Real Estate

Congress told us that if they didn’t do something to buy up the bad debt that Wall Street has taken on, that the markets will fail. It was a bailout that the politicians tried to frame now as a “rescue package.” No matter what you call it, it includes the spending of money that the government (you know, the government that is great about spending our hard earned money) doesn’t have.   

View the full .DJIA chart at Wikinvest

The bill passed just over 1 week ago and since then, the Dow Jones Industrial Average has dropped 2,000 points. That is not far from 20%.

Now, the same politicians that promised a failure if they didn’t do anything are saying that the market will take time to adjust.

Duh… it would have taken time to adjust if they didn’t do anything.

Every where you turn you will hear people talking about how bad everything is. People just can’t cope because, after all, the world is in a credit freeze (yet I received 5 pre-approved credit offers this week.) Energy is a problem because the cost of oil is so high (yet, prices there have dropped as well… wonder if we’ll ever really see that reflected at the pump.)

We have people defaulting on their mortgage (most likely because they should never have qualified in the first place.) We have home values dropping (I know, I have two homes). We have retirement plans going away (I know, mine lost 16%… but it is a long term investment, so… so what?). continue reading...