A word on the economy! Yuck!

By
Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

DebtWant to know how the economy is doing?

Here is another milestone for this recession....or is it a recession?  Treasury Bills just sold for zero percent interest....now that is an investment I can understand.

It beats the stock market where you can be smiling today and crying tomorrow...lately it has been more tears than smiles.

How low can we go?

Here is another one for you to think about.  General Motors employs 96,000 US workers, pays health care for 1 million workers, retirees and dependants.  Now how do you do that?  

OH there is more.....they pay pensions to 475,000 on top of that!

Do you really think they have a chance of paying back anything the government gives them of our money?

The truth is they do need to restructure.  Heck at this point we need to revamp the whole way we do business at home and in the world.  Here is another little gem....the US can borrow money cheaper than at anytime in history!

I think it is time we refi our national debt!

Just a few thoughts what are yours?

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Edward Wadsworth 12/13/2008 01:14 PM
Location:
Michigan Newaygo County
Groups:
Realtors®
Michigan Realtors
Greater GRAND RAPIDS, MI Real Estate
Tags:
the economy in a word yuck
a few things to ponder

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Rainmaker
387,816
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

LOL Gary...I'm with you on re-financing the national debt.  The math on the GM healthcare bill is puzzling to me too.  How can you give healthcare benefits to workers you can't account for on your payroll???

Dec 13, 2008 11:50 AM #3
Ambassador
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Jeanean Gendron
The Address Realty - Redding, CA
Specializing in Selling Unique Properties

Gary....you got this right....it does not feel good. We have movement in our lower/entry level and it busy. First time home buyers and investors. I'm getting lots of All Cash offers. They don't walk and talk like they use to, however. Nice to visit!

Dec 13, 2008 11:53 AM #4
Rainmaker
316,901
Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

Hi Gary,  I can't help thinking that people have to be so untrusting of so many industries.  These are challenging times for sure. 

Dec 13, 2008 01:17 PM #5
Rainmaker
643,145
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Gary, My husband is with Continental Airlines and we went through bankruptcy with them a couple of times.  It was tough and we had to take a pay cut but they had to learn how to do business and make a profit.  They are now one of the strongest airlines.  I just don't see where bankruptcy would be so bad for the car industry!!!

Dec 13, 2008 01:35 PM #6
Rainmaker
1,509,240
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Zero percent interest...The thing I thought was strange - there were more buyers than notes for sale at the auction!

Dec 14, 2008 12:18 AM #7
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Steven, many industries have gone into Chapter 11 and not lost their supply base or workers.  The restructuring could be a very good thing...of course easy for me to say I am on the outside looking in...but it doesn't make sense in the current format.  Thanks for the comments Steven.

Dec 14, 2008 02:16 AM #8
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Jim, good to hear from you again.  We certainly have to get hold of our financial markets and changing some trading issues that were relaxed will go a long way...this thing called derivitives is one, lending with minimum downs for everyone is another.  It will happen but it will be painful for those that had nothing to do with the making or changing of these guidelines.  Thanks for the comments Jim.

Dec 14, 2008 02:20 AM #9
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Lola, hope all is well.  It is a bit of a mystery how 96,000 can support health care and retirement benefits for a million....somehow the numbers don't work.  The other real problem is the retirement age people worked years for their retirement and the retirement account they created should be there for them...it is a perplexing situation.  Thanks for the comments Lola.

Dec 14, 2008 02:22 AM #10
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Jeanean, we too are seeing buyer activity in the lower range with most attracted to the Foreclosure and Short Sale homes.  65% of those attempting to purchase are being rejected in our market.  That is a sobering thought.  Thanks for the comments Jeanean.

Dec 14, 2008 02:25 AM #11
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Pat, I would have to agree with you.  What has American companies done to create trust?  They send jobs off shore...which is driven by profits and consumers want lower prices...or do they want quality?  Sometimes they get both with off shore products.  My personal opinion is we have to have stronger guidelines.  Thanks for your comments Pat.

Dec 14, 2008 02:46 AM #12
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Marchel, it has to be a very painful experience for anyone to go through the restructuring process because management doesn't have their game together.  The alternative of permanent closing in much worse for everyone.  I don't see the issues that are being brought up with the big 3 auto makers restructuring and becoming a better business.  The real problem is the management hasn't reacted even when pushed to build more competitive cars or get more energy efficient.  The European models are doing very well in Europe with high quality rating too.  Thanks for the comments Marchel.  Hope all is well.

Dec 14, 2008 02:50 AM #13
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Gary, I thought most missed this little segment of the news...it was a bit odd to say the least.  The motivation to buy is the interest fluctuates....right?  Thanks for the comments Gary...have a great 2009.

Dec 14, 2008 02:53 AM #14
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Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

I watched History channel show last night. They compared (and showed pictures too) of the great depression and now...and the similarities and the differences. If we revamp EVERYTHING we can arise from this....if we just keep bailing out people who clearly have thrown money around it is not the taxpayers fault.

Let's get back on track and moving again!

Dec 14, 2008 03:53 AM #15
Rainmaker
2,493,045
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Gary - I tend to agree with you about the way we do business here in this country.  I certainly don't know if there are any perfect answers for the auto manufacturers.  I certainly have a problem telling an assembly line worker that has put his life and soul into a company for a few decades, that he is about to spend his golden years in a state of poverty.  On the other hand, I have difficulty paying folks 95% of their salary for many months to sit on the sidelines.  It simply doesn't make sense.

The other night, I watched the movie, "Who Killed the Electric Car."  It is clear to me, that US auto makers have a history of making very unwise business decisions, and now hope we will help them throw OUR good money, after their BAD.  I actually think that restructuring is likely the best bet, because it will allow the manufacturers (if they are capable) of putting together a business module that may work in today's world.  Otherwise, a bailout will only allow them to continue business as usual.

Dec 14, 2008 08:16 AM #16
Rainmaker
541,014
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

LOL Gary - THE US GOVERNMENT credit SCORE IS probably NOT GOOD ENOUGH for them TO QUALIFY FOR A loan REFI ? !

 

Dec 15, 2008 11:15 AM #17
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Sally, that is a pretty scary thought about the parallels of the great depression and our economy track.  Thanks for the comments Sally.

Dec 15, 2008 11:27 AM #18
Rainer
67,172
Keith Perry
Coldwell Banker - Hiram, GA
REALTOR - West Metro Atlanta

Hi Gary, troubled times indeed. We need term limits badly for the whole bunch in D.C.

Dec 19, 2008 02:01 AM #19
Rainer
49,921
Pete Jalbert
The Maui Real Estate Team, Inc. - Paia, HI
R(S)

While I am reticent to want to prop up the auto industry, I think it is a necessity. The ripple effects from a collapse would cost too many jobs to a very wobbly economy. I think the unions need to make concessions and pay cuts will need to be made, but the blame can't fall solely on the unions. GM is a poorly run company and management needs to do a better job of innovating and making better quality vehicles.

 

Dec 19, 2008 05:45 AM #20
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Keith, hope all is well. I would drink to term limits and changing the cast system of power to a voter system of power.  Act responsibly or be gone.  Thanks for the comments Keith.

Dec 19, 2008 10:11 AM #21
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Pete, can't say I think it is all the union fault either.  I must say that GM was one of the key components of squishing the electric car some years ago.  The oil and/or energy cost have been to high for our economy to support for a long time.  The dollars go off shore.  We needed something other than fossil fuel.

The concessions will have to be made at all levels.  Today they handed over money to save them for a short time....the jury is still out on if and when they can make things right.  The golden parachute has to be gone.  The salaried retirees have already lost their health care benefits.  This is a big dilemma Pete and I wouldn't say your thoughts are wrong...how far to we carry them before an orderly restructuring?  The airlines did it.  Thanks for the comments Pete.

Dec 19, 2008 10:18 AM #22
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