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In United States
Registered Apr 15, 2011
Jeremy McMillan's most recent comments:
- On 27 Mar 2013
(Artificially) Lean inventories hold back U.S. pending house sales,
Jeremy McMillan said:
It looks to me, almost like the press is beginning to shift from reporting on "possible recovery" back to "possible bubble" mode. Given recent history, I'd expect popular opinion to move soon.
- On 14 Mar 2013
Landlord Blackstone Rushes ... First Ever REO-To-Rent Securitization,
Jeremy McMillan said:
funny reading all the comments on this article!
Oh, no matter how good I think the OP might be on ZH, some comment pops up to give me a spit-take.
SO the returns of the security is based on the rents being charged?
You can't really assign a rating because you don't actually know what the rent will be. At least a mortgage had a long contract that was supposed to be worth what the payments added up to be.
The REO to Rent strategy can easily backfire when the ghetto renters move in and trash every property, along with the increased crime rates that will send asking rent downhill. What once was a $2500 a month rental can become a $500 a month rental very fast. Especially in Phoenix and Tampa. Good neighborhoods six years ago are complete ghetto now.
And the next question is, which dufuss dumb ass pension fund manager is going to buy this shit before the company he works for fires it's workers, who also happen to be the tenants of the properties he now owns?
- On 27 Dec 2012
The Fed is Now 100% Committed to the Destruction of the US Dollar,
Jeremy McMillan said:
Think of what is Peter Schiff trying to sell. He's got most of his assets in gold, silver and mining stocks. Mining Stocks - have you been looking at how they've been doing lately? Of course he has got to pump it up and he's doing the best he can.
While I agree that the Fed is playing a high risk game, I do think they're not foolish to totally wreck the ship. The banking system depends on the dollar and why would the Fed destroy itself in the process?
I would go further and draw attention to the giant poker game. No matter what the Fed has done so far with QE, the inflationary effects have not dampened demand for US Treasuries. Today, you will find that even blue-chip stocks are trying to be like US Treasuries, courting investors with dividends to make them comparable to fixed income investments. Any other foreign/sovereign debt you can find today will make US Treasuries look great.
On the economic fundamentals, be totally honest. Everyone is risk averse. This is an environment of DEFLATION (caused by the protracted collapse of the housing bubble). What's the opposite of deflation? Inflation! The Fed isn't as concerned about whether or how they create winners or losers. Despite the jabbering about the return to Keynesian economics, the Fed is very much about the Reaganomics game of creating wealth through private debt in which big borrowers and lenders have structural advantages. They want you and I to bet big! Every dollar sunk into US Treasuries is a dollar not risked in the marketplace.
Long story short: Bernanke has a lot of wiggle room to sell inflation.
The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon.
I know I'll get hated for this but ... saw the movie Dark Knight Rises over the holiday. Couldn't help but feel like I was watching a exagerated version of what I'm seeing in my country. In the movie, the rich were scorned and punished, criminals were set loose, lies were told that the public ate up, just to get the public behind them - wow, did I ever see similarities.
Even the wealthy hate each other! If they did not, they would trust each other to manage each other's money and buy each other's common stock. That movie sounds like the rich eating the rich, and the knock on effects of letting them run the economy into the ground. I guess maybe you can see what you want to if you try hard enough...