GMACs Candid Response to "The Rest of Us." ... China Syndrome... College Football Results...

GMACs Candid Response to "The Rest of Us."
Since our house is on the market, I thought it a good idea to call GMCA. This fine institution holds our mortgage. I was curious about our payoff figure if and when we sell our house. After that vital information was shared, I had a few questions I needed answered:

Question: If my house does not sell, am I privy to the government refinance programs?

GMAC's Answer: If you are referring to the Obama Loans (as we call them at GMAC), you must meet three criteria.

1. You must submit a letter requesting loan modification.

2. You must submit financial information which demonstrates economic hardship.

3. Our underwriters must agree that your unique financial situation qualifies for the Federal Loan Adjustment Program.

Should that be the case, there was little or no reason to carry this conversation any further. My credit score is in the 800s. While my income is not as high as some of the charlatans applying for the help for homeowners program, I was certain that I have no chance meeting the underwriting standards for loan modification. It seems as though the deadbeats are getting rewarded here, while they are in many cases keeping a home that they never should have bought in the first place... Go figure. Yet, I do see this as a plan aid banking and mortgage companies.

The China Syndrome
China became a bit more intriguing as the Communist country announced that there will a shut down of specialty elements. These are the same elements that are used in ceramics, cell phones, etc. Should China continue this degree of politics, you can rest-assured that this move will hurt China more than the rest of the world.

Since China is responsible for nearly 99% of rare earth mining, it does put those companies who specialize in those products subjects of interest. China will create pricing pressures on these materials. As a result, ceramics to cell phones will increase in price. Maybe it is time to consider a few companies which specialize in this mining area. As for the rest of China, FXI is probably the best way to short them. A "sluggish" growth prospect for the rest of the world means China will have to sop up their extra demand... or concentrate massive wealth reserves on infrastructure.

College Football
To those who followed my college football selections were treated to a 3-0 sweep.
Notre Dame was an easy cover. Connecticut did what it took to cover the spread against Ohio University. (Why does the MAC even have football?) And Army was an outright winner against Easter Michigan.

I hope to list three more complementary picks buy Friday.