What's On My Mind?

The annual National Association of Realtors survey has been released and maybe we can hope that the news will get some folks out of the industry so the level of professionalism increases and the income potential improves.  Interestingly, in the survey 27% of the respondents indicated a significant amount of doubt that they will stay in the business another two years.

Frankly, why would they choose to stay in an industry where the average Realtor earns $36,700 and the average age is somewhere north of mid-century?   The average income in a Realtor's first two years is a whooping $8,600 and the most experienced agents, in excess of 16 years experience, are averaging earnings of $53,900.

Then there is this statement from NAR's managing director for real estate research.  "Almost all of our members have secondary business specialties and are diversified in their income streams........some are involved in related businesses."   This is also why finding full-time Realtors is a difficult pursuit and why the level of professionalism suffers.

While I am a Realtor, and probably will receive criticism for voicing the obvious regarding levels of skill in the market; I offer the above as an explanation.  An explanation as to why you find technology taking over in real estate and the personal touch harder to come by.  Why there are specialists, whose income far exceed these averages, who create substantial companies providing a unique service.  Why if your loved one tells you they want to get into real estate you better stick this post in front of their noses and beg them to become a technologically proficient specialist and expert. 

Otherwise, you probably want to learn how the food stamp system works.

Our federal government does have experience running formerly private businesses.  Thirty eight years ago the US Government took over all passenger rail systems in our country.  The National Railroad Passenger Corporation, also known as Amtrack, gave us a lesson in how well the government utilizes business principles for running enterprizes.

One of the main issues I have with government run entities is they are not limited like the rest of the world to capital limits.  In other words, we can just run a government owned company as long as is desired by Congress and the Executive Branch, at a loss (that means our tax money) and if it is politically desirous to do so, just keep funding the entitiy.  Politicians have to run for election so they like to share with us all the reasons we should allow this to occur, national security, economic stabilization, or just simply, we expect profits in the next few years.  Anything sound familiar here?

When Amtrack was created, all of these arguments surfaced including a government forecast that the passenger rail system would be profitable in three years.  Thirty eight years later, the taxpayers original $340 million investment is now $380 billion (this means funded losses with taxpayer money)..and no end in sight.  Why?  Because too many jobs are dependent on the money-losing system.  There are no economic principles to bear..no accountability or desire to spend our money in a profitable fashion.  No, this nationalized rail system is another political tool now used to keep entrenched politicians in office.  Show the world how to run it profitably, and private entities would fight over the opportunity to purchase it fromt the governement.

This week we witnessed another Amtrack in the making.  The nationalization of General Motors (now known as Government Motors...by me) is nothing more than a bad excuse for a bad business model.  I won't even address the give-away to the unions but believe me..union members vote..big time!

President Obama now runs a company much larger than any previous community organizing efforts his career has allowed.  The federal government owns 60%, the UAW 20%, and some private bondholders the balance.  As I argued in posts last October and November, the automobile companies needed to use the bankruptcy system to restructure their business models.  Of course, that has happened but for entirely different reasons.  The restructuring is not to create a profitable company with reasonable labor costs..it is to screw over private debt holders and start down the course of creating cars that frankly, the majority of Americans are not going to buy.  That is a whole separate issue...if you drive a SUV you do it because you need it for your business or family. 

Guess what President Obama??  I have five kids...I need my Suburban!  I WILL NOT be buying any of these new effieicent cars "America needs".  Maybe when I do not have kids anymore but I kind of like my big vehicle.  I will not be surprized when other car makers (pity Ford but they have a huge opportunity here if they can stay away from the government trough) decide to offer the vehicles most American lifestyles demand.  This is what good ole American enterprise and capitalism use to be about and I believe will be about again.  It is a force much larger than this current government.  Mark my words, the people will speak again and I expect it to start very soon.

Do you really believe government can run any entity better than the private sector?  Does government have an obligation to its constituents to make prudent financial decisions?  Does this one qualify?

A local automobile dealership in Mertztown PA.  The big problem is will you buy a car from the company you now own?

One of my favorite blogs to read daily is www.businesspundit.com.  A dose of unusual can be found and Friday's post really had me amazed. The first one is almost unbelievable..the Dog-O-Matic (you will have to click through to see what I am laughing at!).  Then..if that is not wierd enough for you scroll down to the School Girl Panty Machine.  I do not even want to imagine....

Our federal government's (see...for all of my critics...I am not totally blaming this on Obama ) $1.75 trillion deficit for this year, and next year's $1.17 trillion deficit, started me on a search for perspective.  Well I found it and now I am more disturbed than when I started.

There is a decent chance Senator Bayh will actually represent his state and fight the Obama Care nationalization of our health system that appears to be the next major attack on the system of free-enterprize we used to know in the United States.  Senator Bayh surely recognizes the huge impact health care has on the once manufacturing dominant Indiana economy.  In fact, life sciences and bio-tech are two industries that are developing jobs that fit the world of the 21st century...and are happening in areas of Indiana such as Indianapolis, Lafayette, and Bloomington.

In addition, Bayh has become known as a moderate Democrat and today it almost seems shocking to think Obama actually almost placed him on the ticket as VP.  So, at a time when some reasonable opposition is needed within the majority party, a situation is percolating that could derail the voice of opposition to Obama Care.  The position of Susan Bayh, the Senator's wife, an attorney, and a director of one of the nations largest commercial administrators of health plans-WellPoint based in Indianapolis, has potentially weakened the ability of the Senator to stand up to the Obama supporters and stand out as a voice of reason.

In an editorial in yesterday's Indianapolis Star, this "Unhealthy Association" is discussed.  Two important take aways on this matter:

1. Nobody is inferring there has been any favors paid WellPoint due to Mrs. Bayh's directorship.

2. In the world today that seems to regard anybody earning more than $200,000 a year as part of the problem, needing heavy taxation and providing support for all of our other citizens, how will the fact Mrs. Bayh was paid $327,000 in compensation for her Director services last year going to play to the Obama Care crowd?

The only solution if Senator Bayh plans to represent his state and be ready to become a leading voice of reason in our federal government, is to eliminate this conflict before it grows and becomes a most likely distraction.  Mrs. Bayh needs to immediately resign her position on this Board and allow her husband to do what might become the most important thing he has ever done in public life...fight for an industry incredibly important to the stabilization and growth of his state in the midst of a recession that will certainly forever change the employment mix in Indiana.

Otherwise, the obvious conflicts will overshadow his support of the private insurance networks that are a part of the health system in America that make us the envy of populations from Europe to Canada.  Of course, any of us that are married to professional women know that you just don't go home and tell your wife she needs to give up her $327,000 job.  Hopefully, the former Indiana First Lady will see that she needs to serve a higher purpose by getting out of the way before this matter becomes a distraction.

America..the land of "American Idol" and "Housewifes of ________(fill in the blank)".  Do you prefer to watch these shows instead of reading and learning something new?  Apparently, for a significant number of people the answer is a resounding "Yes". 

The minority portion of American's who still crave knowledge from the print world, it seems to me, are better able to sort out illusion from truth.  The idea that it was on TV so it must be true does not become a viable response in the world of the literate.  The majority, absorbed in their "non" reality world are often taken in by the manipulation, so skillfully thrown their way, of the mainstream media. 

It is impossible to categorize the difference in those who are literate and those who are illiterate.  This is not a race, class, rural, urban, or faith issue.  Those groupings all have people from both sides of the literacy table.  There are 42 million American adults, 20% of whom hold high school diplomas, who can't read.  Yet the literacy that I am concerned about also involves the preferences of those who can read.  It is this portion of the technically defined, literacy class, choosing to be illiterate, that I am concerned about.

Why does this bother me?  Because a free-thinking nation, one that encourages creativity and individualism, will be increasingly hard to develop when its minds who are able, choose to be manipulated.  I challenge you to use your mind, read from all sides of different thinkers, form your own opinions, and encourage others to do the same.  While I do not consider this issue to be a political one, I do want to suggest that literacy will allow all of us to make informed decisions the next time we enter the voting booth.  Lets not automatically vote for the incumbent because his/her ads looked better during "Are You Smarter Than a Ffith Grader".  Lets not just vote for the candidates who speak the best.  Lets all make it a point to decide what we believe in by being well informed.  Then dig a little deeper and make voting the great responsibility that it is.

The greatness of our nation will be depending on us all to become much more literate. 

Does it bother anybody how much our lives are now dependent on something that we can't see?  How we take for granted everyday that we will be able to live our lives intwined with this thing called the Internet? 

Unlike the old days, if that saw did not work you could fix it.  This morning our internet is moving at a snails pace and I feel helpless.  I can't see it and all I can do is tell our IT guy who comes back with an explanation that involves packets of data being stalled on the information superhighway.

Nobody can see it, few can describe it, we just know it makes us unhappy.  We all have work to do and we just can't get out a sharpener and fix the saw.

We are dependent on that we can't see.  Actually, as I think about it, this is similar to faith.  If you are a person of faith you also are dependent on something you can't see.  We take that unseen dependence for granted. 

I doubt I will ever be able to elevate my acceptance of the internet to the same level.