No man is an island…

July 6th, 2011 by admin

While many believe the housing market may see a pickup in prices this summer, Shiller is concerned about the long-term path the sector is taking. Among many of the items impacting markets are issues that many may seem remote… yet their impact looms large on the recovery.

For example the economic crisis faced in Greece, a country the same size of the state of Alabama in terms of area with a population and in terms of population smaller than that of Metro Los Angeles area (compared to other nations Greece is number 73 based on population), has the potential of disastrous impact on the entire world economy… first to the European Union but then spreading to other nations including the U.S and China.

Here in the U.S. (much as happened with Japan’s failed efforts to ease their economic crisis of the 90’s), in our efforts to avoid/lessen the pain of the economic crisis…the Federal Reserve has pumped hundreds of billions into the economy in order to spur more robust economic growth, while interest rates stand near zero. However, all the loose monetary policy in the world won’t help if consumer demand just isn’t there.

"When the demand isn’t there, you can lower interest rates all the way to zero and people are still not willing to spend — that’s where we are right now," Shiller says.

Closer to home, we must be concerned about the actions of individuals electing to do Strategic Walk-Away’s (those allowing their homes to go into foreclosure when in fact they are able to make their mortgage payments) as a means of protecting themselves from the reality of negativity equity caused by the current economic down-turn while individually contributing to a deepening of the housing crisis.

Truly “no man is an island”. Understand this or better yet remember it often, as you go about your daily business. Act in a way that honors the impact we have on the world around us, with a sense of fairness, justice and compassion, with an attitude and actions that leave a trail of integrity and happiness in your wake with ripples of joy as you pass through the lives of others. Be aware that we may be like ships passing as in the night, but even so, we all are sailing upon the same sea, each one of us, perhaps unknowingly, affecting the journey of the other. Or as my wife loves to say: Do right, karma is real… What goes around comes around.

May the market be with you.