In our current economic down turn I find myself asking why is our Federal Government not focused on jobs. The private sector must get going again in order for the true recovery to begin. The hard part of that statement is that the recovery will begin at different times much like the down turn hit most of us and at different times. Personally 2007 was my hardest hit year. It has not been easy for the past three years and it will continue to be an uphill battle for a bit. So all of this negative economic news got me thinking.
During the depression there were many people that lost everything much like the current situation. What is not talked about much is the end of the depression created the most millionaires in history. The people that positioned themselves correctly, mainly with real estate, became millionaires in the post depression era. I understand that it is difficult to jump in when so many are losing everything but home values have held steady for the past 12 months here – Orange County, California. Combined with the historic rates your buying power is the strongest that it has been in over a decade.
Today’s investor is not caught up in the on going oil spill or the Arizona law. They are looking for and purchasing investment property are historic prices and rates. These people are positioning themselves to cash in down the road. Many people are walking away from their homes and these people will be renting for the next five years. This is due to the current mortgage guidelines. In the mean time the investors are getting in for a minimum investment and getting their investment properties mortgages paid for by these same peole that have lost everything and it will continue for the next several years due to the large amount of renters.
Now this equation could always change and the Fed’s could change the mortgage guidelines but this will most likely not happen for some time. The Mortgage guidelines changes are easy but that is not the Fed’s way of handling their business. Look at the Arizona Law, this is easy to but no one will like this.
So if the was a job fair held in the boarder towns and employers had the chance to hire people from Mexico this could work. Here is the catch, the Employer’s would have to sponsor the employee’s and the employee’s would have to sign up as a non citizen employee. After six months of employment then these people should have the right to apply for citizenship if they wanted to become a citizen. If the employee should lose employment for any reason then they would have to return to wherever they are from until they are hired again.
Sure this would need to be refined but this is a simple process that requires all of us to give a little bit. Does anyone have a better simple idea? There is no need to make this difficult as it is not a difficult issue unless you are using these people for your own political purpose. If this is political then there is a much larger issue at work, time to look at the person in the mirror.
So with all of this on going political posturing and people not focused the rich will get richer and the poor will get poorer. Investors will go on investing and when the economy finally does rebound then the people that positioned themselves well will sell their investment properties to the emotional unfocused people with huge profits. So here you go, I am just one guy, but you heard it here.