| I love it when I read these types of headlines. I | | | | why Europe is on the verge of collapse. Is this a |
| always get a chuckle and say "So, what did you | | | | model we want to follow?? |
| expect?" | | | | Back here in the US all we hear from our leaders |
| The $ 8,000 home buyer credit was not | | | | is negativity. Words matter and you have to |
| renewed. FHA, Freddie Mac and Fannie Mae have | | | | understand they say them more for political |
| tightened lending requirements. | | | | reasons. A scared population is a compliant one |
| The "BIG BANKS" are imposing their own | | | | that will agree with your political ideas. And this |
| ridiculous rules on top of the government rules. | | | | has worked well: think 9-11, war in Iraq, TARP |
| And you expect the housing market to thrive. | | | | Stimulus 1 2 or 3 (I forgot, they keep adding |
| To quote a cartoon character, "DOH!" | | | | them on), saving GM 'for America', and the list |
| Here are some of the particulars in the story: The | | | | could go on. In all of these events our leaders |
| U.S. Census Bureau reports single family housing | | | | increased the fear factor to new heights making |
| starts in June fell by 0.7% to a seasonally | | | | people believe if they did not go along all hell was |
| adjusted annual rate of 454,000. The U.S. started | | | | going to break loose and we would all be out on |
| 1.47 million in 2006 before the bubble burst. The | | | | the streets. Americans and most of Europe are |
| article goes on to claim that a variety of factors | | | | paralyzed with fear escalated by our elected |
| have led to a flagging confidence including a | | | | leaders. The job market and the housing market |
| sluggish labor market, global turmoil and falling | | | | won't turn around till Main Street starts to feel |
| stock prices. | | | | good about its future. |
| I find it amazing that these so called experts in | | | | So what does this mean for Real Estate |
| Washington and New York are clueless as to why | | | | investors? You need to pick your markets very |
| we are in trouble on all fronts. Let's take the labor | | | | carefully. |
| market. I'm no economist or Harvard scholar but I | | | | The best markets may not be where you are |
| can sure figure out why the job market is in such | | | | investing now. For example Florida, my home |
| turmoil. How about the constant barrage of | | | | state, is very anti business. The Government |
| criticism, rules and regulations that keep CEO and | | | | seems to go out of its way to discourage |
| the local business owners guessing "what's next" | | | | business from moving here. They want tourism, |
| Over the past 4 years the auto industry, banking, | | | | service jobs and retirees. That is living in the past. |
| financial, and insurance industries have been | | | | We need high paying good quality jobs if Florida is |
| terrorized by Washington and special interest | | | | to survive and thrive in the market place. |
| groups. They have to explain everything from | | | | On the other hand, just to our north, Georgia is |
| CEO pay to why they're not being green enough | | | | grabbing every job that brings in good pay, health |
| for the environmental groups. | | | | care and is a asset to the community and the |
| Don't get me wrong, Wall Street and the banking | | | | State. Companies from all over the world are |
| sector went on a GREED spree like none in | | | | signing lease contracts and purchase contracts |
| history. But with that said, all of the banking and | | | | and plan to hire tens of thousands of Georgians. |
| financial sectors have been placed under | | | | Both states have housing problems and job losses |
| government rule with all kinds of draconian | | | | but one is being proactive and the other is sitting |
| regulations that have stifled creativity and | | | | on South Beach having a cold one and taking in |
| confidence. Washington has taken their typical | | | | the sights!!!Which state will improve faster? |
| reactive and not proactive stance. | | | | All over the country this is being repeated, with |
| Now let's take business, especially big business. | | | | some states fighting for every job while others |
| They have tax incentives to take jobs overseas. | | | | are living in the past. There have been a number |
| Does it make sense to anyone for businesses to | | | | of articles in national publications that more and |
| be laying off people here and exporting jobs | | | | more companies and people are moving to |
| elsewhere? Obviously it makes good business | | | | Southern and Mid Western States. Don't believe |
| sense. The biggest complaint is that taxes | | | | it's because of the weather. Northern States and |
| overseas are better than and not as high as the | | | | Western States are still living in the 50's and 60's |
| U.S. This might be the case but I have seen some | | | | mentally when government was supposed to |
| reports that show most major companies pay | | | | know what was best for the people and the |
| very little federal income tax and most get a | | | | business community. They are all super high tax |
| major credit. So, is it really taxes, or could it be | | | | states and still not able to see what their |
| something else? Cheap labor in some third world | | | | problems are. They are all on the verge of |
| country may make the quarterly P and L look | | | | bankruptcy and they blame everyone but |
| good for stock holders but eventually that | | | | themselves. Think California, New York, New |
| catches up to you when no one here has any | | | | Jersey and any one of the New England states. |
| money to buy your product. | | | | So as an investor you must really do your |
| Global economic turmoil and falling stock prices are | | | | homework before you invest in an area especially |
| all a factor of Governments around the world | | | | if you are not from that area. What was a good |
| becoming so big and cumbersome they stifle | | | | bet in the past might not be safe any longer. |
| growth. In some countries the retirement age is | | | | Due diligence is more important they ever. Take |
| 55 and then people live off the government dole | | | | the extra time on this part of your Real Estate |
| for the rest of their lives.Tax rates in some | | | | business and big profits will come your way. |
| countries are in the 80% range to pay for all the | | | | Because the rest of the world is scared to death |
| government social programs and an ever | | | | and can't or won't make decisions so profits are |
| increasing portion of the population doesn't pay | | | | there for the taking. You just need to have |
| taxes at all (sound familiar?). And you wonder | | | | courage to go where others are afraid to. |
