Grand Rapids, MI -- (SBWIRE) -- 08/09/2012 -- Financial advisor Dennis Tubbergen tries to keep his clients and readers up to speed with the current national and world economies by posting an online blog at www.dennistubbergen.com and writing a weekly newsletter that can be viewed at www.moving-markets.com. But for over 6 years now, Tubbergen has also hosted financial radio shows featuring guest experts from around the nation and the world.
Tubbergen’s guest this week on The Everything Financial Radio Show is Karl Denninger, a founding contributor to the conservative blog market-ticker.org and one of the earliest members of the Tea Party movement.
Denninger was also the CEO of MCSNet in Chicago, one of the area’s first internet providers. He helped form FedUpUSA in the wake of the March 2008 Federal Reserve bailout of Bear Sterns and has been a guest on MSNBC, Glenn Beck and CNBC Reports.
Tubbergen’s guest last week was best-selling author Harry Dent, who is also the developer of The Dent Method, an economic forecasting approach based on changes in demographic trends.
Tubbergen, who is CEO of USA Wealth Management, LLC, recently wrote on his blog about Timothy Geithner, Treasury Secretary of the United States, and how Geithner thinks the government can resolve the housing crisis.
“Mr. Geithner recently stated in an article published on Bloomberg on July 31, 2012 that the government would ‘keep at this’ until a solution to the housing price crisis is identified,” began Tubbergen.
Quoting from the article, Treasury Secretary Timothy F. Geithner said two to three years of ‘aggressive, creative’ programs are needed to help the U.S. recover from its housing crisis. “We’re going to keep as this as long as necessary,” Geithner said at an event in Los Angeles today. “We think there’s a very good case for people deeply under water, experiencing hardship, to modify their mortgages by reducing principal.”
However, the article goes on to state that the government-sponsored programs of Fannie Mae and Freddie Mac “won’t forgive principal on delinquent mortgages by reducing principal.”
“First, in order for any government action to be successful, the government will need to forgive outstanding principal balances on mortgages where the homeowner owes more than the home is worth,” explains Tubbergen. “A simple interest rate adjustment won’t help. Why would a homeowner keep making payments on a home where they owe more on the mortgage than the home is worth, even if it could be financed at a lower rate?”
According to Tubbergen, there is no reason. No matter what the interest rate is, many homeowners will choose to walk away.
“Second, using taxpayer money to bail out these homeowners would draw the ire of many taxpayers who are not in that situation in this election year when it appears that every vote will count,” emphasizes Tubbergen.
Tubbergen adds that Geithner knows this, which makes his statements nothing more than ‘political pandering.’
To read the blog in its entirety, go to www.dennistubbergen.com and select the blog for August 3, 2012.
Dennis Tubbergen and his Everything Financial Radio Show can be heard on Michigan’s WOOD 1300 AM and 106.9 FM stations, part of the Clear Channel network. The Everything Financial Radio Show can also be heard on WTKG 1230 AM Tuesdays from 8 to 9 a.m. Broadcast times for WOOD 1300 AM and 106.9 FM are Sundays at 9 a.m.
Tubbergen’s interviews with Karl Denninger and Harry Dent will be available soon as podcasts at www.everythingfinancialradio.com.
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices at 961 4 Mile Road N.W. in Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog. His weekly talk show The Everything Financial Radio Show is syndicated on two Michigan metro stations.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment.
Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.