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    WiredBIZ Articles: Trends

    The Impact of the Housing Bubble

    By The Uknown Marketer
    Sep 2, 2006, 06:24
    E-Mail Article
    Printer Friendly Page

    That hissing sound you hear is lifestyle leaving the average North American consumer.  The party is over and the hangover is about to begin!  Reports are streaming into my mailbox about panic setting in with "house flippers" doing everything they can to get out of their over-priced, over-mortgaged property What?! You thought this was going to last forever?  Man, people are so freakin’ dumb!

     

    Since Greenie (Alan Greenspan, ex-head of the Federal Reserve) dropped the key US interest rate to 1%, the world has been awash in cheap money and the result has been the biggest bubble in history.  You thought the stock market one was big, well, this is 10 times bigger by volume. The only people saying we are in for the soft landing are real estate agents, mortgage brokers and people trapped with housing inventory.  Man, people are so freakin’ dumb!

     

    Many call it the “wealth effect” - homeowners have never seen their net worth increase on any asset in their investment history.  They have been making more on the increased "paper value" of their home than they are in their day job. Good times have arrived!  In 2005-2006, this group of new rich have taken out $700 billion and waddled down to WalMart, contributing to a 50% increase in GDP over the past number of years.  Now here is the kicker – they took it out in "variable rate mortgages" and this financing is coming due in the last half of 2006-2007, with payments set to rise 100s and even 1000s of dollars per month.  What if that were to happen to you? How could you cope with an extra $1,000 per month in payments?  Man, people are so freakin’ dumb!

     

    The stock market bubble moving on to the housing bubble will be the worst thing that could have happened to the baby boomer, x and y generations. Great portions of these groups have been left with the false impression that you don't have to work to get rich.  Easy money has arrived!  They brushed off their losses in their 401Ks and RRSPs and made it all back and more on their "real estate portfolio".  Not only that, have you seen how many burger flippers become real estate agents in the last few years.  I go to a meeting and everyone in the room sell real estate. You think there is a message here?  Man, people are so freakin’ dumb!

     

    What stands out in my mind is that people are not connected to what is happening. You start talking like this and you find yourself alone talking to the only other networker in the room.  Then it dawned on me - they don't want to get it. They want to work less for more.  It is basic human nature.  And you’ve got it by now: Man, people are so freakin’ dumb!

     

    So how does this all relate to the network marketing industry?  Well, quite a bit.  The good news is that there are going to be a lot of broke people looking for the "next big thing", and some will find their way into the network marketing industry. It will finally dawn on a few that the "easy button" is really them putting in a few years of real work on something.   I am not sure it will be any easier, but if you have stuck to the industry and built it when the grass looked greener on the other side (stocks and real estate), then you are in a great position.  Man, YOU are so freakin’ smart!

     

    Well, there you have my most recent rant.  All the trends suggest that the golden years of network marketing are just ahead of us.


    The Unknown Marketer

    Trends: Latest Headlines

  • Something New is Trying to Emerge
  • Entrepreneurs and WiredBIZ
  • The Impact of the Housing Bubble
  • Is the United States Bankrupt?
  • Where Is Network Marketing Headed? Time Line 2006
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