More Government Stimulus = More Foreclosures

I really don’t know why this is so hard for so many to understand.

The Government doesn’t make money, it takes money. All the money it spends comes from taxes and that money comes from you and me. I should say, it’s taken from you and me.

When the Government decides to spend enormous amounts of our money on stimulus programs all they are doing is moving resources from one area to another and creating a temporary shallow relief, if it does anything at all. For example, remember cash for clunkers, cash for caulkers, bank bailout, summer of recovery and the latest the housing tax credit. All of which, did no permanent correction or fix to this economy. After this many attempts, what is it going to take for our leadership to understand…..it’s not working, STOP!

Let’s focus on the recent housing tax credit. Did you see the reports the month after it expired, existing housing sales dropped by 27%, in one month! The worse home sales decline on record, since we started keeping records from 1968. In mid August when these terrible numbers came out, we saw reports that asked, “Has the Housing Recovery Stalled?” I got one thing to ask, Seriously?

A stimulus isn’t a recovery. A stimulus is nothing more than a temporary shallow fix so, if in the mean time you aren’t implementing solid economic strategies that instill confidence, fix corruption and allow business and individuals to make as much money as they can, recovery will never happen.

Today we learned the unemployment numbers rose to 9.6%. Let’s get down to brass tax, if people don’t have an income, people can’t keep or buy homes. Folks, unless the Government gets serious about creating jobs, foreclosure will be around for a long time.

How does anyone create a job?

Mr. and Mrs. John Q. Tax Payer need to be confident enough to invest in their communities by opening up a sandwich shop, a bike retailer, a coffee house, a “you fill in the blank”.

Confidence is key to our housing recovery. Business owners need to know what their expenses are and more importantly that they aren’t going up. This Government has got all of us asking, how much for Obama Care, how much for the next bailout, how much does Barney Frank want to spend, don’t forget, Nancy Pelosi wants some to. Who is going to go out, and put their life savings in an environment where the bottom line is hazy at best?

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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • I need to hire a few new employees now, just waiting on a government incentive... LOL...

    But seriously. 1.) Be more strict on those who employ illegal immigrants, 2.) Be strict on companies that employ outside the country, and 3.) Provide incentives to businesses to hire permanent employees, and 4.) Cut people OFF unemployment who are milking it (working under the table part time and collecting benefits).

    Now, I'm no economist, but these seem like some common sense things that would work...
  • I am on board with you Jesse - and don't forget that there are many agents who had full time assistants working for them that are no longer employed because the real estate market has drastically declined!
  • I agree 100% with ya Jesse! But you still look at it as if our "leadership" wants to fix the economy. "What If" it's all working according to their plan? Dig a little deeper into the facts and you will see a whole new light of what is "planned" for this Country. I see more people, with hard evidence, that we are NOT in a recession or depression, but a whole new TRANSFORMATION of a new style of government and social living!

    You yourself have hit on some of the key points of this transformation in progress. It's time we all see what is really happening around us!
  • Well Jesse, I agree with your last observation that "confidence is key to our housing recovery", but, the picture is far larger; confidence is critical to overall economic recovery. Also, the historical mess is EVERYBODY's fault... Republicans, Democrats, capitalists, consumers, governments, big business, small business, charities, homeowners, renters, unions, churches, etc., etc., etc.......

    And, if you want a quick fix; we have to have another depression; just remove all economic supports and controls, and just let everything fall. Believe it or not, this current economic mess started the day the 1930s depression ended. Just look at the national debt then and now. Also, look at how the annual budget deficits of all levels of government has been continuously growing through every Presidential administration since the end of the depression.

    It would take far more time and space than I have presently for me to fully explain here. But ever since the depression, the American economic mess has obviously grown far outside of the U.S. borders. Now, I have to agree with Bille at this point; when the U.S. stopped manufacturing stuff and selling it to other countries, we began a continous downward spiral. Ocassionally, the economy was pumped up by wars, intentional monetary contractions and expansions, and other government and political trickery.

    But, for many years, the good times were artificially enjoyed by government borrowing, borrowing, and more borrowing to avoid an American tax rebellion. This year alone, the U.S. government will borrow and spend over 1 Trillion dollars more than it takes in from us in taxes. Now guess who the U.S. government is borrowing much of the money from? Yep! China.

    The U.S. is only able to make interest payments on the debt. Now what do you think would happen if China called for full payment of the funds U.S. owes?. Perhaps, China will just foreclose on the United States. Oh! Oh! That would be a declaration of war, because the U.S. ain't got the money. So to keep the bank (oops! I mean China) happy so U.S. citizens can keep the house (oops! I mean the country), the politicians permit corporate america to "send jobs overseas" by employing the Chinese, Japanese, Mexicans, etc. then allowing the products to be shipped into the country for sale to Americans. So, just to wrap this up for now, you can probably imagine what would happen if the U.S. started a "Buy Only American-made Products" campaign and slapped extremely high tariffs on foreign (China) imports, such that prices on imports would be unable to compete in the U.S. market. Yep! China, Japan, North Korea, Mexico, Indonesia, and all the other cheap labor countries would all declare war on the U.S.

    Is there a way out of the mess? Yes; but, the U.S. needs to first payoff its foreign debts. And, there are just two sources of unencumbered funds for the payoff: 1) countries that owe the U.S., and 2) U.S. citizens; (say "more taxes, more taxes...") Clearly, all governments Federal, State, and local would have to grossly slash their annual budgets for a long period of time (say "fewer services, fewer services...")

    Of course, recognizing that none of the above solutions are probable due to politics and selfishness, we are only left with continuing the vicious cycle in which we are now in... more to come.

    For now check out my post on this site entitled "The 50-50 Compromise...."

    REG (Real Estate Guy) Fluker, MBA
    Mobile: (313) 516-8822
    DEPRESSION.IT
  • Jessie, not sure that stimulus is the problem. I agree that it is ALL about the employment picture. During this election time I keep seeing all these ads from both parties talking about "job creation" but no one states exactly HOW they're going to create jobs. In Connecticut our number 1 employer is the 2 world's largest casinos. Problem with that is, most are low paying jobs, and the casino sucks money out of the economy. The cash people lose there does not go to the local sandwich shop, restaurant, or the purchase of real estate.We used to manufacture defense industry items; submarines, aircraft parts, helicopters, and arms- almost all of that is gone to cheaper labor locations. The US economy is based on "service" industries, we don't make anything anymore. One major contributor to that trend is Walmart. When Sam Walton started the company it was all about "Buy American" well he must be rolling in his grave now, as one would be hard pressed to find any US made products there. The local bike retailer can't compete with Walmart, because they sell bicycles at a loss- yes, you buy a bike for $30., it cost them $34 to purchase & assemble- they use it as a loss leader. People go in to buy the bike & fill their carriage with all the other "made somewhere else" stuff.
  • Jesse, I agree with you about jobs, we need jobs, too many people are unemployed and that wont help our economy, and small business are a large part of the job creations, but I think more important than anything are the jobs that have gone oversea, I think the government should put an special tax to those companies that import goods from oversea, and we need to create new ways of industries or job creations, we can do research technology, etc.
    Also the other problem is with all the baby boomers retiring in the near future and the shortage of jobs, there is going to be a shortage of money to pay social security and retirement benefits to our elder. And we have to keep in mind that thank to medical advancements now people live longer and needs more medical benefits, and it is just right to take care of them and give them dignity in the old age.
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