Mohamed Ibrahim’s Blog

There is light at the end of the tunnel. Things are bouncing back, and I can tell! More showing requests than the last quarter. Still less than last year, but much better than last quarter. I previously argued the possibility of the market bouncing back, and it seemed possible through the market cycles. However, we also argued the strength of the market bounce and whether the fix the feds did is a temporary or permanent one. Lowering the interest rate is of course a temporary solution that increases the money with the people through the people borrowing more credit, and in the same time cause inflation due to the increase of the money supply.

So we should be happy that the market is bouncing back, yet be careful because at the end of that short peak there might be another trough - unless serious measures are taken by the government to seek permanent economic fix through bringing manufacturing jobs back in the US.

I’ve been reading more lately about financing. I mean the core of money, where it comes from and how it gets killed, not just real estate financing. I’m surprised by a lot of what I read, and actually hope that others take the time and understand the pillars of our economy in order to know how to plan for his or her future.

I watched some videos on Google video: Money As Debt , Money banking and the federal reserve . Although sometimes those videos generalize their talk, yet after doing some research I found that a lot of it is actually true. The fact is we are dealing with non-existent money.

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What is the homestead tax credit?

Exactly like it sounds, it’s a credit you get back. Why would the state do so? In my opinion, they’re trying to limit the speed by which tax assessments are growing relative to the speed by which home prices grew in the past five years, resulting in higher tax rate for residents. It is mainly targeted to benefit home owners who live in those residents.

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