Message to White House: Fear and Panic is Being Heard, but is it the Right Message ?

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Real Estate Agent with The Somers Team at KW Philadelphia
https://activerain.com/droplet/fNN

Message to White House:  Fear and Panic is Being Heard, but is it the Right Message ?

This morning we received a message from folks we have been working with for awhile that they are putting Message to White House !  Get Your Act Together !their house search on hold due to the crisis.   We will talk to them and try to alleviate the fear and let them know that in your doomsday scenario, interest rates will be much higher so it will be a great opportunity to lock into a low interest rate now, but I think your message of default, no money, end of the world and fear and panic has obviously set in with these potential home owners.

So if fear has paralyzed these folks, how many other people has it gripped ?  How many other businesses - small and large ?  The uncertainly is killing our economy.

Of course the media exacerbates the problem.  And the politicans contiune to play Russian Roulette with the country seemingly more focused with their own political agenda and the next election than the benefit of the citizens of the United States.

What are your thoughts ?  

Are you also seeing buyers putting their home-buying decisions on hold ?

Let's hope and pray that the clowns in Washington DC get their act together this weekend so confidence can be regained short term.  We certainly do not need any further weakness in the Housing Market.   And everyone, whether they own a home or not, does not want to see their 401K or retirement account be turned into a 201K, similar to when Lehman and Bear Stearns went under.

I would much rather the White House offer solutions than create fear and panic, but that is me.  That is what leaders do.  Am I wrong ?

Any predictions ?

 

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  1. Wallace S. Gibson, CPM 07/30/2011 04:17 AM
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Ambassador
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Christopher & Stephanie - I'm finding it very hard to disagree with my clients and others who are worried about what's going on. The problems go way deeper than just the media making a big deal out of something - they are, in fact, very real and very threatening. And our system's inability to confront them honestly and seriously - at pretty much every level, not just the White House - is just plain scary. Maybe our clients are acting rationally in the face of a real threat. Maybe it's just not the best time to make a major personal financial commitment. Just saying.

Jul 30, 2011 03:04 AM #1
Rainer
111,516
Leslie G. Rojohn
MoonDancer Realty - Sylva, NC
GRI, ABR ~ MoonDancer Realty

The White House tried everything they knew to do to find solutions, including offering to sacrifice programs that are the only thing that stands between the elderly, sick, and disabled and absolute disaster.  But when the other side would rather see this country go down in flames than to see him re-elected then I think it IS time for the White House to stop sugar coating and call it like it is.  If that scares people...good.  It's about time we all got scared into getting these ignorant ideologues to stop destroying this country. 

Jul 30, 2011 03:06 AM #2
Rainmaker
1,248,908
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

IMHO * the GOP/Tea Party reps are doing the RIGHT thing.  It is the Lib/Dems who want to "kick the can down the road for the NEXT generation. 

The White House and Harry Reid need some tough-love and for their credit cards to be taken away.  If our credit COSTS MORE, then we need to SPEND LESS!

Jul 30, 2011 04:15 AM #3
Ambassador
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The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Dick - Perhaps that is correct.  Every personal situation is different.  I will never force someone to make a decision that they are not comfortable with.  Still, when someone purchases a property, it is a 30 year investment, whether it be a primary residence or an investment property.  There will always be bumps in the road, political and economic issues along the way.  My risk tolerance is a bit higher as personally I continue to purchase investment properties and am doing a rehab as we speak.  I continue to believe the folks buying now and locking into these historically low interest rates are making very smart decisions.  But who knows ?  Maybe the end of the world will be coming after all... Still, with rationale thinking, history shows that there are many more benefits of home ownership over the long term than not.  And even more so for investment properties, especially at these prices right now. 

 

Jul 30, 2011 04:58 AM #4
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The Somers Team
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Leslie - What solutions did the White House (Obama Adminstration) provide for the debt ceiling ?  Or Obama himself ?  They did not offer any sort of plan to the best of my knowledge.   And have not been at the negotiating table in days...  What they have done is like you said is spread fear and panic amongst the media and people with the August 2nd deadline.  Any CEO for any private company would be pounding the table to have had this resolved months ago.  Further how come there has not been a budget passed since Obama has taken office ?   How can there be a country run without a budget ?  How can there be consumer confidence without a budget ?  Like Dick said, the problem goes a bit further than the debt ceiling... unfortunately.  

For the housing market to continue to rebound and recover, we need less uncertainty.  Need a budget and get this debt ceiling issue behind us once and for all... hopefully repubicans and democrats can work together, if that is possible.

 

 

 

Jul 30, 2011 05:07 AM #5
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The Somers Team
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Wallace - Yes, it is amazing how much the Obama admin has spent since he has taken office and how much the deficit increases every year !  And how much interest is going to cost if this continues !  It is scary... and of course that will be the problem for our children and our grand-children.  If Clinton could figure it out, I would think the Obama Adminstriation can figure it out too.   Spend spend spend is not the answer... it is destroying the economy.   The Republicans need to figure out a way too to work with the democrats too as there is blame on their side too.   The whole thing is such a &%&## mess .  It is a charade that everyone is sick off.  But it needs to be talked about. 

As mentioned in this blog, it is trickling down to affecting decisions people are making on purchasing, hiring, lending, etc...  Even when this is figured out, I think it will take some time for the economy to get back on track.  Yesterdays GDP report was god-awful... The second half of the year could be very slow in terms of economic growth.

 

Jul 30, 2011 05:12 AM #6
Rainer
111,516
Leslie G. Rojohn
MoonDancer Realty - Sylva, NC
GRI, ABR ~ MoonDancer Realty

The debt ceiling went from 5 trillion to well over 10 trillion under Bush.  Not a peep out of the tea party. Do you have any idea the amount of the 4 trillion since Obama took over was due to the interest on Bush's debt.  Add to that continuing costs of two wars (started by Bush and one at least totally un-necessary and built on a lie) plus the fall of revenue due to Bush's tax cuts for not just the pretty well off upper middle class but for the filthy rich, and a huge part of the increase in the debt is explained.

Next, econ 101, when a country is in the depths of a severe recession bordering on a Great Depression as this country was when Obama took over, the only entity capable of spending the kind of money needed to try to get an economy back in gear IS the government.  Obama's mistake was not getting and spending enough.

Jul 30, 2011 12:05 PM #7
Rainmaker
592,790
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

 That is the exact meassage they wanted out there. It is self-defeateating in my opinion. Even with the Media spinning for the Democrats, I believe that the public is beginning to understand the true problem.

Well the Teap Party didn't exist under Bush, but you are mistaken. A lot of people were unhappy with the Bush compromises for exactly this reason. Bush compromised with the libs/dems and now it is continually thrown in our faces. Bush did, so what is the big deal. The big deal is...I DON'T CARE WHO STARTED OR WHO ADDED TO IT. It is time for the spending to get under control

It is complete baloney that the cuts target the elderly, disabled and sick. You have absorbed the media/democrat message quite well. Obama said he couldn't guarantee the SSI checks, etc would go out on Aug 3. What a bunch of fear mongering cvrap! They don't print those checks on Aug 3rd and the government has plenty of maney to pay for the daily and required expenses. Cut off the UN, Aid to foreign countries, grants for cow fart invesigations, subsidies for green energy, etc and it isn't that terrible.

Jul 30, 2011 12:11 PM #8
Rainmaker
565,685
Mike Saunders
Lanier Partners - Athens, GA

Christopher & Stephanie - not only what buyers are putting plans on hold, but what will lenders be doing over the next few weeks. I have a couple of cash buyers who are just waiting for their home to close on Sep. 2. Will the lender underwrite the VA loan with what is going on? Who knows.

Leslie - there was no increase in the debt due to interest on the debt. That is paid off when due. It is programs such as the "stimulus package", the "omnibus spending" bill, etc. that are exacerbating the debt. While the 2009 budget is acredited to Bush, it was written by a Pelosi controlled house and passed by the house and a democatically controlled senate. On top of that, Obama and the dems added a $410 billion "omnibus" spending bill for programs that they wanted grown, started, etc. That, and the stimulus bill, added over $1.2 trillion to the deficit. Bush's last year in office had a $2.7 trillion dollar budget. Obama's 2010 budget (which did not include the stimulus nor omnibus bills) over $3.5 trillion, meaning government grew by almost 30% in only 2 years under democratic control. This years spending went up almost another 10% to over $3.8 trillion and has only been held to that level because the republican house has forced cuts and the republicans, in general, have given up "earmarks" this year.

Jul 30, 2011 01:50 PM #9
Ambassador
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The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
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Leslie - I understand everyone has their views on either being more fiscally responsible or "spend spend spend".  I would certainly read comments number 8 and 9.  If there is more spending, I would just suggest that there would be a budget.  How can there a Government or any business that is being run without a budget ?   More importantly though the blog's main topic was with all this uncertainty, how is this impacting the everyday consumer in making decision - should they buy a house, should they start a business, will a bank's underwriting guidelines be stricter... with the big picture, this whole farce has affected consumer confidence greatly.   It looks like a deal will be struck next week but with all the uncertainty that has prolonged the circus (created by both sides) it has created a slowdown in business.  This could have been avoided and should have been compromised on months ago.   If the republicans and democrats can compromise on this in a few days, my point is why did they have to wait to the last minute to do so and harm the econmy with all the political posturing ?   

Jul 31, 2011 12:14 AM #10
Ambassador
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The Somers Team
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Than - Yes, the big picture is it does not matter whether one is a republican or a democrat or where the problem started, but to focus on the problem now and get it resolved.   It is simply AMAZING how much money has been spent since Obama has been in office when the country is so much in debt and running at such a huge deficit every year.   It is time to get the fiscal house in order period unless we want to be one of the PIGS (Portugal, Italy, Greece or Spain).   Hopefully, the economy picks back up in the next couple of years and that will help but the reckless spending just has to stop.  The "stimulus" was a waste of money. 

 

Jul 31, 2011 12:33 AM #11
Ambassador
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The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Mike - That is the question that remains to be seen in that for those loans that are "on the fence" , will lenders lean towards the no simply due to all this uncertainty and fiscal crisis ?   Big picture, once the debt ceiling gets resolved (I hope it does and it should), hopefully the economy starts to grow again.  The second half of the year should be slow so the focus will be on 2012 job creation and increase in consumer confidence for folks to feel comfortable to make large purchase decisions and business expansion.  The growth will be in the private sector with the Government getting out of the way and providing some incentives for that growth.

 

Jul 31, 2011 12:46 AM #12
Anonymous
jill

To blame the Obama administration is ignorant.  The Bush administration slashed taxes, started 2 unnecessary wars and gave an unfunded Medicare prescription program that did not allow the US govt to negotiate lower prices.  The stimulus is not a driving force in the debt.  It is a lack of revenue.  The stimulus was in fact too small.  \

Now is NOT the time to curb spending, it will only make the economy contract even more.  The debt ceiling was raised by a simple, one-sentence bill 18 times under Reagan and 7 times under Bush with never a peep from the same crowd that is now trying to cause chaos for political gain.  Where was the cry for cutting spending when the GOP was having their orgy with GWB. 

 

 

Jul 31, 2011 06:47 AM #13
Anonymous
jill

Than...It is absolutely true that the elderly, low and middle income earners are the targets of the cuts.  To say otherwise is to disingenous.  Why are the GOP protecting the top 1% of earners.  They are the folks who benefitted from the stimulus and from the deregulation of the financial industry which helped to put the US economy on this disasterous road.  US corporations have had their best years in terms of profits during this recession and time of high unemployment.  They have found out that they don't need to hire more people, it is not in the interest of their bottom line.  It is a crime that these same corps are lobbying to ensure their coffers stay packed while the country suffers. 

Jul 31, 2011 06:55 AM #14
Anonymous
jill

Jul 31, 2011 06:59 AM #15
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