So how do you save the economy...

[Last Real Texan]

With a bill that was crafted in less than a month and no one has really read it who voted on it? I hope that it works but have a feeling it will not. I am really in belief that something must be done but is this really the best they can do.....come on, the bill is going to spend what like 11% of the total in 2009? with the rest in 2010, and 2011.... At least really spend some time on it and not rush it, is a month or two really going to make a difference in the big picture? I think we deserve better.

Tex :mad::mad::mad: King of the self inflicted Sanch....

[The Hedgehog]

Weed and porno. Tax both and have fun. Restaurants will do well:pizza: and the ag and entertainment business will provide lots of jobs. :drinkbeer:

[HOWARD O]

Restaurants will do well:pizza:

:lol9:

[The Hedgehog]

On a serious note, they need to provide some sort of incentive to help create a bottom in the commercial real estate market. A logical incentive would be tax credits. There are LARGE numbers of willing and able buyers that are standing on the sidelines now because of uncertainty. A nice little tax credit would get them off the fence. This would restore commercial lot absorption, commercial real estate construction and overall confidence. Any loss of tax revenue would be replaced with income tax revenue through jobs and locally through property taxes. Additionally, bolstering real estate values would create a reduction in the need for tarp money. No this is not the complete answer but I looked at a break out of the stimulas package and found about 25% of it or so to be relatively worthless. If they took a nice portion of that 25% and did this, you would see an immediate effect.

Of course some probably think it is bad because it helps out those that know how to make money. What they don't consider is that those are the people that supply the jobs.

[Ghost]

This is both a philosphical and a practical question: right now real estate values are artificially high. Is is better to try to prop them up, or to get them down where they belong, and deal with that head-on?

[chappy]

So are we at the bottom as far as the real estate free fall? Our numbers don't reflect that here, but I live in a very touristy area, over 50% of the homes in our community are secondary/vacation homes.

[BUIZILLA]

I have been in the same commercial location for 28 years....

never, in at least the last 15 years total timeframe has so many real estate agents cold called me, than in the last 45 days.... it's been one a week versus maybe 1 every 2-3 years...

[Last Real Texan]

Still does not answer the 800 billion dollar ?......how do these people in Washington sleep at night?

[BUIZILLA]

oy vey... :nilly:
(http://caffertyfile.blogs.cnn.com/2009/02/18/more-money-for-gm-and-chrysler/)
Posted: 12:58 PM ET
From CNN’s Jack Cafferty:
Two of the Big Three American automakers are holding out their hands again for more of your taxpayer dollars.
http://i2.cdn.turner.com/cnn/2009/images/02/18/art.chrysler.gi.jpg Chrysler will discontinue the Dodge Durango, PT Cruiser and Chrysler Aspen.


http://i.l.cnn.net/cnn/.element/img/2.0/mosaic/base_skins/baseplate/corner_wire_BL.gif

General Motors and Chrysler say they need another $21.6 billion to stay afloat, this is in addition to the more than $17 billion they received a couple months ago. The companies have both put out plans for how they’ll restructure in order to survive. I thought they were supposed to have already done that.
G.M. says it will cut 47,000 more workers, close 5 more plants in North America and cut half of its brands — Saturn, Pontiac, Hummer and Saab — leaving them with only Chevrolet, Buick, Cadillac and GMC. The company also says it’s making headway in its talks with the United Auto Workers union and bondholders to find more ways to cut costs. Chrysler says it will cut another 3,000 jobs and discontinue 3 models — the Dodge Durango, PT Cruiser and Chrysler Aspen.
Meanwhile, this all puts the Obama administration in a tricky spot. Either they give the money and hope that the car companies don’t come back asking for more in a few months. Or they say “no”, which will probably force GM and Chrysler to declare bankruptcy. Both companies pointed out that the cost of a bankruptcy reorganization would be a whole lot steeper than their most recent loan requests.
The White House says it’s reviewing the automakers’ proposals and insists that “more will be required” from all parties involved to turn around their prospects.
The third Detroit company - Ford Motors - posted its biggest loss ever in the fourth quarter, but insists it can survive without government loans.

Here’s my question to you: Should General Motors and Chrysler be given additional taxpayer money?

[The Hedgehog]

RE values WERE artificially high, IMO they have pretty much dropped to realistic levels now.

You are basically right and sales prices are proving that. On the other hand there are some that are still falling from an appraised value. As more sales comps hit the realistic values are being realized. I am still seeing some institutions in denial or maybe overly optimistic.

On the bright side, I am starting to see buyers. If some incentive was provided many more would come out of the woodworks.

[The Hedgehog]

Here’s my question to you: Should General Motors and Chrysler be given additional taxpayer money?[/QUOTE]

Not without a plan. A good one. I hear it exists but I have not seen it and don't have the expertise to know if it is workable. Otherwise its throwing good money after bad.

No, I don't want to see the auto industry go down.

[Lenny]

Here’s my question to you: Should General Motors and Chrysler be given additional taxpayer money?


I say no. Another $21B to lay off another 50,000 Employees, many of whom will be standing in Unemployment lines. So, at $432,000 PER job, is that a deal, and still have the unemployment ??? but on a smaller scale? Where does it end ?

I haven't a clue anymore. (never did actually)

[Just Say N20]

Deleted.

[DONZI]

More QUALIFIED buyers would come out of the woodwork IF the banks would pass aong some of that money they borrowed from us at realistic rates. Current Prime is what, 3.25? Fed is .25, yet mortgages are still above 5% for the most part, and you have to jump through all kinds of hoops to get them even if your credit rating is excellent. Hell, I got that rate three years ago, whats any different today?
The Banks must be trying to recoup their losses by hoarding it.
A little insight to how deep their troubles run:eek:-

http://www.youtube.com/watch?v=ZjahiHyjRns&feature=related


http://www.youtube.com/watch?v=tZOR-tA5P9U&feature=related

[Ghost]

RE values WERE artificially high, IMO they have pretty much dropped to realistic levels now.

What about commercial real estate versus residential? Think we are likely to see a huge drop and new crisis in commercial?

[The Hedgehog]

More QUALIFIED buyers would come out of the woodwork IF the banks would pass aong some of that money they borrowed from us at realistic rates. Current Prime is what, 3.25? Fed is .25, yet mortgages are still above 5% for the most part, and you have to jump through all kinds of hoops to get them even if your credit rating is excellent. Hell, I got that rate three years ago, whats any different today?

It is not that simple.

The term structure of interest rates does not really work that way. Banks are taking net interest margin hits like never before.

Banks and mortgage companies are not the same thing.

[The Hedgehog]

What about commercial real estate versus residential? Think we are likely to see a huge drop and new crisis in commercial?

We have already seen it and it is coming down more. I have been knee deep in looking at this stuff for the last six months.

[The Hedgehog]

I hope the guvmint takes notice of the drop in commercial values. They are killing me on our office properties...
I have a developer after one of mine. He has bought around us, now wants us out of his master scheme.. Tossed him a number, if he bites I have already located a much better facility for us...
With lots of boat storage :) :)...

That brings up a good point. In most states you can get your property re-assessed. Probably not a bad idea.

Good luck on the boat storage. If I had the proper incentive I would buy some boat storage too.

[roadtrip se]

Here’s my question to you: Should General Motors and Chrysler be given additional taxpayer money. Not without a plan. A good one. I hear it exists but I have not seen it and don't have the expertise to know if it is workable. Otherwise its throwing good money after bad.
No, I don't want to see the auto industry go down.

Here they are. The fuzzy part still seems to be the concessions from the UAW and the bondholders, although there has been much noise over the past few days about agreements with the union. To my eyes, the GM plan looks like an actual plan. The Chrsyler one, more of a sales pitch. Both need work.

We shall see how they go over...

[The Hedgehog]

Here they are. The fuzzy part still seems to be the concessions from the UAW and the bondholders, although there has been much noise over the past few days about agreements with the union. To my eyes, the GM plan looks like an actual plan. The Chrsyler one, more of a sales pitch. Both need work.
We shall see how they go over...

Wow, I glanced at it. That is a heck of a read.