Prosper (release date within the next two months). 

There is no precedent for our ongoing financial problems that our affecting both the U.S. and worldwide financial markets. The problems initially may have begun with subprime mortgage related problems associated with the U.S. residential housing market. The problems later became problems for the commercial real estate market, the U.S. stock and bond markets, most stock and bond markets around the world, and may eventually become even more severe as time moves forward.

The main purpose of this site is to educate you on the latest changes to the financial markets. We hope to explain why and how it happened, and to provide you with information on potential once in a lifetime opportunities in primarily the U.S. real estate markets. Whether you are a U.S. resident or live elsewhere, we will do our best to explain how to find the forelosures or non-performing mortgages at various banks, mortgage loan servicers, builders (small to large), and at different secondary market investors (both private and government). 

Please also view videos from "experts" around the world in our "Videos" tab section. These opinions may range from "doom and gloom" to more optimistic. The videos may help provide you with different perspectives around the world in addition to explanations and projections. 

Thank you again for visiting our website.