Downshift

Downshift
Is the economy seeking a new low or its true level? A tenant came in late with his rent yesterday. He has been laid off from his white collar job. He is “reinventing” himself. He is cutting grass. A Mexican tenant came late with his rent for the 1st time ever. He cuts grass for a living. I know a few people who are doing better than before. Most of the people I see are doing worse.
It is inconceivable that closing auto dealerships that cost the manufacturer nothing will help the automobile industry. It will probably help the remaining dealers. Too many cars are made and sold anyway. Think of the squandering of raw materials and labor involved in making a car that winds up at the crusher’s lot in 6 or 7 years. Think of the environmental impact of the wasteful consumption demanded for the survival of our current economic system.
Suppose everyone who wanted a job had one; but only worked 4 or 5 hours 4 days per week. I would guess they could produce more of everything than the world really needs. The real problem is our economy is like a drug addiction problem. Everyone needs more and more just to maintain the current level. Is our current situation an opportunity to correct this situation? Will we just try to fix things and go back to what we were doing until there are no resources left?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com

The Incredible Shrinking Economy

The Incredible Shrinking Economy
No one has to wait for the other shoe to drop. So many shoes have fallen that even Imelda Marcos has to be running short by now. When companies like Microsoft and Intel lay off people, things are getting tight. What will the economy look like when (and if) it does come back? Worldwide demand for goods and services seems to be declining. Many of the things people were buying were really unnecessary and it may be that those purchases will never be made.
We do need a lot of energy related technology. As energy gets cheaper due to lower demand, the immediate economic need for this technology diminishes. It is kind of like a roof repair. You can’t fix it when it’s raining. You don’t need to when it’s not. Energy and the environment could offer some really good long term high paying employment opportunities. Education is another field that could stand some expansion and improvement.
I do not think that the real estate business will ever go back to our old familiar business. We will probably wind up with something like the European model…fewer transactions, lower commissions, more competition.

David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com