Forums: Discussions for entrepreneurs and small business.

The news has been filled with a supposed explanation for why the stock market took a big dip over the past few days. One cause, "they" say, is the heavy increase in mortgage defaults and increasing foreclosures.

These financial problems seem to involve the "subprime" market, which I don`t quite understand. The sense I`m getting is that the houses in question have been mortgaged to people who wouldn`t easily qualify for a loan, or who got the loan without much of a credit check. Now that things are slowing down, they can`t pay the bill.

Then there`s this "retail slump" that seems to indicate a "slowdown" in "consumer spending."

My question is whether or not this really matters all that much to the "cottage industry" of micro-businesses, startups, and entrepreneurs?

We know there`s been a tremendous increase in debt, going back at least a couple of decades. Credit card companies recently doubled the minimum payments, jobs seem less secure and easily attained, and there`s all that offshore and outsource stuff.

Could it be that people just have too much money in debt and can`t afford to keep going? Is the entire housing sector really in trouble, or only those people who didn`t have the money to begin with, but got caught up when the banks started throwing money at them?

If the giant retailers are having a slump is it because the forces of the universe are at work? Or is it that their customer service and shrinking in-stock inventory makes it easier to shop online?

How much can we really believe of the business headlines? Are these just simplistic answers to far more complex issues?

What about you, personally? Do you think your business has a decreasing chance of success because of the housing sector slowdown? Is it more or less risky today to start a business, when you`re looking at a 1-person niche market?

Craig:  The Answer!

I am a simple man, so simple that all answers reveal themselves to me. And I keep this "special" mind free from the entanglements of trying to unravel the Gordian Knots we create to test ourselves again and again. In fact, I am so simple, that all is but a tidy little bow...pull this end...pull this end - it beckons to this simple (yet powerful) mind.  This is not a gift that I take for granted, nor use with whimsical abandon. So please, oh please! behold this... behold!

Wait! I have to answer the phone..........

Craig, really and truly, I don`t listen to none of the mainstream media crap. The ATL is booming. Unemployment is still low. You don`t hear Wal-Mart crying in their beer. There is just insane amounts of money out there. Find a niche and fill still holds true. This is AMERICA. We do the impossible. We make things happen. I believe the majority of AMERICA gets up every day, makes it happen, and gets up the next day and does it all over again. Yes, we have way too much debt in this country. We don`t save enough. But genius? We have lots of that. Individuals, the majority, need to take control of their lives. Small business people make it happen in the USA. Always have and always will. The "slackers" may look around one day and find no one is there to catch them any longer.

But in trouble? No, not by a long shot. Market drop? A bleep on the radar. It is truly a global economy now and if you don`t understand this, you best get out of the way.

R@

-------------------------

Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

Richard,
I`m inclined to agree with you. I don`t much pay attention anymore to the stock market reports, latest unemployment figgers, or the housing market. These all seem important to folks with big portfolios who listen to the weekend financial talk radio shows.

I was curious though, because a few people have wondered outloud, here at SuN, about slow sales for the start of the year. I think it`s just because it`s slow. No reason...just one of those things. Then again, with this predictable "problem" in the mortgage industry, it seemed a bit of common sense to me.

If a bank goes out and hauls in anyone who even vaguely nods when asked if they`d like to buy a house, it makes sense that lots of those people can`t pay the mortgage payment. So I wonder why this wasn`t expected by the banks. :-)

Anyway, we do have a huge amount of creative ingenuity in this country. It`s why more and more I hear commercials targeting the small business owner. "We" seem to be the only people who aren`t all that concerned about the macro economy and all those reports all the time.

Every year Feb. and March tend to be slower in retail.  Maybe just for the simple fact, we have to pay taxes. Every year the banks lend way too much money to people, simply because they had good credit at the time. What happens to them after that, can be another story. But, I agree.  This is America, we will prosper, and go on.

 

Everything makes adjustments - we learn from our mistakes. The mortage lenders were foolish to make loans such as the 103`s. Now, things are adjusting. Yes, there will be casualties. But life goes on.

Slow times are not the time to start marketing and planning - the good times are. I see it way too often - lack of preparation and the worrying starts when the slow times hit. Heed the Scout Motto - Be Prepared at all times.

R@

-------------------------

Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

Being a contrarian is one of the best ways to make money.  Down turns are when the rich buy under-valued properties, stock, businesses, when many people need to sell.  Then when time gets good and competition for same things increases, they sell and take profit.

Business cycles will be with us always.


-------------------------

Go Green and put more money onto your bottom line with award-winning LED-based light bulbs PearlLED. If you manage a good sized store/business and want to boost the bottom line, call us!

I did hear numerous follow-ups to the main story, although the follow-up stories were quick, not highlighted. Apparently because of the above issues, there are many deals in stocks. There also was a story about various companies who buy up bank-owned foreclosed houses, and those companies have lots of new properties.

We don`t at all need some sort of socialism to redistribute the wealth. These kinds of economic cycles seem to be doing just fine. The companies that buy the foreclosures, often get houses for only thousands of dollars. They turn around and sell them to low-income familes. Redistribution for profit :-) It`s a Good Thing.

Being someone who is directly impacted by the housing market, I have recently felt the "pinch". Matter of fact within the past few weeks I have lost three buyer clients due to their pending job losses.  My heart goes out to them as they restructure for their families employment & financial recovery. Although these circumstances are temporarily discouraging, the reality is the housing market is NOT in a state of doom and gloom.  In my area, Southeastern Michigan, there are more homes available on the market which is terrific when your looking to purchase--more options! Plus despite any increase in mortgage interest rates over the past twelve months the rates are still good. 

Some of the reasons the housing market has been in the media`s eye is because it is an economic indicator.  Research reports which are available to Realtors through the National Association of Realtors have shown that when a home is purchased there is a 12-18 month buying cycle which boosts local retail.  This reciprocal buying pattern imerges as the new owners redecorate, furnish and transform a housing structure into their home.

Bottom line, houses are still selling and buyers are still buying!  If a home is in good condition, doesn`t smell, and is priced right it will SELL.

 

 

-------------------------

Nicole Champagne
Email: influencialexpectations@gmail.com
Cell: (734) 262-3730
Soar With Influencial Expectations!

Craig, I implied in my post that the ups and downs of businesses is a boon for financially savvy people with money.  In a steady economy, there`re fewer opportunities to make "windfall" money because there`s little pressure for the average Joe or Jane to sell, as opposed to urgent needs to sell to cover an economic emergency in a down turn, or even in an upturn due to new better job in a different city.  The rich have lots of cash to take advantage of many situations that show up more often in down turns, or up turns when the Joes and Janes finally take the belated plunge into an overheat market only to experience subsequent down turn.  That`s why Wall Street talks about "smart money".  They get in and out before the dumb money and let the latter holding the bag.

Over a year ago I knew the housing market was overheated and wanted to sell my property to invest in something else.  My other half protested so I did nothing. Alas my prediction (and many other financial people`s) came true.

My disclaimer is I`m too busy as an entrepreneur to play those financial markets.  But exposure to basic economics helps understand many things.  However knowing is one thing, doing it is another.


-------------------------

Go Green and put more money onto your bottom line with award-winning LED-based light bulbs PearlLED. If you manage a good sized store/business and want to boost the bottom line, call us!