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Is the Sky Falling?

With all of the government bailouts going on, some may be wondering if the sky is falling. As far as I can see, the only thing that is falling is the money out of our pockets so the government can keep the market from crashing. Some people are saying that the government is trying to slowly let us know how bad things really are and we are just seeing the beginning of the bailouts. What I don't understand is where is all of this bailout money going to come from?

All of us in the real estate business need to buckle up and hang on for the ride. When the media gets into the meat of this, they will be spewing the blood and guts everywhere scaring everyone. This will make many sellers take their house off of the market and sit tight. We just need to keep our guard up in case the sky is falling but I wouldn't run for cover... yet! Or should I?

What do you think?

Posted by David Slavin, ABR, SRES RE/MAX Grand, Katy, TX on 09/22/2008 04:54 PM

Comments (23)

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23 Comments on Is the Sky Falling?

SEP

2008

The real estate community needs to do a better job is spewing the correct information and not the doom and gloom already out there.

Kathy, this is true but how? The doom and gloom media is everywhere.

The good news is the media has numbed the public with talk on the economy for a while so we shouldn't see any big shift. The bailouts come from the taxes. The problem I have is the bailout money is going to corperations and not people who are paying for it. The bailout money could have caught up everyone's mortgage. That would have helped 300,000 people and the banks would have got their money, but instead the foreclosures still happen and they make money for their bad loans.

Sellers aren't going to pull their houses off the market anytime soon. I would guess that 50% of all houses on the market where I am at are either short sales or bank owned properties. In some areas it is close to 80%. Those sellers have to sell unless somehow the government takes the property over.

I think NAR has done a decent job of trying to portray this market as best they can. It is the rest of the media that is printing doom and gloom.

"What I don't understand is where is all of this bailout money going to come from?"

China, with interest.

Ross - The problem with the govt catching up everyone's mtg is those that aren't past due will be complaining looking for their share. But the same is going to happen with these companies. Now they see that the govt is stepping in they will be there with their hand out. This is just the beginning.

Rob - I have lost 2 listing already from the media scare.

My advise is to learn Chinese so you can converse with your banker.

Why is the money going to the corporations? Let me answer that with a question. Why would you spend hundreds and hundreds of millions of dollars to get elected to a job that pays a coulpe of hundred thousand dollars? Just follow the money.

What cover?

Aloha David,

I don't know if the sky is falling, I'm afraid to look

Hey David,

What can I say!!! Run, run the sky is falling

Nothing like a good media panic to send us all to the closet for our running shoes. I have no idea what this is all going to turn into. I hope for the best, but I fear the worst. Start saving money while you can!

Is it media panic, or is it reality? Unprecedented bailouts? AIG (largest insurance co.) almost bankrupt. Lehman brothers? - It doesn't seem like hype to me.

Years ago I read a book called YEN. It was close since we'll be part of China soon.

David. There are alot of speculations. I guess the only thing we can do is sit back and wait. Always updating our clients and taking some of the worry off of them. Thanks for the post, Royal..

You are right David. We need to buckle up and see what happens. Hopefully it will mean good things for our economy. That is the purpose after all.

Someone posted this :

" My advise is to learn Chinese so you can converse with your banker.

Why is the money going to the corporations? Let me answer that with a question. Why would you spend hundreds and hundreds of millions of dollars to get elected to a job that pays a coulpe of hundred thousand dollars? Just follow the money. "

This is the best remark I have seen all year.... no kidding !!!!!

I think the buyers are getting scared again. This all is overwhelming. It probably will take longer than we think to resolve all the bailout issues.

I need to sell houses!

Richard

SEP

2008

Richard - we all need to sell houses.

Elena - You are so right. Why is there a huge fund set up for the heads of these failing companies for their salaries over the next two years. Why do they deserve a salary? What they deserve is a pink slip.

David-

It's important to stay "calm" when the BAD is spewing everywhere...right? Running for the hills won't work...let's dig our heels in a little more and work smarter.

I always revert back to my market and it's numbers...yeah, we are down a bit but not that bad and have much anticipated growth. All we can do is continue because honestly, I don't have another job to fall back on! HA!

SEP

2008

I'm glad to hear that the FBI is now investigating the issues with Freddie and Fannie.

No doubt us taxpayers will foot the bill for corporate greed. What is the alternative though, if the market was left alone we'd fall into a depression. THAT would be devastating.

Did you ever think the government wants the sky to fall? This way you will need them? This way they can really do what they always want to do is grow bigger? No one asks any questions in times fo strife. Just a thought.

SEP

2008

Jim - You may be onto something. When people panic they will give up freedoms and our free ecomomy is something that we shouldn't be willing to lose.

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