Russian Housing

  

In Russia after a bank agrees to lend money to a home buyer, it places the equivalent amount of cash in a lock box in the presence of the seller. Only after the seller sees that the mound of cash will he be willing to follow through with the final steps of the deal and sign on the dotted line.

Mortgages are only a $3 billion dollar business in Russia. Last Wednesday Russia sold its first ever mortgage backed loans from a bank..$88 million. Part of the problem is that Russia is a cash society...it is hard to verify a persons income when some 30% is received in cash.

Real estate is selling here in Minnesota. The selling season typically slows now for the balance of the summer as people begin their vacations and ready for the school year.

Barkly sees so many bears in just about everything! He is told oil is going a lot lower, the consumer is out of money, commodities are now in a bubble, housing is going way down...people can't afford their big cars, people can't believe Bush is not stronger with North Korea...the concerns or skepticism is dramatic...how can people be so unhappy???

When they are so lucky!