Only the number of times Obama has told us after three and a half years of his economic policies in place that the bad economy is Bushes fault surpasses the number of times the pundits have told us that the housing market has hit bottom and is recovering.
They’ve told us every time housing reports are released. If you’re one of those people who believe Obama, that there is a recovery, or these pundits about housing, you don’t need read any further. Facts are apparently unable to penetrate your skull.
The uncertainty on the constitutionality of Obamacare has been settled for now, but uncertainty does not go away. There is a chance the Republicans win the White House, both branches of congress, and actually repeal the leviathan.
Here’s a prediction. If Republicans gain control and repeal Obamacare the uncertainty shifts to what will replace Obamacare. Whatever that is, it has to be better than Obamacare, but it may not be good. Compromise is not taking two bad ideas to formulate a hybrid bad idea.
What’s the difference between a big government Democrat and a big government Republican? There is none. Hence the uncertainty remains.
If the Republicans win and fail to repeal Obamacare then they just signed a death sentence for the Republican Party. Overnight the Green Party would have more members.
What if Obama wins and Obamacare can’t be repealed? Then the inevitable economic disaster brought on by liberal economic policies will move into overdrive. It was already fiscally impossible for a return to prosperity with Obama’s anti-business, anti-capitalist, anti-fossil fuel, pro-crony capitalist, pro fairy tale green economy, tax and spend policies.
How will this impact the housing market? Simple economics. Obama proposes doing the same things over and over expecting different results. Central planning, government picking winners and losers, more spending, more debt, higher taxes. Everything he implemented his first term which resulted in the worst jobs market and unemployment since the Great Depression.
Approximately 28% of all home sales have been to investors snapping up foreclosures and short sales. The remainder of the activity has been predicated upon pent up demand sparked by Bernanke’s insane interest rate policy.
When that pent up demand is satisfied where will the demand for homes be created? Jobs? Sorry, Obamacare is one of the biggest job killers since it passed, just wait until it is fully implemented.
It’s true that the home builder’s on Wall Street stocks are rising because their home sales are rising, however they constitute such a small sliver of the home building industry that may lead you to a false conclusion.