Blog entry June 2010

I honestly believe the economy is going to be far worse in coming years than anyone is willing to admit. The problems we see in Europe with the Euro are happening because governments were unwilling to make the hard choices to keep spending in control. We are doing the same thing here. The only difference is until President Obama took office we were doing it much more slowly.

I received an email yesterday. It was submitted via the contact page on this site. I'm not even interested in whether they used a real or fake email address and name. The whole premise of the email was it is unethical to take advantage of the coming situations caused by out of control government spending and irresponsible government debt.

Here is part of the text of the email:

It is no exaggeration to say what we are seeing in the economy today is unlike anything anyone alive today has seen. Instinctively, everyone knows this at a gut level. But, they don't believe it at a conscious level. This is partly because we have no shortage of cheerleaders in the media willing to give anyone claiming, "The worst is over," a ready stage to proclaim their wishful thinking.

One of the Field Guide members recently asked if we could do an update to the previous study we did on expenses verses rental revenue. This morning, I posted an update to their request saying we have most of the data and giving a first impression based on the 50,000 level view so far.

I also included this line in that update to the members...

"Taking a conservative approach is all about having the staying power to ride out the down times."

I wanted to expand on that here a little bit.

I kept this project very quiet. I have not talked much about it anywhere on-line.

In December of 2008 I started a research project. The initial project was to gather information to help Field Guide members navigate the economic turn-around expected to happen in 2009 and 2010. However, the more research data gathered the more interesting and troubling things became.

The currently proposed financial reform legislation will prevent 80+% of the people currently raising private money for their real estate business from continuing to do so in any kind of compliant manner.