Lehigh Acres, FL

Houses in Lehigh Acres, FL are presently 80% off their peak values.  80% !.  How can this happen?  It’s an inland exurb of Fort Myers.  The only economic force fueling the economy was the boom in real estate — construction, sales, and $3 lattes.  When the bubble burst there was nothing of substance to support it.  So, if you’re a soon-to-be snowbird, make sure there’s something to support your local economy other than your Social Security check; otherwise, you’ll be a little less … secure.  Or as Gertrude Stein might have said, “Make sure there’s a little there, there.”

The image here was taken from Google map of Lehigh Acre.  Do you think Mr. Bill was trying to warn us?

(From NY Times article reprinted in Boston Globe.  Original article by Damien Cave.)

Today the Senate approved a tax credit of 10 %, up to $15,000, towards the purchase of a home.  This is an increase over current law which was written up in a previous post on first-time homebuyers credit, which covers up to $7,500.  The new credit would be available to all home-buyers (not just first-time buyers).  It’s an amendment to the overall stimulus package.  We’ll see if it makes it on through the House.

A recent proposal to stimulate the economy would pay car owners $1,500 – 4,500 to crush old, inefficient cars and buy a new one.  Let’s look at the economics and environmental impact of this initiative. Continue Reading »

Laura Crowley wrote a great article on the need to add a little elbow grease to the atmosphere of hope ushered in with the new Administration.

On a similar note, NPR recently had a story on the difference between Faith and Hope.  I think it was on the “Speaking of Faith” show, but I can’t find a link to the episode.  The message is that Faith implies the inevitability of a particular outcome (e.g. the recovery of the economy) vs. Hope means that such an outcome is possible but not certain (suggesting that it might be a good idea to work towards it).  I hope the ecoomy recovers,  and while nothing is 100% certain, I have faith that, if we all pull together, we’ll get through this.