There's More to the Housing Market Than Homes

Every discussion of "The American Dream" revolves around home ownership, although many would argue that the quest for universal home ownership contributed to our current financial crisis.

When politicians and the press talk about housing today, they invariably talk about homeowners at risk of foreclosure, and heaven knows that's an important topic, particularly for the people affected directly. But there's more to the housing market than primary residences.  Many Americans own a rental property in addition to their own home, and many investors devote a significant proportion of their portfolio to real estate holdings.  For better or worse, real estate prices depend on these people's actions too.

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Categories: Finance | Economics | Investing

0 comments - Posted by Paul Orfalea at 5:00 PM

Take Ownership

by Dean Zatkowsky, co-author of Two Billion Dollars in Nickels

Recently I addressed a Rotary Club luncheon, and began my presentation by inviting Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner to join me at the podium.

After a few seconds of silence, I said,  "Oh, they're not here yet? Well, maybe we shouldn't wait for those guys. Maybe we should figure out how to save the economy by running our businesses better..."

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Categories: Entrepreneurialism | Economics | Competitive Advantage | Optimism

14 comments - Posted by Dean Zatkowsky at 10:15 AM

Ambassadors of Capitalism

By Dean Zatkowsky, co-author of Two Billion Dollars in Nickels

Many people see our current economic crisis as an indictment of capitalism itself, but I think this is just as misguided as the idea that  "government is the problem, not the solution." That we have incompetently managed our government and our economy proves only that we have been careless and irresponsible in our stewardship of two great and noble ideas.  Capitalism and democracy remain worthy goals, and we must aspire to be worthy of them.

I've heard conservative pundits accuse academia of turning young people against capitalism, but I don't believe it.  As an old marketing guy, I'm convinced that brands are formed by experience, not sloganeering.  I agree that many young people are turned against capitalism, but not by their professors. Young people are turned against capitalism by their first experiences in the workplace.

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Categories: Corporate Culture | Management Skills | Entrepreneurialism | Economics

0 comments - Posted by Dean Zatkowsky at 9:44 AM

NEW BOOK!

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Categories: Corporate Culture | Creativity | Customer Service | Education | Nutrition | Management Skills | Disabilities | Entrepreneurialism | Finance | Economics | Ethics | Competitive Advantage | Optimism

2 comments - Posted by Paul Orfalea at 9:13 AM

Reaching Around the World to Punch Ourselves in the Nose

Buckaroo Banzai said it during brain surgery: "No, no, no, don't tug on that. You never know what it might be attached to."

The global economy is no less complex and interconnected than the human brain - maybe more so. The funny thing about American protectionist jingoism is that we do know what we're connected to, but we're adding a "Buy American" provision to the economic stimulus bill anyway. Once again, politicians have chosen symbolism over good policy.

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Categories: Finance | Economics

0 comments - Posted by Paul Orfalea at 9:40 AM

Hyperinflation and the Loch Ness Monster

Inflation has been an all-purpose bogeyman since the 1970s, but a small amount of inflation comes with a healthy, growing economy.  The Federal Reserve focuses on managing inflation, not preventing it. We have written often that we feel the government measures inflation incorrectly, since the Consumer Price Index undervalues food, healthcare and energy costs. As a result, excessive inflation builds for a while before the government acknowledges it, and comes as a surprise, despite our constant measurement and analysis.

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Categories: Finance | Economics | Investing

0 comments - Posted by Dean Zatkowsky at 5:23 PM

Fear Itself

Today, we see what Franklin Delano Roosevelt was talking about when he said, "The only thing we have to fear is fear itself."

Unemployment headlines are so big; you'd think ink companies are the only ones making any money. Politicians warn of dire consequences if their policies are not adopted immediately. Corporate CEOs meet at luxurious resorts to compare tales of economic woe. According to columnist Daniel Gross, who covered the World Economic Forum at Davos, Switzerland, "The overwhelming consensus was things are really bad and getting worse."

I disrespectfully disagree with that consensus. CEOs, press, and government officials benefit from harping on economic horrors. It sells papers, pushes bills through congress, and provides cover for past management mistakes. The rest of us benefit from taking care of business, and that should be our focus.

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Categories: Entrepreneurialism | Leadership | Economics | Competitive Advantage | Optimism

1 comments - Posted by Paul Orfalea at 10:04 AM