When a friend and I talked yesterday at COSTCO, I related to him I don’t oppose the bond propositions on their respective merits, but on economic uncertainty.
Here’s an article published today titled: We Are in Age of ‘Late Great Depression’: Shiller.
Professor Robert Shiller publishes the Case-Shiller Index, a study of 20 major metropolitan areas for Standard and Poor’s. Across America, it is considered authoritative by Wall Street stock brokers, real estate investors and bankers.
Income and capital gains taxes dramatically increase January 1, 2013. If ObamaCare survives the Supreme Court, it will add 19 new taxes, including real estate sales taxes.
As I drive up and down our highways I see an unusual quantity of new car dealer tags – Americans are buying cars like crazy and Jerry Reynolds, The Car Guy, confirmed this fact on his Saturday broadcast.
So, how do I see a down economy when all these young people are able to buy new cars? It’s the same thing that has been propelling the stock markets: the Fed has been injecting capital into the banking system. The Federal Reserve is buying long-term bonds sold by the Treasury Department in order to drive down interest rates. The whole process of bond sales, prices and interest rates is very complex. The Fed is buying 61% of government debt, but this effort at propping up the U.S. economy is unsustainable. You can relate to tales of ‘check kiting’ that were going on years ago. Eventually, it catches up to you.
I published a blog this morning you may want to read. In it I discuss the real estate (aka ‘housing market’) from the perspective of real estate investors. The news is very good for investors like me; very bad for young people whose homes are mortgaged.
I voted this morning (April 30). If you live in the City of Rockwall and registered to vote, please take a few moments to go by the Elections Office at 107 East Kaufman Street across from the Historic County Courthouse and vote to oppose all five bond propositions.
Follow this issue on Facebook at: https://www.facebook.com/VoteNoTo36PctPropertyTaxIncrease