In spite of many of the announcements from Washington and various news sources that "The recession is over," there are still some very frightening statistics that cannot be ignored. So much of what Washington and the media do is play on the emotions of the people. This is all the while ignoring so many of the economic facts that continue to churn out.
Certainly the stock market has rallied some in recent months and the real estate market has shown signs of improvement. There is no doubt about these facts. However there are many underlying economic fundamentals that show inevitable economic danger still coming down the pipe.
While I certainly would love all the positive headlines to be the truth, I can't see ignoring so many of the other stats out there.
For instance according to a CNN article earlier this month, July was a record month for foreclosures. According to the article new foreclosures are up 32% when comparing July 2009 to July 2008. That is a HUGE number. Locally foreclosures continue to happen at a rate of several hundred new cases filed per week - YES SEVERAL HUNDRED PER WEEK.
Of course these foreclosures aren't any surprise. There have been predictions for quite a while now of all the ARM loans getting ready to adjust. I posted this 60 Minutes segment a few months ago. The 2nd wave of foreclosures is expected to be much larger than the last wave. Incredible!
Then there is the announcement from the White House just 2 days ago that they underestimated the federal deficit by some $2 trillion. What the heck?!?!? The federal deficit will run at some $9 trillion through the next decade. And these guys want to take over our health care system. Everybody pray that this never happens. You can read more in this Wall Street Journal article. And the unemployment rate is expected to hit 10% nationally according to this USA Today article.
I'm not quite sure what to think of all this, but I do believe it is time for everyone to work hard to get out of debt, save money, invest in hard inflation-resistant assets. Instead Washington wants everyone out trading in their paid off used cars to get into new car payments with their cash for clunkers, to spend lots of money on new energy efficient appliances, and of course to pay all sorts of new taxes and fees to all levels of government so that they can redistribute with giant bailouts. I say no thanks to all of it. It is time for Americans to do the exact opposite - the debtor is servant to the lender AND cash is king. All these "programs" the government has created are simply dragging out the recession and potentially could cause a double dip recession in 2010-2011.
These are crazy times to say the least. This blog post wasn't written to be gloom and doom but simply to point out that we have a LOOOOOONG way to go before we get out of this mess. If you are in the real estate business you need to learn and get involved in as many of the short sale, REO, and foreclosure transactions that you can. They are going to continue to increase for years to come.
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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.
We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida, metro Orlando, and the Space Coast. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available. Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Apopka, Kissimmee, Sanford, Lake Mary, and Deltona.