The uncertainty in mortgage markets is causing deals to collapse and opportunities to explode.
Let me explain.
Bonds are collapsing. Interest rates are skyrocketing. No end in sight.
No bank wants to lend in the face of major uncertainty — the New Trump presidency.
All the banks have closed down. That’s a deliberate exaggeration. But you get the idea.
That means big opportunities if you have cash.
Imagine, you had bid on a building for $4 million. You lost the deal. It got “sold” for $5 million. The deal has just fallen through because the buyer’s bank financing fell through. It’s happening all over. Trust me on this one. I’ve just lost one financing. And I’ve researched this.
Meantime, the seller (the owner of the building) has spent his $5 million on another building, baubles for his wife, a vacation in Patagonia, or a nice present for me, etc. Or whatever.
Now he’s stuck.
If he’s smart, he’ll call you and say “Do you still want the building at $4 million?” Or maybe you’ll call him.
If you’re smart, you’ll say “In today’s uncertain times, I could pay $3 million, all in cash.”
And you’ll probably get the building at $3.5 million.
Is there a moral to this story?
Yes: Cash is king, in times of uncertainty. Make sure when you bid you always tell the seller, “I’ll always be around. I will pay all cash. And I’ll close in two days.”
I’m not making this stuff up. I can give you a zillion examples.
Remember real estate is NOT like the stockmarket,where there are millions of buyers and sellers. In real estate, there are few buyers — and maybe only one — i.e. you.
Meantime, it looks like Mr. Trump is throwing a major spanner into the economy. If he actually tries to deport a couple of million illegal alien criminals, that will be bring chaos to the businesses which employ them — and the many millions of illegals who aren’t criminals who will be even more fearful than they are now.
And then there’s China. Investopedia ran this piece this morning:
On Sunday, an editorial published in Global Times, a state-run Chinese newspaper, threatened that China would adopt a tit-for-tat approach if Trump imposes a 45 percent tariff on imports from the country like he promised. Trump has also said he would name the country a currency manipulator on his first day in office, something the piece said would cause China’s reputation to be affected and the trade atmosphere between China and the U.S. to become more tense
Examples of the revenge the Chinese government will take were also provided. Instead of placing orders from the American firm Boeing (BA), China will support France’s Airbus. U.S. auto and Apple (AAPL) iPhone sales in China will fall. China will also limit the number of its students studying in the U.S.. China accounts for 31% of foreign students studying in the U.S., making it by far the biggest source. (See also, How Will Trump’s Policies on China Impact U.S. Business?)
But there will probably be no need for these harsh measures, according to the Chinese government. The editorial says, “Trump cannot change the pattern of interests between China and the U.S. The gigantic China-U.S. trade is based on mutual benefits and a win-win situation. Even as president, Trump can exert limited influence on it.”
China was the U.S.’s third largest goods export market in 2015. The top export categories were aircraft ($15 billion), electrical machinery ($13 billion), machinery ($12 billion), miscellaneous grain, seeds, fruit (soybeans) ($11 billion), and vehicles ($11 billion).
You can read the full piece here.
Tonight watch the moon. It’s called a Supermoon. The moon will be at its closest point to Earth in 70 years.
This coincidence will occur on November 14 and December 14.
If you miss it, the next time will be November 25, 2034.
Grandkids, Eleanor, Sophie and Peter, will be around to watch it in 2034. But I won’t. Hence I’m watching tonight — if Portland, Oregon’s rain ever stops. Please. Please.
This is Portland’s weather today — at its best. Taken at noon East Coast time this morning. Note the wet leaves and the wet road. Good for ducks and indoor tennis courts.
Harry Newton, who came to Portland with Susan for Eleanor’s third birthday. Here’s Eleanor enjoying her 35th cupcake of the weekend.
Les.
With all the leftist luvies in the media and press supporting her it was a surprise Hillary lost out. I was pulling for her. Many of them seem to be cry-babies now, but they do not appreciate that voters do not need their biased advice on how to vote. It’s a relief that that they did not decide the election.
The Presidency is only one branch of government and Donald will need the other two to enact his programs
I think it far more likely that Republicans in Congress will enact their own agenda and Trump will more or less go along with their program, at least until we start a war with Iran. So expect tax cuts, defense spending buildups and moves to privatize Medicare and Social Security. Ryan has already said what he wants to do, and right now he’s running domestic policy, not Trump.
Trump has made his first major blunder by making that left wing ultra Liberal, Reince Priebus, as his Chief of Staff. Reince WAS the Republican Establishment. He was the one who was pushing that dummy, Jeb Bush, to be our President. I thought we the people voted to throw the RINO’S out. How can Trump stab the voters in the back?
So you are OK with Bannon and think Priebus is a mistake?
ALL of the pundits and prognosticators… almost without exception.. were completely wrong about Trump during the primaries and right up until 2AM election night. They were wrong about actions, cause, effect and impact. So why NOW are they all going to be 100% right? China this, Mexico that, NATO here,
NAFTA there… yeah.. now I believe everything they have to say because NOW they really really know. Oh twiddle.
Illegal aliens are that? Illegal!!! In the “rule of law” there is no picking and choosing.
Why is there no discussion about raising the immigration limits and stream lining the immigration process?
there was – from the democrats – for several years now. but conservatives didn’t want to hear anything about comprehensive immigration reform, just deportations and a wall.