OK, so our economy is in the tank, unemployment is rising, spending is at a standstill, so the tax revenue is down, the peripheral damage from this bad economy is hitting every part of the nation and the world, since we have a global economy if someone sneezes in Japan we all catch a cold.
So when did this all start? Thinking about it now and remembering an acquaintance who decided in 2005 she needed a new car, remodel of her kitchen and a vacation to Indonesia. Sounded great till she told me how she paid for it. She had purchased her home in 2000 and in 2005 miraculously it had "doubled" in market value during that inflated market. So, she went to her lender and took all her equity.
Luckily, I did not do her CMA nor was I privy to her choice. She should have been told her home was not an ATM machine!!
Lets face it even the government has been spending money with abandon...oh yeh, they can PRINT it tho! Kidding aside; it seems that greed, ignorance and just not caring or thinking about the future and the day the run away train runs off the track.
But yes I feel positive about the future and the reason is simple, I actually think that the people are beginning to realize that there is no free lunch, your home is not an ATM machine, we all need to be accountable for our actions and we need to be cautious and optimistic at the same time. The economy will improve, the market will come back and buyers will start buying again, not just Real Estate but everything. We need to slow down, make decisions that will make a positive impact on the future while remembering this past.
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