Don Tishman's Real Estate Development and Investing Solutions

Real estate development is almost at a standstill in the US. All the businesses and professions who benefit from development activity are suffering. For instance, new architecture business in at its lowest level in years, construction workers unemployment is one of the highest of any group., this litany of bad news goes on and on. HOLD ON- The tea party is planning on poisoning real estate values and development. This cancer must be removed

Although PRESENT interest rates are very low, one of the reasons for this is the lack of real estate development is no  financing is available for most new development projects.

Making funds available for new projects is essential for the recovery of this major US business.

Nevertheless, the present pitiful and despicable tea party  conduct in the Congress about raising the debt limit so that our government can pay its bill is a shameful disgrace. This shameful and disgraceful conduct will kill real estate values and development by making sure even less money is available for real estate loans. Imagine trying to sell your house when the buyer can not secure a loan for the purchase.

The fallout for the the US government not paying its bills creates a new  huge financial cost for all Americans. The interest rate that we will have to pay each year for the $15 trillion dollar national debt will rise. This increase in the interest rate, alone,  would in 10  years raise the national debt substantially. As a result a new Congress will have to raise taxes to pay for this new huge cost.

To put this in prospective, FNMA and FreddieMac lost over $200 Billion over many years. This caused Congress to take over these agencies. THE COST OF THE ADDITIONAL INTEREST WILL BE MORE THAN THIS LOSS BY FNMA etc .

What kind of AMERICAN would cause this to happen?  I will leave that answer to you!!!

The present state of real estate development would seem mild to the results of this scandalous conduct.

I would like to contribute to a fund to remove from office all those Representatives and Senators  who REFUSE to participate in and support the negotiations so ably being carried on by the President, the Speaker of the House, and others in Congress.

America will recover from these difficult times once these officials, who are hurting every American family, are retired.

With as many as 15% of American families without a breadwinner, we need new jobs. Instead the cost of the American federal system is being recklessly increased by the tea party. These are not Democrats or Republicans, but right wing nuts who are ignorant of government. They do not care what the dire results of their ignorant actions are. Like a cancer, we need immediate surgery. Will you help?

A friend sent me this email:

He is the original Mr. Outside the Box

Hope you enjoyed this as much as I did.

Today I listened to a very informative Warren Buffet interview on Bloomberg. Buffet is one of the world’s richest men.Warren Buffet thinks that our economy will fully recover the over 2,000,0000 jobs lost since President Obama took office. Buffet pointed out this country has had over 13 recessions and fully recovered after each one. Further that companies create  new employment when the demand for their product increases. As an example a railroad that Buffet owns was averaging  about 200,000 car loading per day. Then in the fall of 2008, this dropped to 120,000 car loadings. Huge employment layoffs followed. Now the carloading are still less than the average of 200,000 but are at about 185,000. The employment is still substantially below the number in the summer of 2008. It will not increase until the 200,000 loading return with prospects of further increases.

Buffet said that this country absorbed about 1,500,000 new houses a year from  2,000 to 2007. This provided construction jobs, building products manufacturing, carpet industry jobs, appliance industry jobs, real estate finance job, etc.  From 2006  to 2008, the industry produced over 2,000,0000 new homes per year. This housing surplus killed the new home market and as a result led to tremendous layoffs in the industries affected. Since less than 500,000 new houses per year have been built. The rate of new family formation has not changed. If we lowered the marriage age to 12, then rate of new family formation could quickly absorb any housing surplus. This is not likely. Buffet feels that the new house production will gradually return to 1,500,000- probably in the next year. Then millions of new jobs will be created by this. The economy will then fully recover.

I hope he is correct. I agree that in our capitalistic society, private industry controls the creation of new jobs. Our government does not have the ability to create these millions of new jobs.  But the government has the ability to either help or hurt the recovery. The ability of qualified buyers to finance their new home is an essential to make this scenario happen. Will our government make this essential financing available or will our government kill the recovery by making the financing more difficult to obtain?

Warren Buffet further stated that 15 years ago the total  income of the  400 highest income taxpayers was $39 billion. Today the same figure is over $450 billion. Yet the tax bracket of the 400 top income taxpayers has substantially been lowered in the last 10 years.  Buffet says the highest income Americans must pay a higher rate of taxation to solve the present federal debt problems.

The current Congressional failure to provide our government the ability to pay their bills is a huge threat to our national recovery. A default by the US government in paying its bill could cost the US taxpayers billions over and above the present debt.

A leading backer of this irresponsible action to cause a Federal default is a group of the 400 highest US incomes who want even lower taxes.

We need to become pro-active in getting Congress to stop being irrational before our taxes double.

Or would you like your income taxes to double while the 400 get their taxes lowered