Not only is America in a crisis but most of the world is faced with an economic crisis that in reality everyone should have seen, but most did not due to the denial and ignoring of all the signs.
We as Americans experienced the greatest Real Estate Boom in history! Nine incredible years of growth! How can people believe that the market will go down for a year or two and recover? We are in this for the long haul! We have Neg Am loans that will be come due and adjust all the way through 2012 and when they do many will go into default! This will put us with huge amounts of REO's through 2013 and possibly 2014 if the bankers don't figure something out quickly!
Lets not fool ourselves, we are headed for probably the hardest economic times America will have ever seen. With the stock market on its way to 5000 or below, the American Icons like General Motors, Circuit City, Saks 5th Ave and most of the Banking system in serious trouble or going out of business! As long as these foreclosures keep coming there is not hope of prices leveling off, because every time a foreclosure hits the prices drop again!
Giving money away in these Stimulus packages to companies is only a bandage and in a few months they will need more ... because it does not fix the Big Picture! A question we need to ask is when will it end? We need business sense here! I think we have been thinking out of the box too long ... we need to go back to the basics and "Think In The Box"!!! It is like giving a homeless person money everyday so he or she can buy drugs or alcohol ... it is not helping ... when need to retrain that person and reprogram them to rejoin society in a productive way with out dependency!
Lets consider this ... If I were President ... Kind of humorous as I write this ... Kevin Jones President of the United States of America! I would propose to do one thing, figure out how to get the real estate market out of the toilet! How do we do this? We have got to stop these foreclosures!
It is two fold:
First: It is very simple, the lenders loaned money that they shouldn't have, so they need to re-write most of these loans and create "New Programs" not the current loan mods forbearance's that 55% are back in default within a month or two! But all "New Programs" that actually work for the bank and not require money from the Government.
But how do we do this? Very simple! The lenders give a simple forbearance of say 30% off the top. This will conditional on a 10 year commitment, if they pay for 10 years, it is gone, if they sell, they owe that money back to the lender. Also the lender then re-writes the loan to a 40 or 50 year loan at a fixed interest rate and a payment that is affordable to the home owner.
If people can afford their homes, there is hope, the more hope we can provide it will provide confidence and help mentally get us as Americans back on track! Plus this will free up more money monthly that can be put back in to circulation for the economy, people will be able to buy cars, eat out at restaurants, etc. Which will then help the entire economy and allow us to slingshot is back and give America its MoJo back!
Secondly: We need a plan to allow the people to be working to pay for these new mortgages. We need to make the American Products more valuable than the imports to put the Americans back to work. If we were to tax the imports (cars included as the other countries do to us) instead of raising sales tax, gas tax and everything else, it would allow us to make our own (quality) products more affordable.
Of course many other things would need to change also like incentives for the small business owner to produce the products that we rely on other countries for currently so that they have a real chance at success! But that is the small stuff ... lets not worry about the small stuff for now!
Lastly, legalize and Tax all controlled substances. We could then probably double our tax base and pay off our National Deficit in a year or two! Plus it would be controlled, monitored and put many people to work here in America and the countries that are currently doing it illegally would stop or slow down some of that violence.
Unfortunately I am not President ... maybe President Obama will read this and consider it! But I will not hold my breathe! So I guess I will go and stimulate my local economy by getting to work and prospecting so that I can take a listing today and put as many people to work as I can with that listing, price it right so it goes into escrow and puts more people to work!
Remember me when I run for President ... Vote Kevin Jones!
For referrals in the Southern California area:
Kevin Jones 818-955-SOLD (7653) office 818-612-1603 mobile 805-474-7040 mobile
Get paid on the referral for not only the Real Estate but the Loans ... only with Kevin Jones!
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