The 2007 USA Realty Meltdown

My colleague Brother Paul and I saw the handwriting on the wall long before now and knew we were heading into a disaster 2007 and beyond. We knew there would be foreclosure after foreclosure across the USA. Our prediction and offer to help people to prepare for this fell on deaf ears of people that refused to see 2007 Realty Meltdown! We offered an inexpensive program called Assets Generating System that if people had begun to follow they would at least be able to have $ to negotiate with their bankers. Now many of those people will be living with relatives and friends; in low income housing or worst in their cars!

So how do I know this to be true? I'm a former consumer investigative reporter for Post Newsweek TV that also studied a great deal of economics in college. Ever heard of the immutable law of supply and demand? When there is NO demand for overpriced houses there are few sales!

So how did this happen? I think a great deal of it has to do with "conspicuous consumption" that was discussed by a Wisconsin born economist and sociologist. You see Thorstein Veblen was writing about "conspicuous consumption" in the late 19th and early 20th century. He found that people were not consuming just to survive but to do as we do today: impress others with our wealth.

I also have a Masters Degree in Advertising & Public REALations as I like to call it. I was trained by some of the best copywriters in the world on how to write to make anybody buy anything. I was shown how to conduct consumer research and push people's hot buttons. I worked on real campaigns for real companies. I decided to take the Public Relations route to fame and fortune. I was trained how to make companies look good. However I decided not to take the dream job at Playboy in Chicago because I did not like cold weather and also because I did not want to play games in the corporate world.

Instead I put out my shingle back in my hometown of Jacksonville, Florida and began to work with small business owners and entrepreneurs like my Mom who was one of the city's top interior designers.

However remember I was trained by the best from New York, Chicago and around the world. So let me give you a reality check about Advertising and Public Relations as it is practiced by the big boys and girls.

First we learn how to do research. We worked on new products that were being considered for your shelves. We learned how to conduct focus groups among the students on campus. As you have guessed we were researching products that would be used by our fellow students. We had taste tests for a brand new pop wine which was the rage in the early 1970s. No different today in advertising and marketing classes across the country.

I look at some of the ads and commercials today and scratch my head. Why? Because they are not targeted to me! They are targeted to the very same young people who want so desperately be a part of the American Dream. The real estate and home buying ads and commercials are not targeted to my age group - seniors. NO, they are targeted to the young mid 20s to early 30s who are pulling in decent money - $75,000 upwards.

Also many of these same young people grew up living in apartments as "latch key" kids with no white picket fences and backyards. Many of them are minorities who wanted better for themselves and their families. Nothing wrong with that either. I'm all for pursuing the American Dream.

Sensibly! "Conspicuous consumption" is not the sensible route especially when it comes to buying one of the largest purchases you will ever make - a house.

Many of this generation of buyers were what we called - "dinks" in the ad world - "double income/no kids." Therefore now you have a couple who pool their incomes and we are now looking at a household that is earning $125,000 upwards.

Are you getting the picture of what happened?

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2007 Realty Meltdown
What caused the meltdown and what I see will happen in the future.