Letting go

Pundits say that the U.S. economy appears to be coming apart at the seams. Consumer confidence likewise slumped in August to the lowest level since the recession, raising the risk that spending will dry up. The US, at this point, is bracing for its “worst decade.” The US has been the country’s largest export market ever since and ranks among the biggest contributors in terms of foreign direct investments almost every year.   

As it seems, our economy has anchored its roots in the US economy that every time it has an indigestion we end up dehydrated of diarrhea. So when will this over-dependence cease? Are we to end up this way for good? Since the time of the American colonial era and up to the present, we have entrusted our “economic life” to a system that we cannot let go — an umbilical cord that we hold dear as if the life of this nation would cease to exist the moment we cut it.

The Great Depression, the Sub-Prime Recession and the US Debt Crisis, should serve as a point of reflection that as great as the United States, it is not immune to economic shakedowns. Thus, putting our eggs in one basket would definitely endanger all the other eggs if we refuse to learn from history.

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And speaking of history, it is admirable to note that the export sector has finally learned its lessons. Last week, exporters seem to be unfazed of the US crisis. PhilExport president and chief executive officer (CEO) Sergio Ortiz-Luiz Jr. said that after the recession, exports have developed strong connection with other major markets. As reported in this paper, “the latest figure showed that the country’s exports to US went down from 34 percent to 12 percent. Surprisingly, he said the June 2011 data showed that Japan is now the number one export market of the Philippines, followed closely by US and China.”

Real estate is also brisk in the country and I think OFWs should consider putting up their own business than drudge half their life to work for others. Filipinos have very good business sense and are more prudent than before when it comes to money matters.  

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I read an email recently asking for a real estate forecast on properties at the North Reclamation Area (NRA). I was candid to say that I am not an expert on real estate speculation but was honest enough to give him my thoughts on the future of properties in the area in which I said, owners are having second thoughts selling their lands (even with a deluge of informal settlers in the area) for the simple reason that NRA is likely to become another condominium hub which would soon compete the more expensive condos in Ayala Business Park.

My source tells me that one developer has already taken the cudgels to lead the construction of a midscale condominium serving the yuppies and real estate speculators markets. The project is said to be finished sometime in 2013. As soon as the construction kicks off early next year, several Chinese businessmen are likely to follow suit. And if you’re considering buying a property in the area, sellers would definitely want to make sure that the offer is juicy and tempting enough for the owners to give them up.

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For those brokers who emailed to me on how to go about the proposed Real Estate Agency Protection (REAP) Law, I will try to come up in the next issue the salient points the law should have for better appreciation. And to keep you posted of these developments, I will create a another twitter account for this so you can directly react on the post for better discussion.   

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