One Person’s Failure Can be Another’s Success


The problems the fall in the housing market, and the negative effects this fall has had on Wall Street means that interest rates for home buyers could go down. And according to Dean Graziosi this could be good for investors, but it could also be outweighed by the higher unemployment and a recession. It could also be beneficial to you as an investor, depending on how long you plan on keeping the home. If you plan on buying and keeping the property for a few years then this is the time to buy, but if you are looking for a quick turn around then you need to keep your eye on the market and see what happens next.

With the Lehman Brothers Holdings Inc Chapter 11 filing, and the Bank of America take over of Merril Lynch, investors are leery of the real estate market and of stocks opting for safer investments.

What Does all This Mean for the Financial Investor

There are actually two trains of thought that are going on with regards to the financial crisis. Essentially it’s the people that see the glass half full and those that see it half empty theory. The optimists believe that these financial crisis, and failures are a ¨cathartic event. ¨This means that companies that are weak financially will be repaired through mergers, just like the Bank of America deal and that we should be out of our financial crunch in a year or so.

The good thing is that the U.S. is willing to handle its financial mishaps right from the start, as shown in the Treasury Departments refusal to help with the Lehman buyout. It appears that policy makers don’t foresee a financial system collapse and believe the crisis will soon be over.

The less optimistic group says it may take every bit of ten years for us to come out of this financial crisis.

Dean graziosi is a member of the optimists group. Imagine, if the financial crisis lasts for a year or two, and you buy real estate property at a discount, and take advantage of the low interest rates, how much further you will be ahead of everyone else when the real estate market and the financial market come out of this slump in a year or so. You will have bought your investment property at a great price and have tremendous advantage over everyone else.

 

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