Why Real Estate won't Recover- too many potholes

With everyone interested in how our economy is doing, with all the conflicting information that is out there, maybe it is time to understand some basic economics. Here is my take on a number of matters.

1. The job market is not going to recover anytime soon. Numbers will get better from the government only because it does not count the underemployed, those that have stopped looking or are out of the loop. More importantly, many of the jobs that have been lost are gone for good. The furniture, and textile industries have lost millions of jobs in the last decade to China and other third world countries. Our government is pursuing more trade pacts that will send even more overseas or out of the country. Add automobiles and car parts made in central America, IT jobs that are now in the hands of India, and outsourcing even collection jobs to others.

2. The job market is also facing a country full of citizens that are under educated. That doesn't mean that we are stupid, far from it, Just that the government run educational system is producing too many people that push paper. Proof of that is in the State of the Union address, President Obama said he would give student loan relief to those students that go into public service. Logically, we can't all work for the government.

3. The job market is also facing a consumer debt issue. Because of 10 Americans available for every job, Employers that do want to hire can pay less than normal for the job. But with mortgages, car payments, credit cards and other bills, many if not most Americans can't work for the reduced wages, so they keep looking for other employment that will pay their bills.

4.Banks continue to get special privileges in Washington. The banks already know what we won't admit. We are broke. And in debt. The invention of all the credit swaps and mortgage backed securities that we now see has caused our financial such stress was all created to hide bad underwriting and to make profits for investors that they could not have made under normal rules. With our Congress in their back pockets, banks have no need to serve the American citizen, but to use our laws to create business out of the country, making new customers of other countries and to continue to hold the American citizen hostage to all of its mistakes.

5. Everything is overpriced. Everyone in the real estate industry wants prices to stabilize and are wishing so hard for that to happen, they continue to delude themselves and their customers that it is a good time to buy and hold real estate. Without government support, the housing industry would collapse, not because of supply and demand, but because government literally is the backbone of the industry. Take away property taxes, new construction incentives, government programs in all areas and the market has no to be so vastly overpriced compared to 30-40 years ago.

6. In the next 10 years, many older Americans will sell their larger homes looking for smaller ones or will adopt different living conditions. There is no guarantee that new construction will be needed.

7. Americans are pushing for more safety on our borders. The outcry will come in the form of citizens deciding that they cannot pay for those that are illegal to obtain free education, health care and other government subsidies. Less newcomers mean less need for housing.

8. In the next 20 years, we may lose 80 million people to something government cannot control, DEATH. This will create too many empty homes unless we open our borders to other people. (Now you know why we have open borders and refuse to adequately enforce our laws)

9. Government debt. As it grows it will take a greater percentage of our resources to pay the interest. Government will be forced to pay higher interest to investors causing higher interest to us and limit services, mainly in healthcare.

Each of these situations are real, and each are tied together in ways that can cause the acceleration of the other to occur.

And the end result will be the same as it has been for thousands of years, the government will no longer exist in it's present form.