Financial advisor and television host Suze Orman offers insight into the economy and answers questions from a live studio audience on the Piers Morgan Show.
Among other topics, Suze Orman talked about how the middle class is disappearing or has disappeared, which is why Mitt Romney’s statement that he is concerned with the middle class, but he is not worried about the very poor because there are programs in place, is naive and out of touch with reality.
Orman mentioned the importance of the Consumer Financial Protection Bureau (CFPB) established under the Dodd–Frank Wall Street Reform and Consumer Protection Act and signed into law by President Obama on July 21, 2010. Under this law, the banks have to report to CFPB. (For more information about this law, please check out opencongress.org.)
On the economy, Orman believes people confuse the economy with the stock market. The economy is in the tank. People are out of work because this is the new age of technology and less people are needed due to computer productivity. Corporations move to China and take jobs away to China and other countries where labor is cheaper.
Orman says real estate is not coming back soon. She advises young people to not rush into buying a home if they do not have 20% for down payment, if they are not confident about their job security. Home values are not appreciating in value and interest rates are not going anywhere any time soon. Unless they get a real steal of a deal, understood money and have enough of a cushion, there is good reason to wait. She also warned that the protection provided by current tax laws concerning short sale and deficiency balance will be gone in 2013.
Watch the entire interview, about 45 minutes in length, here: http://castroller.com/Podcasts/TheLarryKing/2768867