When we last left the investment craze we were at TARP (D,R,I)
So we continue:
FEDS step in and “prop up” Lenders; everyone freaks.
FEDS now “tighten” lending guidelines; Lenders stop lending
Renters can’t get a loan; Non Investors can’t get a loan
Real Cash “$$$$” becomes King
Cash Investors start “buying back” what they sold couple of years ago
Renters start renting again
So things are getting back to normal when ….
The Feds needing to “stimulate” the housing market do the following;
Keep Interest rates artifially low, hurting stable/spendable dough (think CD income)
Ease lending guidelines by propping up Fanny/Freddy
Investors keep buying, Renters keep renting
BUT
Non Investors now start buying (more on this later)
And this is where we’re at in the Cycle.
Oh did I mention a “real home owner”?
Will in part Quattro….