Can I be blunt. Our government is nuts.
On one hand it is sending signals to the New York Times that they are worried about commercial real estate, yet at the same time they are following a White House that recommends a 1.9 trillion dollar tax increase on businesses and the wealthy and wants to punish banks with an additional tax increase.
Morons.
I understand that they ran on helping the little guy, but let’s face it, the problems we face in commercial real estate are big boy problems. If there is no money to invest in labor, you need smaller offices, and smaller factories, and smaller distribution centers.
And when the government takes more money, there is less to invest in the private sector. Not exactly rockey science.
And when you announce new programs on a monthly basis that will impact the private sector with additional costs and regulations that may or may not pass, the private sector stops taking risks.
Again, not exactly rocket science.
If you in Washington want to experiment, that is fine. The people elected you to your offices and you have that right.
But what you can not do is then not expect consequences from your experiment.
Like the little boy who does the science experiment and makes a mess of his Mom’s kitchen when it blows up, you have to deal with the consequences.
The problem is these folks are running their experiment, making the mess, and then using a credit card to try to pay the folks to clean it up. And the guys who are supposed to clean it up are not going to take a credit card from a 9 year old boy.
So let’s be serious. If you want to worry that the credit markets, commercial real estate markets, and the residential real estate markets start functioning again, you need to change your game.
- Stop printing money and making us worry about devaluation and inflation.
- Stop changing the rules of the game every few few days so we know if we can make any money or not. We make investments to earn money.
- Stop making us look stupid by backing one initiative and then changing it mid game.
- Stop threatening us and making us look like the bad guys when all we are trying to do is keep the system going and feed our families.
Right now we are all on eggshells and we don’t want to play another round of Russian Roullette with your administration.
{ 8 comments… read them below or add one }
No market likes volatility…and it has been constant with the current administration. In order to generate growth in the market, the administration needs to repeal the excessive taxes, quit spending excessively and allow the private market to correct itself without further government interference
Here, here. Great post. Of course, they will probably do the opposite of your wise counsel.
I couldn’t have said it better – and it’s not just happening to commercial real estate. I am a relocation director and I have seen our business reduce drastically I think because businesses are basically in a holding pattern. No one wants to hire, expand or do anything else until we see what the current administration is up to. I predict a very long three years….
I do agree with your recommendations however this administration came into this mess and was forced to use the TARP plan from the previous administration. You are right that the propping up of the markets by the government needs to stop. We are currently in a state of limbo waiting to see what will happen next.
Tom, don’t be shy and keep saying it.
@Kathie, did the prior administration cause all the uncertainty of ’09? You know, Cap & Tax, Health care takeover, 3 different homeowner rescue plans. I could go on, but you might as well blame the Roosevelt administration. I’m not defending the prior administration and disagree wholeheartedly with many of its policies, but we moved on awhile ago. Let’s hold the current administration accountable for its disastrous policies.
Tom is correct and @Al, there’s a great deal of logic in your response; however, although I’m not an activist bent on conspiracy theories, if you look carefully, the confusion created fosters uncertainty and fear (some try to ignore it, like ignoring the Twin Towers demolition).
This immobilizes while maintaining angry division between us. Divide and conquer. I voted for Obama, but have you noticed that the same people who were in Bush’s administration also surrounds Obama?
Speaking of buddies, keep your eye on Bernanke.
Great points Tom – the flavor of the day solution is only adding to the instability and volatility.
When Washington is gridlocked, the market tends to be busy. When Washington is busy, the market tends to be gridlocked.
I like your ideas, this shares some good points and it has pretty good spike out on the recent changes they are trying to implement. I also believe that their activities are dictated by necessity BUT there are still ALTERNATIVES, they can’t just leave personal gain unchecked.