Great Recession Lessons
GREAT RECESSION LESSONS
Everything old is new again!
Do you remember the hard lessons we learned following the 2008 collapse of the economy and the long multi-year slog following?
Our best hope is that the 9 – 12 months ahead will move quickly, each month covering what took years following 2008. There were (on average) 200,000 new jobs created per month; 100,000 in 2024; we are trending toward 50,000 new jobs per month in 2025. Seems a clear slowing trend.
My bet is that the uncertainty continues deep into 2026. We each need now to put in place our plan and access long term equity, to successful revive our business/career.
GOVERNMENT WILL NOT SAVE YOU
Some of us with gray hair hoped in 2008 for an RTC-type takeover of failed financial institutions and then a quick flush of properties—a la post-1986—at a discount back into the market. Didn’t happen then; unlikely to happen now. There is no money left in Washington! AND…we don’t seem to be facing the same financial collapses post 2008.
Government has never been great at stopping a recession. And what will be available to “light wet wood” when economic recovery becomes possible (at best) mid 2026?
TAKE OUT THE PAPERS AND THE TRASH
No one wants the world to know of their mistakes. It may be a GREAT time in 2026 to blame your failures on something outside of your control (e.g., recession)! Drop your distribution, fire the underperformers, sell a poor performing asset …and move on forward. The next year plus may be your time to clear out the debris of the less than wonderful parts of your business / career.
START BUILDING YOUR FUTURE
This is a great time to make new friends. Consider the unique problems others may be facing - including your competition.
At the bottom of the Great Recession, I served as the President of REISA (now ADISA), a national association of those engaged in developing and placing nontraded securities. By playing “father confessor” for many of the members – generally telling them to get off their backside and help others to recover - I have built relationships where I can call many of the members years later for help and ideas.
LANGUAGE SHIFTS
For several years into the Great Recession, a commitment for action took on new meaning. When no one knows the rules of a new game, a commitment became little more than a vague promise to try. Accept that even the best of intentions from long term business friends will be little more than whistling in the wind
BOTTOM LINE.
Start today developing your plan – and accessing the needed capital – to rebuild post Pandemic Recession. Accept that no government bailout will solve your challenges, and they may – in their attempt to be useful – actually make moving forward more difficult!
Recognize that even though you have been successful, you may have been avoiding dealing with difficult people and situations. NOW is the time to bite the bullet and fix the leaks in your operation.
Accept that a promise from others may only be a hope for action.
Overcome your fear / uncertainty by focusing on what you know best how to do and get better/faster/cheaper.
The good will survive and the best will thrive!
TAX TIP #1 – Roth Conversion
Converting from a traditional IRA to a Roth IRA allows you pay taxes due now and enjoy tax free growth – and withdrawal - going forward.
The tax is paid on the growth of what you put in the IRA. What if you could pay tax on a lower amount?
Bad stock investments give you that opportunity – your traditional IRA has less value – but how about investing in something where there will be substantial growth?
Investing in a real estate development – at the right time – gives you a smaller value in the traditional (self-directed) IRA, you convert to a Roth (at the then value of the real estate development – which drops until something starts coming out of ground) – and you pay less taxes in the conversion!
