2012 Talking Points – Uncertainty Persists
Serious questions remain as to whether the economic recovery is really gaining traction. The following is a list of key issues that are likely to impact any real estate recovery.
- G-20 Meeting in Mexico – Finance ministers and central bankers from around the world met in Mexico to discuss issues facing the world’s largest economies. There was strong agreement that nations would be willing to provide additional liquidity to help financial markets avoid a credit squeeze.
- Greece – Results of a national election proved mixed with neither party gaining a majority position. The good news was that both sides made assurances that they would work towards keeping Greece in the EU. If Greece chooses to leave, the decision would have serious impact on world economies despite the above described G-20 members’ assurances.
- Spain – Financial markets in Spain continue to struggle with problems. The Eurozone agreed to lend $125 Billion to Spain’s financial markets, at a rate of less than 2%. The banks then, loaned the money to the Spanish government at 7%. The 5% difference stabilizes the financial market at the expense of the Spanish people.
- US Economy
- Retail sales declined for the second month.
- Manufacturing rose by .1% – not enough to spur recovery.
- At their open market this week, expectations rose that the Fed would provide more stimulus money. The news helped stock markets, commodities and currencies improve this last week.
Use the talking points discussed above to spark conversations with your potential buyers, sellers and at social gatherings.