Individualist vs. Collectivist

With all of the hoopla surrounding the end of the Bush administration and the beginning of the Obama, have you noticed the stock market? It has been quietly sinking as the reality of the state of the economy has been sinking in. Here is some of the evidence that things are probably going to get rougher rather than smoother:

1. Trade with other nations has declined nearly 18% in the last quarter. Fewer people overseas are buying our goods and we are buying fewer foreign goods. This will make it harder to recover.

2. Major retailers are lining up at their attorneys offices getting ready to file for Bankruptcy proceedings. Note that Circuit City is already gone and many more will follow after this poor holiday shopping season. Do NOT be surprised if you read about some of these CEOs heading to the Great ATM Machine, i.e., Congress, seeking more bailout money.

3. Housing prices continue to fall, despite lowered mortgage rates. Just because rates are lower no longer means one can instantly qualify for a mortgage any more. If the loan to value is too high, there wont be a new loan. Period.

4. Commercial REITs and developers are facing serious financing trouble as more than $500 Billion in commercial loans come due this year with very, very few lenders willing or even able to lend.

5. The worst sign of all: More and more people are looking to the GOVERNMENT to save us from our excesses.

Folks, I dont care what your politics is, the bottom line is that Government policies caused most of this mess. Any serious digging on your part will bear this out (see FNMA and FHLMC). The real culprit is the belief that someone else is responsible for your prosperity. This happens at both the poverty and amazingly wealthy levels. Unfortunately, you wont find this information in the main-scream media nor will they teach it in school. Those avenues are already controlled by the bad guys.

We have allowed our individualism to slide into collectivism. I can give you all kinds of names for this crisis of the spirit: Marxism, Socialism, and Statism to name a few.

Here are some of the tools of this method of thinking: The creation of the Income Tax to promote class warfare for the sake of getting votes; the creation of the Federal Reserve Bank to supposedly control our economy (have you noticed how these huge bubbles tend to follow easy money policy at the Fed & and that they are getting worse); the creation of more and more bureaucracies to tell us what we can and cannot do; political correctness to stifle free speech and debate; the belief that only government can save us.

I DARE you to find any of these powers, beliefs, or inclinations in our Constitution, Bill of Rights, or the writings of our Founding Fathers.

Folks, the only way out is through the sound belief in and reasoned action of the individual. This is the core of what has made America the greatest nation on earth & ever. And we are sitting here watching our so-called leaders act without conscience, without accountability, and without a care for the consequences to the nation. We are giving our power away.

YOU need to do something about this economy and YOU can. Roll up your sleeves. Look around at the opportunities! Turn off your television set. Unplug your iPod. GO DO SOMETHING and stop waiting for someone ELSE to do it.

I see that $500 Billion in commercial loans that are rolling over as an AMAZING opportunity in my business. What diamonds are waiting for you to be picked up in yours? Be strong, get motivated, and by all means & get MOVING. Oh, and start writing your & ahem & representatives and let them know that their days are numbered!

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: The Investment Property Insider is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.