Category Archives: General

The topic for general interest

What is inflation?

Inflation means the increase in the supply of fiat currency caused by the central bank printing (counterfeiting) currency to buy bonds, thus reducing the yield (effective interest rate) and increasing the bond price. Reducing interest rates reduces the Capitalization Rates for assets that are financed by debt, mainly commercial income property. Reducing the CAP rate […]

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CAP Rate is determined by the cost and structure of financing

I wrote a short article about this over at LinkedIn. Click here.

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Fractional Reserve System versus Central Banking System

There is a world of difference between the “fractional reserve system” (FRS) and the “central banking system” (CBS).
FRS merely spreads out the money deposits in the form of loans, and the total sum of deposits plus debt never changes. FRS is a kind of “leverage” on the deposit of money that strongly depends on the […]

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Preparing for another economic crisis

Housing prices will collapse with a nominal increase in interest rates. Get your financial calculator: N=360 (30 years), Rate=4% per year, PV=100,000, PMT=477.52, FV=0. Those are the numbers for a $100,000 mortgage debt at 4% per year, fully amortizing over 30 years. Change the interest to Rate=6% and recalculate PV=79,628.87. That’s 20.4% decline for the […]

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Thank You for your well-wishes!

In early January 2013, I became very ill with Labyrinth-itus, which is a viral infection of the inner ear that affects balance. I was very disoriented and nauseous. A family member is a doctor in another state and she said my symptoms were consistent with Labyrinth-itus and it may take up to eight weeks to […]

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Welcome to Starfury Capital Management!

Our newest venture is Starfury Capital Management for private trust deed investing. Through our private syndication channels, we gather together private financiers (accredited or sophisticated) for specific projects to fund on commercial and residential income properties with hypothecated 1st lien trust deeds (secured by real property).
This is very similar to hard money lending, but with […]

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