“One thing people tend to forget is that even if there is 10% unemployment, there is 90% employment.”
That is a little too simple, here is something to ponder. When you go from 5% to 10% unemployment see headlines of the worst financial crisis since the Great Depression, a stock market crash, and data more than likely showing the worst recession in our lifetimes……What is the psychological impact on the 90% that are still employed??
The company I work for is very typical of Corporate America. Right now they are finalizing budgets for 09. The bean counters come in and say here is your expected revenue line for your division. With that revenue line we can support X amount of employees. If the revenue line is not hit we have to adjust to Y amount of employees. Now who gets cut, are you top heavy? then that would be middle and upper management, are we over staffed? cut staff, is our sales marketing strategy flawed? cut sales and marketing. Who is it going to be?? If you are in the wrong place at the wrong time in this environment it does not matter how talented or hard working you are. I have been through lesser versions of this before and have been shocked at some people that were…..Let go.
I am one of those people, I make a good six figure income with a very large down payment. Could I afford to buy right now? Yes Am I going to buy right now? Hell NO! Not in this crap. There are a whole lot of people like me right now.
Now I don’t know how this impacts N. County SD or the South Bay LA thats why I always like to read the Realtors take on things. There is obviously alot of money in CA. The point I am making is that when looking at the argument for a strong spring season, which has validity, it is my opinion that we don’t know the extent on psychology from the bottom to the top of the market this particular economic downturn is going to have. That is a variable that has not been determined.
Nor-LA-SD-guy,
We could have a nuclear armageddon and you will still get stuck on the 405.
