Scott Nagel's Blog

The Lighter Side of Crisis

Scott Nagel (Coldwell Banker Burnet) — Thu, 08 Jan 2009 10:06:31 -0800

With all the talk of unemployment skyrocketing, a deficit of $1.2 trillion (without the $700,000,000,000) bailout, etc. Our problems pale in comparison with the marrital bliss a New York couple is experiencing.

A New York husband in the throes of divorce is demanding that his wife return the kidney he donated back in 2001 to save her life.

Nothing like pursuing your pound of flesh.

2009 A Kind-Gentler Economy, Or A Repeat Of 2008?

Scott Nagel (Coldwell Banker Burnet) — Wed, 07 Jan 2009 17:13:19 -0800

We all would like to have a soft landing in 2009, after reaching '08s finish line. But given the happenings in the marketplace, it is unlikely to be a kinder-gentler year.

In 2008, 2.4 million jobs were lost. Already, in 2009 EMC cut 2400 position (6%), Alcoa will cut 13,500 (13%), and there is talk of IBM laying off 16,000 (4%). The January 2009, Congressional Budget Office report Budget and Economic Outlook: Fiscal Years 2009 to 2019 is forecasting the US economy to have a "marked contraction" and by 2010 an unemployment rate to exceed 9%.

This is a time to sit back and thank God for your health, because you wealth isn't likely to improve anytime soon.

Real Estate Sages

Scott Nagel (Coldwell Banker Burnet) — Tue, 06 Jan 2009 23:10:20 -0800

Today our office sages spoke and people nodded. "We believe that the market has hit bottom, and should begin climbing." What in the world do they base that upon? Don't kid a kidder!

We Americans have lived beyond our means for many years. For the past decade we have been slipping into our homes with less and less in our pockets. Saving for a home, how passe, this is the new economy. Past political administrations called home ownership a "right". What lies behind door number 1, 2, or 3; but cars that Detroit provided us at the family and friends discount. Our credit cards are maxed and so we refinanced our homes to consol our consumer debt. And when Washington provided us with rebate checks, well it was hardly American not to spend.

Paradise can't be found at MOA, but it was apparent that we perceived our streets to be made of gold. The hard truth is America needs a 12-Step Program. If living within our means is exemplified by returning to the philosophy that a home is the one item that is acceptable to finance, and other items are purchased outright with cash, the ramifications will be a decline in consumer spending and a smaller economy.