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Capital Markets Today

Oct 23, 2018

The NoteExpo, November 2nd & 3rd, Dallas TX -

Several influential analysts predict a current bubble and near-term crash that could boost the NPL markets.  The argument is that wealth that outpaces economic growth is artificial and unsustainable.  The last two times the share of household wealth growth exceeded GDP was during the late 1990’s dot-com bubble and the mid-2000 housing bubble.  Currently, household wealth as a share of nominal GDP is running at 505%, vs 473% in the housing bubble peak and 429% in the dot-com bust.

The primary driver of the current bubble are common stocks and housing prices, both large contributors to middle class wealth.  The argument continues in that the Fed will put the breaks on the economy by increasing interest rates and tightening monetary policy which will start the downward spiral.  Just last week, the federal reserve unanimously backed an increase in interest rates over president Trump’s objection.

Joining the podcast to discuss the NPL market is Cody Faller, President of Faller Financial.  Cody has worked with many of the most sophisticated real estate and note operators in the country. Since 2011, Cody has personally facilitated and/or purchased over $150 million in residential notes across roughly two hundred transactions under the Faller Financial brand.