Small silhouette of Doug Wolkon WELCOME TO PLURANOMICS, THE ECONOMICS OF MANY.

Mini-Stockmarkets

Our economic evolution from consumers to producers is financed by stockmarkets of diverse kinds and sizes, which emerge to rule the future of Finance, Real Estate and Economics

What Happens When Housing Supply Meets Demand

So often I am asked if I think home prices are going up or down. I remember in 2004 sitting around a big conference table with my private equity partners answering this same question (we financed large condo projects and bought raw land parcels to resell to home builders). And even with the 30%+ drop in housing prices in America from their peak in 2006, my then most unpopular answer has not changed, its still “down”. Continued »

Economic Detox

So what is an Economic Detox? Raw green vegetables consumed through a straw is the food equivalent. Think diarrhea. I know what you are thinking, “yuk”. But as Wall Street has learned the hard way, we have no choice in the matter. Our economy is detoxing whether we like it or not; dropping our excess weight in order to regain our balance; flushing our obese corporate and government costs down the toilet in support of the long-term prosperity of the quicker, lighter, faster and more profitable Mom and Pop entrepreneurs. Continued »

Waking Up to The American Dream

The American Dream once strongly stood for ideal freedom. For as a child in America, we are so fortunately nagged about what we want to be when we grow up: a fireman? an astronaut? or how about an entrepreneur? The American Dream meant career choices for everyone in America!

But somehow our freedom of choice that once so clearly encompassed the American Dream changed. Not sure when or how, but it clearly changed. For as I grew older, the American Dream became all about owning a home. What house, in what neighborhood, with how many bedrooms was all that we seemed to dream about. But then suddenly, the dream became a nightmare. Continued »

The Leadership of Money

My parents (Happy Birthday Mom!) used to always say it, “Money doesn’t solve anything”. But it never hit home more than this past week when our leaders proposed a strategy to solve this “Economic Crisis” with more borrowed money? As if borrowing $700B is the answer to all our economic problems. Print another…

Oh yes, and our leaders say it must be “invested” in reinvigorating the establishment of credit. The government itself to go on credit in order to provide the credit, so that it will eventually trickle (yes, trickle) down to provide credit for the “average” American to eat as well. What a lifestyle, with a time gun to our head saying “pay me or else” all the way through! I can’t wait to get that credit flowing again. Continued »

The Flea Market

A developer once told me that if you do a deal with someone that has fleas, your bound to get fleas. For example, Bear Stearns and AIG have fleas. I understand the fear-based argument for getting fleas, “We have no choice”. But borrowing more money to participate in the Flea Market can’t be our only choice. What if the “Free Markets” posed another choice? What if there was a much better way than borrowing more time and money just to get fleas (and these are big and scary fleas)? Continued »

It’s All About Renewable Energy

As the Fed continues to “print” more money what is the effect on the economy. Can they “print” their way out of this economic slide by lending more and more money to their friendly financial institutions? “Printing” more money against the same asset base is like an alcoholic having “just one more drink”. Such an attitude eventually leads to another and another…it is a bad idea and only works to “inflate” the existing problem. Continued »

Will Someone Please Count The Money?

So how much paper money is out there anyway. Does it matter that every time The Wizard of Oz (The Fed/government) decides to bailout a financial institution like Bear Stearns, Lehman, Fannie or Freddie, they have to print more and more money. What is behind this printing of money and how do they do it? Continued »