http://www.realtor.org/RMODaily.nsf/pages/News2010051401?OpenDocument
I saw other articles this week suggesting the same thing. The one interesting comment though: as I understand if we were held to the same monetary policy as Greece right now we would be in worse shape than they are because of our debt position.
Interestingly, the threat of failure in the European union has prompted investors to sell their holdings there and actually dump them INTO our markets.
Mortgage backed securities are going nuts right now and rates are ridiculous (4.75%-5.25% on 30 year FIXED loans!)
Yun knows that we rely on HEAVY foreign investment and that may be where he is coming from with his prediction that our mortgage rates would go up with collapse in the EU. However: it is BECAUSE we rely so heavily on foreign investment that I don't agree with him.
Remember that because so much of "their" money is held in "our" money: they rely on US being solvent more than their own country. "Their" being the REAL money holders. The ones affected by a collapse are not the ones investing in t-notes, mortgage backed securities etc. They are average schmoes like us.
When or if a collapse happens as we saw this week: they will move their money out before they are hurt too bad. The best place to park money in the WORLD: USA baby.
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Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
