So, the Big 3 are back again to try to beg for the money they say they need to stay afloat. When they first came, in their private jets, they were asking for 25 billion from the taxpayer. Of course, they said it was going to be a loan, which would be paid back. But I wonder, if we pay for the bailout with our tax money, and they pay back the loan, do we see that money again? I doubt it. If the money leaves our pocket, we won't see it again. Now they are asking for 34 billion. An increase of 9 billion in 2 weeks. Wow, I would love to see this kind of increase in my pay that quickly.
Iknow the biggest problem with not helping out the auto industry. The biggest problem being that lots of jobs will be lost. But is it really a good idea to fix a boat with a whole that is sinking with elmer's glue? These companies aren't failing because the economy is hurting, these companies are failing because of bad business decisions.
Before we start giving money away to these auto makers, let's look quickly at what just happened. Some major banks just got billions of dollars to help free up funds to start lending again, with the idea that it would help people be able to start buying homes. But what happened? The banks took the money, and did what with it? NOTHING. They said they were going to free up some money, but they haven't and no one is making them at this point. Is anyone is control out there? It is getting very frustrating.
But I digress. Today, the Big 3 will ask for it's money. They will try to convince that it is necessary for them to have this gift. It is very important that the right decision is made, because we don't want another disaster like TARP.
What are your thoughts on whether or not the Big 3 should receive this money? The pros and cons.
If you are considering selling your home or purchasing real estate in Contra Costa, you owe it to yourself to contact Steve Dawson for all your real estate needs in the East Bay.
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Economic activity has weakened across the United States since early October, while price pressures have eased with declines in retail and energy prices. This is no secret to the American people. We have been feeling the pinch for many months now.
The Fed's Beige Book summary portrayed declining conditions in most areas of the economy.
Labor markets weakened as firms in many districts reported accelerating layoffs. Wage pressures were largely subdued, the Fed said.
Consumer spending slumped, with retail sales decreasing and vehicle sales falling off sharply in most regions of the country. The report was based on data collected before November 24. And obviously, it hasn't gotten any better.
Earlier this week, a panel of experts formally declared the U.S. economy in recession since December 2007. The Fed is expected to its lower benchmark interest rate target by a half-percentage point to 0.5 percent at its next scheduled policy meeting December 15-16.
Some analysts expect the Fed could bring rates down to zero by its following meeting at the end of January as it seeks reverse the economic contraction linked to the collapse of housing markets and a jump in home loan defaults.
Adding to the gloomy picture, the Beige Book described weak housing markets characterized by reduced selling prices in many regions. Sales were down in most districts, the Fed said.
Credit conditions remained tight and business and consumer lending activity slowed in most districts. Unfortunately, this should not be happening still. The reason our government bought up a bunch of stock in major banks is so the banks would free up some money to lend to consumers. But it looks like so far, they are still be greedy and not lending much at all. Is anyone in control out there, or are we just giving money to everyone and letting them do as they wish? We won't last long if we keep doing this.
I am really curious as to what the government will do regarding the Big 3. At first, they were asking for 25 billion, now it is up to 34 billion. When will this end? Time will tell I guess.
If you are considering selling your home or purchasing real estate in Contra Costa, you owe it to yourself to contact Steve Dawson for all your real estate needs in the East Bay.
"Whatever It Takes"
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925-788-7572
A couple of weeks ago, I talked about getting the Blackberry Storm. I was pretty excited about getting this phone. I needed a Blackberry, so I was waiting until this one came out. I have been disappointed. Here are some of the things I don't like about this phone.
First, I turn the volume up all the way and still have to plug my other ear to hear what the person on the other end is saying.
Next, while I am on the phone, my cheek hits the mute button without me knowing and then the person on the other end can't hear what I am saying.
Next, All of a sudden, my phone stopped syncing to my email, so I no longer was able to receive my emails through my phone.
Here is one of the most frustrating things. When my phone rings, I can't answer it. I try pushing the talk button and also try pushing the answer button and neither one will answer the call. This doesn't happen everytime, but it happens enough to make me miss important calls.
I am not one to give advice, but in my opinion, I would wait until all the bugs are out of the phone before getting this one.
OK, so I went to the conference in New York a few days ago. The Troubled Asset Relief Program (TARP) had a summit on this major economic mess we are in. I decided to go because I believe that it has a major affect on our business. I must have been the only one who thought that because I was the only Realtor there.
I was dissapointed to say the least. The conference lasted 8 hours and at the end, there were more questions than answers. Apparently, the government has no idea what they are going to do. We were told weeks ago that the Treasury dept. would buy up the bad assets to free up capital for banks so that they can start lending again. But now, they are saying they are going to be buying stock in those banks, which makes no sense to me.
By the way, just so everyone knows. In 2009, we are going to be crashing!! The foreclosure rate, according to the treasury dept., will be skyrocketing 3 times higher than it is now. You think it is bad now, wait and see.
The treasury dept. is now trying to increase participation in home saving programs so this does not happen. But homeowners are so scared to answer their phone these days because of creditors, the people who are trying to help them can't get through to them. Some of these programs, namely NeighborWorks, and HopeNow, have been successful in many cases helping homeowners keep their home. Some of the bailout money will be going to help fund these types of programs.
If you are considering selling your home or purchasing real estate in Contra Costa, you owe it to yourself to contact Steve Dawson for all your real estate needs in the East Bay.
"Whatever It Takes"
Search over 14,000 listings in the East Bay
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925-788-7572
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