Kona Kohala Blog

A couple of good reports and the "experts" are saying the recession is over, let's all celebrate!  People are too impatient today and too quick to jump to conclusions on everything from fashion to economics.

It takes time, trends must continue beyond one report from the Department of Labor or one month of less than expected unemployment filings.  The least little bit of good or bad news signals a weeks worth of headlines and all the pundits come out of the wood work to chime in on the latest salvation or death knell.  Remember when journalists and newspapers reported the news?  Today, they have to make the news then comment on their creation heavy with speculation about its future.

Today's headlines are all about a huge jump in the number of sales of existing homes with a little side note that the bulk of those are multifamily homes i.e., duplexes and small apartments, up to 4 units.  Most of the people buying such existing homes are investors with the remaining properties being bought by first time home buyers cashing in on the $8,000 tax credit.  Because they are being pushed and shoved into their new homes by a giddy administration who's again called for a relaxation of the lending rules, these same people that are first time home buyers today will be first time foreclosures within the year.

Fortunately, Hawaii is somewhat buffered from such radical gyrations in the market.  The areas around Kailua Kona, Holualoa, and Kealakekua all the way up to Waikoloa, Waimea and the Hamakua Coast are dependent on tourists, second home buyers, some investors and retirees to effect the housing market.  With the great bulk of the real estate oriented population hinging on work related to the service/tourist industry, we're not going to see a recovery here until unemployment numbers start to rise.

All the other quirks, a jump in consumer spending, a bump up in industrial output, durable goods increase in production and such are just that, quirks.  None of these or any other indicator will stay positive until businesses start hiring again and that's not going to happen as long as the cost of doing business continues to rise.

If the itty-bitty brains riding on the shoulders of the powers that be would just pick up a copy of the Ronald Reagan play book they would have us out of this mess within 6 years.  It is too bad that today's politicians are so partisan.  Instead of working in the best interest of the American people, they work in the best interest of the DNC or the RNC and all too often in the best interest of themselves alone.

Remember when elected officials were public servants that meant they worked for us.  Since when do our employees get to vote themselves raises while we struggle?  Since when do our employees get better health coverage than we get?  Since when do our employees get better retirement packages than we get?  Maybe they forgot who they work for.  Maybe we forgot that we are in charge.

Just like in too many households the kids call the shots, in this country we have the employees calling the shots.  It's sad that when Americans come out in droves and tell these clowns what our concerns are, what our fears are, and what we want from them, they say we are not representative of the American people.  I, personally, am looking forward to next years elections.  I think there are going to be some very surprised politicians looking for work.  It's a good thing that they're covered for life after serving one term with retirement and health insurance because one term is all some of them are going to get.