$2.739 Gasoline, not pretty | 03-15-10 Bob Zartarian’s Housing and Economy News and Views
What does $2.739 gasoline have to do with Housing? Plenty and it’s not pretty.
Prices as the pump have jumped about 10% in Metro Atlanta over the last couple of weeks. Even if this were the result of increased demand that would signal a stronger economy (which I don’t believe), higher fuel prices will put a damper on a fragile employment situation (understatement). My crystal ball forecasts a cloudier future that doesn’t bode well for job creation.
It’s pretty clear that the consumer will have less disposable income in 2011 than in 2010. With gasoline prices again “water cooler” talk it’s likely that both the consumer and those responsible for making hiring decisions will be hesitant buy and to add new /recall laid off workers respectively.
Housing sales have been driven by low mortgage rates and depressed housing prices along with $8000/$6500 tax credits and a large inventory of unsold homes. With the tax credits due to expire in 45 days, mortgage rates likely to rise next month when the Federal Reserve will stop buying Mortgage Backed Securities and higher prices at the pump there is really just one way to restart Housing and the Economy. JOBS. More people have be employed each and every month from next quarter going forward (not fewer people losing their jobs) else we’re not going to see an improvement. The answer?
Encourage your elected officials to focus on real job creation – pass legislation NOW to unleash the power of Free Enterprise to again make this country “exceptional”. Congress is coming home for their Easter break. Tell them to revise our tax, energy and trade policies to restore the U.S. as the world’s dominant economic power. This is not a political issue – survival of our country and our position in the world is at stake.
These views are strictly my own Bob Zartarian, Marietta Ga.
Housing Economy Views and News 2/24/2010 – Bob Zartarian
Most would agree that to get Housing and the Economy back on track we need more demand and spending brought about by consumers with jobs and disposable income. After all, that’s what all that stimulus spending was supposed to be about.
How is it then that allowing the “Bush” tax cuts to expire and instituting Health Care reform which will add taxes for years before benefits kick in can bring back jobs and grow the economy? Don’t taxes take disposable income away from consumers and slow job creation?
Bob Zartarian – These views are strictly my own
Proud New member
Friend Me
