Ryan; “We can do this. We don’t suffer any shortage of words coming from the White House, we lack leadership.”
A real plan with tax and regulatory reform to get America back to work as outlined by Ryan in his convention speech is exactly the medicine the housing market needs. We need jobs.
Obama says he just needs more time, and you can help him by removing the obstructionists in congress so he can get his ‘jobs bill’ passed. Wonder why Obama would want to get rid of Harry Reid who has blocked every piece of legislation that could have helped the economy? Regardless, they did pass one bill with tax credits that has produced exactly nothing again. In fact several months after passage unemployment went up.
Tax credits are like taking a squirt gun to a five alarm fire, tax cuts three tanker trucks. Mitch McConnell said it best when Democrats accused Republicans of wanting a bad economy to win the election; “If we wanted to tank the economy, we would pass the Obama ‘jobs bill’.
For those who are undecided, listen to what Henry Morgenthau, FDR’s Secretary of Treasury said: “We have spent more money than ever, and we’re right back at where we started eight years ago (identical unemployment rate), and have a load of debt to boot.”
Obama is simply following the same Keynesian spending plan for big government expansion as FDR did, with hope of an economic recovery. In addition to the testimony of Morgenthau, a study by economists from UCLA in August of 2004, proved FDR’s Keynesian policies extended the Great Depression by seven years. How’s that for hope?
Why would Americans risk another four years on a twice proven failed approach? As Ryan said, we are running out of time. Obama has added over five trillion to the debt in less than four years, and the CBO scoring Obama’s spending plan concluded the debt would rise to $20 trillion by 2016.
Do you think this amount of debt can be sustained? If you said yes, then say hello to Alice for me while you’re down the rabbit hole.
The housing market, out from under the artificial influence of tax credits since April of 2010, is beginning to self-correct and show signs of life. Housing has moved from the ICU into the hallway.
Although the news was good from Case-Shiller that home prices increased for the first time since 2010, prices remain over 30% below the market high set in 2006.
Although the news was good from The National Association of Realtors that home sales and pending sales increased in July, existing home sales remain about 21% below healthy levels.
Although the news was good for new home construction when July showed an increase of 3.6%, sales remain at 45% of the level considered healthy. Builder confidence is up but remains well below healthy.
The number of foreclosures went down however the portion of total sales that were foreclosures increased. There is a huge shadow inventory that will be released at some point that will place pressure on both prices and sales.
Rising gas prices and falling consumer confidence are not good omens for housing. Just when some positive momentum appears, irresponsible Obama energy policy nips it in the bud. Do you believe Obama will change his energy policy in a second term? Can you name one policy Obama has changed?
This is exactly why homeowners better hope for a Romney, Ryan victory. If Obama wins, without doubt, the housing market will stagnate, limp along, wondering where demand will come from when interest rates increase. No jobs, no buyers.
Romney and Ryan are proposing free market solutions; relief for the private sector with tax cuts, repealing Obamacare, regulatory reform, and an energy policy that will together create twelve million jobs in four years.
Romney seems to be modeling his economic policies after Reagan’s plan that created nine and one half million jobs his first four years, and twenty-one million in eight years.
If anything Romney’s plan may be a bit ambitious, but at least it is a plan that has been proven successful by history.
History has proven how each plan ends. We’ve tried both. Do we have the luxury of time to risk that Obama’s bigger government, central planning, more spending, and more debt; will work for the first time in history?
If Henry Morgenthau were here today, wonder how he would vote?
The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.