The perfect Storm

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Dave

Dave

SPFG, Supreme Picture Framing God
Joined
Jun 11, 2004
Posts
13,355
Loc
Edwardsburg, MI
Several factors have converged to make business way too slow the past two weeks and since business has started to show a little pickup the last couple days I'm hoping the storm has passed.

1.) Labor Day Weekend
2.) The start of school
3.) A record 12" of rain locally this past weekend with floods
4.) Pre-election "pull your horns in" mentality
5.) Fear over a lagging economy
 
Fear not Dave. The first week of school is traditionally the slowest week of the year for many businesses. The floods are also devestating in the short term.

Consumer confidence should increase if this proposed bank bailout gets closer to reality. That is always a key for our industry.
 
I feel less optimistic about the future economy. I new these banking issues were coming but I did not expect all the huge bailouts. How are these going to be paid for. They were talking in the TRILLIONS of dollars last night on CNN.

Whom ever gets in the White House has a big job ahead of them getting this country turned around. I wish them luck.
 
So let me get this straight.

If I can't pay for my house, too bad the bank gets it.

If I can't pay for 500,000 houses, the government will help me out.

Do I understand this correctly?


Bob
 
Unfortunately, I think you've nailed it.
 
There was an economist on NPR this morning that said that the government may actually turn a profit on the foreclosures.

The way it is being told by the Dept of Treasury is that they will sell these homes at a bargain basement price OR a very low loan interest like 2 to 3%.
 
Jerry Ervin said:
There was an economist on NPR this morning that said that the government may actually turn a profit on the foreclosures.

The way it is being told by the Dept of Treasury is that they will sell these homes at a bargain basement price OR a very low loan interest like 2 to 3%.
Click to expand...

I would hope they wouldn't do it unless they can turn a profit. The AIG buyout was a good deal and could ultimately be very profitable, but selling all those houses is going to really birng home prices down. I'm okay with that even though I'm not a buyer. Prices got way out of hand.
 
Jerry Ervin said:
There was an economist on NPR this morning that said that the government may actually turn a profit on the foreclosures.

The way it is being told by the Dept of Treasury is that they will sell these homes at a bargain basement price OR a very low loan interest like 2 to 3%.
Click to expand...

That sounds an awful lot like "Iraqi oil revenues will pay for the war."
:kaffeetrinker_2: Rick

"In what respect, Charlie?" is the new "Brownie, you're doin' a heck of a job."
 
I'm feeling more confident too. I think business will notice a good uptick in the months to come. I believe the worst of this is behind us now. The thing that bothers me, a lot, is that at lot of these CEOs are leaving these troubled firms with huge sums of money. Does it mean you can run a company, fail at it, run the company into the ground, and walk away with $10 - $20 million in your back pocket??

I think once we get past the election, we'll get back to a good, healthy business with a good amount of "pent up demand".
 
September is usually our slowest month but we are starting to see an upswing now. Before you know it Dave, you'll be thinking about locking the door so you can get something done. Hang in there!
 
mayos said:
... Does it mean you can run a company, fail at it, run the company into the ground, and walk away with $10 - $20 million in your back pocket??

...
Click to expand...

I'm ready! Let's do it!

:thumbsup:
​
 
mayos said:
Does it mean you can run a company, fail at it, run the company into the ground, and walk away with $10 - $20 million in your back pocket??
Click to expand...
In some cases we're talking hundreds of millions. By the time the rest of us come out of our daze and pick up pitchforks, these weasels will be happily living in Dubai under assumed names...
:fire: Rick
 
mayos said:
Does it mean you can run a company, fail at it, run the company into the ground, and walk away with $10 - $20 million in your back pocket??
Click to expand...

George Bush has done this twice already not counting his current job.

Bob
 
JbNormandog said:
George Bush has done this twice already not counting his current job.
Bob
Click to expand...

Jeez, give the guy a break.

Just because daddy bought him an oil company and he couldn't find any oil in TEXAS, and then bought a pro baseball team worth millions for a $100,000 dollars, and then ran the country into the ground and started a bloody war for no good reason, you think he's doing a bad job. ;)
 
As for the housing market - both real estate agents and the consumer need to accept some responsibility. I know real estate agents that have encouraged consumers to "fudge" on their income stats (for example, including the woman's current income even tho she knows she's quitting her job in a few months and will no longer have that income) so they would qualify for a larger loan, thus, a higher dollar home. The consumer who agrees to do that is just as guilty, in my opinion, as the agent who promotes it - but there was a whole lot of this going on. Often the consumer finds that can't afford their payments, lots have lost their homes because of it - and then well all pay the price. Makes me rather irritated.

Despite my irritation with the above, with the CEO's who've ran companies into the ground yet got out of them with thousands, if not millions, of dollars, it looks like the government has no choice but to bail some of these companies or we'll all be paying an even higher price.

I just hope our society learns to quit living beyond their means.
 
thank you JB and Surferbill! I was just trying to compose that sentence in my head. Almost verbatim.
this has been his M.O. and nobody should be the least bit suprised. Him and all his Anti regulation ilk.
 
Janis....you've hit the nail on the head. For many, many years we've lived way beyond our means on borrowed money. I've watched young people come into our store to rent tuxedos for their wedding and heard them talk about their new furniture, new cars, and new house. They all seem to think they can start our in life where their mom and dad are now. We all want it now.

But, as business people, we've all enjoyed the benefits of this "living beyond our means." How many framing jobs have we done where the consumer would not have done the job if they hadn't been able to put it on their credit card and pay for it over time?

As a country, we must find a way to bring some sense into our lives again.
 
Jerry Ervin said:
There was an economist on NPR this morning that said that the government may actually turn a profit on the foreclosures.

The way it is being told by the Dept of Treasury is that they will sell these homes at a bargain basement price OR a very low loan interest like 2 to 3%.
Click to expand...

You're such an optimist Jerry, I wish you are right.

But when was the last time the government made a profit on anything?? There are reports the Wall Street gang are overpricing the bailout to make a bundle of money themselves!!

Newt Gingrich was today on NPR and he thought this is the biggest mistake in a long time. I think he's right.

Nationalization and survival of the un-fittest has become the norm in the land of free market economy! Greed and incompetence should not be rewarded, or bailed out.
 
Janis said:
As for the housing market - both real estate agents and the consumer need to accept some responsibility. I know real estate agents that have encouraged consumers to "fudge" on their income stats (for example, including the woman's current income even tho she knows she's quitting her job in a few months and will no longer have that income) so they would qualify for a larger loan, thus, a higher dollar home. The consumer who agrees to do that is just as guilty, in my opinion, as the agent who promotes it - but there was a whole lot of this going on. Often the consumer finds that can't afford their payments, lots have lost their homes because of it - and then well all pay the price. Makes me rather irritated.

Despite my irritation with the above, with the CEO's who've ran companies into the ground yet got out of them with thousands, if not millions, of dollars, it looks like the government has no choice but to bail some of these companies or we'll all be paying an even higher price.

I just hope our society learns to quit living beyond their means.
Click to expand...

You are right Janis. There WERE several realtors in our area that arranged subprime loans for customers knowing that they were eventually going to be foreclosed. These customers had no money in the bank, so the realtors deposited money in their accounts to make it appear that they did have money. As soon as the loans were approved, the realtors snatched their money back out. Pretty sleezy. huh. Everything went smoothly until the rates changed on these subprimers. These customers knew the rate was going to change, and they also knew that what they were doing was unethical, but they did it anyway. When they were foreclosed on, they ratted on the realtors, who have had their license revolked permanently (only long enough to file different corp papers). This is what I call the "Dumbing Down of America"
 
Paul N said:
Newt Gingrich was today on NPR and he thought this is the biggest mistake in a long time. I think he's right.
Click to expand...
Yeah, I heard that interview. I couldn't believe I was actually nodding my head agreeing with Newt Gingrich.
:caffeetrinker_2: Rick
 
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