2013 Economic Considerations – And The Washington Hits Just Keep on Coming They read like Box Office suspense thrillers:
- “Shut Down The Government”
- “Debt-Ceiling Doomsday”
- “Bernanke & The Bond Market”
Unfortunately for the American public, All three could be playing ad-nauseam, in every U.S. town if the all-star cast of Barack Obama, John Boehner and Ben Bernanke don’t get their act together. The first thriller, “Shut Down The Government“, is scheduled to hit towns tomorrow, October 1st. Congress has until midnight tonight to pass a bill that will keep the government funded during the next fiscal year, which starts tomorrow. The last time this deadline was missed, S&P downgraded the U.S. credit rating, leading to higher interest rates. It’s unlikely some type of bill won’t pass before the pending deadline, but with the mood in Washington nothing is guaranteed. The republicans have been dead-set on defunding Obamacare. On the other side of the isle, democrats insist on continuing to spend away the security of future generations of Americans. The second thriller, “Debt-Ceiling Doomsday”, is scheduled to be released by October 17th, the date the U.S. Treasury says the government will reach the debt ceiling imposed by law, and will not be able to incur more debt. Keep in mind, The government has been using all sorts of creative accounting gimmicks to avoid hitting the borrowing limit. If the debt ceiling is not increased, the government has to decide which obligations it will honor. Do they default on debt repayments, or do they default on other bills? Either way, if the Debt ceiling isn’t raised, the impact on the U.S. economy as a whole, would be catastrophic, according to U.S. secretary Jacob Lew. There has also been a huge buzz generated by the mini-series “Bernanke and The Bond Market”. In this thriller, the questions: When does Bernanke & Company, begin to reduce its bond-buying activity? and “What will the impact be on the economic recovery?, are both answered. This promises to be another exciting release from Washington, as even the mere hint of a reduction in bond-buying has already caused stocks to drop on several occasions. Anyone in the market to purchase or sell real estate should pay close attention to all of the major issues above. Each could have a significant impact on both the economic and real estate recoveries, and more specifically, real estate prices. It just never seems to end. So stay tuned in for each new release, and the promises of many new twists in the plots.