The formula for forecasting home sales used to include four key components; supply, demand, interest rates, and available mortgage money. With the election of Obama and his progressive onslaught upon the private sector, it becomes practically impossible to see 2013.
Ad nausea you have been told that businesses don’t like uncertainty as the primary reason they aren’t hiring. That is true.
Good news, businesses have certainty now that Obama has been reelected, they know for certain their taxes won’t be going down. They know Obamacare with its $1 trillion in new taxes will go forward.
The bad news is the fiscal cliff charade will keep small business owners guessing how high taxes will go on their incomes, dividends, and capital gains. But not for long, Boehner unable to muster up any integrity to stand on principle has caved on tax increases, and folded on meaningful spending cuts.
We are to the point that going over the fiscal cliff might be the better solution in the long term. Sure every economist says that will throw America into recession, but for how long?
If Obama is correct that we have a revenue problem, and not a spending problem, then doesn’t it make sense to just raise taxes on everyone now instead of delaying the inevitable?
Obama campaigned on a balanced approach, $800 billion in tax increases on the top 2% over ten years as the magic elixir that would pay for $1.3 trillion in deficit spending while paying for every entitlement in place or to be conjured up for infinity. No starving children, freezing seniors, dirty water, or air would result if Obama could just tax the rich.
As for spending cuts, all we needed was to gut the military, since he had already won the war on terror by defeating al Qaeda with the assassination of Osama bin Laden, was winding down the two illegal unfunded wars, and world peace had returned.
Sadly that plan changed as soon as the votes were counted. Obama now demanded $1.6 trillion in tax increases on the rich, while we would need to talk about spending cuts later. Just like under Reagan and Bush I which never came.
Instead of Boehner and Republicans leading by taking a stand on a solid fiscal policy that would actually help the nation recover, they drop their principles faster than Holder drops a case against New Black Panthers. Conservative principles such as real spending and tax cuts that always lead to recovery.
In order to make reasonably close predictions for the 2013 housing market, one must wait to see the final Obama tax and spend fiscal cliff solution. Will it simply be bad, or devastating? We’ll know soon.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom