More From Eric Dixon at

Support Independent Investigations With Bitcoin:
Send Bitcoin Here: 171GMeYRD7CaY6tkXs8dSTjLbAtFazxhVL

Top 50 Twitter Rank of Worldwide Startup Advisors For Much of 2014
. Go to my professional site for solutions to your legal, business and strategic problems. The only lawyer who is a co-inventor of multiple, allowed-for-grant patents on blockchain technology!!! Blockchain and Digital Currency Protocol Development --
Top Strategic Judgment -- When You Need A Fixer -- Explore Information Protection and Cryptographic Security -- MUST-WIN: JUST DON'T LOSE -- SURVIVE!: Under Investigation? Being Sued? Handling Extreme Stress -- Corporate Issues -- Startup Issues -- Investor Issues -- Contracts To Meet Your Needs -- Opposition Research -- Intellectual Property, Media and Reputation Issues -- Independent, top-notch legal, strategic and personal advice -- Extensive ghostwriting, speechwriting, book writing, issue research, press and crisis management services. Listed by American Bar Association's Law Bloggers (Blawgers). Contact European Union audiences: This site uses a third party site administrator which may use cookies but this site is intended for AMERICAN clients and prospective clients only!

Tuesday, January 19, 2010

Don't Believe the Hype: The Real Estate Market Is Not Healthy

The real estate market is not healthy.   The excesses and sheer stupidity of some investing decisions have yet to be worked out.   The New York Times will have a prominent story in its Tuesday, January 19th edition, Metro section: click here
Analyzing the housing market is like doing triage on a patient.   Here is my take:  The patient may not be bleeding as badly as before, but he is still bleeding to death, simply not as quickly as before.   Unless the bleeding is arrested and the patient stabilized and able to recover, there is no recovery, only a slow march towards death.   This is the same situation facing countless small businesses and homeowners.   While there may be "improvement" according to certain economic indicators (take your pick), that improvement is often measured against some ghastly late-2008 / first quarter-2009 numbers.   The parachute may have opened on the economy, but the patient is still failing and is going to hit the ground.  
By the way, the Times' story detailing the sad conditions at an investor-owned apartment building in The Bronx illustrate the dangers of the moral hazard.   A bailout here will not help any of these tenants.  It will help the absentee investors, who have virtually no incentive to plow a penny back into the building.  The tenants will only be helped when someone comes in (either a government agency or government sanctioned private-public special entity to help manage the building, in the equvalent of a trustee/custodian relationship) and is able to repair, renovate and maintain the building in the proper condition.   The proper balance of incentives to the investors, lenders and tenants must be struck.  
Eric Dixon is the author of the Crime, Politics and Policy blog and also practices law in New York and New Jersey.   Mr. Dixon has substantial experience in serious, high-level negotiations in business and commercial matters.   Mr. Dixon also takes a real-world, practical approach to these situations in his practice.   Mr. Dixon is available for consultation and is reachable most of the time at 917-696-2442.

No comments:

Post a Comment