Monday, September 29, 2008

Who's going to buy now?



Unless you live under a rock you probably heard about the market meltdown today. Our gubment was unable to push through the 700 Billion bailout despite pleas from Bushy and the financial geniuses at the Fed and the Treasury. I was even a little shocked that it didn't pass. As soon as the news hit the wires the markets went off a cliff (and they are still diving, the Nikkei is down over 500). Our financial Ebola has found it's way to Europe and now their banks and brokerages are failing.

With all this hitting the news every night I have to wonder, who is still looking to buy a house? I was planning on seriously looking in early 09. Prices in my target areas are starting to hit the "magic number" that I had set 2 years ago. But now I have more to think about. If this continues, are our jobs safe? My wife is in healthcare so she is relatively immune to economic fluctuations. My job however is directly connected to defense spending. If the gubment runs out of money they might decide they don't need the new fangled time machine I'm designing. They might decide to cancel Deathstar that our sister division is building. And what will we do with the clone army? Those guys have to eat and that's not cheap. Especially at government rates where a hamburger costs $500.

Undoubtedly this will make a lot of buyers think twice before buying a home. The other question, and the one the government is worried about is, will there be any banks around lending money to buy homes. Will the government step in and start giving out low interest loans? Personally I think that would be the quickest way to get the market moving. A gov sponsored disaster type loan program could keep the real estate market moving. Although I would only favor this if they screened the applicants and ensured they could afford it.

That's all for now, I have to head off to Costco to buy as much rice and bullets as my car will hold....

8 comments:

Alan said...

I have a friend in aerospace who's also worried about his job next year when the deficit forces defense cuts. He went thru the last downturn 20 years ago so he remembers what happens when the feds have money trouble. Medicare also runs out of money in 2014 so the health care gravy train is not as safe as it looks either.

golfer_X said...

Regardless of what medicare does there will always be a need for doctors, nurses etc. They may revap the system but as long as people are born and get sick jobs in healthcare will be good ones.

Defense is a fickle industry. One day you have a multi billion dollar bomber project that will take you through retirement and the next day it's canceled. That's life in the defense industry.

Martin Burtin said...

Psssst... Golfer, Costco only sells rice. Go across McKinley and get some boolets at Turners. Better yet, screw Turners. They sell their lead too dearly. Go online and buy it by the sealed ammo can or battle pack. Although I'm giving Turners a hard time on their ammo prices, I do occasionally transact with them on their boolet launchers. Just got done with my DROS today. Gonna go zero in sometime this week. Trigger time at the range is a great stress reducer.

golfer_X said...

Already got my clips loaded! I gotta get a cheaper assault rifle. 30-06 rounds are just waaaay too much. I see Turners moved over to McKinley. I have not been in the new store. I agree, Turners is a little spendy.

dirtfarmer said...

Martin Burton if you are interested i am selling I'm liquidating my collection. I don't want to have any around the house anymore. Let me know if you are interested.

Martin Burtin said...

Golfer: Clips? Enblock clips? Do I sniff a Garrand? Ohhh baby! Might be a little high powered for social engagements of the unpleasant kind, in most residential areas. On the other hand, if someone is shooting from behind cover in your direction, it's just the medicine you need.

Dirtfarmer: somecalifguy@yahoo.com
tell me what you would like to sell. If something(s) interest me, we can talk more. We'll of course need to do the legal transfer nonsense.

golfer_X said...

Do I sniff a Garrand?


You bettcha!

dirtfarmer said...

i think i have a garand its of fair quality, with bayonnette and all