In 2008 President Bush pushed the enactment of the Economic Stabilization Act, and in 2009 President Obama pushed the enactment of the American Recovery and Reinvestment Act. There was a whole lot of enacting going on, and the price of politics simply added another digit. Suddenly the one trillion dollar mark was achieved. I wonder how many tons of currency paper are required to print a trillion dollars? We invented the money, simply authorized the release of another trillion dollars and we spread it around where it was thought that the impact would have the most positive effect on the economy.
Inventing the money was the easy part. We just print it and introduce it into the economy. Voila, tons of money to fuel the system. All the kings men and all the kinds horses stood ready to battle the evil forces of the subprime scheme that took apparently took most of the financial minds in the country and elsewhere by surprise. Wow, who could have seen it coming? The Egyptians had their Pyramids built of stone and on solid foundations surrounded by sand. Brilliant financial engineers and attorneys figured out how to construct what appeared to be solid building blocks that were laid directly on a foundation of sand. And when the economic pyramid collapsed, the cleanup began. The Mortgage Backed Securities and Collateralized Debt Obligations that drew capital into the mortgage markets offered attractive investment potential as long as the pyramid stood. The minute it began to shake the entire economy felt the weight descend.
From this financial wreckage, the economy must be rebuilt. It is a monumental task that lies ahead for the American worker, investor, taxpayer and for the Administration. Can it be done, or more cogently, can it be done in a way that returns the American economy to world dominance? These are practical questions. Let's hope that the solutions are practical as well.
One thing has become quite real. The rules and the roles are changing. Lifestyles, careers, retirement plans and the job base collapsed. New economy job productivity jobs will have to be created and some old economy jobs that were shipped off shore will have to be repatriated. Women that found careers that were secondary to their husband are finding that they are now the primary earner for the family, and the roles of the men are changing as well. This should equalize some of the gender based inequalities. Shards from the glass ceiling have fallen precariously among the collapsed pillars of the old economy, and they won't be reassembled in the same way. The paradigm has shifted with sheer force of the downfall. And the world watches America fight with its own economic demons.
The stock market steps forward hopefully finding the solid ground upon which to rebuild. Many Americans step forward to reinvent themselves. A large segment of the population has taken health and well being literally to heart. We will need all the strength and advantage that we can lay our hand on to reinvent the American Dream. It is for sure that we are looking at things differently. May I offer you the following:
The Economic Stabilization Act of 2008 and other Wars we may be Losing
Sub-prime thinking, sub-prime logic
Ice can be sold to Eskimos
Pyramid bad credit, sort out the risk
Just pay them a high return
Lost in the millions are the billions to be lost
The economy built on sand
Watch the markets crumble, the world participates
Where has the money gone
It left with our priorities, traded to countries
Whose wealth lies beneath the sand
Circumstances spin up while the future is mortgaged away
American productivity, ingenuity and ethic no longer sustain
And the world is closing in
The economic demise of a nation or the resurrection of our will
As one rises, does the other fall
Hard decisions, harder work, sacrifice and patience could prevail
But the focus need be inward, no longer taking for granted
The things that separate us all from the American Dream
Unless the dream becomes a shared reality, it will dwindle for us all
And we shall be lost in the sands of time
As with any clean up, there will be treasures found for those who look for them. The short sale and the REO constitute such treasures. Yes, there are horror stories that surround some of these purchases; however, that is a rule when buying real estate. It can happened to anyone on any transaction. Do not take short cuts when buying real estate, and do not skip the diligence. Use sound principles and arm yourself with the information and guidance that you need and find those treasures. Once polished up they will shine bright again. Buy a short sale or REO and enjoy the treasure hunt.
Tony Alonzi, the author of: "Putting the Pieces of the Real Estate Market Back Together" invites you to visit:http://thebesthomebuysinamerica.com and to find out why it is in your best interest to buy a short sale or foreclosure (the most active sector of today's real estate market). Arm yourself with a comprehensive guide and information on the entire buying process that will lead you to a better outcome for your home or investment purchase. Article Source: http://EzineArticles.com/?expert=Tony_Alonzi |  |
No comments:
Post a Comment