Real Estate investor Fabian Calvo says, “Trust me; there are enough troubled assets for the Fed to be buying much more than $40 billion a month- It’s all about manipulation.” Calvo says, “In essence, they are creating another bubble. I believe in 24 to 48 months, they are going to pull the rug out again, and we’ll see prices go down when rates go up.” Calvo predicts, “The Fed balance sheet will likely be $5 trillion in toxic assets by the end of 2014.” Calvo thinks what is going on behind the scenes will one day come to light, and it won’t be pretty. Calvo thinks the mortgage rate forecast will eventually go up, but the Fed will suppress rates as long as it can. Calvo says, “It’s kind of like Enron. When it falls apart, then you realize what level of corruption and deceit was really taking place. . . . It’s a trillion times worse than Enron.” Join Greg Hunter as he goes One-on-One with Fabian Calvo. [Read more...]
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. [Read more...]
Fabian Calvo buys and sells $100 million worth of real estate and distressed debt a year and says, “Over 20 million houses, on any given night in America, are completely sitting vacant.” According to Calvo, the economy is being helped by “shadow stimulus.” It’s coming from millions of underwater homeowners who have stopped making mortgage payments. Calvo also says banks are not foreclosing “. . . because the inventory has been suppressed on purpose by big players.” Calvo says, “Money that would have been otherwise allocated towards a housing payment is going into consumer spending.” Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Fabian Calvo. [Read more...]