Does real estate need a physical therapist to recover?

Real Estate Broker/Owner with Respect Realty LLC 200311024

Photo courtesy of LusiWith the federal bailout of the financial institutions looking like only hours away
, we need to look at the physical damage that these crashes have caused on the market and the country as a whole. Throwing money at the problem may not be the best answer, but I'm guessing that is all we are going to get.

If you have ever been in a serious car accident then you know that you usually have to go through physical therapy to get back to 100%. It is never as simple as getting home calling the insurance company asking for a large check and then when you get it, you are all better. (Unless there is fraud involved.)

The key to getting things back to normal is time, money, and physical therapy. The time comes when you are going to go through physical therapy and the money is there to cover the time lost at work during therapy.

So, how does this apply to the financial markets today? Let's look at this as a car accident and the financial houses are the ones injured. We can throw money at the problem, but that won't fix the real problem that happened during the accident. These financial houses need physical therapy, and in time the market will fix itself. Do they need the money? Yes, I'm not denying that, but they need more than that in order to succeed.

A few years ago the federal government threw money at the railroads in order to keep them going, but that didn't help them fix their situation. Today they are right back on the verge of bankruptcy. Then a couple years ago they did it again with the airlines and now the airlines are cutting jobs and charging for extra luggage and saying that within 2 years they could be out of business if things don't change.

You see, all we did is throw money at the problem instead of help them with physical therapy to get to the root of the problem. So let's get together and get these institutions some physical therapy and help the country get back to 100% sooner rather than later.



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Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

There must be great thinking in the later hours. I feel smarter with every blog I read. Even mine.

Sep 26, 2008 05:11 PM #1
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Todd:  I used to know this massage therapist who was also a Realtor.  She had to quit her practice because she kept "rubbing people the wrong way."  :)

Sep 26, 2008 05:29 PM #2
Jim Crawford
RE/MAX Paramount Properties - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Is there a Doctor in the house?  Where is Dr. Jack Kevorkian when you need him?

Sep 26, 2008 05:31 PM #3
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Todd:  Seriously, I understand what you are saying about throwing money at the railroads, but this is quite different.  Not many mortgage loans will be made if there isn't any money to make them with.  That is what all this is about... liquidity.  The loans the lenders made that were bundled and sold... and then re-sold... so many of them have turned into poop.  Now the secondary market is much to battle-scarred to buy any more mortgages, and is stuck wih the ones they purchased.  So... the great wheel of mortgage finance comes to a screeching halt.

This fix requires money... and if this 700 Billion Dollar program that has been put forth by Paulson, Bernanke and the rest of the feds does not happen... if the newly vocal republicans continue to use it as political fodder to get re-elected... the secondary mortgage marker will be just about dead in it's tracks.  If it stops, we stop, too.

Sep 26, 2008 05:34 PM #4
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I agree with you Todd, throwing money at a problem is a mere knee jerk reaction that our government seems to thrive on these days. I believe it's likely to lead to fraud rather than a solution...

Sep 26, 2008 05:39 PM #5
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

What is really frightening is the talk that this financial crisis is just the tip of the iceberg.  Where is the iceberg?  What's coming head on down the road at us?

Sep 26, 2008 07:49 PM #6
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

I guess, physical therapy is a joke, the railroads have done very well over the past 10 years.

The federal government needs to do their job, regulate and protect the people. They had failed at both.


Sep 27, 2008 02:56 AM #7
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Todd, the most dangerous thing you can give a politican is money. They get addicted to it. I don't know the answer but I guarantee that giving money to politicians to fix it isn't the right answer.

Sep 27, 2008 04:21 AM #8
Steve Shatsky
Dallas, TX

Hi Todd... all I keep thinking when you mention physical therapy is that you need it to recover after an injury... BUT it is awfully painful work to get through it.  Sadly I question whether the people who need to do the painful work in the industry are willing to make that committment.

Sep 27, 2008 04:26 AM #9
Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor

Physical therapy preceeded by some serious intellectual therapy ...I'd say....

Sep 27, 2008 06:34 AM #10
Cheryl Powell - The Powell Team
RE/MAX Executive - The Powell Team - Harrisburg, NC
Concord,Harrisburg & Charlotte NC Area Real Estate

Hi Todd... we may need a psychologist as well!  I enjoyed your post.

Sep 27, 2008 06:38 AM #11
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Todd & Cheryl:  ( raising my hand and waving... ) I have a Psych degree, Cheryl.  It's a good thing, cuz I often drive myself crazy.  LOL.

Sep 27, 2008 09:10 AM #12
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional

Todd - I look at your post this way - the money to pay the DR (high priced CEO's) who did a really bad job so we should consider a different approach to this problem and pay a Physical Therapist (bookkeeper with integrity to pinch every penny). Painful for all but in the end we will be in much better shape. No way should this money be entrusted to those who put us here in the first place or we are doomed.

Sep 27, 2008 12:24 PM #13
Elizabeth Nieves
The Elizabeth Nieves Realty Group - Durham, NC
Bilingual Raleigh - Durham North Carolina Real Estate Team

GREAT ANALOGY! I think that we will just have to wait and see what kind of therapy comes behind this bailout. GBU!

Sep 27, 2008 01:45 PM #14
Ronnie Margolis
KW Kauai - Kapaa, HI
Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh

Good insight. Appreciate your perspective and the reality that we need to get at the cause of the behavior that started this whole mess.

Sep 27, 2008 04:26 PM #15
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