Getting Ready for the New Economy

MetroBoston, Publication Date September 19, 2012
By Attorney George Warshaw

Anyone who reads the events of the day, follows the economic and political news and takes a moment to assess it all, may conclude that we are in the midst of a new economic model. That new economic model can be summed up in one word: Turmoil.      

Turmoil is “a state or condition of extreme confusion, agitation, or commotion.” Merriam-Webster Dictionary. That, I believe, fairly sums up our present and future economy and the state of mind of those who manage it.

The good news for real estate is that the Federal Reserve recognized the turmoil and in a desperation measure last week agreed to pour a great deal of money into the economy to bolster it. This will keep interest rates extremely low for a long period of time to come.

But as Fed Reserve Chairman Bernanke admitted, there is not much more they can do if this last round of Fed magic doesn’t work. Since Washington politicians have abandoned common sense in order to make the opposing party and themselves look bad, there are several things one should consider: carefully manage your personal finances, cut your expenses, get rid of debt, but take advantage of opportunities in real estate when you see them. There will still be many ahead.

That’s my plan.  © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

Tags: Economy, Interest Rates, Real Estate Market, Turmoil