What Does Housing Crisis Concern Mean
A consulting firm in Chicago, the Spectrem Group, reports that
until August, U.S. residents with more than a $1 million in
investment assets were shrugging off worries about the housing
crisis. But now the rich too have caught the property jitters, with
43% saying it is their biggest investment worry, up from 9% in May.
Their concerns are valid...the S&P/Case-Shiller index of U.S.
home prices plummeted more in the second quarter than at any other
time in the past two decades.
What does this mean for the economy? Government statistics show
that those in the top income quintile account for 39% of all
consumer spending, which in turn has driven 70% of gross domestic
product (the value of all the nation�s output of goods and
If the rich pull in their horns, fretting about the value of
their real estate, it could have an outsize/negative effect on the
economy, which would be bad for everyone.
In the past, however, recessions have historically been a boom
for the barter industry...as companies of every size and description
seek the additional business from trading to overcome the slowdown
in the cash marketplace.
Expert Contends Housing Recession More Severe Than People Realize
Ivy Zelman, 41, a former housing analyst at
Credit Suisse, warned about the housing crisis months before the
downturn. Now on her own, as head of research firm Zelman &
Associates, she sees this recession in housing as more severe than
the 1990 and 1991 downturn and believes it could have a much broader
impact on the economy than people realize...lasting longer in
duration and causing the consumer to �roll over.�
Zelman was one of the first Wall Street
analysts to question bullish home builders, showing concern over the
flood of speculators buying new homes and the problems posed by
In 2006, The Wall Street Journal ranked
Ms. Zelman the top homebuilder analyst in their �Best on the Street�
survey. Prior to working at Credit Suisse, she worked at Salomon
Brothers focusing on housing.
Rating Real Estate Gurus
Real estate investor and newsletter publisher
John T. Reed, keeps tabs on the many leaders of real estate
seminars...those gurus who supposedly have the answers and ways to
reach real-estate riches.
But Reed contends that the real estate
information business is presently dominated by people who push their
seminars and mentoring services out of boiler rooms�and most don�t
provide the content promised. In the �60s and �70s, he says all were
legit and sincere, although admittedly, some were better than
If you�re looking for information on the
current real estate purveyors of seminars, Reed, who is based in
Alamo (CA), lists and rates more than 130 real estate and financial
gurus on his web site