Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Opinion Editorials

Recession 2.0 and how we’ll get out of this mess

Sorry to break it to ya…

Sorry to tell you this, sports fans and those that make a living selling real estate, the end is not here.

With the rapid deterioration of the Euro and the European economy, the significant drop in the 10 year treasury to lows of the year, the interview on Bill Maher with Dr. Doom, the increase in listings, the end of the tax credit, the drop in the Dow……..and I can go on, we are getting ready for the you know what to hit the fan!

A little history.

Remember the 90’s?  You know the time where the computer and internet cam of age and jobs boomed worldwide because of it?  And how about the 00’s?  The economy that was created by the “invention” of the housing market due in part to fraud, stupidity and blinders.

Well, this time around, there is no engine running the economic train that is getting us out of the mid-decade fraudvention.

Your home is and never was worth what it “appraised” for a few years ago. And now, it’s only worth what someone is willing to pay for it along with what the sub-par, AMC-cheaply-paid-for-out-of-the-area appraiser will value it at.

Advertisement. Scroll to continue reading.

And jobs?

Ok, let’s start with Green Jobs.  Basically, they are just replacing the Brown Jobs in the long run.  This is not a “new thing” that is independent of something that did not exist before.

Yes, the Apple, Android and Blackberry phone app designers are making the newest program that makes will make your life better until the next app.  But how many $1.99 apps can make an economy?

Solutions?

America…get off your butts, stop eating so much and start to volunteer, work for less, stop giving two craps about Lindsey Lohan’s partying and where Labron James will get his next $100,000,000….in other words, sometimes you have to take 2 steps back to move 5 steps forward (or whatever that old adage is).  Get selfish, smarter, sharper and slimer.

Every politician should be concentrating on job development all of their waking times.  Getting us to full employment will be a very, very hard thing.  Pressure them.  A war in Iraq and Afghanistan didn’t help.  Neither did the TARP money to bail out companies instead of direct investment to stimulate new jobs.

Advertisement. Scroll to continue reading.
Written By

Realty Reality! That describes Fred, a sharp witted and outspoken realist for the mortgage and real estate world who has appeared on CNBC and NPR's Marketplace along with being quoted in the New York Times, The Wall Street Journal and other media outlets. Fred is the CEO of U S Spaces, Inc/Arrivva (a real estate brokerage firm in PA, NJ, DE and CA) and U S Loans Mortgage Inc (mortgage brokerage in PA, CA, FL and VA), and serves on the Board of Directors and is the Federal Legislative Director for the UpFront Mortgage Brokers. Fred is also the co-creator of real estate startup Rentscoper.com, a mathematically driven rental search engine. See everything Fred at fredglick.com.

31 Comments

31 Comments

  1. Real Estate Marketing Tim

    May 26, 2010 at 1:34 am

    Thanks for the rah rah Fred. Too bad our politicians won’t listen hopefully we will.

  2. Fred Romano

    May 26, 2010 at 8:13 am

    Well said Fred! I need to get to the gym more 🙂

  3. Justin Boland

    May 26, 2010 at 8:53 am

    “Well, this time around, there is no engine running the economic train that is getting us out of the mid-decade fraudvention.”

    How about the Federal Government? That would appear to be the pumping heart in 2010.

    Also, thanks for the advice to “work for less” — you’re right, I should be making way less money. I’m only short a couple hundred at the end of every month…I should be racking up 4-digit deficits if I’m really going to, uh, help America or something…

    …how are you taking a pay cut, Fred?

  4. Justin Boland

    May 26, 2010 at 8:59 am

    Also:

    Every politician should be concentrating on job development all of their waking times.

    Amen, and does anyone else think it’s more than a little weird that several generations of economics experts haven’t been able to make any headway on job growth? Seems like that would be a bare minimum, baseline qualification for being an economist in the first place. They really haven’t figured this out by now? Doesn’t everyone in the US have a vested interest in seeing jobs numbers turn around, or is there a big business benefit I’m not seeing?

    Maybe a more competitive labor market means they can expect all their employees to “work for less,” come to think of it….

  5. Fred Glick

    May 26, 2010 at 9:29 am

    Justin,

    Some clarifications. First, for take less pay, I am talking to the unemployed that are looking for I don’t know what and just sitting home collecting unemployment (and I am a Democrat). I know of too many of those people.

    I actually had 2 that said when I offered them jobs, would rather just keep collecting.

    As for less pay for me, it’s called HVCC!!!

    • Justin Boland

      May 26, 2010 at 4:01 pm

      Thanks for the clarification! I think I went and over-reacted now…sorry about that, man.

      And amen to HVCC being all mandatory pay cut you’ll ever need….

  6. Benn Rosales

    May 26, 2010 at 10:08 am

    Fred, I’ve said it before, I’ll say it again – I don’t need Omama to create jobs for me, I have about 6 or 7 I would like to create myself. But here is what Omama CAN do. She can open the flood gates of capital to small businesses and get the hell out of the way.

    • Bruce Lemieux

      May 27, 2010 at 9:40 am

      Specifically Benn – what would you have this – or any – administration do to ‘open the flood gates of capital to small businesses’? Interest rates are rock bottom. If banks’ are generally risk adverse, would you have the government intervene or directly provide loans/grants/etc? Do they need to reduce regulation in specific areas? Should taxes be cut which would make a horrible deficit worse?

      I understand the frustration with our current economy (and by default, Obama). But what would someone *do*? It seems like we are in a box with no easy exit. The government can spend money for short term fixes which add to the debt – bad. The government can cut taxes that will increase the dept – bad. The government can reduce current social benefits – bad + politically impossible.

      • Benn Rosales

        May 27, 2010 at 10:29 am

        You and I both know there is not one specific thing that can be done, it requires a growth package that yes, begins with cutting taxes on small businesses, subsidizing small business loans to spread the risk, and many other variables. Street rates are low, however, the cost of those loans are higher on small businesses so much so, that lines of credit were obliterated and small companies like my own were unable to even make payroll- one of the most common uses of small biz lines of credit. If you think for a single second that what’s been done for AIG or Goldmans would not make an impact on jobs, I would ask you to seriously contemplate this snippet from Greg Coopers analysis yesterday “We created more jobs last month but the unemployment rate went up. Greece is in the financial crapper, California is not far behind and yet Goldman Sachs’ profits could probably save both from insolvency.

        Credit is still frozen for existing small businesses. You cannot grow without capital.

        Cutting taxes on small businesses is risk, but it’s smart risk when compared to the governments investment in FAILED businesses that were to big to fail. Instead, we allowed small businesses to fail because they were to insignificant to save.

        As for what someone would do, aka Obama? Make small businesses as important to his agenda as he did healthcare or the choice of the whitehouse puppy.

        • Bruce Lemieux

          May 28, 2010 at 8:40 am

          Tax Cuts – There’s good arguments for/against the effectiveness of tax cuts for small businesses, but I’m in the camp concerned more about our federal debt. Any tax cuts like this only make a bad problem worse and wouldn’t be worth it. IMO.

          Loan Subsidies – The government will be able to review the merits of what a small business needs and approve worthy loan subsidies? I doubt it. Sounds like just another welfare program to me and a really bad idea. Let the free market decide if a company is worthy of funding.

          Goldman, AIG, Bailouts – Other than partners at Goldman, practically everyone else on the planet – regardless of party affiliation – is disgusted and furious that these guys aren’t out on the street begging for change. Still – if the USG hadn’t aggressively intervened via the bail-out, our entire financial system would have collapsed; the effects of which would be ten times direr than it is today. If AIG had failed, companies like GE were next in line. It stinks now and it stunk then, but the USG did what it had to do. To argue otherwise ignores the facts.

          Directing anger at the Obama administration for results of the previous 12 years of policy is misguided and unproductive. Moving forward, the levers in our screwed-up financial system must be re-tooled so that a-holes on Wall Street can’t be allowed to blow-up the economy and our lives again. And, federal and state deficits must be brought under control before we all end-up like Greece. None of this will be easy and I expect all of us will need to re-set our expectations for what constitutes a ‘high quality of life’.

          I think Fred’s got it right. “We all need to “get selfish, smarter, sharper and slimer.”

          • Benn Rosales

            May 28, 2010 at 10:18 am

            oh hey, I’m not angry with the administration in the slightest- don’t mistake my tone at all. Just about everything you’ve said I and other smbiz agree with, what we don’t agree with is the freeze in credit,. When I talk about subsidies, getting really specific, is the reduction of the overall cost of the loan, similiar to what we do with FHA and first home buyers. The mechanics of that are already done to some degree by the small biz administration, but a real expansion of that program will help businesses that are impacted by the negligence of the larger companies we did save. At the end of the day, if TARP had had real teeth, and was pointed at helping small businesses we could have stabilized and saved many many businesses.

            Short example, in OKC where I am from, we used to have about 6 different grocers around the city, and as of this weekend when I was visiting, we had walmart and target. The lack of competition in the market place was so bad I paid almost $6 for a bag of sugar from target, where here in Austin there is balanced competition, I payed yesterday about $2.5 bucks. All of the jobs associated with the 6 other grocers are gone.

            The other grocers that are no longer in play have been in that market since before I was born, all of which are family owned chains in their own right- poof, gone.

            Speaking of Austin, we have now only one major gasoline supplier left in the market besides a few shell stores, guess which one survived? Exxon Mobile.

            I don’t mean to get micro on you or anything, because, like I said, I agree with much of what you said, but the market didn’t close down the smaller competitor, the inability to obtain capital has vanished for a very large segment of the market place due to the financial cluster fuc* caused by the largest players that we opt’d to save.

            ABC reported yesterday that had the current spill and leak in the gulf had happened on the east coast, or west coast, the reaction would have been much different and swift according to locals and local gov authorities, and in my opinion, this seems to be how we as a government handle crisis.

  7. Missy Caulk

    May 26, 2010 at 10:35 am

    🙂 at Benn Rosales comments, couldn’t have said it better myself.

  8. Fred Glick

    May 26, 2010 at 10:54 am

    Capital to small business will only happen if the private sector wants to bring it. For now, it’s too much risk and popular and dare I say Republican non-Tea Party, Wall Street types is that big business needs to control everything in a workmanlike manner.

    It’s not the President’s fault. Call your local big shot, high money raising big business Fat Cat for the dough, ray, me!

  9. BawldGuy

    May 26, 2010 at 10:55 am

    Fred — In so many ways we’re reliving the 1930’s — same scenario — same failed solutions. We’re about to double dip IMHO, just like 1937.

    Either we throw down the gauntlet this November, or we’ll finish morphing into the antithesis of what our Forefathers had in mind.

  10. Benn Rosales

    May 26, 2010 at 11:33 am

    When the president took ownership of the economy, it became his fault- he is and continues to be complicit in the failures of the economy. The american dream is dead so go build a road no one can afford to drive on. Corn rules. Call a fattened hog in washington and complain? About what? Pick an issue? There is no free market, capitalism is dead, and the bad thing is, there are no factories to go to work in, there are no ‘sectors’ left not owned by the decisions of this president.

  11. Fred Romano

    May 26, 2010 at 12:57 pm

    Boy oh boy – this country is going to hell in a handbag huh! I don”t know what to do next… anyone see a slowdown since May 1 ???

  12. Ruthmarie Hicks

    May 26, 2010 at 7:10 pm

    I know you free market cowboys hate to hear this, but I will say it again LOUD AND LONG. Had your bunch of cowboys won the election in 2008 – we’d be in far worse shape. You SPEND into a recession to prevent a depression. Of course no one ever gets credit for preventing something from going over a cliff.

    You RAISE the salaries of STEM workers (Science, technology, engineering and math) Instead Shrub-head made outsourcing those skills an indoor sport and exploitation of foreign labor a game that any corporation and academic institution could play. The result? You’ve got people like me with Ph.D.’s who would be far more useful to our future viability innovation wise in a laboratory selling real estate.

    Also, not everyone is a business person. I was lucky to have a Grandfather who was a business man. I learned a lot from him by osmosis. Others didn’t have that advantage and they are in serious trouble. There is an entire population of hard-working skilled scientists and engineers who invested long and hard in their educations and careers that are being foreclosed on and who are walking unemployment lines.

    Its a terrible thing to have your entire industry outsourced. I had to sell out, because with a Ph.D. I objected to working 70 hours a week for $33k a year in NYC. I wonder why? That’s what a lot of employees are facing.

    Your flip responses are and knee-jerk reactions about getting off your butt are not worthy of the good people I know you to be.

  13. Ruthmarie Hicks

    May 26, 2010 at 7:11 pm

    OH…also …Time to knock it off with the Strum und Drang. Lets be a tad optimistic. With the dems still in office we actually MAY have a chance.

  14. Ken Montville

    May 27, 2010 at 6:14 pm

    It’s so nice when the entire world is full of gung-ho entrepreneurial innovators. Let’s just send them money and get off their backs – like BP. Good ol’ capitalists that cut corners to save on costs and use the savings to bribe government officials. My kind of company!

    Let’s be real. There are those who will create the Mickey D’s of the world and those that will flip the burgers. We need more people flipping burgers and, as Ruthmarie so astutely put it, in-house “people with brains” to fuel innovation, energy efficiency and a pathway to new job growth with whatever color you want to give it.

    Yes. There will always be the deadbeats that would rather take the hand out instead of the hand up. That’s the way it is.

    Now, Fred, I’ll head over to the gym as soon as I finish the latest blog post on LinLo. She makes my heart go pitty-pat.

  15. Fred Glick

    May 28, 2010 at 8:56 am

    Think my posts are good? Wait until you see me today on CNBC at 4:40ET on the Closing Bell.

    I will not call for tax cuts for small businesses that don’t have enough income to survive currently. What the XXXXX is that all about?

    Anyone remember the TRA of 1986? One of the highest tax rises masquerading as a tax cut that XXXXXX up an economy. And who was the Prez?

    • Benn Rosales

      May 28, 2010 at 10:22 am

      Let’s hope you never run for office, because Joe the plumber will eat you alive with that statement 😉 Love you Fred!

  16. Fred Glick

    May 28, 2010 at 10:23 am

    It would be my dream to run against him!

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Housing News

(Housing News) Home prices fall again very slightly, but does this spell a rough winter or a long term problem? Two economists weigh in.

Housing News

(Housing News) Although not improving at a dramatic pace, home prices are inching up, rising 11.8 percent in November compared to the previous November.

Housing News

(Housing News) Builder confidence in sales, traffic, and future expectation rose in December to 58, meaning over half of the industry's insiders are confident...

Housing News

Construction spending for both the public and private sector improved this fall, and while this is good for housing, what does this spell for...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.