April 8, 2008
Perspective on Real Estate
The Economist Cover Story (Apr. 5-11), "Fixing Finance and the Risks of Getting It Wrong." It is necessary that finance be fixed. There is nothing more important to our economy or global stability!
Business Week (Apr. 14), "From Buyout to Bust, Inside Private Equity’s Ugliest Deal." “Private” is a sacred term in American capitalism, like the “free market”, which means to big business laissez-faire or absolute unregulated freedom to wreck whatever it can make money doing. Freedom is very good, but in the competitive business world of vastly overpaid CEOs and shareholders, who often haven’t the knowledge to know right from wrong solutions.
Recessions have a predictable pattern and that pattern happens right now. Business retreats to the bunker, shaky credit markets, fading profits, companies shelving their spending and investment plans, slashing of inventories and cutting staffs at all levels! In fact, this is what happens as we manufacture the recession.
In December ’73, the Conference Board hit its lowest ever. This week it hit its second lowest since!
Another number that should gather our attention (but seldom does) is how out of control our defense budget has become. It is as if we have unlimited money surplus with which to overspend huge amounts. Since Bush took office, the Bush weapons’ acquisition budget doubled from $790 billions to $1.6 trillion. Far too many weapons don’t even do what they were ordered to do. Along with the huge overruns, are the underperformance characteristics. Do we ever learn or are we so perfect that we let this terrible condition persist?
Do we have civilian control as it is supposed to be, or is fear so dominant that no one dares correct this situation!
In fact, we show great reluctance to correct any situation where regulation begs for attention! Learn once and for all that without regulation, there is corruption and out of control systems that produce anything except what they are supposed to.
srg
