Obama economics is about disposable people and throw away wealth.
Ideology trumps anything real and right now the ideology is that Obama’s press needs to make us think that everything is working economically even though it is not. People and wealth will be sacrificed for the sake of the greater good which is the collective at the expense of the individual.
Just today the employment statistics were bad again and “unexpected.” Every single employment stat these days comes up as an unexpected disappointment. The Dow is down 376 points down almost 1000 points in two weeks.
“Unexpected” has been the word used in reporting every time something bad happens and it is often.
“Meanwhile, the Labor Department’s latest employment report added to worries about the global economy.
The department said new claims for unemployment benefits rose by 25,000 to 471,000, their largest amount in three months. That came as an unpleasant surprise to investors who were expecting a slight drop to 440,000. High unemployment remains one of the biggest obstacles to a sustained recovery in the U.S. The latest report snapped a streak of four straight weekly drops and again calls into question the strength of the job market.” More…
If you go to the food store and it has unexpectedly run out of food, do you go back to that store? If you go to the restaurant and it has unexpectedly run out of things to serve do you keep going there? If you go to get your car repaired and you are told that it could not be unexpectedly repaired do you go back to that shop? If you go to the doctor and he says that he unexpectedly cannot see you do you wait for him to accommodate you? As fickle as the American consumer is, he will demand someone serve him and that is that.
Basically who needs an organization that unexpectedly consistently fails to provide the services you expect? Who then needs an administration that has failed in every single initiative it has undertaken?
This brings us to the building boom in Las Vegas. Yes! You read that correctly. Las Vegas is experiencing a building boom according to the New York Times. The economy is really rocking.
There are tens of thousands of homes sitting in foreclosure in Nevada without a single buyer and ” home prices in Las Vegas are down 60 percent from 2006 in one of the steepest descents in modern times. There are 9,517 spanking new houses sitting empty. An additional 5,600 homes were repossessed by lenders in the first three months of this year and could soon be for sale. “
You see the building lobby got monster tax breaks from the TARP funds to the tune of hundreds of millions of dollars returned to them and now they have taken over the FHA and using it as their personal piggy bank to build homes that no one will ever use.
Let us say it again. There are tens of thousands of homes sitting in foreclosure in Las Vegas and close to another ten thousand newly built homes sitting empty with no buyers as well.
” A final incentive sealed the deal, this one courtesy of the United States government: he got a loan insured by the Federal Housing Administration, which meant his down payment was much smaller than a private lender would require. “
The above quote refers to a borrower who bought one of these new homes. How did he do it? No money down which means that if he cannot afford the newly built home he simply walks away. Isn’t this how we got into this mess to begin with? Don’t forget that there are some 4 million adjustable rate mortgage loans coming due now. On top of this artificial brainless building boom, another 4 million homes are likely to hit the foreclosure market.
Getting back to ideology, it is better to say that Mr. Obama is an economic powerhouse because new home sales are booming in Nevada even though there are no buyers and there are millions more foreclosures coming into the market.
As someone from Las Vegas put it , ” In Las Vegas you keep doubling down until you go bust.” In this case the builders are doubling down with everybody else’s wealth. They take their cut off the top and then they double down again until we have a total depression. They will have made their money and then they simply turn over the mess to Fannie, Freddie and the FHA and we the ordinary citizen get left with nothing in terms of home values.
Phoenix is no different by the way but we will make that the subject of a different article and rather soon.
What a recovery this is!