Wednesday, April 30, 2008
That Horrid Housing Slowdown
By day I work in the Housing Industry. I have been in Construction for 11.5 years, and decided to move into this field after being a pencil-pusher for 12 years. I have actually been able to retire since 1999, but due to circumstances that essentially makes me remain in Southern California, rather than retire on the Oregon Coast, I remain here, working to pass the time.
Of late, work has been slow. The economic slowdown, which I believe to be a direct result of government manipulation, has been most apparent in the housing industry. As a result, until recently, I have had plenty of time to blog.
Something interesting has happened, however, despite the doom and gloom regarding the economy the mainstream media puts out. Housing is picking up, houses are beginning to sell, and as a result, my company is receiving a lot of work - - - so much work that we are looking at going on seven-day-a-week schedules.
You may say that this is not true. We are heading toward a recession. The eleven o'clock news says so!
The free market economy is self-adjusting. I saw it adjust when I was a financial consultant back in the early 90's, and I am seeing it do so now. When a slowdown hits, prices drop, making it a buyers market. Then as buyers begin to buy, prices rise, making it a sellers market, eventually forcing a slowdown because buyers no longer are interested in purchases as they were before because of the rise of prices. . . which results in a drop of prices again in order to sell the products to less consumers willing to buy (remember economy class? Supply and Demand?), and so on, and so on. However, every time a rise or fall in the economy happens the doom and gloom politicians and leftard political junkies start screaming that we are headed toward a recession.
Folks, a recession must see two consecutive quarters of negative growth, and that just isn't happening. Granted, the growth is small, but it is still there.
In fact, the houses we dug the foundations of today is a part of a release of new houses that has sold out "before" the models were even completed!
Unfortunately, the Democrats are trying to create an atmosphere of doom and gloom regarding the economy so that they can claim that they will "save us" from the coming recession, and George W. Bush has reacted with an idiotic stimulus package (and anyone say, "legacy building?") that will not only not stimulate an economy that does not need his manipulative finger on its pulse, but will result in a further deficit and another excuse for the liberal left to raise taxes in order to try to replace the funds used for the stimulus package that would honestly have been better used somewhere else. The stimulus package that George Bush is so proud of takes more money out of our pockets in the long run with the taxes rise, and that will then possibly send us into the very recession the politicians say they are trying to avoid.
Maddening, isn't it?