Tuesday, January 27, 2009
Ouch! 75,000 jobs lost in one day (but) still cheap homes in Bakersfield
It's not like any of us needs a reminder of what a mess this country is in, but a recent post by New York venture capitalist Fred Wilson puts it all in perspective. In just one day the country lost 75,000 jobs, albeit a small number by itself but staggering if you consider a few months of those days strung together. Wilson notes accurately that it may take entrepreneurs (not the government) to bail us out of this mess. He writes:
But the news that our economy lost 75,000 jobs yesterday needs some context. That's a lot of jobs for sure but how much? Well, its basically double the number of jobs the companies I've been involved with over the past two decades have created. There's a lot of talk about creative destruction and renewal and many are looking at the venture backed tech companies to lead the way in renewal and job creation. And I am among those who believe that tech-based entrepreneurship is a big part of the way out of the mess we are in. But can we in the venture business collectively replace 75,000 jobs per day? No, we can't.
Meanwhile, The Californian reports today that B-town once again ranks among the worst 10 real estate markets nationwide, with prices continuing their fall. What the paper doesn't report (and it should) is the more positive news reported here earlier that actual home sales are up significantly. Sure, prices are down but there is activity. People are getting good deals on homes and mortgage companies are beginning to come back to life. Recoveries always start somewhere and we shouldn't overlook what good news is out there.