Interest Rate Projections for 2018

bonds interest rates money Jan 19, 2018


Last week I wrote a blog about the last decade.  If you missed that, feel free to read it via this link.

So you ask, Gena why are you talking about interest rates again?  Well, because for the past 12 months or more, I have received at least a dozen or more opportunities which have neglected to project higher interest rates in their business plans. 

When I see this it makes me cringe and probably the reason my doctor has cautioned me to be careful about my blood pressure.  Its as if people have forgotten that one of the most important parts of investing is the cost of money which is derived from interest rates.

Please make sure that when you send opportunities for me to invest, please project higher interest rates upon exit.   Don't use the words "value added" just because you are painting the building and installing new windows and doors.  My definition of Value Add is that I will get all my money back and keep the asset via a...

Continue Reading...

The Last Decade

banks bonds economy Jan 10, 2018

2007-2017

Back in 2007, I was closing New Century Mortgage with the Receivers appointed by the Bankruptcy court.  At the time, New Century was the largest Subprime Lender in the country.  When closing a company during bankruptcy all of the problems are visible and magnified.  What made this one unique was that New Century's problems would soon be felt by the entire world. 

Realizing this situation, I proceeded to call a colleague, Gwen, who was the head of Single Family Credit Risk at Fannie Mae to inquire if they were going to take any precautionary measures to contain the potential crisis.  Unfortunately, she didn't know what I was talking about.  Shortly thereafter, I witnessed Ben Bernake, The Chairman of the Federal Reserve on Television stating that the subprime crisis was contained.  At that moment, it became apparent that financial illiteracy was much, much worse than anything I could ever have...

Continue Reading...
Close