“If America is healing… and everything is getting fixed…”
Then how come everything is still broken?
I mean, if I was a Nobel Prize Winning President (and in only 14 days, no less!), you’d think I’d have actually delivered on at least ONE promise.
Pick one. Your choice. ANY one…
Well? I’m still waiting…
After spending trillions of dollars that we didn’t even have…
Taxpaying Americans are still losing their jobs in record numbers.
So, we propped up the banks… Guess what? The money is G-O-N-E!
Those same taxpayers are still losing their homes in record number, too…
Before long, there will be a shortage of packing materials…
Because we’ll all be living in cardboard boxes, or maybe even…
Talk about “high density!” Oy Freakin Vey!
And the majority of the banks aren’t releasing those foreclosed homes to “the sales stream…” either. They’re holding them “in inventory,” so that when the market rebounds, they’ll make billions in profit.
Thanks for saving our bacon… now bend over…
And winter is coming.
So, we’ll just help everyone get more debt, by “helping” them into new car loans…Everybody loves a new car!
Nobody in America would say “NO!” to a new car, unless they were just plain stupid, or absolutely crazy. Right?
And, if you’re “crazy,” you probably shouldn’t be driving!
And buying new cars means building new cars. It provides jobs. A lot of jobs… It does! 🙂
But as cool as that was… we just picked our own pockets again! “Cash for Clunkers” is a program underwritten by our TAXES! Oy!
Like I said… we made sure that the banks had tons of cash. Literally TONS of cash.
Pallets of Benjamins stretching as far as the eye could see… But, are the banks writing loans? No. Why? Well, it seems that everyone in America is a bad risk. But, those bank officers get paid pretty well, I guarantee…
To make matters even worse, confidence among U.S. home builders slipped again in October, largely on the looming expiration of a big tax credit.
The National Association of Home Builders’ gauge of confidence in new-home sales fell for the first time in four months, slipping to 18 from 19 in September.
Wall Street expected the confidence gauge to rise to 20.
What’s that translate into? Even MORE construction job losses, that’s what it means!
Oh great… That’s just what we needed.
Hey, the upside is that jolly fat man with the big bag of presents is gonna have a lighter load this year. Hell, he might even be able to stuff it in the overhead bin, as a carry-on… Oy.
Ho! Ho! Ho! Talk about a lot of coal in stockings! But, wait! Another bright side! Coal burns, and that means that… it’ll provide heat! 🙂
Okay, okay, I’ll stop… Maybe.
We all know that the sale of new homes has been driven by the $8,000 tax credit for first-time home buyers! They said that it was supposed to “stimulate” the economy.
Yeah, right. More like, to coax young “new” home-owners into joining the ranks for the “in-debted public” before the walls come crashing down…
Well, you better hurry up. Come and get your debt before you lose your chance to get that tax credit!
Come and get it… while it’s hot-t-t…
Hey, it worked for a while, home sales rose by 30% through August. But… all good things must come to an end. November, to be precise. That’s when the credit expires.
If you listen closely, the next time you go outside, you’ll hear it… That’s not the wind howling around your ears… It’s the home-builder groups wailing for an extension of the credit.
“It comes as no surprise that after trending upward from an historic low in January, the HMI’s [the group’s main index] positive momentum now appears to have stalled,” said Joe Robson, the NAHB’s chairman.
You see, the bottom is falling out. All three components in the Housing index slipped — and that’s the first time that’s happened since November 2008 when the recession was nearing its worst. The component that measures current sales conditions fell in October to 17 from 18 during September. The gauge of traffic of prospective buyers slipped to 14 from 17. The component measuring sales expectations over the next six months tumbled to 27 from 29.
“Congressional action to expand the tax credit and extend it for one year would provide a critically needed boost to the employment market and economy, generating nearly 350,000 jobs, $28.2 billion in wages, salaries and business income and $11.6 billion in additional tax revenues,” Mr. Robson said. “That’s an opportunity we can’t afford to pass up at this difficult time.”
Alas, it’s gonna probably fall on deaf ears, as Congress will be too busy… one again trying to quietly pass their annual pay raises. They figure that they’ve all earned it, after all the camera time they’ve been getting about Health Care Reform.
And, after all, it’s hard to make due, on their pitiful six-figure salaries…
In the meantime, the ending of the tax credit will scare away any buyers foolish enough to enter the market…
… and the trickle down will be felt all the way to Home Depot! After all, it’s the home builders who drive the lumber yard production, right?
The best part of this is that the Fed is talking about inflating the dollar, due to so many other countries treating it like toilet paper.
Simple economics: 101:
When you lower the interest rate, you have to inflate the value of the dollar, to bring it back up.
So lumber prices will go up! That’s gonna help get houses built, and sold! Yep! Good thinking! Now we can’t afford the materials, and the house price will skyrocket!
Boy, my local Realtor is gonna be one a sad lady… 😦
And the way things are going, taxes will rise and inflation will jump way, way up. If you have a mortgage rate in the 5’s, you’ll be doing the happy dance in the street.
But don’t do it around here, or I’ll turn the hose on you, just out of spite… 🙂
This is starting to remind me of the “Jimmy Carter Era…”
But wait! It’s another chance to start a new program! And, Obama can appoint another Czar! Hop Dingitty Dawgie!
We’ve propped up Wall Street. We’ve bailed out the banks. We’ve even gone into the “national car business…” Now…
We can have a “Cash for Stinkers! Home Rebirth and Subsidy Sale!”
All we have to do is bail out every home builder!
Yep, if you can swing a hammer, you can get a check!
But wait… there’s more!
We offer Ma and Pa Public and every other owner of an existing “older” home a bundle of Benjamins ($10,000) in cash to demolish that energy guzzling monster and replace it with a more energy miserly new home. And wait, if you act now…
We could give them a mortgage with zero percent down and zero percent interest…
… until they reach 65 years of age.
Why only 65, you ask? Well, because after they turn 65… we don’t care about them any longer! After all, if we DID, wouldn’t we have taken better case of Social Security and Medicare? And, wouldn’t we have provided adequate cost of living raises?
Mr. Obama… What cost of living raise? …
What’s the end result? Um… Trillions more dollars of debt for our children to pay, a bunch of jobs, and a fuel efficient America…
… except for the emissions from those “gas-bags” in Washington…
But, it won’t happen. Why not? Well, Virginia…
The US Government does NOT want a larger supply of homes. The banks (that we propped up in the first place) already have a huge inventory to sell. What the government actually wants… is higher housing prices to justify much larger mortgages!
Why? Um… well it’s because the government wants people to borrow huge amounts of money, so that banks create more money through lending! That is how they inflate the money supply.
I already explained that… right? Weren’t you paying attention? ARGH! I’m NOT writing these for my own health, you know! 🙂
And they wonder why I’m trying to build a house out of recycled stuff and anything else I can find, without taking out a loan (that I probably couldn’t get anyway!!)…
Wait a minute… lots of unemployed construction workers. Lots of empty and discarded ISBUs. Lot’s of vacant manufacturing buildings due to plant closures. Lots of material because nobody is building… Hmmm.. Maybe there is a way… Hey… a fella could build “Corten Cargo Container Condomimiums!”
Cheap, strong, durable, energy efficient and almost recession proof housing!
Now then, if someone was just smart enough to possess enough vision to actually see the “merit” in it… 🙂