Real estate
expert Fabian Calvo says, “There’s a lot of manipulation
from government agencies and the Fed that is creating this rise
in asset prices . . . but it is all an illusion.” Calvo’s
company, TheNoteHouse.us, buys and sells $100 million in distressed
debt a year. Calvo says, “The Fed thinks this will work. I
don’t believe it. I think we’re going to end up in some
kind of currency crisis or come kind of bond crisis.” Nevertheless,
the Fed policy of suppressing interest rates is working – for
now. Calvo says, “The Fed realizes there needs to be a low
rate environment for housing to recover or it’s a huge implosion.
They have thrown underwriting guidelines out the window. They are
going to continue with no money down loans or very little equity.”
The Fed also knows that many big banks are technically insolvent.
Calvo contends, “You have a lot of these zombie banks. If you
mark-to-market their assets, they would be bankrupt.” So, the
Fed and the government will continue to print money to keep housing
prices and the big banks from collapsing. Join Greg Hunter as he
goes One-on-One with Fabian Calvo from TheNoteHouse.us.
