Comments on: Why People Who Think Real Estate Mess Will Soon Improve Are Wrong

By: Mickey Mouse Pictures

Mickey Mouse Pictures — Sat, 08 Nov 2008 15:22:52 +0000

Mr. Feldman there is just so much wrong with your analysis of our economy that at first glance I was not even going to bother with a comment. However, I see you have several supporting opinions that I feel I would be doing an injustice not to give you my two cents.
First, I will agree that we have a fire. But, Chicago is not burning down and we don’t need to go looking for a cow to blame. I give you this analogy because your view of history seems limited and tainted at best.
No one would try to offer a one person or one event as a cure all to end all or save all. And, if I may, there was much that was done during the Great Depression by Hoover that FDR got the credit.
WAR is not the catalysis that is keeping our country going and it has never provided the economic stimulus that you have indicated. As a matter of fact, it is WAR that has run many empires to their knees in world history.

By: Zach

Zach — Sun, 04 May 2008 21:26:00 +0000

Interesting opinion. You sounds like you know what you are talking about. I don’t on this subject. I like what you said about the money just not existing.

By: One Ford Road

One Ford Road — Mon, 14 Apr 2008 13:51:49 +0000

Even though most people don’t want to admit it, the war going on in Iraq right now has more to do with the economy then it has to do with creating a democracy. It’s sad that we have to be involved in a war to try and boost our economy and create jobs.

Amanda <3

By: Annie

Annie — Sun, 13 Apr 2008 21:01:29 +0000

Not to mention AT&T saying they need to get rid of 14,000 managers over on the West Coast!

By: LARRY ARTH

LARRY ARTH — Sun, 13 Apr 2008 17:23:40 +0000

Agreed, the subprime market is a mess and will take some time to correct.
To put a positive spin on it I would suggest we have a growing population and these folks need homes. Builders have scaled back on construction big time. Current inventories has a chance to finally start being reduced which is happening each day. As this over abundance of inventory gets reduced prices will stop falling, compettion will drive prices back up and the mortgage industry will adapt to the needs.

While this is happening we as investors have a steller opportunity to position ourselves for massive opportunities. People with decent credit have a great opportunity to size up their homes now and gain great on the purchase of a more expenseive home making the hit on the sale of their smaller home less intrusive.

With all the bad press in the housing market, their is still great news to be made of it.

By: Anonymous

Anonymous — Fri, 11 Apr 2008 19:19:07 +0000

I tend to think that people do get it. I believe there are many who will say otherwise, but for sanity and a positive attitudes sake.

The real unfortunate thing that is going on right now is the fact that at the same time as this mortgage/ housing mess, we are seeing a jump in fuel, food… everything, yet wages aren’t keeping up and layoffs are happening everywhere. To me this sounds more and more like the great depression. If you don’t believe me, try watching Cinderella Man. Lets hope that people are saving their pennies.

By: LJ- Mississauga Real Estate Agent

LJ- Mississauga Real Estate Agent — Fri, 11 Apr 2008 19:16:33 +0000

Given that nothing is going to change in the near future- what do you suggest people do ? Do you have any ideas on what could make things turn around? I am in Canada and we don;t have sub-prime mortgages here, however I find the mess tragic and wonder what the outcome will be.

By: charles

charles — Fri, 11 Apr 2008 02:51:58 +0000

Yes, Troy, and after World War Two was concluded, pretty much the same conditions existed in Berlin! So, yeah, I guess there will always be opportunities for some; but this is a foolish time to invest for any but the most seasoned players. This is NOT a good time to learn.

By: Troy Schuricht

Troy Schuricht — Fri, 11 Apr 2008 00:53:36 +0000

What the mess has caused is lower home prices, substantial inventory, historical low interest rates, favorable seller expectations, and a larger pool on renters. It is and will continue to be a good time to invest in real estate. Caution! Due Diligence and Cash Flow is the secret.

Best of luck. Investors

By: charles

charles — Thu, 10 Apr 2008 17:37:44 +0000

Hi Denton–yes, it is sad, but true that wars tend to help the economy, at least in the short run. There is a reason why wars have remained “popular” for thousands of years and among almost all cultures. My guess is, we will still be having them a thousand years from now–if we are still around, that is?

By: Denton Ward

Denton Ward — Thu, 10 Apr 2008 16:11:25 +0000

You said it right when wars do help the economy! I read a few books in college (Infectious Greed and Outsourcing America) and spoke about wars fueling jobs and the economy. It was not the main content of either readings, but it is pertinent in this post. Well said and I just think everyone forgot what a “normal” real estate cycle is like…considering it was so good for so long. Plus, the media doesn’t help…meaning they keep fueling the fire. But that is another discussion..

Thanks!

By: Jim Watkins

Jim Watkins — Thu, 10 Apr 2008 03:58:11 +0000

Charles,
Great post and I am impressed with how you were able to simplify a very complex subject.
What struck me the most was your opinion that wars help the economy.
While I am not in favor of wars in general, I do agree with your reasoning and in the end, I think the Iraq war will prove your point.