Why You're Unemployed

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During the housing boom, home prices skyrocketed to valuations based mostly on imaginary money (debt, a.k.a. other people's money).

So, you had an inconsistency between the inherent value of housing assets and the listed home prices.

What happened?

Take house-flipper Joe, intent on making it rich quick BECAUSE HOME PRICES HAVE ALWAYS GONE UP YAY YAY YAY HI FIVE

  • He buys a house for $600K with no money down.
  • He starts seeing his neighbors selling their homes for over $1M months later, increasing his own home to over $1M.
  • "YAY I SO HAPPY!!!!!" Bob screams.

Housing bust happens.

  • The market values his home now at $300K.
  • Bob's running out of cash.
  • "This home was worth $1M just months ago! I won't sell unless I get a price near that!! OH YAH! WOOHOO!!!"

Bob, not realizing a speculative market valued his home at $1M, holds onto the hope that one day his home will be $1M again.

That, unfortunately, won't come in his lifetime, as the rate of return on the home returns to the single-digit increases as it had been doing before the housing bubble.

Like Joe valuing his home purchase, your customers/employers probably valued your services or products at ridiculous prices during boom times, and had cash/credit off the heezy to pay you abundantly.

But now?

They're all facing the reality that the economy ran on imaginary money, inflating prices for everybody an everything.

Overleveraged banks are currently holding onto their toxic assets thinking that one day they can sell those assets for the inflated prices that they paid for them during the housing boom; if you live in the past like those banks, you will surrender opportunities to earn $$$ by trying to charge what you had been charging during the boom.

Get business easily by surrendering the S.U.C.K. past.

Lower your prices.

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Posted on February 23

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