Regarding the economy and how/when it will rebound, one of my big concerns has to do with lenders, particularly banks. I believe, as do many economists, that even if the banks are recapitalized (to any extent) through government action they may simply hoard the money to protect against future losses.
Now as a business, I can understand how a bank may choose to do this... particularly the many banks that will now swing back to the conservative nature they had until most recent years.
For instance, Regions Bank in Birmingham is apparently one of the banks now planning to sell equity to the Feds and they have indicated they will use that money for acquisitions! Not loans (unless those acquisitions are making loans I suppose).
Now, as a business, that is a pretty good plan. Buy up others when times are tough.
Unfortunately, that does little-to-nothing to stimulate the movement of property sales.
I believe the action of the government will have little impact except for the all important reduction of fear... and that the only real cure will be a natural completion of the economic contraction on its own free-market schedule.
In the long run this natural process is great and will create a new platform (one day) for healthy growth again. Unfortunately, in the coming months, this will be very, very painful for many, many people.
So, what do I think this means to those working in Real Estate and related services? Assuming I am right (and if I could accurately predict the future that would take the fun out of it), it means planning for a long haul back. For each of this, that may be different.
Market changes create opportunities but only to those that are dyna
mic, proactive, hard working and forward thinking. If that is you, find something new or a new angle and go, go, go! Do not wait until a rebound when all are moving forward with you and you are just part of the crowd.
This is the opportunity you have been waiting for to separate from the crowd in the market!!
If you have only had success in the real estate industry during the boom periods, I respectfully suggest you consider a new line of work. Making money during a boom period does get you credit for getting in while the "getting was good" but does not mean you necessarily are good at your job. Sorry.
But, if you can afford it, this is the time where you can learn to be good at it... or accept that the gold rush is over for awhile and find something else you can be good at and enjoy.
Life is too short to wallow in a job you don't like anymore or are not good at.
Which direction you go is your own personal choice. But keep in mind, a choice to make no change is still a choice as well and survival in this (or any industry) is not mandatory.
In a future post, I explain some of the ways RealSource is using this period to further standout and move forward in this market.
I am assuming most that continue to read and post on ActiveRain have chosen to stay in the industry (at least for now), so I'd love for you to share what you are doing to grab this opportunity.
Glenn, no sense it beating your head against the wall? Sometimes it is better to re-invent.
Good post
Bo
Bo Hussung/ Title services in all 50 states (Cogent Closing Associates) Bo, re-invent can be wonderful right now! Great point! For all those that claim nothing is working, then what is there to lose? Try new things either within the current job or a new one. If it doesn't work, try something else... but yet people keep doing the same things that don't work over and over. Like I said, survival is not mandatory.
Hi Glenn - Hope all is well with you and Doris! I am reading "Shift" by Gary Keller to try to keep myself focused on surviving and thriving. Actually I read it once and am going through it again. Thanks for your insights. Have a great weekend!