Now, keep in mind, this post is a slight rant, will be based on my opinion based on knowledge and some research, and mostly to just make everyone aware on what is going on.
Yes, this post will have a negative tone within, but we can turn that around, but it will need to be a collective group effort country wide.
Not sure if any of you saw this intereview by 60 minutes on December 5th, 2010 regarding an interview with Ben Bernanke.
This video is a little scary because it sounds like Ben Bernanke wants to tell us what he truly knows and thinks. Listen to his voice at times, when he is trying to answer a few questions. His voice gets a little soft and you can hear some hesitation.
Now, by all means, this is not to throw Mr. Bernanke under the bus. I don't care what degrees a person has, the level of their intelligence, what school they graduated from, etc, etc. You can certainly figure some of these complex issues out with just plain old common sense and by working in the trenches. But please watch this interview, because it seems like some truth is coming out.
My Rant :
This summer we were told that we were out of a recession. Please read my post below on this topic. When 60 Minutes sat down with Bernanke, such things as a double dip recession, deflation, and struggling economy came up during the interview. But Mr. Bernanke said that it's highly unlikely that we will hit a double dip inflation. hhhhhhmmmm.. Feel good words? Possibly to curb consumers fears going into the holidays? But if you listen to him, the recovery could take 3+ years. So couldn't anything mentioned above happen? Have you noticed certain food items increase in cost? I have and I know many of you have.
Let's continue with my biggest pet peeve. Some of you have indicated that business is very good and some of you are making more money, and good money. Real Estate is local, let's get that out of the way. Not all regions are doing well, just ask around. The media certainly doesn't help with this, nor does the government or NAR (National Association of Realtors). But I want to focus on two main topics regarding our up-tick economy.
1.) I am making more money and I love handouts that don't cost me much. - I had written a post about the home buyers tax credit on October 15th, which is listed below. Here is what one person stated :
Hey, I don't mind opinions and debates, but what is wrong with this picture? Maybe someone not understanding the basic concept of money? Hey, I love it when I make more money. But just because I am making more money, or my neighbor is doing the same, doesn't always mean that our economy is doing great and or recovering. Just my opinion, but where does this person think the money came from for the home buyers tax credit? Answer : The American Tax Payer. And just because someone didn't knock on his door at the moment and asked for the money now. It will come in the form of tax hikes down the road. For right now, this just gets added to our deficit.
2.) My other pet peeve? Some are telling me that the economy is getting better now because we are spending more. Okay, back to common sense. In the last 2 months or so, couldn't this be greatly attributed because of the upcoming holidays, such as Christmas? I truthfully think this is the main reason, because previously, consumer confidence and spending was down again. All after the news that we were out of a recession. But listen to the interview with Bernanke, he doesn't seem so sure that we are greatly improving. He has a lot on his shoulders, but don't we also?
Another thing to add about our economy that isn't talked about much are the unemployment numbers that could be misleading. If you do the research correctly and understand numbers, we are actually at 16% to 17% unemployment. And ask the small business owners. I talk to several ones a week, many are breaking even, if not, losing money. There are many reasons of which I talked about in some of my posts below.
It can only get better, right? But I truly think it needs to start with those of us in the trenches, to where we see this daily. Yes, we elect those to represent us, but we need to be much better at it. We need to look at such track records, we need to get to know each individual better, and not just except promises that can be broken so easily.
To add to this, we need to stay in touch with those that represent us, calling them and writing them often, and not just when a significant problem occurs. We need to show that we mean business. We need to educate, to be responsible, to form groups, and to start such movements as the Tea Party movement.
Conclusion : In some cases, it sounds like work, in other cases, it sounds like a no brainer. We need to make an effort and not just sit back. I love to educate others, to open their eyes on certain issues, and to possibly add to a conversation so as to give more awareness to a specific issue. We are Americans and we should be damn proud. But waiting for others to correct our economy for us hasn't really worked in the last several years. I know this might sound like a speech, but we need to start somewhere. So...
What can each one of you do? Thoughts? Opinions? I can't give you too many details, but I currently have a client that is connected in several ways through a few relatives. One of them apparently is a Supreme Court Justice. And my borrower knows that I like to educate in my blog posts and said that she has already talked to someone to have a sit down with me. I am not pushing the envelope until we close her loan, but I am very curious to who I will be meeting with. She said it's someone that has connections on Capital Hill.
Seriously, I want all thoughts, opinions, and anything else. I don't want to be sitting around, waiting for "Black" to hit, do you?
Inflation vs Deflation - Is it criminal? ~ November 20th, 2008
I would like to interview Mr. Bernanke because I am scared!!! ~ March 17th, 2009
Call to Action - We must fix the real estate market ourselves !!! ~ June 17th, 2009
Yippie, we are out of a recession !!!!! ~ September 24th, 2010
The Tribe has SPOKEN...... The Home Buyers tax credit is like crack ~ October 15th, 2010
Do you know where your MONEY is going? QE II - Quantitative Easing ~ November 16th, 2010