Warren Buffet: It's never paid to bet against America...

Warren Buffet says “It’s never paid to bet against America……..

Warren Buffett was interviewed on Dateline NBC recently and described the current state of the economy as an “economic Pearl Harbor” that is not as bad as the Great Depression or World War II, but still is very significant.  The Oracle of Omaha said that fear is permeating the American psyche, “which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We’ll break out of it. It takes time.”  Buffett didn’t wish to guess when the crisis would end, but he did leave with one piece of powerful advice: “It’s never paid to bet against America…We come through things, but it’s not always a smooth ride.”

Barack Obama’s senior adviser, David Axelrod, had a message for banks: start lending or else.  Axelrod appeared on ABC’s “The Week” program on Sunday and said “I think [Obama] is going to have a strong message for the bankers. We want to see credit flowing again. We don’t want them to sit on any money that they get from taxpayers.”  Obama’s adviser hinted that the incoming President is considering establishing a government run bank that would acquire the illiquid securities that continue to plague the industry. 

 Now on to our real estate education section…

Back to Basics: The Numbers and Nothing but the Numbers

When it comes to short sale investing, it’s easy to be swept away by the tide of negativity and doomsayers. They don’t call it “herd mentality” for no reason; people have a tendency to believe there is safety in numbers. While it may be true when it comes to personal safety, nothing could be farther from the truth when it comes to investing. Unfortunately, few people have the mental stamina to go against the tide even when the numbers speak for themselves.

In retrospect, most of us should have determined the market was in a bubble and taken appropriate action to safeguard our real estate investments. So, why were the vast majority of the population taken by surprise? Simply because they expected the next guy to “know better”…after all, if everyone is doing it then it can’t be wrong- right? Wrong. Like lemmings jumping off a cliff one after another, the American public bought into the belief the market would only go up-up-up. When a correction occurred they joined the masses in surprise. On the other hand, savvy real estate investors realized a correction was in order and were ready and waiting with cash in hand to pick up one short sale bargain after another for only a fraction of the price.

So when you consider the amazing value of real estate today, its no wonder we are receiving so many calls from our investor clients looking for a great deal! More wealth is created for the few in times of economic woe, is it time for you to take action?