Guys…the Downturn is Not Over

By
Education & Training with R World Properties, Inc

CNBC, Jim Cramer, pundits left and right today are talking about the DOW going up, how things are looking good now, and NOW is the time to get back into the market. NOW is the time to buy big homes, new cars, stock in bankrupt companies, etc. I guess…is that what they’re actually saying? I mean, seriously?

Is anyone not looking at the fact that we lost well over 600,000 jobs last month? Is anyone not taking into account that the only money that’s moving right now is the money we PRINTED? I’m no economist, but until an economist or someone who knows what they’re talking about can explain to me why spending money we don’t have leads to prosperity, then I’m going to keep on believing that wealth comes from actual work…not buying stuff. I’m going to keep on working, living beneath my means, saving and investing in my own business and not buying stuff just because Uncle Sam tells me it’s my duty to do so.

Wealth comes from within…it does NOT help your neighbor for you to go out and buy a car you can’t afford. Just sayin…

BTW, I don’t write about this economic stuff thinking that I have all the answers. But so far, no one has convinced me that we’re going the right direction. I honestly think we’re headed for a really rough time ahead. I think the world owes us a lashing.

It’s really, really important to understand your market. You cannot profit and prosper if you don’t even understand the environment you’re in. If you believe all the guys telling you that a recovery is just around the corner, you will be compelled to take action on that. Again, I don’t claim to have all the answers, but I urge us all to think critically about this kind of thing. If you think the market is coming back, maybe it’s a great time to buy some Citi…right? Careful, now…I’m not buying into that noise. That’s my two cents. I don’t think the downturn is over by a long shot. It doesn’t mean your business cannot prosper…even explode in this economy. But plan accordingly.

Do you think the downturn is over?

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Rainmaker
571,868
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Christian, No one is saying the problem is over.  Most economists feel what we are doing is absolutely essential if we are to turn this around.  You should not buy anything you can't afford.  The news reports tell us that there some  important early signs of hope. 

Apr 16, 2009 06:10 AM #1
Rainer
45,055
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI
REALTOR ABR, CRS, GRI, RSPS

I am no economist either, but I don't believe the end of the downturn is near. I believe that Obama has told us the straight story, that there is a glimmer of hope; that it will get worse before it gets better, and that it is essential that the government stimulate the economy until there is a true economic recovery. To not do so would put us into a true depression that would be steep, and devastatingly long lasting. This recession is going to be tough, but it is unimaginable what would happen if we just let the economy crash on its own.

Apr 16, 2009 06:17 AM #2
Rainer
35,736
Christian Russell
R World Properties, Inc - West Lafayette, IN

Hi Bill...thanks for commenting. To the contrary, a LOT of pundits as recently as this morning are arguing that the recession is over. I'd be curious to know who you're reading that has led you to believe MOST economists agree with our actions to combat the downturn. I know many who vehemently oppose our government's recent actions.

None of my writing is meant to fear monger. I do believe the real estate industry is changing permenantly however, and a recovery as most Realtors seem to be expecting, will not happen. This does not spell disaster; it's spells a necessity to change the way we look at the business. There is HUGE opportunity, but the opportunity has moved, and we need to adapt to changing consumer demands. I see very few real estate professionals adapting, which is why I feel compelled to post this type of content.

Apr 16, 2009 06:23 AM #3
Rainer
35,736
Christian Russell
R World Properties, Inc - West Lafayette, IN

Michael, I very much like Obama's speeches as well. And the last thing I or anyone wants is for us to fall into a deep recession or depression. I also agree that if we stopped this inflationary spending, we WOULD fall into a depression. What no one has been able to explain to me is how continuing to spend beyond our means is going to help.

There is near 100% consensus that we need to stop printing money at some point...it cannot go on forever. So, what happens when we have to stop? We will be trillions of dollars MORE in debt, even worse than before. How does that spell "recovery"? Seriously, I'm open to answers. So far, everyone seems to say we HAVE to do it, but no one seems to have an answer as to why it will actually help.

Apr 16, 2009 06:28 AM #4
Rainmaker
1,042,280
Charles McDonald
Charlottesville Real Estate Solutions - Charlottesville, VA
REALTOR®, Blogger, Principal Broker®, Owner

I just have to say that I do not watch Cramer except as entertainment...

your friend in Charlottesville Virginia!

Apr 16, 2009 07:13 AM #5
Rainer
35,736
Christian Russell
R World Properties, Inc - West Lafayette, IN

Charles, ha! Agreed.

Apr 16, 2009 07:54 AM #6
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Rainer
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Christian Russell

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