If there ever was a time for real estate investors, and even those just interested in real estate, to social network, this is surely it.
The current economic crisis, and it is that, was not caused by geo-politics, or war, or famine–it was caused by banks and other lending institutions lending money to people who could not afford to buy houses with little thought or regard for the consequences of what might happen should all those people not be able to pay their subprime mortgages.
In short, real estate is what caused what many already believe to be a recession, and, people who are engaged in real estate transactions may end up being in the forefront of a recovery when it comes. And, it will!
Simply because there will come a time when all of those houses standing empty will have to be sold. And, notice I say “have to be”–anyone who seriously believes this country will tolerate for long, thousands upon thousands of empty houses just standing there gathering dust, has no sense of history or the American free enterprise system that drives it.
But, there will and should be a difference; the same mistakes cannot be made again. This time, investors will need to be armed with solid information and be better grounded in the fundamentals of the economy; lending institutions will have to shoulder more responsibility for the loans they make; the government, at every level, needs to stand ready to help those in distress before, like water rushing into a ship’s hull, they sink us all.
Why Joining a Real Estate Social Network Community Like BiggerPockets is So Important
Social networking can be just for fun, of course. But, on a [tag]real estate investing[/tag] site such as this one, [tag]social networking[/tag] takes on a far greater importance. It is the town-corner where all who have an interest in seeing the American economy grow–and make no mistake about it–real estate will be the backbone of any such growth–can exchange information, wisdom, and optimism.
Real estate, sadly, got us into this economic mess (along with the greed of lending institutions) and real estate will surely help get us out of this mess long after any needed but temporary fix is put into place by Congress or the current administration in Washington.
I firmly believe, and I think the evidence will show, that not since the Great Depression of the early 20th century have the stakes been so high.
Consider the news reported just within the last week: The nation’s largest bank, Citicorp, reports a fourth quarter loss of almost 10 BILLION dollars while, at the same time, reports the New York Times, issuing a “sobering forecast that the housing market and the broader economy still had not bottomed out.”
The stock market is down about 9 percent since the start of 2008—and that is reportedly the third worst start for any year since 1926, says the Times.
Bank of America is apparently greatly cutting back on its investment business.Merrill Lynch, says various news reports, will report huge losses. JP Morgan Chase reports today that its own fourth quarter profit fell 34 percent because of subprime mortgages. Intel, the chip maker, has “disappointing earnings” which could signal, say experts, a coming decline in the demand for high-tech products.
And, to make matters worse–and yes, they could and probably will get worse, sorry!–inflation, reports the government this week, is at its worse rate in 17 years, driven by the higher costs for energy and food, says the Associated Press.
At the same time, reports the A.P.,”industrial output was flat in December, more evidence of a significant slowdown in the economy.”
Access to information is key to a democracy and fundamental to the understanding of complex economic inter-relationships. There is a reason why despotic regimes cut off the free flow of information first.
If you are a member of this site; if you are just glancing BiggerPockets over; if you are engaged in the running commentary of social networking, then you are the guardians of this information highway.
You have a greater responsibility than those who just use [tag]social networking sites[/tag] to exchange pictures, or arange for dates, or discuss the top ten YouTube picks of the day.
The economy is broken. [tag]Real estate[/tag] was a fundamental cause. Those armed with accurate information will be in the vanguard of any remedy…not government, not banks, not Wall Street not overseas investors.
You, are the fix!