President Trump, Houlihan Castro, Federal Reserve discussed on Purity Products
Welcome back to the program. Ladies and gentlemen. You're listening to Gary Goldberg on money matters. And on money matters. We've discussed a lot of issues that range from the economy to leadership, and we have the opportunity to have leaders in various fields. Join our program. A lot of them have come from a unique path to success. One of those individuals who is going to be joining me now is wholly on Castro. The former secretary of HUD, housing and urban development is with me here on money matters. He has a new book out. It is very well named its quote, an unlikely journey waking up from my American dream Leon Castro welcomed the money matters. Thanks a lot. Gary good to be with you. It's a pleasure. I wanna start with a question that I think is important for our listeners. I'm the head of a money management firm. And we always look the leading economic indicators as a signal of what might happen. Many people. I don't look at urban centers urban areas that needs stimulation as something that is very vital to our economy. Can you as the former mayor of San Antonio and the head of hood, can you tell us how important new construction is for inner cities. There is no question that the housing market is one of the most powerful generators of opportunity in our country. We saw a decade ago the tremendous negative impact that. People feel the housing market spiral downward, west housing recession. Fortunately, over the last few years what we've seen is. Both in urban cores, ended the suburbs. Growth, again, we've seen the housing market recover. And that means more jobs. It means more opportunity. It also brings with it some challenges one of those challenges is that we've seen but rent a spike in many different communities. Take it small. It's still rather difficult or folks, even if they have good credit to get a home loan and our home ownership rate is that. One of the lowest levels in forty years. So yeah, we're in a lot better shape than we were a decade ago. And that includes the urban core of cities, but we still have some challenges. I think it's important holy on Castro to understand for our audience to understand that mortgage. Availability is always an issue with new construction are there programs that truly help the underprivileged who are trying to build and own in urban centers. There actually are opportunities for folks about us being those living in urban centers and those living in smaller towns to get access to capital, at of course, that the department of housing and urban development, we administer one of those programs, which is the FHA which chores low chores mortgages. Folks of modest news will may not have the strongest credit score, but they actually are very responsible borrowers. And there's a good rate of repayment. I would encourage folks to look into at f h h Wardlaw intact today. Advocate short laws fake, significant percentage of loans that go to families about us beef across the United States on when we manage money. We're always looking for leading economic indicators and new construction permits for example, would fill that identification. I think and the point that I wanna make and my discussion with you is that people should literally root for money being made available to those who are underprivileged because what happens. What happens is new construction starts new appliances. New carpets. And I can go on and on air conditioners, people who get jobs. So of course, we hear more about the suburban areas. But to the point that you, and I are making we need money made available or inner cities and areas that are not right on the forefront of the leading parts of the economy. It's everybody's benefit the stock market benefits. So those who are wealthy who say, well, I want to be not so socialistic it helps them in their market investments. Does it not? Oh, absolutely. You know, when I was uh secretary early on. I said that that we needed to get the on the stigma promoting homeownership, we went through the time periods. And we heard this narrative that and if you know, it was true in some instances that there were loans that were made to folks that we should not have got what? Although I would just do whether that was the driving force behind the housing procession, but you'll we learned lessons, and there were regulations laws that I think with some safeguards there. And so I said in twenty four team, but it was time again, just strike strike, a strong balance speech weaned ensuring that we learned the lessons cast. Those mistakes, and but also baking capital available to hardworking families. So that they could own a home, and for all of the reasons that you said, you know, it still equity, but also forced to create jobs. There's consumer activity that has other benefits for Konami. So just all around when we do it in the right way. It makes a lotta sad it makes benefits for everybody. Your name was bandied about in twenty sixteen as a potential presidential candidate. And it's being bandied about again and your book, and unlikely journey is a wonderful story of you and your twin brother how you were brought up and my question relates to a general question. I would ask why would anybody in their right mind? Want to be president of the United States? You start out of the gate with fifty percent of the country against you. Well, you know, you put your finger on probably one of the most difficult challenges. But of course, a president. But a lot of leaders have a public sector leaders have today, which is it feels often times that we're so polarized people are divided up camps. But I got into public service because I feel very very blessed with tremendous opportunity by lights, and I what is make sure that I could do something. So that other people could have that kind of opportunity, and whether it was when I was Bayer San Antonio or in the president's cabinet, President Obama's cabinet. I used through a levers of those officers to spark greater opportunity for folks. And if I side to. Ron in twenty twenty it'll be because I believe that we can do that for this country. There's a lot of ways that we do that together as a country, but I definitely agree with the point of your question where to fit. Politics. Crazy these days that it a lot of ways more negative than ever. But I think that we could get past that. So when you do if you decide to run for president of the United States, you're up against the stock market. Well, it's sort of correction mode now is at all time. Highs interest rates are going up because the Federal Reserve is an independent entity is raising them because they think the economy can absorb it. Would you make any major changes at this point? I know it's premature, but what do you think? The achilles heel for the economy is right now Julian cross Houlihan Castro. Well, I think that we still have a lot of folks out there that are struggling, and I saw that my role as secretary of housing, it'd be what I saw across the United States, I visited a hundred different communities in thirty nine states. Or folks that were struggling to pay the rent I've seen in the last eighteen months, a spike in unsheltered almost this out there at our country. So I know that we need to make sure that we're making the investments that people ride to reward their hard work twenty first century, whether that's universal health care or investing in affordable housing opportunity or an educational opportunity. I also will say that I believe we're on the wrong path in terms of the tax cuts. It will pass a few months ago, and we're only gonna see the consequences of that in two thousand nine hundred ninety two thousand twenty and beyond and we're going to have to make a court. Direction there. If we want to get to serving the middle class better. So Julia on you know, people vote with their pocketbooks and people are enjoying the fruits of this higher market. What is your observation as relates to corporate America? And are they doing enough to help the rest of our country, you know, companies provide jobs to folks. And of course, that is a positive we want everybody to have a job to employees to have such a big he'd be able to provide for their family at the same time. We see very clearly over the last couple of decades of our taxes being tilted more and more to the advantage of especially big corporations. And I'd like to see us invest more and small businesses. I was the mayor of a city, and I saw that three quarters of the businesses factories were small business. And they're the ones that are providing the vast majority of jobs, I'd like us to focus in a different place than we have been lately. Lately, we've been focused on benefiting big corporations that wealthier individuals, which I don't begrudge people's success. But I do think the better balanced, but that, but you know, that higher interest rates affect adversely smaller companies more than larger ones. So would you allow the Federal Reserve to continue to raise interest rates if you were guiding them? Well, I think we need to see how our economy develops. I wouldn't make a pronouncement on that right now. But it clear that we're in a different faith now as taking different action. It had are considering different action that had past. My whole is that we're going to have in these next two years steady leadership with regard to that. Because, you know, some of the leadership in Washington has been much more political with regard to the fed that we're used to seeing without getting political on my part when our president says the fed has gone crazy, and that's a quote, the fed operates as an independent entity from the executive branch. And I think that's very important for people to recognize they're not going to create a recession by raising interest rates if they are able to control raising rates, and I think that whomever is going to be your president. Whether it is Julia on Castro or President Trump or whomever will be a very aware of the impact it can have on the average person. I want wanna do is really guide people to pick up your book. It's entitled an unlikely journey, and it is all about the American dream because you have lived it. And we'll continue to live it Houlihan Castro. Thank you for your visit here on money matters. Thanks a lot for having been theory. I appreciate it. You're very welcome. Best wishes to you. I hope you enjoyed that discussion. I think what are the best questions. I asked of who on Castro who's contemplating running for president in twenty twenty is why the heck would anybody in their right mind? Want to be president? I ran for president on my high school, and I lost and vowed at that time, I will never run for anything. Again. It's just not worth it. Now, I understand commitment. I understand service, but you are really setting yourself up for a lot of hatred, and I think services very important, but it's a difficult difficult job. And we see how that works. I also want to reemphasize that the Federal Reserve has to be independent of the president. So I don't want whoever the president is to criticize the Federal Reserve that's the point of checks and balances here, and I don't think your own Powell will succumb to any of the verbiage. That is coming out of our president. We'll be back in just a moment. I'm Gary Goldberg. This is money matters. You're listening to money matters would Gary Goldberg, it's no secret income matters. Especially in retirement income can come from many sources, we at Gary gold more information about our proprietary dividend. Buster program comprised of fifteen.