The government is rethinking it's role regarding home-ownership. One of the reasons for the Great Recession (I would say 50% blame), is due to the fact that the government during the Clinton era encouraged as many people as possible to buy homes, even if they couldn't afford it. (Why would they do something so stupid? Votes. Poorer folks in large cities who otherwise wouldn't be able to afford a home tend to be Democrat, for the most part.) Now, it seems, they are thinking twice:
Washington is preparing to rebuild the national mortgage market atop the ruins of Fannie and Freddie. The proposal, due early next year from the Obama administration, could make it harder to buy a home by reducing available credit or requiring bigger down pay-ments. Low-income renters might get more government help.
Also, more evidence for a slowing recovery: Q2 GDP growth will likely be revised from 2.4% to 1%. Double-dip recession possible? Maybe. This doesn't help: California residents' income drops for the first time since World War 2.
Many (a majority?) people in the US are getting worried about the ridiculous growth in government (which, ironically, began with Bush). Another depressing statistic to support this notion is the fact that the average federal salary is now twice(!) as much as the average private sector salary. What a shame.
In the international scene, Russia and China are resuming their gasoline trading with Iran. Unfortunately, it looks like sanctions will have little to no effect. But I don't think Obama will allow himself to be the president under whose watch Iran gets nuclear weapons. Look for a military strike from the US or Israel in 2011 or 2012, barring Iranian leadership growing a brain and ending their enrichment, or – even better – a revolution!
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