Bad Thoughts

At the end of last week, the Federal Government announced that another 450,000+ American citizens had lost their employment. The percentage of the unemployed gains weekly on that 10% figure with the number of unemployed, part-time employed and looking for a full time job, and those who have quit trying altogether now estimated to be over 26,000,000. The economic experts proclaim that the 2009 American economy will continue to be bad with on-going increases in the unemployed. Growth, they prognosticate, if any, will be slight in 2010 and not nearly at a degree of significance to allow reemployment of those who have lost their jobs. The only language of praise offered by the pundits was that while in 2010-2012 Asia would show its economic "dynamism", the American economy would show "resilience", that is its ability to suffer without completely collapsing. All of the financial campaign promises of President Obama have failed to materialize and the American economy continues to deteriorate. It could very well be time to rename this time of economic uncertainty the Obama Recession.

In 2005 and 2006 while the American real estate market was wrapping up its fantastic surge, a most common sales "come on" was an initially low and even at times zero interest rate ARM which would adjust in 5 years. The rational was that for 5 years the house payment would be low; that in 5 years the house market value would increase nicely allowing a permanent refinancing at an attractive rate; and in 5 years you could, if you wished, easily sell the house and make a nice profit. A win in all categories. The end of these 5 year periods of time is now approaching and reality is raising its ugly head. This reality is that the house is now worth fewer dollars; the resale market is terrible; and refinancing, if you have a job, is difficult. There will be another surge in foreclosures starting early next year.

The cap-and-trade policy championed by Obama is now only a Senate vote away from being the law of the land. With all the talk about how great a positive impact this legislation will make upon the environment, it cannot be ignored that this piece of legislation is primarily intended to be a tax, a source of income for Washington. The first personal realization of this new tax's impact accompanied the utility bill for this past month's service. Enclosed was a statement from the National Rural Electric Cooperative Association (NRECA) that my power bill would rise in its cost by at least $27.00 to maybe even $68.00 per month. The fact that doing nothing to enhance your comfort or your standard of living will result in a potential annual increase in cost of $816.00 is unacceptable. Americans can expect this tax to impact every aspect of their lives. Making the matter more irritating is that the head of EPA joined by other international ecologists have expressed the belief that the environment will not be improved at all unless China and India join the cap-and-trade band wagon. These nations have announced that they will not participate. The end result is that this added tax expense is only to fund Obama social programs and spread the wealth around.