“We’re All Communists Now!”
September 19, 2008
I have to say that I love Mad Money’s Jim Cramer. I love someone who is willing to absolutely speak what’s on their mind and not have to be beholden to anyone.
Cramer has been wrong, but fortunately for his clients he has been right a lot more than he has been wrong. At the end of the day I want to work with people who I can get the strait scoop from and know what they are talking about.
Cramer recently took the banking leaders in this country to task and, in my opinion, correctly pointed out that the federal government’s intervention and prevention of the collapse of American International Group (AIG) represents an acceptance of socialist, Marxist philosophies.
“They never made the real calls, they never made the tough decisions,” CNBC “Mad Money” host Jim Cramer said of national financial leaders yesterday on MSNBC’s “Morning Joe”.“Their ideology was such they believed everyone should own a home including people who were deadbeats and had no right to own a home. They were anti-regulation. Now we have spent $900 billion bailing out these institutions and in a twist on what Nixon once said ….after the seizure last night of AIG and Fannie Mae…we’re all communists now.”
It’s not that the bailouts weren’t necessary. I think most of us unfortunately agree that it had to happen. However it is still the point that government intervention into the private sector is a socialist action. As Cramer had stated the day before, had the bailouts not taken place, there was a great chance that the markets would have frozen and not opened if AIG wasn’t bailed out. That would have been absolute financial chaos.
MSNBC host, Mark Haines underscored Cramer’s sentiment and went even further in actually making the call that we are already in a state of Socialism.
“Well, everyone’s in favor of a free market until it doesn’t work to their advantage,” Haines said. “And then, they’re in favor of socialism and that’s where we are right now – that’s where we are right now.”
The free market has failed in recent days and notably as it regards AIG. As banks became even more nervous, we are at a point where they may have stopped lending to each other altogether without some reasonable expectation of being paid back. In fact the term guarantee has replaced reasonable.
While philosophically we all can go back and forth as to what should have happened and lay blame on a number of people, the fact of the matter is we are now where we are. Government intervention on a philosophical level irks and scares many. Yet, in this instance government intervention was an absolute necessity.
You know how when you were in college and you really did not want to ask mom and dad for any money, because you knew what strings came clutching with your request, but you just couldn’t eat one more burrito from 7-Eleven?
Well Mom and Dad (Paulson and Bernanke) are in place with coffers open to help, but the help alone won’t fix the situation.
The long-time CNBC anchor admitted the government intervention was ill-conceived on a philosophical level, but it was a necessity – even though it didn’t remedy the problem.
“Nobody really likes this on a philosophical basis, but we live in a real world and we can’t, can’t dither with philosophy when such serious matters are at stake,” Haines added. “So – I’m of the opinion this doesn’t really fix anything – it’s just another Band-Aid.”
So how does this affect the real estate industry? Well, I think that the posers need to step aside and let those who want to roll up their sleeves and actually work get in the trenches and make something happen.
Put Lawrence Yun in a closet somewhere, tell Dick Garfield and the NAR to stop running silly stupid commercials, and let those Realtors who actually are trained professionals get out there and do some business to bring back the housing sector.
I’m a real estate agent. I represent buyers who want to purchase a home. If my buyers can’t find the money to buy a home I am basically out of business. So while I abhor governmental intervention, I understand the necessity in this instance.
With the thin air of breathing room afforded us all in this business, I think it’s time for true professionals to step up and and generate some business. So what should we all look to do? Here’s a couple of immediate steps that we as agents can do:
1. Retire, Quit, Step Aside: Ok, I’ll say it…the time for the Mary Kay, Tupperware real estate agent is done. This economic climate requires true professionals to expertly assess market conditions and be HONEST with their clients. I know it’s tough for some but maybe the NAR can spend some money auditing listings. It will never happen but it’s a nice thought.
2. Stop Faking It!: If you don’t know how to really do a real estate short sale stop lying to clients, cancel your listing and refer them to someone who actually does. I venture to say that 90% of agents have no clue as to how to execute a short sale but would die before they step aside. People can’t you see what’s going on in the financial markets??? These banks are DESPERATE. Don’t let anyone tell you otherwise. One of the reasons you are having so much trouble in your short sales is becasue you don’t understand simple banking jargon and procedural operations. Stop making flowery BPO’s becasue you hope to get listings. Be financial analysts. Learn how money markets work and their relation to non-performing assets. Learn how to perform a regression analysis and how it applies to the bank’s expected loss severity rate. Cultivate buyers who are prepared, ready and financially capable of actually closing on a transaction. This stuff sound over your head? Then go deliver pizzas! You’re not a professional.
3. Bail On Ridiculous Listings: Unless you need the practice then why would you take a listing you know won’t sell. You’re supposed to be a professional. If I go to a doctor and I tell him I have been coughing and sneezing he doesn’t prescribe Viagra. You are grossly misdiagnosing your client’s needs for your own benefit. Shame on you! You are actually adding to the financial crisis by listing properties that won’t sell or at prices that are absurd. Time and time again we talk about the law of supply and demand and it falls upon the deaf ears of too many realtors. Hey stupid! Wake up…quit using yard signs to promote yourself on a listing you know won’t sell. It’s not like you plan on answering the phone anyway! Where’s that NAR audit when it’s really needed.
4. Stop Holding Hands And Singing Kumbaya: Sometimes I actually feel that I am in a cult. No one wants to call anybody out. No one wants to be seen as that agent who singles out people. Where is the oversight in this industry? Code of Ethics? It’s a joke. Why don’t you brokers out there monitor your business? If you have subpar, non-expert agents in your stable give them the boot! To hell with the loss of desk fees. i am sure there’s another sucker for you to pimp out somewhere. This industry is rotten from the inside out from top to bottom. It is amazing so many ignore the data and survey that is culled from the minds of consumers. If someone in our office isn’t pulling their weight or working in the best interests of the client then good bye! It’s not that hard to do. Surround yourself with people who want to succeed. Give me 5 determined and EDUCATED agents and we will take over any market.
5. Realize That Socialism Sucks! I don’t want to be “taken care of”. I don’t want to be bailed out! I don’t want to have any agency providing me with my ability to sustain business. If you do, then vote for Obama, get in the welfare line, take your food stamps and stop pretending to be a real estate professional.Cramer said that he thinks we dangerously stepped into a Socialist state with the bailout of these financial behemoths who lost their way. I think Socialism has been taking hold of the real estate industry for quite some time.
Everyone should not be allowed to be a real estate agent or call themselves a real estate professional. No, we are all not professionals. No, we are not all created equal and regardless of what shade of lipstick you choose to wear, some pigs are indeed more equal than others.
A socialist mindset makes me sick and the fact that Cramer may be somewhat right that we all may be communists now does not mean we have to stay that way.
About the Author:
Robin Sing-Cunningham, is a real estate agent serving Fort Lauderdale and Broward County, Florida. Robin specializes in distressed and bank owned properties in the Fort Lauderdale real estate area.
Robin began her blog recently after over seven years in the real estate business. She brings a unique perspective to her writing as she has worked on the building and development side of the business and has worked extensively with investors on the foreclosure side of the business.
Robin is an avid sport fishing enthusiast and when not selling real estate can usually be found off the coast of Fort Lauderdale looking for that next big game fish.
She's also the wife of one of the hosts of the #1 real estate related talk radio show in America Real Estate Radio USA and occasionally makes appearances on the show to talk about Fort Lauderdale real estate and to lend her perspective on the industry.
You can contact Robin at 954-709-7461 or visit the Fort Lauderdale Real Estate Blog. You can also email Robin at robins@robinashley.com
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