A turn for the better...

Over the past couple of months I have witnessed signs of the economy slowly making a turn toward recovery. Home sales are on the rise as well as the demand for the more sought after properties, in turn driving the prices right back up, and creating a demand and somewhat of a mad rush to pick up the best properties available in this investor's market, which the banks now seem to have the upper hand! Traditional home buyers are still a bit choosy about how much they are willing to spend of their hard earned money, and or how much they are willing to compromise on when it comes down to purchasing a home. Sales in that aspect are still a bit spotty, however, it seems that over all the market is making that turn for the better... due to the over saturation of investors who are realizing their great potential from this ravished market, and their inevitable future profits from a "rock bottom market". So, I hope everyone is looking for and purchasing the home of their dreams right now! Because these prices are on the rise and with prices and competition going up rapidly, many may miss out on that once in their lifetime chance at home ownership! And others may miss out on that affordable investment/income property. This recent recession and or depression, will hopefully prove to be a once in a lifetime happenstance. The circumstances behind this "perfect storm" will most likely not occur for another 100 years or so, or at least not until most have forgotten what it took get us here in this position in the first place.

"Recession Turn Depression"

I had a few more points to stab at you, that did not make it in the final cut of the previous posting "Moving right along... Today's Economy".

There is a bit more to interject here, to completely and accurately depict my lengthy synopsis of the recent economic recession.

Being that of the problem lies blame to "word of mouth", and the government's lack of media interjection or lack of information which should have been immediately interjected by government officials and broadcasted thru media. With a country so strong and looked at as such a predominate driving force behind the entire global economy, you would imagine that we would be much more organized and professional about the currently mishandled events. If government had organized with media and worked closely along side one another, we most likely would not be anywhere near the place we are at this current time. However, another major factor in this "psychological recession" is the "Real Estate Market" itself!

Yes, the Real Estate Market does in fact play a major part in the circumstances which lead up to our current state, however, when you dissect this beast meticulously, you will inevitability see that our "Modern Day Depression" truly could have been contained, whereas the banks would have been the only casualties or victims affected by these "Toxic Mortgages". If someone had done their job,(I would say properly, however, the job appears to have not been even done at all!) to head off the damage done by the "Bank Owned Properties" and contain the situation from it's toxic runoff, then, we most likely would have not been in the stew we are in today! With so many properties being foreclosed upon, it does not make ANY sense whatsoever that the "Banks" would not have adapted to what was inevitably about to occur. And government would not have immediately interjected at the root of the problem! Banks are/were in the position to have not lost anywhere near the amount of currency which they have at this point. There are two major things which could have been done to prevent the amount of loss they have incurred. Banks could have adapted to their current situation by doing the EXACT OPPOSITE of what they actually have done up to this point in time. The banks could have weighed their loss options and projected both possible outcomes.

1. Work with the home owners who were about to loose their homes and interject with an assessment of whether or not they are actually able to pay their current payments, and if not, re-adjust their terms, either percentage rate, or temporary payment reduction. Even, possibly add or roll a year or two onto the mortgage if necessary to recover some of their discounted loss.

2. Foreclose upon and hire "Property Management" for all the potential "Rental Properties" which they were about to inevitably acquire. This would have been a wonderful tool to head off the decline in market value of the homes.

Another factor in our current state was, and still is, the American Vehicle Manufactures. The entire situation was brought upon by the banks as well. Which was a direct result from this "Landslide Effect", which originated with the "Decline in the Real Estate Market". And spilled over onto the creditors/banks which then began the bleeding, continued on... and left unattended, eventually erupted into a "MAJOR BLEEDING OUT" of our financial institutions. Creditors/Banks froze their extension of credit to the consumer & businesses alike, which in turn, directly affected the sales of our vehicles, manufactures, stores, distribution, fuel sources, insurance companies and right on down the line! Our entire economy is affected, entwined with one another and driven by, not one facet, but the entire conglomerate of economic structures which work together, as one gear is driven by the other. However, without an source to propel the gears, they lie dormant.

That is all I have for now... however, with a topic like this one, I am quite sure I will be blogging a bit more later on.

-Richard Peacock

Moving right along... Today's Economy.

It never ceases to amaze me, just how much speed we have picked up on the way down this recent landslide of major economic issues... I find it amazing just how fragile the structure of the economy actually is. And just how the media and information play into the recipe for this "Perfect Storm"... "Recession... turn Depression". I have always followed how easily swayed the stock markets are and how they are entirely driven by information and media. But to see just how an entire countries economic situation can be brought down first hand by such... well... that is something I don't think anyone of us would have thought we would have seen in our lifetimes! Not after the 1930's depression and all our experience with what created it! Not after all we have achieved, invented, learned, constructed and over come! Not to mention how much this entire situation has affected the structure of most of the worlds economic situation and how they depend on the US for so much! I wish everyone could take a step back and analyze the situation which they are now in, a situation which was created by EVERYONE'S recent and current actions/reactions stemming from the semi-recent news that we are now officially in a recession. In fact I wish that the group of individuals employed by our US government, who are and were responsible for the analyzation of our economy within our US government, would have done their job period. I am sure a government job is not unlike so many of the jobs in any business or office facility. I am also quite sure that with so many Americans out there who are just showing up to a job to mearly collect a paycheck, and then going home for the day without actually spending time doing any actual work and actually working harder not to get their work done and find ways to keep busy through out their work shift with e-mail and socializing with whom ever is around their work space etc... I know the way it works... lazy managerial types giving you the old "Just handle it, so I don't have to, and if I have to handle it, then, your going to take the fall for it" attitude. I am sure our US government works quite the same way for lack of a better word. Whomever was and probably still is in charge of the analyzation of our economy's trends and the analyzation of action and re-action of economic situations etc... should have seen this ENTIRE situation coming, I mean with all the ill choices that were done through out this past 5 to 6 years, someone was overseeing most of this "Legalized Gambling" which was being done with loans around our US of A! If our US government would have done it's job and for seen the tragedy which lie ahead, maybe we would have been able to dodge this "imaginary bullet"! Of course we are in a recession and heading for a depression... everyone is told to stop spending and save your money for the coming recession... then, the government tells them they want to create an economic stimulus! Okay, so now you want me to start spending again? Then, we are told to "save for hard times ahead"... Okay... now that we have created a nice healthy dose of confusion, and most everyone has stopped going about their normal daily, weekly & monthly spending habits! Now all we have to do is wait... and it could not have been timed more perfectly! Wait for all those mortgages to balloon in payment, and let's get started with this recession just before Christmas, that way we can maximize the effect that the lack of spending will have upon most every business down the chain... it will be at a time which most business rely on to turn a profit... okay, now, let's review... our recipe for the "Perfect Storm"... "Recession... turn Depression"

1. Tell the people we are headed for recession.
2. Tell the people we are in a recession.
3. Tell the people they need to save their money.
4. Tell the people they need to spend their money.
5. Give hundreds of billions away to large companies, banks, insurance companies & vehicle manufactures.
6. Wait for the companies which rely on the consumer to spend their money to start to fold.
7. Give more money to big business and wait a bit more for the out of work employees which rely on their jobs which folded to stop paying their bills & best of all stop paying their mortgages.
8. Take their homes from them and let the homes sit vacant, and become vandalized, because that makes perfect sense, now doesn't it? Not getting what you want in mortgage payment? Cut your income out all together! Why continue with the same mortgage payment that filled your pockets so nicely at least until this "imaginary recession" has subsided.
9. Don't tell them that most of this economic hardship has been created by the power of "word" and the way information spreads like a wild fire! MISSION ACCOMPLISHED! Now the rich can become richer and the poor can become poorer.

And oh yeah, by the way... we are now officially in a depression.

-Richard Peacock- March 21,2009