Let’s take a lesson from Warren Buffett, his bet of five billion dollars on Goldman Sachs shows his belief in the company and, I believe, our economy. Let’s take his lead and start believing too!
Forbes has a great summary of the proposed $700,000,000,000 Federal Government bank bail out plan. Below is the first of ten very clear observations.
“1. Who gets to participate?
The outlines of the plan call for the creation of either a branch of the Treasury Department or an independent agency to buy or take on troubled assets, with the goal of either selling them at a profit later or working them off.
Honolulu city lights from my house.
One of the big drags on National real estate is that many markets are over built with new construction. Call me simplistic, but if a market is has too many new homes for sale, then isn’t it good that the building of new homes is slowing? Isn’t it true that in order for a market to recover, building has to slow for a while? Then the recent “steep decline in new-home construction” as reported by the Wall Street Journal is good, isn’t it? In fact for over built markets, a slow down is integral to the recovery.
North Shore of Maui from the Hawaii Super Ferry
With fuel prices rising and the National economy having it’s challenges, Hawaii tourism has been off for a number of reasons. One of the reasons was this year’s closure of Aloha Airlines and ATA Airlines and the resultant reduction in airline seat capacity. If fewer people can come to Hawaii, then there will be fewer people for hotel rooms, retailers and real estate. I am happy to report that a recent Honolulu Star Bulletin article shows that 3 airlines have made plans to add seat capacity. This will be good for our economy and for Honolulu real estate. The article reads…
The current Federal capital gains tax rate reaches a maximum of 15%. Add this to the State of Hawaii’s capital gain rate and the combined rate becomes 22.25%. Tax professionals have told me that this is a 70-year low! George Bush lowered it from the 28% Federal rate (a total of 35.25% combined) under Bill Clinton. I know what you are thinking, “Why is Keahi going here?”
Here is the answer. A funny thing happened to me this week as I watched coverage of the Democratic Convention. As I watched George Bush get blamed for everything from acne to global warming, I decided to start looking into the policies of each presidential candidate to determine, in my own way, how Obama and McCain might affect Honolulu real estate and our country. You may find that this rant is the beginning of a series looking into their policies (Obama vs. McCain). I also realize that I may make a few of you unhappy, but damn political correctness and “Viva” freedom of speech! Anyway, where do the candidates stand?
Residential Realtor working in Honolulu, Manoa, Kahala, Kaimuk, Nuuanu, Hawaii Kai, Pauoa Valley, Palolo, St. Louis, Moiliili, Kapahulu, Ala Moana, Waikiki, Aina Haina, Niu Valley and Kuliouou
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