When I was at Heidelberg college I took economics. My professor at the time seemed like he was one hundred years old, but for an eighteen year old, anyone over thirty seemed ancient, so I am guessing he was in his sixties. I am also guessing that he was in the early stages of dementia as for the entire semester, he gave the same lecture, every class ,every day .He would ask -“doe’s anyone know what is meant by the Keynes theory of economics”? Of course we were college kids in the 70″s -so of course no one knew ,or would admit to it So he would then in great detail explain The law of supply and demand. Every day we would get a different reading assignment, but the next day in class He would ask would someone explain The Keynes theory of economics-Silence- Then he would go on- The Keynes Theory of economics is the law of supply and demand blah blah blah.Well one thing I must say of that class is that I got that theory down pat.
In today’s market the supply of homes is disproportionate to the number of ready willing and able buyers, largely because of the tightening up of credit, and the drop in disposable income because of petroleum prices. The currency exchange rate is like the rest of the economy. It responds to supply and demand. The treasury department was intentionally keeping
the value of the dollar low in order to encourage exports. And keeping rates low while Housing values soared in the late 1990’s to 2005 Then when the rates were raised some substandard loans became problems,as the interest rates jumped and the varible payment instantly became un affordable economy has grown at a record pace. Unemployment is at a record low. IRS. Receipts are up as a result of the tax cuts, rather than down and the deficit is shrinking. Some three percent of substandard mortgages are in trouble, which of course, indicates that the great majority is not in trouble.
I am blessed to be in Real Estate in Florida.The boomers are coming, we have the weather, we have the Mouse, we have the warm white sandy beaches.We must all work harder, smarter,and work on perfecting our performance.Competancy in all aspects and all levels.Helping people, then its fun again.