Archive for November, 2007
More Doom And Gloom? – The Impact of the Housing Market….Oh,…and the Grand Canyon
Posted by: | CommentsGreetings from somewhere in Arizona!
I am on my way for a backpacking trip at the Grand Canyon. I have my back pack, my water, and…and….and…
I decided this year not to go to the Maui Mastermind and instead do something that threatens my life.
Anyway….I would like to leave you with an uplifting article regarding the impact of the housing market. Why is this uplifting? Well…in reality it is not….but what a great time to be liquid because the opportunities are coming……
Click on this link to read the article from the source or read below….until next time…..rob
Housing Woes Threaten Broader Economy: Report
By Parke M. Chapman
Nov 27, 2007 4:40 PM
The housing crisis is poised to deliver more shocks to the U.S. economy in 2008.
This morning, the U.S. Conference of Mayors
(USCM) unveiled a grim report detailing how spiraling losses from the
residential foreclosure crisis will rattle the nation’s largest metro
areas. Ripple effects from the flailing housing market could also ding
the national economy through lower tax revenues and job growth.
The dollar volume of projected declines is
sobering. Based on the forecast, foreclosure activity will trim gross
domestic product (GDP) growth in the nation’s 361 largest metro areas
by $166 billion in 2008. Some areas will feel the pain more than
others: As many as 128 metros will post “sluggish” gross metropolitan
product (GMP) below 2% in 2008. GMP is the combination of local GDP
growth and total economic output, according to the survey.
“Not that long ago, economists said housing
was the backbone of our economy,” says USCM president Douglas Palmer,
Mayor of Trenton, NJ. “Today the foreclosure crisis has the potential
to break the back of our economy.”
The report, which was prepared by financial
analysis firm Global Insight, projects that roughly 524,000 fewer jobs
will be created in 2008. Job losses of that magnitude would skim $6.6
billion in tax revenues in ten states. Even so, the survey stops short
of forecasting a full-blown recession in 2008.
Markets where housing values shot up in recent
years are more exposed to slower growth. The nation’s largest metro
area, New York City, stands to lose more than $10 billion in economic
output due to the mortgage crisis. Los Angeles and Dallas round out the
top three with $8.3 billion and $4.0 billion in reduced economic growth
next year.
“The foreclosure crisis is no longer just
about mortgages,” says Detroit Mayor Kwame Kilpatrick. “Entire
neighborhoods are being negatively affected on several levels. This
issue is now the number one economic challenge of many major American
cities.”
It could take years for housing values to
recover from this current downturn. For the near term, the USCM report
estimates that average home values will drop by an additional $519
billion in 2008, bringing the total forecast of lost equity for the
nation’s homeowners to $1.2 trillion.
Value declines could crimp economic growth as
homeowners are unable to tap home equity lines of credit. The USCM
survey expects the U.S. economy to grow by just 1.9% in 2008 (one
percentage point lower than it would have without the mortgage mess).
Greetings from El Paso, TX
I am down in the south today looking forward to spending Thanksgiving with my family. I hope this blog finds you doing very well and blessed on this day of gratitude.
There are so many things I am thankful for. When I am in a "state of grace" I realize how blessed I really am…..I hope today…and everyday you find something to be thankful for.
Anyway….
Last week I shared with you that my business partner, Steve Maxwell was written about in this month’s Reader’s Digest. Well, now my business partner and friend, Kelly Fabros is making her mark as a nominee for Inc. Magazine’s Entrepreneur of the Year. You can check out her story and what others are saying about Kelly below….
Kelly Fabros – Nominee for Inc. Magazine’s Entrepreneur of the Year.
Just for fun….check out this video….cracks me up…."Long time caller, first time listener"…..hilarious…I guess this Oklahoma Sooner is still feeling the sting of the loss to Texas Tech….
Thanks for reading and until next time……rob
I Love It When Good Things Happen to Good People!
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Greetings from Albuquerque, NM…..
Just a quick reminder to register your email address in the subscription box at the right of this column. This way you can get my blog via email every time I write a new one.
Yesterday I told you that my buddy Michael Ouellette (aka “Mikey O”) made the news with his passion to serve those in need as a real estate investor. Today, my friend and business partner, Steven Maxwell is featured in December’s issue of Reader’s Digest. Steve and I are business partners in Grassland Investments. Steve is actually the CEO of Grasslands. Steve is a natural leader and his business intellect surpasses any real estate guru I know. I am proud to call Steve a friend and thankful to have him as a partner.
If you want to read the article in its entirety, click below. If you just want Steve’s story…keep reading.
Article on Steve Maxwell in December’s issue of Reader’s Digest
When Steve Maxwell graduated from college, he had an engineering degree
and a high-tech job—but he couldn’t balance his checkbook. “I took one
finance class in college but dropped it to go on a ski trip,” says the
45-year-old father of three, who lives in Windsor, Colorado. “I
actually had to go to my bank and ask them to teach me how to read my
statement.”
One of the biggest obstacles to making money is
not understanding it: Thousands of us avoid investing because we just
don’t get it. But to make money, you must be financially literate. “It
bothered me that I didn’t understand this stuff,” says Steve, “so I
read books and magazines about money management and investing, and I
asked every financial whiz I knew to explain things to me.”
He
and his wife started applying the lessons: They made a point to live
below their means. They never bought on impulse, always negotiated
better deals (on their cars, cable bills, furniture) and stayed in
their home long after they could afford a more expensive one. They also
put 20 percent of their annual salary into investments.
Within
ten years, they were millionaires, and people were coming to Steve for
advice. “Someone would say, ‘I need to refinance my house—what should I
do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and
learn something in the process,” he says.
In 2003, Steve quit
his job to become part owner of a company that holds personal finance
seminars for employees of corporations like Wal-Mart. He also started
going to real estate investment seminars, and it’s paid off: He now
owns $30 million worth of investment properties, including apartment
complexes, a shopping mall and a quarry.
“I was an engineer
who never thought this life was possible, but all it truly takes is a
little self-education,” says Steve. “You can do anything once you
understand the basics.”
….Steve Maxwell, the finance teacher, looked at a $1.5
million home but decided to buy one for half the price because “a house
with double the cost wouldn’t give me double the enjoyment.”
Until next time……rob