Monday, June 13, 2011

An Industry in Flames!

In the next 12 months, more contractors will go bust trying to wait out the economy, all while an inept President tells us he is creating jobs and  that the economy is well on its way to recovery.

With an economy that is in shambles, with millions of homeowners stuck in homes worth less than they owe in their mortgages, with the value of the dollar plummeting, with trillions of dollars spent and wasted by an uncaring Democratic controlled Congress in cahoots with its socialist President, and an unemployment rate that is double what a lawless administration is telling us. Things are not good!

In no uncertain terms, we are in an Industry that is engulfed in flames.

Just in housing alone, total housing construction over the previous decade now barely exceeds the lowest level of any ten-year period in records dating back to 1974.

Americans who worked hard, did the right thing, have seen the value of their homes fall through the floor, and their equity lost.

Without the rapid deployment of the housing inventory, things will be dismal for years to come. Even with the all wonderful supposedly going to make things better 2010 home buyers tax credit, we are left with the stubborn stench of no work.

Public work and commercial work isn't any better.

Which brings us to jobs. You can't have a recovering economy when so many are without jobs. You need JOBS to turn-around this economy.

And, let's talk about the so-called millions of jobs this alleged administration says it created.

It's pretty pathetic when ONLY 83,000 new jobs are created and 50,000 of those jobs were created by McDonald's. What does that tell you?

The real unemployment rate is around 18 million. If you consider the owners of small businesses who are unable to take a paycheck, it could be 25 million. Which means that even common sense or the Occam Razor dictates that the alledged jobs the Administration claims it created are fake and phony. Even with 500,000 new jobs a month, it will take three to four years to get everyone back to work.

The so-called shovel ready construction jobs that the stimulus was supposed to create, ended up being non-shovel ready. Another bust for a President who hasn't a clue what makes the economy work. However, that hasn't stopped him from joking about it. Rather pathetic if you ask me. Millions of Americans out of work, finacially strapped, and struggling to get through their day, and he jokes about it.

Mr. President, you can't cut off the two legs of the economy at the knees, and expect things to go well. Unless, you don't want it to go well. Raises an interesting question, doesn't it?

Anyways, about the two legs of the economy.

Those two legs are the manufacturing industry and the construction industry. They are the Achille's Heels of the economy. They employ the majority of people.  It’s the businesses that innovate and produce goods that consumers value that make America’s economic engine run. That means NO GOVERNMENT!

Never mind giving millions and billions of tax payer's money to companies that go broke or use it to create jobs in China.

Never mind "GREEN JOBS." Green jobs are a hoax. Green is too expensive and if no one has the money, they can't afford to go green. Green is dead on arrival. Just like the Chey Volt, it has its problems, one too many to be truthful. This clown just doesn't get it. People buy what people want, not what you want to force upon them!

Never mind pandering to the unions. I was a union contractor and I never found a union that GAVE a worker a job. Every week, it was I who signed their paychecks, took the risks and got the work. I've negotiated seven union contracts in my career, and all I ever heard from the Union side of the table was: "You've got to give us something to take back to our members, or I'll lose my next election."  It's time to eliminate the unions, especially from the public sector. They want too much for too little, and they're destroying the free market with their demands, and lack of productivity.

Never mind blaming Bush. Mr. President, man-up, you own this mess, and you created it with your socialist policies, rules, and regulations.

Never mind black balling the banker's, they're only human. They didn't cause the housing bubble to bust. Jimmy Carter, Bill Clinton, Barney Frank and Chris Dodd orchestrated that debacle.

Jimmy Carter started the fall with the Community Reinvestment Act, forcing banks to lend to uncreditworthy borrowers, mostly in minority areas.

Instead "common sense," age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations, requiring banks not only to lend to uncreditworthy borrowers, but to do so based on race.

These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. Thank you Bill Clinton.

Lenders who refused to would find themselves castigated publicly as racists. Federal bank regulators scrutinized financial firms' books to make sure they were in compliance.

It was economic cannibalism

By the name of diversity, banks began making huge numbers of loans that they previously would not have. They opened branches in poor areas to lift their CRA ratings.

Meanwhile, Congress gave Fannie and Freddie the go-ahead to finance it all by buying loans from banks, then repackaging and securitizing them for resale on the open market. Thank you Barney Frank.

That's how the downfall began.

With those changes, the sub prime market took off. From a mere $35 billion in loans in 1994, it soared to $1 trillion by 2008!

We have no one to blame but the liberals!

Once government institutes such economically destructive laws in perpetuity, the destructive snowballing begins. Big government, Keynesian economics, liberalism and socialism do not work. Never have and never will.

Ironically, it was President Bush in 2003 who tried desperately to stop Fannie Mae and Freddie Mac from metastasizing into the problem they have since become. Today, Fannie Mae and Freddie Mac hold the taxpayers liable for over $20 Trillion in loans.

To make matters worse, it wasn't the Banking Industry that got hurt by all of this perverted regulation, they got a bailout, it was the Construction Industry ... you and me!

To turn this economy around, we the people need to take action!

  1. We need to elect responsible people who are not afraid to make the tough decisions, willing to balance a budget, tackle entitlements and deal with  the deficit. We do not have a revenue problem in this country. We have a government SPENDING problem!
  2. We need to flush the liberal agenda down the toilet and get rid of it forever! That means not only in our political representatives but also in our school system.
  3. We need term limits with a descriptive authoritive as to what they can and can't do. No more career politicians who vote themselves a big raise and huge entitlements. It's the people's money and we should decide, not them!
  4. We need to eliminate the Seventeenth Amendment. State senators need to be determined by their state legislatures and the State should pay their wages and expenses. Why not? They represent the state's best interests.
  5. We need to make English the ONLY official American language. Can't speak it? Learn it like our forefathers did. Otherwise, stop discriminating against us Americans, who speak other languages!
  6. We need smaller government and less regulation. Give back the State's Rights.
  7. We need to protect our borders and face the truth. Illegal means ILLEGAL!
  8. We need a plan from a strong President, whom WILL turn this country around. No more talk, no more lies, no more false hope or changes, and no more rhetoric!
  9. We need a plan to turn the housing market around. Sensible loan procedures, the fazing out of Fannie Mae and Freddie Mac. No more bail outs for anyone. Run your banking business like a business or silently go out of business, just like we have to do!
  10. We need to STOP pitting one American against another. Eliminate the Progressive Tax Rate and the IRS. A 65,000 page Tax Code? Give me a break. Institute a flat tax with no loopholes for personal or business. It is way past the time that big companies like GE start paying their fair share of taxes!!!
  11. We need to re-think entitlements. Unfortunately, no one likes to talk about entitlements. Furthermore, unfortunately, they are taking this country down the tubes. I'm not saying eliminate them all, there are some needs that need to be addressed, but it should be done at the State level.
  12. We need to eliminate ObamaCare. I don't know about you, but any program that has to have so many waivers, can't be good. Any program that "GUTS" Medicare by $500 Billion can't be worth the paper it is written on. Yet, they continue to lie telling us it's the other plan that will hurt Grandma. Honestly, for me, the Federal goverment should not be in the business of health, education, welfare, retirement, agriculture, housing, and food stamps. Did I miss anything?
  13. We need a Congressional Rule that says if you can't write a pending bill on less than four pages, we don't need it. No more of we have to pass it to find out what's in it!
  14. We need to stop pandering and throwing taxpayer's money to foreign countries that do not have our best interests at heart.
  15. Eliminate the Fed and its printing policies. QE 2 went to prop up foreign banks!

The truth is this, the Democratic Congress and their President gave away $5 trillion in taxpayer's money that they wasted (actually gave it back to themselves through their political cronies) and added to our deficit, the greatest spending spree in the history of the country. Had they given it to each and every taxpayer instead, they would have enriched the economy by $450,000 per taxpayer. Now that would have stimulated the economy!

Meanwhile, what about you and your construction business?

The reality is that your business strategy must change, or you run the risk of going out of business. It really is that simple. Everything around you is changing, either you and your business change, or you will be left behind.

Things will not go back to the way they were four or five years ago. Things are still doing. Money is conversly being spent, there are even at the same time some customers, but not as many and a different customer than you had before. You can't wait for your phone to ring!

Doing nothing right now is the worst business strategy to adopt. Face it, the economy has changed—not for better but for the worse. There is no recovery, never has been, that is a lie. Things may even get worse. However, things can change. A recovery is in our future, maybe after the election, and things can change quickly. Never let your trust in the American spirit to bounce back leave you.

Meanwhile . . .

Don't sit back, don't wait for that next job to come to you, get out and find it for yourself. You can do it!

The lack of action by many in the contracting community ensures that a business death for those not adapting is a certainty. I don't want it to be you.

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