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Home · Property Management · Financing : The Economy`s Still Flailing?
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ForeclosureAfter several days of deliberation, and a premature announcement that consensus was reached, the House failed yesterday to reach an agreement on a plan some viewed as a ˜bail out, others as a ˜rescue  for the strained economy.

Now, finger-pointing and doom-and-gloom predictions abound. What will happen next? Is Plan B in the works? Will credit dry up, or will the market correct itself?

What should our leaders do?

Please join in our open forum today to discuss your views on the economy,  and what you see as the right path for Congress to take.

How is the economy affecting you as a landlord and real estate investor?

Please place your comments below.

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  • Van Thompson

    This legislation is desparately needed ASAP to prevent a meltdown of the financial markets worldwide! It is not a “bail out” for anyone group of people. It is correctly labeled an economic stabilization bill designed to restore some degree of normalacy to all financial markets. Market values of real property will plummet the world over without it because no money will flow due to a lack of trust and a sense of self preservation.

    I am personally being affected by the inability to obtain institutional money to refinance private funds used to acquire a “fixer” apartment complex. This rehab project was intended to provide a stable cash flow to augment our meager social security income during our “golden years” of retirement. Now we are in danger of losing our life savings due to a frozen funds market condition.

  • Van Thompson

    I hope Congress will come to realize the true nature of this calamity before it is too late. If your article can help break this log jam; you will have done a great service to mankind.

  • Thomas Damato

    Please write to your congressional representative to ask that he or she vote in favor later this week of the economic rescue plan. It was a mistake to lable it a “Wall Street Bailout,” as failure to act now will be nothing less than a failure to rescue the US economy. I hear daily reports of credit drying up. If you don’t believe me, just consider how few credit card applications you are getting in your mail lately. This is because even if you applied and have sterling credit, it’s unlikely you could get credit, even on a new card. Think about it, and think long and hard. This is exactly how the Great Depression started, and it was the failure of the government to act then that allowed it to happen.

  • S.

    The ‘bailout’ will likely only postpone an inevitable economic downturn, but those receiving the bailout money would be better off than the rest of us. The Fed still flooded money into banks after the bill voted on 9/29 failed to pass the house so apparently they did not need congressional approval for that – and flooding money into the market is something I’ve heard may or may not be helpful at times. Some economic suffering is inevitable because of what’s happened over the last few years, would it be better to suffer some now or put a band aid on it until it is completely destroyed later? Banks were already scared months ago and tightening up – Bank of America started purging credit card accounts last year by raising rates and restricting credit limits on existing customers with good credit histories – I was one of them, and left B of A as a result. There are many economic experts who are against the recent bill, some oppose a bailout of any kind, even though most people on the news would have us believe if this doesn’t pass we are all going to be living in cardboard boxes next week. Let’s all try to think positively and clearly and not let panic get to us. It is a bad situation that is very real and it has and is affecting me personally right now as I was turned down for a real estate loan (again, I have good credit so it has gotten bad out there) but we all have to keep our heads and our government rushing into billion dollar decisions makes me more uneasy…where was this bill months ago when the writing was already on the wall? Why draft a bill and insist it must pass now or else? This did not happen overnight and won’t be solved in a day although I wish it would be. Please do all the research you can and if a bill is proposed that makes sense to you by all means support it but don’t just trust the promise of a quick fix without doing some homework. Call me a skeptic, but our government (both parties) has done nothing but let us down lately and I’m not quick to believe they have the answers. I do hope that someone can come up with a solution and soon, but I think it will take some time and groups of economic experts in a think tank to come up with the best idea.

  • Shirley

    Please read Ron Paul’s comments at and … This congressman knows a lot about the economy and has been screaming out for years that the dollar is in danger of collapse if we continue our current course.

  • I will not pretend that I can predict the outcome of “bailing out” vs. “not bailing out” the banks. However, it does raise the issue that much of America has been building a house of cards over the last 2 decades. People have been buying things they don’t need with money they don’t have for too long now.(I am speaking of consumer debt here) I would like to see us return to a time where people actually saved up cash before making purchases and did not carry debt, other than perhaps a mortgage (which they of course put down a sizable downpayment and budgeted monthly payments that were often below their means rather than pushing the limit). Our government doesn’t care that over half of America is mired in consumer debt – they just want to see us spend, spend, spend so they can collect sales tax. It makes me sad to see 22 year olds coming to rent an apartment with me already $20K or more in consumer debt!!

  • Mary

    My husband & I purchased a 37 unit complex in OK (we live in CA). We have had it for 1-1/2 years and still have not seen a profit. Our intention was to have the income help us in our retirement income for the future. Now it looks like we won’t have a retirement future any time soon. What the American people have let our government create is unbelievable. It is time that we, as taxpayers, wake up and smell the foul odor coming from Washington and do something to eliminate it. I am embarrassed when I see our congressional reps talking and acting the way they are in this situation in front of the world. Their lack of decision making is costing us our future, and I won’t stand for it. I hope everyone feels this way. We need a recovery plan before it is too late and the Wall St execs who have benefited should be prosecuted and those who participated in the subprime loans should have their heads examined! Our govt should stop pointing fingers and following their personal agendas and fight for this country as a united front .. put the country before their personal interests for a change!

  • S. R.

    We need a plan, but not the one proposed that failed – many congressmen (democrats and republicans) shot it down because it protected the profits of investors with debt passed on to taxpayers. As taxpayers we wouldn’t see any return on our ‘investment’ other than the vague assurance the economy would improve, and if you’ve been listening to the administration things have been great with the economy – until last week, now we are in dire straits. I guess it’s no longer our imagination that something’s wrong. There is an email circulating with a plan that started as a joke but would be more likely to work than what’s been proposed so far – split the $700 Billion among every citizen 18 and over in this country and even after taxing it first most people could pay some or all of their debts and spending would increase – it’s win/win, the gov’t gets some back as taxes, people can payoff debts which makes the banks happy and improves the RE market by lowering forclosures, spending and investments increase which help the economy… to think that the ‘stimulus package’ that gave people $300-$600 each would solve anything was a joke, but give us each @ $250,000 and see what happens! On a serious note, I’ve owned and managed rental property since I was 22 (16 years now) because my father retired early and started investing and managing when I was born and got me started in it after college. I’ve been going in the hole over the last couple of years, largely due to our real estate taxes going through the roof. I’ve been reluctant to increase rents because I realize that salaries have not increased but had to finally because expenses have risen so much. If it’s any consolation, I’ve always relied on my father saying no matter what happens property is the best investment you can have. As they say, they aren’t making any more land. And it does hold value, even though the inflated values of a few years ago are no more – they are back down to what they probably would have gradually and naturally risen to. I’m reluctant to sell especially now that the market is low. I took a real estate class last year and the instructor was a realtor during the savings and loan crash of the 1980s and he wasn’t panicking because he’s seen the market rise and fall and rise again. So, I’m going to hang in there and see what happens. Let’s all hope for the best and for the best possible outcome to all of this.

  • Kathy

    I’m confident that Congress will pass the rescue package Thursday or Friday. I think they saw a taste of what would happen in the markets worldwide if they fail to act. We’re in a catch 22 and will only buy some time. But we can all use some time to get ready for what is likely to come. The fundamentals of our economy are weak contrary to our present president’s and potential new president’s message to the people until very recently that “our economy is strong” (tells you something about either their financial acuity or honesty). I took it for what it was worth, an attempt to lull people into a false sense of security while we continue to pile on the national debt and rely for our very financial survival on capital from foreign investors to service that debt. Part of the crisis right now is we’re not getting the foreign investment in our debt that we need to be able to prevent going completely bankrupt. Boy if I were screening our Country’s credit report I wouldn’t rent to it. The other leg to the wobbly table is our government’s reliance on its citizens to spend, spend, spend to support 2/3 of the economy while at the same time its policies stifle earnings growth that would support that spending. Doesn’t add up. For the past several years the panacea that allowed people to not have to open their eyes to what was going on was increasing home equity. That’s over, at least for now. Government and business need to realize this fundamental fact, can’t spend what you don’t have. So the bursting bubble is exacerbating the downward spiral. I’m a fanatical market watcher and anticipated the housing bubble burst and potential recession and inflation to follow. So I’ve safe havened alot of my savings. I also bought a foreclosure property with some of the money I cashed out of stocks with the intent to rent. I feel a little crazy buying right now but I locked in luckily before rates started climbing. I have three other rentals.
    I fear we’re in for recession and continued rising interest rates. People will have a harder time getting loans including home loans so I think the rental market will be strong though people will also have a harder time meeting all of their expenses, including rent. Unfortunately the Chinese curse has come true: “We live in interesting times”:…
    But we’ll come back, even tougher.

  • ray

    Do we really know if this will work? It seems that our education from the last down turn this bail out seams to only help the rich get richer. What about the small investor. I have not read the bills, but hope that if passed it will help the smaller investors not lose there savings.

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