Keep an eye on consumer confidence now that President Obama has shattered what remained of the trust people could place in him. The cure all end all Obamacare was to be the panacea to rising health care costs, provide lower premiums, allow you to keep your plan, and keep your doctor all proved to be false.
People don’t run out and make a major purchase like a home when they have had their confidence in the leadership of their nation shaken, because it carries over into the “What else is government lying about?” category. My job? Unemployment? Inflation? Recovery?
With five million self insured already having their policies cancelled and another nine million coming President Obama took to the stage and used the magic wand, provided by the ACA legislation giving him unprecedented flexibility for implementation, attempted to make good on his false promises. It went over as well as a wife catching a cheating husband who claims he won’t do it again.
Continuing to make the claim from the podium Thursday that this only impacts 5% of the population when his very own administration reported in the National Registry in July of 2010 that 45% of big business, and 65% of small business employer paid plans would be cancelled too, represents either another lie or gross incompetence. Or perhaps as with Benghazi, stark indifference.
While the nation’s attention is consumed with this abject disaster called Obamacare, other departments of Obama’s leviathan government are preparing to hammer the private sector with more costs and further job losses.
The Tennessee Valley Authority just announced the shuttering of eight more coal fired power plants leading to more job losses at plants and mines, and driving up electric costs as supply is driven lower. Beyond those directly impacted with total loss of income, customers, both business and individual, will see higher prices lowering their disposable incomes. An essential element to a healthy housing market.
The Dodd Frank monster child, the Consumer Financial Protection Bureau is implementing new strict home purchase rules. This in a growth economy would hardly be noticed, but in this weak economy may have a bigger impact than intended by leviathans child.
In an email from a mortgage lender this week was this editorial note: “Qualifying for mortgages is still a challenge. And more regulations set to take effect after the first of the year are certain to cause more expense, add to time, and confusing paperwork to getting a loan. Another unintended regressive tax?”
With the national housing market already contracting with existing home sales, new home sales, and pending sales all down, we must keep an eye on the reports coming this month. With pending sales down closed sales are likely to follow.
The Consumer Confidence Board’s Consumer Confidence report, the Thomson Reuters/U. Of Michigan Consumer Sentiment, and Gallup Confidence Poll all are trending down. Confidence another key element to a healthy housing market.
Now with the American people waking up to the real consequences of Obamacare, the devastating impact upon their budgets, and knowing what the president claims cannot be trusted, what will happen to their confidence?
Obamacare intentionally cancels insurance to millions of American families then Obama acts like Hugo Chavez saying he’ll have mercy on them for what he did by ‘allowing’ them to keep their policies for another year.
Do you suppose people understand what will happen in a year? More policies cancelled, more rate shock, more uncertainty, reduced consumer spending, a renewed downward spiral?
Will people see through this one year reprieve from the Imperial President’s royal decree? Buying time to get past the midterm elections? Obama’s hope of Democrats taking control of both houses of Congress so he can finish implementing his false Utopian fundamental transformation of America?
If you want to know where the housing market is headed, watch the confidence reports. If you want to know where America is headed watch the midterm elections.
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. Fritz Pfister hosts Your Daily Dose of Reality weekdays at 9am central at Wmay.com or AM 970 in central Illinois.