What’s your take on the fiscal cliff? If the proposed solutions regurgitated in the mass liberal media were jobs, we would lower the unemployment rate. The fiscal cliff is a distraction from the real crisis facing America, debt.
The fiscal cliff will give the economy the flu, while the debt will lead to terminal cancer. Obama’s request to give the executive branch unlimited spending authority by eliminating a debt ceiling proves he’s all in for the terminal cancer.
Thomas Sowell clearly spells out a big lie of the left is that President Bush’s “tax cuts for the rich” cost the government so much lost tax revenue that this added to the budget deficit– so that the government cannot afford to allow the cost of letting the Bush tax rates continue for “the rich.”
Easily proven false, revenues to the government increased following the tax cuts by not only Bush, but Coolidge, Kennedy, and Reagan too. Why don’t the Republicans scream the truth from the rooftops, every day?
Looks like we’ll go over the cliff, not as Democrats claim due to Republican obstruction, but due to Obama himself, entrenched in his radical left ideology closer resembling Marx than Madison. Obama doesn’t have a clue of the benefits economic freedom provides people and the economy. None.
Daniel Henniger of the WSJ perfectly diagnoses the problem, quote; “The main reason there isn’t, and may never be, a solution on the fiscal cliff is that Barack Obama doesn’t know how to do a political compromise. Where in his career did Barack Obama ever learn the art of the political deal? Nowhere.”
This proves once again you can never trust what Obama says, he who campaigned tirelessly repeating “You can trust me, I mean what I say”. It appears Obama’s desire is to take us over the cliff because he is inflexible with his class warfare tax the rich for ‘fairness’ stance. Lost jobs be damned.
We know the amount of money raised by this tax will be as beneficial to the economy as taking a squirt gun to a five alarm fire. If it even raises the projected amount. The rich historically have been able to shelter their income. That is lost on Obama.
The main concern is the impact on jobs. Obama continues to mislead that jobs will not be lost because it only impacts 3% of small businesses. Ernst and Young an accounting firm says it will cost 700,000 jobs. Who do you trust more on economic predictions? Obama who has never been right, attempting to break Bernanke’s record of futility, or an accounting firm?
The bottom line is this is about jobs and a real recovery. Speaking of Bernanke, he continues to produce a fake economy with his printing press that then can be reported as headed in the right direction. We’ll never get there with Obama economic policy combined with Bernanke monetary turned fiscal policy.
The housing market, which has gained momentum, cannot fully recover unless jobs are created. Which it is impossible with fiscal cliffs, debt, taxes, Obamacare, Dodd-Frank, heavy handed regulation, environmental extremism, and inflation lurking. All are now guaranteed with Obama’s reelection.
Sorry Barack but simply asking business leaders to hire is not the same as getting government off their backs so they can hire.
We will see ups and downs in the labor market after there is certainty. Certainty in tax liability, and business costs inflicted by Obama’s big government statism. Just like FDR you can reasonably expect by the end of Obama’s second term, unemployment will be the same or higher from where he started.
My best estimate is that 2012 and potentially 2013 will be the best housing markets for the foreseeable future. The number of home sales will continue to be brisk until the pent up demand sparked by record low interest rates is satisfied, or until interest rates go up.
If Bernanke announces QE4 in December adding $45 billion a month to the current $40 billion MBS purchases, then the inflation freight train will have arrived at the launch pad to be unloaded in 2013.
The percentage of purchases by investors will continue at about the 28% pace of 2012, but will be the only game in town when interest rates go up. Only the ‘have to’ sellers and buyers will remain because who in their right mind will trade a 3% mortgage for a double digit mortgage just to make a move of convenience?
Just as the day Obama entered office, jobs are the key to housing sales and recovery. Since the voters chose Obama again, what you see is what you’ll get; more non-recovery recovery. The new norm is here to stay at least another four years.
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.