Morning in Arizona

Morning in Arizona
Rainbows over Canyonlands - Dave Stoker

The Headline Animator

Sunday, October 29, 2006

October Surprise, It’s the Housing Market, Stupid!

The bond market advanced for the fourth day in a row due to several positive points of data, Friday. They include a lower than expected 3rd quarter GDP figure of 1.6%, a drop in the median home sales price of 9.3% to $217,000.00, and a rise in individual and corporate tax receipts, which leads to less borrowing by the government, thus, a lower budget deficit, subdued inflation.

However, going forward, it’s the average consumer and their pocket book which will determine the softness or firmness of the next recession. And, they know it.

And, her pocket book reflects the toll the changing real estate housing market is having on discretionary income, net worth, and economic choices. And, the feeling isn’t well liked.

Lower energy costs are also alleviating pricing pressures; but, for how long? And, what political calculations or miscalculations in the near future will have on the price of gas?

The mid-term elections are days away with polling echoing frustration and disenchantment with current lawmakers by voters.

Americans can tolerate an economic slowdown with peace abroad, or, a hot war and increasing personal wealth and financial security, but, when we are losing militarily abroad and financially at home, someone has to pay in the voting booth.

Who’s in charge?

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