What I really think.....about the Third Quarter 2009!

Ok....I'm a positive person (one must be when venturing in real estate these days)....I read positive books, try to keep a good attitude and help my friends 'keep the faith.'

I rarely say what I truly feel...as I'm always trying to stay positive.

Get ready...cuzz here it comes....

The Recession is over...not quite...unemployment nationally is 10% with many states at a much higher percentage (California and Michigan, only to mention a few)...I do not believe much will happen until people have jobs...period!

The good news is...Banks are doing well....Goldman Sachs earns $3.19B--beating estimates--just a year after surviving the financial crisis with billions in federal aid. And isn't is great that Goldman Sachs will now contribute $200M to it's foundation, which promotes education. "Although the world continues to face serious economic challenges, we are seeing improving conditions," said Chief Executive Lloyd Blankfein. Naturally, Goldman has not disclosed how much it has set aside for it's annual bonus pool! However, Goldman Sachs did say they have earmarked $5.35 BILLION in compensation and benefits, an increase of 84% from the year earlier--putting it on course for a RECORD PAYOUT to its executives by the end of 2009. By paying the bonuses, the bank says it is 'being fair to our people who have done a remarkable job." Are they serious?

JP Morgan Chase reports a strong profit of $3.6B--they say that they are 'benefiting from a turn in the economy." I ask, WHAT TURN?

There is very little doubt that the housing market and the economy remain weak.

The number of foreclosure filings hit a record high in the third quarter, despite government and lender support--which can be difficult to find. During this time, 937,840 hones received a foreclosure letter--this means (via RealtyTrac) ONE in every 136 U.S. homes were in foreclosure. And foreclosures will continue to linger and home prices will continue to decline!

The deep decline in home prices has left nearly ONE in 6 U.S. homeowners owing more on their mortgage than the home is worth! Homeowners are underwater and this will continue as home prices decline--and likely means more eventual foreclosures.

As far as seniors go--there will be NO cost-of-living increase for 57 million social security beneficiaries next year because consumer prices have fallen! This marks the first time that social security benefits have not increased year over year since the cost-of-living adjustment was put into effect in 1975. President Obama is calling on Congress to send another $250 relief payment to seniors. Calling on Congress? $250?

Lastly, what does Sheila Bair have to say about the FDIC--The FDIC will likely stay in the RED through 2012. Bair says the fund has coe under severe strain in recent months amid the recent surge in bank failures. 98 banks have failed so far this year! Bank failure costs are expected to reach $100B over the next four years.

OK...that's the world as I see....You can dispute it, say I'm harboring negative energy--but these are the facts! I THINK IT IS TIME THAT OUR ECONOMY WORKS FOR EVERYONE AGAIN!