I have been reading news in the Sierra Vista Herald for June 6th 2008 and at a recent meeting to discuss economic issues and growth in Benson Arizona (close to where I live) This is part of what was said by Arizona Treasurer Dean Martin, who was a guest speaker at the event,
“To look at the real picture here, you should drive by a Starbucks,” Martin said. “If people are still willing to pay $4 for a cup of coffee, it’s not that bad of a recession. You really need to get worried when the Starbucks is boarded up, or if McDonald’s is boarded up, because that means people can’t even afford the 99 cents for a cup of coffee.”
The state has the highest foreclosure rate in history, and Martin said that goes to the supply-and-demand factor.
“We were the second-fastest growing state in the nation, and they built too many houses,” he said. “With so many, there is no demand.”
Martin said he expects the state housing market to hit its lowest point in November or December of this year, and will not recover fully until 2014.
“The housing market got us into this, and it’s going to be the housing market that has to get us out of it,” he said. “The bigger problem is that our housing market cannot recover until it does at the national level. Right now it’s in the crash phase, and it will not begin to recover until 2010 or 2011.”
Surely this must indicate how one invests in this area to make money????
Can anyone tell me what strategies would be best to work with given this information?