Life Goes On
The banks and the Auto companies are getting big bail outs and still laying people off. Loans are harder to get but they happen despite what the newscasters tell us. Business seems to be bad for everyone. I don’t see anymore homeless people than I did before. I don’t see people selling stuff on the street corners. The people selling stuff at tables in vacant parking lots are no more pervasive than they were before. Is it possible things are not as bad as they sound on the news?
The unofficial economy in the USA has in the past probably been smaller than that in some parts of the world. I expect it will grow with the ongoing depression. I have a theory that anyone with a ladder on a pickup truck is part of the unofficial economy. Count the ladders as you ride around to judge the growth of this sector. Since home repairs are not deductible, homeowners do not need receipts for work done. This makes an easy choice of paying a little less for a repair and not reporting the payment. Most of these repair people probably report enough income to cover their expenses.
If we have an economic stimulus that requires companies to cut pay and lay people off, how much will this help the economy? If the laid off people draw unemployment and work unofficially on the side, who will pay the taxes to support the stimulus?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Showing posts with label Usa Economy. Show all posts
Showing posts with label Usa Economy. Show all posts
Thursday, April 2, 2009
Monday, March 31, 2008
It's the Economy Stupid
It’s The Economy, Stupid
Or is that the stupid economy? The real downturn in our economy began with the anticipation of the George Bush presidency. His crazy ideas got everyone scared. As bad as his economic policies are, they are not the problem. The problem is fear. The fear started with the anticipation of his presidency. It was exacerbated by the cynicism that had been engendered by the super partisan spirit during the Clinton administration.
Enron, 911, the political scandals and the pointless war in Iraq, created a negative atmosphere that even the most effervescent optimist could not overcome. This has snowballed until no-one trusts government or business or the news media. Mass fear became mass cynicism. It morphed into a collective pessimism and depression. It has now blossomed into full fledged mass hysteria.
The only cure for this will be a charismatic leader. Bill Clinton could do it. I don’t know about Hilary. I know John McCain can’t do it. Maybe Barack Obama? We really need a John F. Kennedy.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Or is that the stupid economy? The real downturn in our economy began with the anticipation of the George Bush presidency. His crazy ideas got everyone scared. As bad as his economic policies are, they are not the problem. The problem is fear. The fear started with the anticipation of his presidency. It was exacerbated by the cynicism that had been engendered by the super partisan spirit during the Clinton administration.
Enron, 911, the political scandals and the pointless war in Iraq, created a negative atmosphere that even the most effervescent optimist could not overcome. This has snowballed until no-one trusts government or business or the news media. Mass fear became mass cynicism. It morphed into a collective pessimism and depression. It has now blossomed into full fledged mass hysteria.
The only cure for this will be a charismatic leader. Bill Clinton could do it. I don’t know about Hilary. I know John McCain can’t do it. Maybe Barack Obama? We really need a John F. Kennedy.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, March 18, 2008
More Market Landmarks
More Market Landmarks
But what do they mean? The euro costs $1.5767 at this moment. Bear Stearns has sold for $2 per share. What does this mean for you and your clients? Does the cheap dollar indicate time for a feeding frenzy? Does it indicate a time to wait and see if it drops some more?
For those of us who are holding our money in dollars the situation is even more dire. If we hold our money looking for opportunities, the money may lose even more value. If we buy local assets, they may lose value. If we buy foreign assets and the dollar comes back strong we lose again. In times like these, I have always told my clients either to hold their cash or to buy property depending on the situation. I don’t know what to tell them now.
I do not see the USA economy recovering as long as George Bush is in office. I think it is a safe bet that the Yen and the Euro will continue to rise at least until after the elections. I also think it is a safe bet that interest rates will fall. The problem is nobody wants to make loans. If one can find loans, this fall should be a good time to refinance. I don’t know where to put money though. The American economies are too closely tied to the dollar. China is too dependent on oil. Europe is overpriced. Sorry, no answers today. Only questions.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
But what do they mean? The euro costs $1.5767 at this moment. Bear Stearns has sold for $2 per share. What does this mean for you and your clients? Does the cheap dollar indicate time for a feeding frenzy? Does it indicate a time to wait and see if it drops some more?
For those of us who are holding our money in dollars the situation is even more dire. If we hold our money looking for opportunities, the money may lose even more value. If we buy local assets, they may lose value. If we buy foreign assets and the dollar comes back strong we lose again. In times like these, I have always told my clients either to hold their cash or to buy property depending on the situation. I don’t know what to tell them now.
I do not see the USA economy recovering as long as George Bush is in office. I think it is a safe bet that the Yen and the Euro will continue to rise at least until after the elections. I also think it is a safe bet that interest rates will fall. The problem is nobody wants to make loans. If one can find loans, this fall should be a good time to refinance. I don’t know where to put money though. The American economies are too closely tied to the dollar. China is too dependent on oil. Europe is overpriced. Sorry, no answers today. Only questions.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
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