“A Fragile Economy With High Unemployment And Uncertainty
Will Be More Of A Future Problem Than The BP Oil Spill.”
Al Cheney’s Comments and Opinions for 29 August 2010.
As a local, born and raised in the Mobile Bay Metro Area, I am sincerely happy that the bubbling crude has finally been capped after 90 days-after 90 days! It is worth repeating since this horrific ecological and environmental disaster should have never lasted this long if it wasn’t for the many faux pas by BP Oil and our own government. They say, the majority of the surface oil has dissipated and now can’t be found. Oh, really? The “on the surface” crude problem is only hiding in the depths of the sea-harming crustaceans, oysters and other seafood for years to come.
And, yes! I do realize that biological organisms will thrive on the raw crude and eventually remove it as a major threat but, this will take a very long time. The damage has already been done and its true damage is still hidden in the depths of the sea. Enormous amounts of crude, damaging dispersants, oil soaked wetlands and sea bottoms are here to stay for decades. A possible ecological disaster lurks beneath the sea and within the wetlands for years to come.
Furthermore, the inappropriate government overreach in shutting down oil rigs (overdramatic and very political), media sensationalism damaging our Gulf Coast tourism, and an already weaken real estate industry has created more negative affects upon Alabama and the other States along the Gulf Coast. Honestly, at this time, the affects of any significant real estate recovery and tourism is unknown.
The fact is that, a fragile economy and a weakened real estate industry have been further exacerbated by the crude ecological and environmental disaster, and the crude politics of Washington. And, our tourism for this year has been damaged by irresponsible journalism media. Even so, the coastline of the Gulf States and its real estate will overcome this adversity and will eventually be less affected by the BP oil spill and the many missteps of Washington. The media needs to practice more responsible journalism and avoid the traps of sensationalism. Sensationalism is not journalism!
Well, our coastal properties along the beaches as well as other properties with gulf views and close to water tributaries will eventually improve over time. For now, the recent past spreading of crude through the Gulf of Mexico has resulted in a deeper real estate market slowdown affecting property values near and along the Gulf Coast. Whether legitimate, or not, many homes located well off water tributaries have also been affected to some degree. It is a real estate market slowdown caused by a fragile economy and the worse oil spill known in North America.
From my standpoint, the negative value affects for homes located off the beaches and the Gulf of Mexico should be negligible as time leads us into the future. Then, when looking back in time, I believe, this catastrophe will reflect “a blip on the radar screen” when focusing only on the 90-day oil spill disaster. Then, there could be the possibility of a more normal level and slight positive return of property values; if a more normal level can be equated with a fragile economy under severe stress.
The fragile economy with high unemployment (9.5% but does not include the people who have given up) and uncertainty will be much more of a future problem for Gulf Coast property values than the BP oil spill. As time leads us into the end of 2010 and into the beginning of 2011, an even more fragile economy and real estate industry might be the result when continuing to implement recessive programs and tactics by the government while banks, entrepreneurs and small businesses mostly sit on the sidelines, “digging in their heels” or “going out of business” sales. Only deregulation and lowering taxes, the cessation of large government spending, small business incentives (get the oil riggers, shrimpers and other parts of the Gulf Coast seafood industry back to work) as well as “just plain honest positive talk” from the current Administration and our government representatives (most of them forget that they work for us) will improve the real estate industry-part of the backbone of America!