Some people are always sunny optimists. This is good, up to a point. Inventions don’t exist, businesses don’t exist, and relationships can’t be started if someone doesn’t believe in them. Before they purchase stock, investors must believe in the company. As a property note buyer, it is important to believe that the owner of the property will make their mortgage payments before I purchase it. But, sometimes, a half-hearted optimism can lead to poor decisions.
HTML3_Falling Housing Market
Because of my experiences as a real-estate note buyer, I write this blog. Last week I wrote an article for that website. It included my predictions about where the real-estate market and economy would be in 2016.
Although I enjoy hearing others’ opinions and ideas, they cannot change my mind unless they have facts. To back up my assertion that property values will decrease and economic conditions will worsen over the next few years, I have a lot of data and facts – high interest rates, high unemployment, higher underemployment, failure of government housing programs and large debts owed to government and households, etc.
Some responses to the article, like comments from other blogs or conservations, were not based on related topics. Some feel that property values are at an all-time low and cannot be reduced further. While it is true that some markets have reached their bottom, others (e.g. The Sunbelt and coastal California have some way to go. There have been 8.9million homes that were lost to foreclosure since 2007, and many more are on the foreclosure list. I don’t see anything that could suggest anything but a continuing decline in the prices of most markets in the country.
Euro-Zoned Out
Another example of a need for reality checks is the European debt crisis. They won’t. The problem is worsened by adding more debt to countries already in deep debt, especially when revenues have fallen due to the recession. Short-term debt can be traded for long-term debt, which is a benefit to politicians who hope to be out of office when the worst happens. The money they need to resolve their debt problems won’t come down from China or anywhere else. This will continue to cause severe pain to the people.
It is possible to be positive and happy about our lives, our families, and our friends and the many good things that have occurred. The world isn’t ending, despite the economic woes in the U.S. or Europe. However, don’t believe the BS of the bureaucrats.