St Louis Mortgage Refinancing and Real Estate News –
News: Eye of the Storm or Dawn of a New Day
The President of Bianco Research in Chicago strongly feels that we might be in the eye of the financial storm rather than the dawn of a new day.
Looking closely at not just the national scene but what is going on around the world, Jim Bianco says: “My fear is, history shows, we might have a second leg to the financial crisis in the form of a sovereign debt crisis.”
Simply look at Greece where yields on their 10-year government bonds just hit a record high as Europe has been currently working out a bailout package for the heavily indebted nation.
Another one of Europe’s country’s that may be heading for a fiscal crisis of their own is presently seeing bond yields are also spiking thus fueling suspicion that the debt crisis may spread there as well.
And with huge federal deficits, this is definitely something the United States also needs to be concerned with now.
“I’m not suggesting the U.S. is on the verge of defaulting,” Bianco says, “but the market is already signaling it’s hesitation to lend to the government.”
Just recently, Berkshire Hathaway sold two-year notes yielding less than U.S. Treasury’s of similar maturity.
The same financial situation happened when paper was issued by Procter & Gamble, Johnson & Johnson and Lowe’s.
The St Louis Refinancing Group news team has written about growing budget crises that may be inevitable in states and local municipalities from California to New York.
Both the writers of this blog and Bianco fear it may end up being too much for the U.S. Treasury to bear considering the fact that if one municipality has to borrow from the federal government, they may all have to borrow from them perhaps on the very same day.
When and if that scenario would occur, Bianco is confident you can count on “very high, (in fact) punishingly high interest rates for the economy. And that storm may cause even more damage than the first.”
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When applying for a St Louis mortgage or to discuss current St Louis home loans, call the recognized St Louis refinancing experts, at 877-334-0210 or 314-334-0210 and ask for Steve Swan, Doug Stahlschmidt or syndicated columnist Floyd Tapia, the host of the St. Louis Refinancing “Mortgage Minute.”
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