The Decade Leading to Disaster

This article regarding the steps to disintegration from the New York Times helped my understanding. The six steps lead to our current financial crisis include (in order since 1998):

1. Unregulated trade of derivatives
2. Allowance of too much bank leverage
3. Unbridled Sub-prime lending
4. Failure of government to intervene 1 year ago to limit foreclosures
5. Failure of government to bail out Lehman Brothers
6. Misappropriation of first $350 billion of bailout money - sent it to banks instead of applying it to specific needs.

I liked this article...let me know your thoughts

Ben Stein's Money

I read this article about dealing with debt from the New York Times. I always enjoy Ben Stein's combination of humor, insight and realism. Here he talks about us all getting a better sense of valuing our money and preparing for the bad times. - John

And so it begins with the bailout...

I read this article on the first round of bailout money. While this is a disappointment to hear that Arizona banks (one of the hardest hit real estate markets) were overlooked, it reminds me that we need to embrace tracking this information and participating in the legislative process to make our concerns known.

This news is realistic and constructive

I just read this article on the real estate recovery in phoenix. They are not expecting a recovery in prices until 2012! But, the good news is that the Arizona economic engine (employment) is expected to be better than the national average. So, even though your house value will be flat, you live in a as good a place as any. Time to be patient and focus on the things that matter: friends and community. Enjoy each other and don't worry about becoming rich. But, also remember that we live in a fundamentally sound place. - John Hancock

Commercial Real Estate Falling

I just read this article from USA Today on the status of Commercial Real Estate. Whenever I read these articles, I also like to read the comments ....make sure you read those. Notice that regarding Phoenix, they quote Elliot Pollack..a leading economist here. Bottom line is that we are around 20% vacancy (focused on office and retail) and it will take about three years to absorb enough to merit new construction. This is an opportunity for investors to acquire property at 50 cents on the dollar.

Long Term Vision is Key

It's the new year. I found an article Arizona's Future Economy that is both realistic and constructive! Here's is the idea....think ahead 20 years and build sound economic clusters (i.e. biotech, energy, etc.). Don't try to legislate quick fixes. The research triangle in North Carolina provides a good example of what works. Let's do this together! - John Hancock