John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... At 7:15 a.m. today University of Denver business professor received a phone call from a former student.
“He has an undergraduate degree from the Colorado School of Mines and a MBA, and he can only find temporary work,” Von Stroh said. He has a wife and three children and he is worried about losing his home in foreclosure.
It’s hard to be optimistic when you are barely making ends meet.
Von Stroh, who today released a report showing that the vacancy rate for rental housing in the Denver area rose to 4.6 percent in the third quarter from the extremely low vacancy rate of 3.4 in the third quarter of 2008, said that confidence must return before the economy – and the real estate market – truly get back on track. The report was released on behalf of the Colorado Division of Housing.
“I think consumer confidence is the No. 1 issue,” Von Stroh said. “There is no confidence that the overall economy is turning around. As far as the long-term character of the economy, I still see things in the doldrums. There is a lot of concern about our economy making a positive shift in a positive direction. But indicators are not overwhelming in that respect.”
For example, he said he thinks the true unemployment rate , is probably closer to 18 percent than the official 10.2 percent, when you factor in people who have given up or grossly underemployed, such as his former student.
He said he thinks the efforts by Congress and the Obama Administration to stimulate the economy, such as cash-for-clunkers and the extension of the tax credits for some home buyers, help the individuals in those industries for a period of time. The stimulus dollars for things such as education and law enforcement also help a tiny fraction of the economy, he said.
“The bottom line is that whether you are a recent high school grad, a college grad, or a professional such as an architect, engineer, or lawyer, the unemployment rate is high and things are tough,” Von Stroh said. “The bottom line is that the President has said that by the end of this week he is really going to focus on job creation. He should have been thinking of that from the beginning. So far, the measures taken have not been energizing the overall private sector. Companies do not have the confidence to expand and grow.”
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
Lets face it. The crop of clowns currently inhabiting Washington D.C. don't really engender any confidence in anybody's mind, do they? The debt they're getting ready to pile on us should move us all to tar and feather them all.