Stock Market Plunges Again: Industry Turns to Self-Storage Talk to Discuss Effects
Last week's 500-point-drop in the Dow Jones Industrial Average preceded an even bigger 635-point drop to kick off this week, with Standard & Poor's downgrade of the U.S. government's credit rating to AA status sandwiched in the middle. Naturally, everyone is worried about the economy, even those in self-storage.
I won't belabor the point, and Inside Self-Storage Editorial Director Teri Lanza did an excellent job Friday of breaking down the stock market's sudden slump into information and quotes related to self-storage, but I will say that with terms like "double-dip recession" flying out of commentators' and economists' lips, it certainly helps to have a resource at your fingertips where you can pick the brains and gauge the reaction of your peers.
Self-Storage Talk is the largest online community in the industry and official online forum of Inside Self-Storage. Currently, posters are discussing the stock market declines and the threat of another full-fledged recession on the horizon or a worsening of the current economic climate on the thread "Stock Market Down 500 Yesterday." Mel Holsinger, a forum moderator, a regular Inside Self-Storage and ISS World Expo contributor and management-company president, lays the blame of investor fears, a U.S. debt downgrade, and related struggles in self-storage squarely on elected officials: "I am angry watching this wonderful country go to such waste and see no leadership in government from the president on down through all levels of government, to seeing the corruption in government, to see the middle class shrinking and to see the number of people on government assistance of some sort now in the 40 percent range."
Member Tall Terri shared this perspective: "I don't fear 'another' recession because we haven't really come out of the first recession. Who here has done better financially for themselves since it first began? Seriously, did any of your bills lessen? Did food costs and fuel costs go up or down for you? Did your cost-of-living raise put you in a better situation ... um, did you get a cost-of-living raise? I believe what this means for the facility is more move-ins due to downsizing, evictions and abandonments. Probably more auctions for people that just walk away. Can't blame them. One can live without a couch, but you can not live without food and water. Stuff can be replaced when you need it again."
Member BobinIndy has a different view: "I guess that I'm not all that gloom and doom. We're full, just raised our rates, increased our advertising, thought about buying a local facility that went into foreclosure. Seems like in tough times, some businesses succeed and others fail. Ours is succeeding."
If you're following the economic and political news, surely you have an opinion. No need to mute it. You can share it and ask questions of industry experts, who might have some insight to share on how the maelstrom will affect you in your corner of the self-storage world. But to post, you must become one of Self-Storage Talk's 4,300+ members. It's free to join and can be done at www.selfstorage.com/register.php.
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