Put Economy on "Black" for all the Marbles

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

put our economy on black


Feel like we are spinning our wheels? Is the economy like a yo yo? Should we just put it all on Black and hope for the best?

 

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 : 

Home buyer tax credit comment

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.

 

 

 

call to action

Ready for the positive stuff?

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...

 

Call to Action :

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? 

 

 

 

 

My recent posts on the economy and my opinions with solutions :

 







  

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Blogged 1 time:

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  1. Lou Ludwig 12/13/2010 06:15 PM
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Ambassador
414,336
Susan Goulding
Crown Key Realty, Tracy & Mountain House Real Estate - Tracy, CA
Northern CA - Tracy & Mountain House Real Estate

Economy not better - worse in Northern CA _ you take Black - I'll take RED>.... throw the dice...

 

Dec 13, 2010 05:35 PM #1
Rainmaker
1,756,046
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO

Jeff

The benefits of the recovery and the market will go to those who are prepared and work hard at their profession.

Good luck and success.

Lou Ludwig

Dec 13, 2010 06:11 PM #2
Rainmaker
1,089,666
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Jeff, the economy in New England i suffering...we don't have the jobs so people tuck what money they have under their pillows, we have a government that can't address entitlements or taxes so to me it doesn't matter whether or not it's red or black on the wheel...i want to see us in the black within 10 years & i don't see that the people voted in are even going to do that.  I'm very frustrated with our government...i can take care of what I need to in my life but i'm really concerned about others who just don't have the aptitude to do it right...enough said..

Dec 13, 2010 06:21 PM #3
Rainmaker
201,298
Marzena Melby
Coldwell Banker Burnet Realty - Richfield, MN
Realtor, Twin Cities Minnesota Real Estate

Jeff,

It's been a roller-coaster ride for me in the Twin Cities.  Our economy seems in a "slow recovery", but it's not really visible in stores.  Gas prices have gone up, and that's affecticting everyone.  I have several clients out of work, or with severly reduced hours and experiencing hardship.  The longer it all lasts, the more people suffer financially.  If you have an opportunity to speak with someone influential, please do.  I sometimes wonder how much senators, congressmen, and others at the top hear from real people what's happening out there.

Dec 13, 2010 06:46 PM #4
Rainmaker
729,475
Larry Brewer
Benchmark Realty LLc - Nashville, TN
Nashville Real Estate

Jeff - The economy is improving in Tennessee, and a lot of it has to do with companies moving here to get away from the high taxes and union control in west coast and northeastern states.

Dec 13, 2010 08:44 PM #5
Ambassador
1,476,553
Renée Burrows
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker - www.urLVhome.com

Our city seems to be stabilizing but 15% unemployment for stabilization is NOT good.  People (tourists) are coming here but they aren't spending money like they used to.

I am seeing inventory increasing all over the country and especially in midwestern cities "not hit" but the "boom/bust" cycle and all I can say is that nothing good comes out of 18+ months of inventory.  It makes me almost wonder if we are going to see strategic defaults hitting some areas previously thought as immune.

I have not bought anything "unnecessary" since 2007 and we are VERY cautious with our spending.  We also "barely" celebrate Christmas.  There is no such thing as excess going on in my house and there hasn't been for years.  Mainly because my personal income took a hit with lower prices and my husband works in gaming and he kissed a $17K a year bonus away in 2008.

We are greatful to have jobs and still have our home and health and each other.  We are hanging on by a thread in Vegas..........and I don't see it getting any better any time soon.  Supposedly my husband has a bonus coming up any day, I won't hold my breath.

In boom times I save my beans.  Right now I have been burning through my savings because quite honestly, it's been a little slow since the tax credit expired.  I am switching banks and as I roll over my automatically withdrawn business expenses I will be thinking long and hard about what is necessary and not so much.  Haven't done that since 2008.

Dec 13, 2010 09:18 PM #6
Rainmaker
453,503
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Jeff - Great eye-opening post; and that's exactly what we need.  Those who aren't directly affected by the recession seem to ignore the crisis going on in the country.  It makes no difference what the stock market is doing or what the "experts" say about when the recession ended; for millions it's not over, and in fact, may be getting worse. 

For the past week I've struggled with writing several blogs trying to describe what's actually happening; and I haven't yet put together anything that I think the average reader will accept/believe.  I do have a post for tomorrow that attempts to point out some of the obvious, but we'll see if it gets any attention.

Thanks for your efforts.

 

Dec 13, 2010 09:49 PM #7
Ambassador
1,552,213
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Jeff, watch the JOBS number before putting all your money on black. THAT is the key indicator I would say.

Dec 13, 2010 10:42 PM #8
Ambassador
621,635
Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Mike D. Bono & Co.'s - Lake Charles, LA
Lake Charles LA Century 21 Realtor

Jeff I am afraid to comment because like you mentioned real estate is local and my neck of the woods is good with projections to get better.  So I cant go there in this post.  This is very informative but I dont think anyone has the answers inlcuding those on Capital Hill.  There are clearly other problems within our government, social security, health care etc.  All the news seems to be black these days but I am not ready to slit my wrist just yet.  As for the interview...politicians never answer the questions directly their voices do get softer and they skirt the issues.

Dec 13, 2010 11:26 PM #9
Rainmaker
1,869,391
Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It sure seems that we are in a seemingly fantasy economy.  If every one believes it's good and buys the economy gets better.  If not, then it doesn't.  What ever happened to sound fundamentals?

Dec 14, 2010 07:57 AM #10
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

SUSAN... .  if we could have both black and red, we would win no matter what, but then pushing the economy into the black.. 

LOU... . I don't think that is the case all of the time.. I know many that have worked extremely hard, have played by the rules, and have planned accordingly for the future, .. and they are either struggling or hurting. I understand what you are saying, but if we use real estate as an example, we know real estate is local.. and in some cases, it's just bad and we need a whole economic recovery nationally to even help those local areas.. just my opinion.. thanks

GINNY... . I couldn't agree more and I don't see a true recovery until after 5 years. I do think with this last election, we have some better people that understand the real issues and will do their best and not their political best. But time will tell..  thanks for your input.

MARZENA... . this was most of my point for this post, was that not all are doing well, no matter what others say or what the media and or government says. I just spoke to a restaurant owner two weeks ago who is barely breaking even.. a good place. I know of one that filed for bankruptcy 1 1/2 years ago, when this all started to happen.. an excellent place with better than reasonable prices.. my point was just because you are doing better doesn't mean our economy is as a whole is doing better. And that the money that the gov't spends has to come from some where.  thanks

LARRY.. .  well, that is good news.. and this is an example of what is helping or hurting other states. Thanks for the info..


 

Dec 14, 2010 11:29 AM #11
Ambassador
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

RENEE... . thanks for your true honesty.. again, I know some doing very well, some on the average side of things, and many struggling. And you bring up some good points about strategic defaults in areas that weren't expected to have this take place and a few other things. Thanks for your insight, opinion, and honesty.

 

JOHN... .   thanks.. i agree, that we need posts like this, even though they may be boring and or actually truthful and eye opening. I am all about educating, awareness, and actually showing the pros and cons about both sides.. and not just build one side up. You make an excellent statement when you said this...

" Those who aren't directly affected by the recession seem to ignore the crisis going on in the country.  It makes no difference what the stock market is doing or what the "experts" say about when the recession ended; for millions it's not over, and in fact, may be getting worse."

Spot on as usual and this could have been my whole post.. thanks for your input and feedback. 

 

GARY... .   I am not going to disagree... I think that is the main issue, in which I have talked about in several of the posts that I mentioned above. But I wonder why the gov't doesn't focus on this or think hiring so many gov't people is the solution. I think this is more of the problem, and we should be focusing on small businesses.. thanks

MARILYN... .  please, never hesitate to comment, no matter what.  I know some markets are doing very well, and that is excellent. That was part of my reason for writing about this, to say.. hey, just because you are doing good, doesn't mean this is happening everywhere or that the economy is getting better. And I actually think many on Capital Hill know, they just either don't care or have to many handshakes to cover, when getting elected.. or just for the fact that they are protected for a lifetime, because of their pensions and health care once they do another term.. Sad, but I bet has some truth to it.. thanks

GABE... . sound fundamentals?  It's out there, but many ignored them. And yes, fantasy.. but to elaborate on that, just for the fact that the gov't and media wants to curb consumer confidence with misleading and or false info.. hopping to spark the economy and spending.. Just my .02 cents.. thanks

 

Dec 14, 2010 02:03 PM #12
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