HowardNo Rally in the Housing Market
Labor Rallies for Dem in Trenton, NJ
Dems Rally in Trenton, NJ
The Democrats rallied for Sen. Bob Menendez, in Trenton, NJ, the capitol of the state of New Jersey. Actually it was a labor rally, heavily of the laborers and building trade unions. But, there is no rally in the housing market going on. Quite the contrary.
In Houston, Texas, Harris County, the home foreclosure rate is 23% higher than last year. The dirty secret is coming out too. For the last several years, almost anyone could get a home mortgage no matter what their credit was. All the tricks were used, low documentation, 100% financing, interest-only payments to start, adjustable rate mortgages. Now all about to blow.
Next on the list to blow up, with sad consequences are the hedge funds. Of course, that is the last refuge of those demanding a higher rate of return than the alledged rate of inflation. That's how the pension funds got sucked in. Like PT Barnum said, there's a sucker born every minute. Hedge Fund research of Chicage says the hedgies are now managing $1.35 trillion.
Why? Why are the pensions being sucked in ? Well, one major provision of the so-called Pension Protection Act of 2006, was written to open the door to much larger hedge fund investments for pensions and 401K plans. Oh boy!!
