Estate Bay Real Estate Is Still Awaiting The Banks To Show Up!

November 16, 2008 by Jim Walberg · Leave a Comment

This past week Congress interviewed some of the top executives in the Banking industry to find out what was delaying their institutions from providing liquidity back into the mortgage markets.

The heads of the major Banks had tough questions presented to them this past week in Washington. They did not have any credible answers. They are still holding on to cash that has been provided to them from the $850 Billion bailout Congress passed last month. It appears that they are adding to the delay in having consumers start to recover from credit meltdown. Congress told them that the bailout was meant for them to provide instant cash into the mortgage markets. It is not happening.

Further, Congress let them know that if the liquidity issues is not addressed immediately, the next steps in the economy may cause it to sink further into the abyss of a deep recession. The facts are that until the real estate markets are back in business the U.S. economy will be hard pressed to make a comeback.

In addition, the added CRISIS is the U.S. auto industry’s pending collapse. Now they have their hands out for an additional $25 Billion “loan” from us, the consumers. The president of GM, Mr. Wagner, was asked in an interview on Thursday how he could justify a 30% increase in his compensation this year to a $17 million salary when GM is tanking. His repsonse was that GM was considering an executive pay freeze. What a novel proposal!?!?!? Six years ago Toyota started a complete re-tool of their line-up of car choices to the consumer with an focus on fuel efficient cars – including the Prius Hybred. It is a stretch to imagine that because GM, Ford, and Chrysler continued to focus on quarter profits instead of long term planning Toyota was planning for the future. Now, it appears we are expected to bail out GM/Ford/Chrysler because of their shortsighted vision for their companies. Does this make sense to anyone else. I welcome your thoughts about the steps that need to be taken in the next few months to begin our long awaited economic comeback. Until next time.

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