Recent Articles by Louis Cammarosano

Vintage radios 3 reasons new home sales are stuck at 1960s levels

3 reasons new home sales are stuck at 1960s levels

Despite a rise in the prices of existing and new homes to pre-housing crash levels, new home sales in the United States remain mired at levels below those in the 1960s and 1970s when the population was approximately 40 percent smaller. Existing home ...
By Louis Cammarosano | Wednesday, June 1, 2016
A magician hiding a card up the sleeve of his tuxedo Do artificially low interest rates trick entrepreneurs?

Do artificially low interest rates trick entrepreneurs?

There is an Austrian School of Economics tenet that states that one danger of artificially low interest rates is that they "trick" entrepreneurs into making "malinvestments" -- investments that, in retrospect, don't make any economic sense had the en...
By Louis Cammarosano | Monday, March 14, 2016
What does the Fed rate hike mean for real estate?

What does the Fed rate hike mean for real estate?

Last December, the Federal Reserve raised interest rates for the first time in ten years. The last time the Federal Reserve raised interest rates the housing bubble of the 2000’s popped, setting off the worst housing market since the Great Depressi...
By Louis Cammarosano | Thursday, January 28, 2016
Why the job recovery was and still is a farce

Why the job recovery was and still is a farce

Last week, the U.S. Bureau of Labor Statistics released its non-farm payroll (NFP) report for October. The report showed 271,000 new jobs created surpassing expectations by about 90,000. The unemployment rate was reported to be at just 5 percent ......
By Louis Cammarosano | Wednesday, November 11, 2015
New car sales versus new home sales

New car sales versus new home sales

The most recent data regarding new car and home sales indicate that dynamic remains the same. New car sales were up 13.6 percent in October year-over-year and are approaching an annual record, while new home sales were down 11.5 percent in September ...
By Louis Cammarosano | Wednesday, November 4, 2015
10 reasons negative interest rates are even worse than artificially low interest rates

10 reasons negative interest rates are even worse than artificially low interest rates

When Janet Yellen was first appointed to the Chair of the Federal Reserve, we noted that Janet Yellen was a supporter of negative interest rates. In "Janet Yellen and negative interest rates" we republished her 2010 comment in support of negative int...
By Louis Cammarosano | Tuesday, October 20, 2015
Got housing recovery?

Got housing recovery?

The homeownership rate is down. New- and existing-home sales remain far below their 2005 peaks. Housing starts for single-family homes are flat. What went wrong ......
By Louis Cammarosano | Monday, July 20, 2015
Bankruptcy in America

Bankruptcy in America

U.S. individual bankruptcy filings are at multiyear lows, as are delinquencies and the percentage of consumers in collection. After the Internet bubble burst in 2000, individual bankruptcy filings increased from 2001 and peaked in 2004 at 1.65 millio...
By Louis Cammarosano | Tuesday, June 2, 2015
The dark side of rising home prices

The dark side of rising home prices

Fast-forward to 2015: The Fed has learned that you can reheat an economic souffle. We are in the midst of another housing bubble driven by Ben Bernanke and Janet Yellen's fed funds rate at zero percent and massive doses of quantitative easing (QE) th...
By Louis Cammarosano | Wednesday, April 1, 2015
Artificially low interest rates hurt job growth, housing sales

Artificially low interest rates hurt job growth, housing sales

Companies get a better return on investment buying back shares than hiring employees or investing in capital equipment. Buying back a company's own shares is so attractive, it even makes sense to fire employees and reinvest the savings to do so ......
By Louis Cammarosano | Monday, March 2, 2015
Is it really recovery when new-car sales are up and new-home sales are down?

Is it really recovery when new-car sales are up and new-home sales are down?

Consumers saddled with mortgage-sized health insurance costs, rising food costs and car payments find it hard to buy overpriced used homes, never mind even more expensive new homes ......
By Louis Cammarosano | Wednesday, February 4, 2015
The return of the home as ATM

The return of the home as ATM

“Borrowers Tap Their Homes at a Hot Clip” blurted a recent Wall Street Journal headline. It was bound to happen with rising home prices. Didn’t get a raise? Working two jobs to make ends meet and need cash? If you ......
By Louis Cammarosano | Monday, June 9, 2014
Debt ceiling crisis: Jack Lew doomsday scenario is least likely of 3 possible outcomes

Debt ceiling crisis: Jack Lew doomsday scenario is least likely of 3 possible outcomes

Default is defined as “failure to make a payment (such as a payment on a loan); a failure to pay financial debts.” A default by the U.S., in the words of U.S. Treasury Secretary Jack Lew, would be catastrophic. Creditors ......
By Louis Cammarosano | Friday, October 11, 2013
New-home statistics may be generating a false signal

New-home statistics may be generating a false signal

Yesterday we learned from the U.S. Commerce Department that the pace of construction of single-family homes increased in August and building permits for new homes hit a five-year high. This data was trumpeted as evidence of “continued resilience in...
By Louis Cammarosano | Friday, September 20, 2013
Welcome to the ‘revocery’

Welcome to the ‘revocery’

The recovery that started in 2009 and never really progressed has reversed. The recovery is over. Welcome to the Revocery. QE: recovery medicine or extension of bailonomics? The current recovery was artificially born in 2009 from the ashes of the .....
By Louis Cammarosano | Friday, September 13, 2013