Special offer

Why do we wait for the economic problems to kill us?

By
Real Estate Broker/Owner with Carlos R. Arvizu Sr. with Prudential California Realy

The problem of waiting, is one of the reasons why the real estate and mortgage industry is such a shambles.  If you know what the problems are, take decisive action to fix the problem. 

Unfortunately, too many people in government, analyst, politicians, (and news media included which exacerbate the problem and prolong the agony without rationalizing what are all the components of the problem.  

There are too many people in the leadership position, that sometimes second guess, procrastinate or are opportunist for self purposes, until the problems are so out of control, that eventually everything's comes to a halt, making it worst for everyone.

Like in the case of the Federal Reserve, for an example, they always take a wait and see attitude, which is one of the components that was partially to blame for the credit crunch and why were in the mess today. 

They increased the short term interest rates for a long 17 months, and waited for the reaction to be full blown, instead of adjusting interest rates that would soften the real estate market to a soft landing.  What did they think was going to happen?

They waited well over a year and several months before they started to lower the interest rates.

It's like a car, ... if you know your brakes are in need of repairing, and find it difficult to come to a stop, you don't wait until you killed some innocent family, that happens to be in the way of your fast moving car.  The momentum will finally catch up to you.  Why does someone have to get hurt or killed, because your brakes failed? 

The same thing is happening to the country.  The other part of the equation is the lending industry is stymied because of the conforming loan limits are far below, the threshold of the medium home price.  How many people have to lose their homes, how many people have to lose their jobs, how many lives do you destroy.  I am at the point of running for office myself, but unfortunately, I don't have the financial backing or time.

The reality is self evident.  Why do you think, we are having all of these problems with mortgages, home values dropping, people losing their jobs, recession and so forth.  Not taking action, or relying on someone else to fix the problems we have.

 

Carlos Arvizu Sr.

TheDon1950@aol.com

Comments (2)

First Last
Eatontown, NJ

Dear Carlos,

I think at one point they didn't think the problem was severe enough!  Apparently some rating companies were rating 97% to 100% loan papers as triple A's!  So when it all fumble down, it all hit them hard.

Jan 24, 2008 10:38 AM
Donna Yates
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains
Carlos:  I do believe the media plays a large role in causing a panic over recent weeks.  They live for the ratings.  Still, the experts say that by the time the Feds get around to saying we are in a recession, we will have already been in a recession for months.  I'm with you, when you know something needs to be fixed, just fix it. 
Jan 26, 2008 12:33 PM