I remember a teacher I once had telling all of us that “status quo” was Latin for the “mess we are in,” and it certainly fits the housing market, and the economy in general.  We may well be in for that least-desired of all events, a “double dip” recession. Many factors contribute to this, of course, but the main one is weak jobs and weak wages.  Most private sector employees, if they can FIND work, must settle for less than they made, by quite a bit.  This is hardly what the “new folks in town” promised when they were elected in 2006, but who’s counting? The only thing that seems to have happened with the economy is that the feds have spent vast amounts of money shoring up the “bigs,” and the rest of us still wonder when we are going to see a return to employment and hopefully financial stability.  I recently read an article (admittedly a bit biased) in which the current administration is called the “Great Jobs Killer.”  See it here: http://www.lvrj.com/opinion/barack-obama–the-great-jobs-killer-97758294.html; now as I said, he’s biased, but this is really pretty much how the small business people in my own area (San Diego) view what is happening.  There are other issues, like the ones mentioned here:   http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7871421/With-the-US-trapped-in-depression-this-really-is-starting-to-feel-like-1932.html.

So with all this bad news coming so soon on the heels of our national birthday, what can we expect?  Well, actually, I’m cautiously optimistic.  There are several reasons for this:

1. There is much better communication than in the last recession.  The internet means that you and I can actually monitor what our govt is doing, and force them to do better through the elective process.
2. Virtually everyone who is a “normal person” (not working for the govt or wall street), is “royally pissed off.” (‘scuse the expression, but it’s the only one that fits).  It is soon going to be impossible to protect the “bigs” without incurring huge election risk.
3. There are lots of people who are sitting on cash. THESE people can help get us out of the mess, because they have the ability to create jobs. No matter what the Feds do to muck things up, there are always profits to be made.  Folks find a way.
4. I hate mentioning this, because cheating on taxes is foreign to my nature, but I believe that we may see a resurgence of the “underground economy” like we have not seen in 50 years.  Why?  Taxes are so high.  Would you rather have $15 an hour, or 9?  That’s about the difference in wages that an “under the table worker” makes, if taxes are taken into account.  Forget the income tax. Think about FICA taxes, Medicare, Unemployment, etc. etc. etc.  These are only partially “visible”–and there is no deduction for them. In most cases the employer pays an equal amount to you, but you don’t see it cuz it’s not included in “your” deductions. Then there’s sales tax, cellphone tax, cable tv tax,  etc. etc. etc.  Many years ago an IRS agent (he was a field auditor) told me that when the IRS checked compliance, as the tax rates went up, compliance dropped through the floor. Imagine that! So the feds have to deal with that potential, as does the state. Now we have “Obamacare,” and few are happy with it, except the politicians who voted for it. That alone is going to create a series of HUGE new tax burdens.

So tell me. Just how pissed off (‘scuse again) do you have to be to take action? to vote? to assemble? to act in your own best interest? If you are now determined that you will act for yourself, then you are at the gateway of the solution to these governmental difficulties.  Think carefully just how much control you want the govt to have, because there are 535 people in Congress (incl Senate) that decide every federal law. Through a series of actions that can only be characterized as “egregious,” and “unconscionable,” these folks have basically messed the country up pretty badly. However, there are lots of people who are willing, and want to change that. So DO SOMETHING. Anything will do. Just do something.

When we all begin to take action, and not just in real estate, things will change, and FAST.  No elected official understands his constituents’ mood better than when he loses an election.