On Tuesday evening, invited guests of the Michigan chapter of CoreNet Global had an opportunity to network, feast and listen to some interesting economic news at the Detroit branch of the US Federal Reserve.
This event brought together CEO’s, CFO’s, and real estate executives in Michigan and beyond for an evening of connecting and sharing ideas on how global and national economic conditions impact our state and local real estate market.
After an initial networking period, all guests were treated to a brief tour of the Detroit branch of the Federal Reserve by Paul Traub, business economist at the Detroit Branch of the Federal Reserve Bank of Chicago, where there was an opportunity to view millions and millions of dollars …. all behind thick glass, amongst state of the art security and with armed guards only a few yards away. Never have so many been so close to so much money that can’t be touched as experienced on a tour of this facility. Strangely exhilarating and frustrating at the same time! So while guests weren’t allowed to have free samples of the “inventory”, they were able to leave the facility with a small baggy of shredded US dollars, certainly fond memories following a “tour of the forbidden.”
After a wonderful dinner, guests had an opportunity to hear from William Strauss, Senior Economist and Economic Advisor in the Economic Research Department at the Federal Reserve Bank of Chicago. Prior to Mr. Strauss’ presentation, guests heard brief remarks from Mark Adams, chairman of the event and Bill Madias, CoreNet Global Michigan Chapter President. Those in attendance learned more about the organization and recent programs of this active local chapter.
Mr. Strauss began the presentation with good news that the economy has been in a growth mode over the last 2 ½ years, but that the recession was appropriately named the “Great Recession” as it was the longest and deepest recession since the “Great Depression” of the 1930’s. Further discussion centered on how global events, now more than ever, cast economic uncertainty and drag down a possible robust US recovery due to the interdependence of a global based economy. Examples of the “Arab Spring” and Iran’s nuclear program leading to higher oil costs were highlights of events slowing growth and economic recovery. Another example of world events negatively affecting the US economy was the earthquake and tsunami in Japan last year.
Additional comments focused on US banks’ reluctance to lend money in an uncertain economy, businesses hesitancy to hire without further assurances the economy is well on the road to recovery, a particularly stubborn unemployment rate and a housing crisis still “licking its wounds”. While the housing market is slowly improving, past unprecedented levels of delinquencies and foreclosures are still providing significant headwinds to an economy straining to gain additional momentum. Mr. Paul Traub followed up with additional information on the local economy and its prospects for a stronger recovery in the near term.
All who were involved in planning the evening deserve praise as participants commented on this first class event. The sponsors also deserve additional recognition for supporting this event, including: Oakland County Planning, Colliers International, Inc., VHM Enterprises, Inc., Dykema, and the Detroit Regional Chamber. The evening concluded without any incident of participants taking action to avail themselves of the billions and billions of dollars quietly resting on the first floor of Detroit’s version of Fort Knox.
ROBERT E. MATTLER, Associate Broker, Attorney and LEED AP BD+C, is Director of Green Brokerage at Armada Real Estate Services in West Bloomfield, Michigan. He speaks and writes about emerging green real estate issues in Michigan and elsewhere. For more information, contact Bob at Armada Real Estate (248) 855-1221; or by e-mail: bmattler@armadarealestate.com
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Author: Robert E. Mattler, Green Agent Man, representing GreeningDetroit.com