Where is the outrage? My perspective …
Mid-Day Market News & Commentary by Chris McLaughlin, November 25, 2008
http://www.shortsalesriches.com/welcome.html
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Sorry there was a glitch that brought our webinar down for a few hours … so we’re reposting it for today only:
http://www.shortsalesricheswebinar.com
Don’t miss it – everyone that has watched it says it is perhaps the most useful tool in understanding what’s going on in the real estate market, and how to make money in today’s environment!
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Where is the outrage?
The jets arrived in Washington. Corporate jets, that is. Usually cost about $20,000 per trip within the U.S. And they had all the nice amenities. Perhaps a sip of champagne while thinking of how many billions to ask Congress for? Perhaps a bon bon here or there, to help cleanse the palate.
And when they touched down, they were met with gas guzzler SUVs to help bring their big wig corporate honchos to Capitol Hill.
Three CEOs from the 3 big US automakers prepared to tell Congress who they are cutting costs left and right … and they’d like $25 billion from the taxpayers.
Yeah, let’s spend $20,000 on a trip to Washington while asking for $10 – $12 billion.
Did you know that General Motors leased seven corporate jets before everyone starting crying foul?
They’re going to get out of a few leases now.
Where is the outrage?
Here on Main Street. That’s where. No one else seems to care.
The same place it has always been. By the people that actually pay the taxes. The folks that aren’t participating in the “bailout.”
Citigroup gets bailed out by the government, with Uncle Sam backing over $300 billion in loans and providing another cash infusion of $20+ billion … and what do we learn that Citigroup has done?
They freakin’ spent $400,000,000 for the naming rights for the New York Mets stadium. That’s $400 million! And what does the CFO Gary Crittendon say about the waste? “That was a decision made in a different time.”
Well, actually Gary, Citigroup’s financials were pathetic last year as well. And I really doubt you’re going to see a $400 million influx of new business by naming a stadium after your company. Can you imagine how many new online banking relationships you could have if you spent $400,000,000 in online advertising with google and other pay for performance mediums? No, you clowns will go waste $400 million on a stadium.
Where is the outrage?
Here on Main Street. That’s where. No one else seems to care.
Here’s another idea on blowing money… Tiger Woods just lost his $7 million dollar endorsement deal with General Motors . That actually brought Buick back from the dead, and made it cool again (if it ever was cool). Citigroup should bail out on the dumb stadium idea, and then have Tiger Woods as their celebrity endorser.
The only problem is that Woods has an image to protect. He probably won’t want to get caught up in this bailout mess. But hey, I think we all know he pays a lot in taxes, so if they wanted to blow some money on him I’d be OK with it. Sure beats a stadium for the Mets.
And while we’re talking about idiotic ideas, let’s not forget about the clowns working at AIG. These folks actually spent $100 million to sponsor Manchester United, the UK soccer team. And when word got out about the $150 billion bailout from Uncle Sam, some folks wondered whether AIG would try to unwind out of the deal, perhaps sell its new found marketing concept to another company that’s not essentially broke?
Nope, and AIG spokesperson confirmed it was still business as usual.
Where is the outrage?
Here on Main Street. That’s where. No one else seems to care.
But I bet you do!
Now on to our real estate investor education section…
The Top Trends to Watch in 2009
As the Thanksgiving holiday approaches in the midst of one of the most volatile financial markets in decades, it might seem there is little for short sale investors to feel thankful about. As the old adage goes, there is a silver lining in every cloud and despite the downturn in the real estate market, it could turn out that investing in short sales is the best decision you ever made. Not only does it diversify your earnings potential but if these top trends for 2009 hold true, it may turn out to be one of the few ways to hold your own during the next year. I’m about to tell you some brutal facts…but keep your head about you when you read them—remember that if you know what you’re facing you’ll be able to figure out how to benefit from it!
1. Lowered Retail Sales. During what is typically the most robust period of retail sales, stores are showing more than sluggish results; they are showing downright discouraging spending patterns as the seasonally adjusted retails sales experienced their largest decline ever for October 2008. Experts expect the trend to continue well into 2009 and only worsen after this holiday season.
2. Reduced Motor Vehicle Sales. As the Big Three auto makers line up for their turn at federal funds just to make it to 2009 it should come as no surprise that motor vehicle sales have experienced their worst performance since WWII. Experts agree this is a long term trend for 2009 and perhaps beyond.
3. Housing Starts = Housing Stops. The 2009 forecast for housing starts is so bad it actually resembles a stop instead. Not only is there a 1 to 2 year existing inventory for homes but housing starts for single family homes have recently posted a low of .54 in September 2008 with no end in sight.
4. Negative New Home Sales. While existing home sales recently experienced a slight upturn, new home sales are still falling and expected to lag throughout 2009.
5. Stagnating Treasury Yields. The world is seeking safety over substance in any form they can obtain it so don’t expect Treasury bonds or securities to do more than the bare minimum throughout 2009. After adding taxes and the impact of inflation, actual yields are zero or actually negative…which still beats the stock market!
6. Dropping Consumer Confidence. Rising unemployment, reduced access to credit and diluted retirement accounts have finally taken their toll on typically optimistic Americans; in fact, the perpetual optimism has given rise to abject fear as they scramble to reduce living expenses and cut back to the basics. Short sale owners holding affordable housing will find their properties in high demand in the coming year.
7. Rising Unemployment. Outside of the government (not exactly known for its high paying illustrious positions), most industries are cutting back or planning to cut back during 2009. Expect to see more demand for homes located near convenient locations and short commute times combined with Escalating Consumer Debt. As the cost of food, insurance and other necessities merges with unemployment and other costs consumers are turning to credit cards and other debts to make up the difference. Meanwhile, banks are increasing lending standards and raising interest rates. The result is a toxic combination sure to take a toll during the next year.
Now hold on! I know you’re thinking, I’m tired of reading all this negative stuff! Folks, the reason I’m telling you this is so that you’ll get excited about the opportunities that distressed properties will bring. You need to know facts about what’s really going to happen. There won’t be a “bailout” of everyone … so there is going to be plenty of opportunity for those in the know to make money!
See you at the top!
Chris McLaughlin
P.S.:
Sorry there was a glitch that brought our webinar down for a few hours … so we’re reposting it for today only:
http://www.shortsalesricheswebinar.com
Don’t miss it – everyone that has watched it says it is perhaps the most useful tool in understanding what’s going on in the real estate market, and how to make money in today’s environment!
