Obama Says “We Buy Ugly Houses”!

cheap home for saleSource: Miz Duke

As everyone knows the only thing wrong with America right now, is the lagging economy. If we could only boost our economy and increase our GDP we’d be able to unleash prosperity on everyone.  So building on the resounding success of its “cash for clunkers” program, the Obama administration just announced a cash for junkers or “we buy ugly houses” program. Since the median home price is about 10 times that of a median priced car, the government will offer 10 times the rebate for the purchase of a new home.  Other than that, the “cash for junkers” program is identical to the preceding program:

  • If you “trade-in” your old home, you’ll get $35,000 towards the purchase of a brand new one
  • If you had a jumbo-mortgage or your house was over 5,000 square feet, you qualify for $45,000
  • You must have owned the home for at least 1 year to prevent misuse of these funds
  • The “trade-in” house must be bulldozed and the debris shipped off to China
  • If your house is worth more than the rebate amount, you’re out of luck!

The government has earmarked $20 billion for this program and it estimates that the sales of 500,000 homes will cannibalized this year from future sales numbers. Wait, did I say cannibalize? My apologies, I meant to say that the demand for 500,000 new homes would be created.  The total effect will be to boost the economy by $100 billion dollars or nearly 0.7%! Since the destruction of the existing houses doesn’t count in GDP numbers it’s a net positive result!

The GDP is a number that calculates the amount of services and goods produces without the effects of taxation, so the negative effect of an extra $20 Billion burden on the taxpayers (or their unborn grandchildren) isn’t a part of the calculation either. So you see, it’s a win-win situation for everyone!

What’s that? Who do I mean by everyone? I mean the administration and the small sub-section of the population who own sub-$35,000 homes who are able to go out and get $125,000 mortgages. Now I’m not sure whether these are low-income families or rich slumlords, but that discussion is merely an academic argument.

Not only that, but demolishing the existing homes would help reduce the old inventory thats casting a dark shadow over the entire real estate industry.  So this we buy ugly houses program would really help the economy’s green shoots sprout in to a young sapling.  What’s that you say? We need job and income growth to actually boost the economy. No, that was the old economy.  This time it’s different!

Ron Paul on Jay Leno

Here’s a really good video of Ron Paul on Jay Leno. Did you know Ron Paul was a flight surgeon in the Armed Forces and entered politics because he became fascinated with Austrian Economics. I thought most people entered politics because they found they had a knack of begging for money!!

I think Ron Paul is the only candidate who understands how the economy works and will be most likely to fix it. Unlike what you hear on the news, the economy is not booming. We’re not creating jobs. The Dollar is weakening and according to this excellent site, we’re likely to see 15% inflation for the next 30 years.

He wants to

  • Reduce the size and scope of the government,
  • Obey the constitution
  • Implement a lower flat tax
  • Promote personal liberty and freedom
  • Reduce the size of the US empire overseas
  • Fix Social Security

If you don’t support these ideas, you’re a frickin’ moron. Check out this video for a more indepth presentation on Ron Paul’s ideas.

Exxon Is The Government’s New Whipping Boy!

I’ve been trying to find out whether we’re going to see an increase in interest rates over the next few years. It’ll depend on whether we have inflation and go into a recession or not. While reading on this topic, I’ve read a lot of interesting stuff.
Here’s something interesting from http://www.financialsense.com/stormwatch/2005/1028.html

Is Fair Share Fair?
On the day this was written ExxonMobil, ConocoPhillips and Microsoft all reported third quarter profits. Exxon Mobil reported sales of $100 billion and profits of $9.9 billion. ConocoPhillips reported sales of $49.7 billion and profits of $3.8 billion. Microsoft reported that sales rose to $9.7 billion and profits rose to $3.14 billion. ExxonMobil earned a 9.9% return on sales; ConocoPhillips earned a net return on sales of 7.65%. Microsoft’s profits reflect a return of 32.2% on sales.
Company Sales (B) Profits (B) Return on Sales
ExxonMobil $100 $9.00 9.90%
ConocoPhillips $49.7 $3.80 7.65%
Microsoft $9.7 $3.14 32.2%The rise in ExxonMobil’s and ConocoPhillips’ profits promptly called for a windfall profits tax to be imposed on the oil companies. Microsoft’s profits of 32.2% on sales called for no similar action nor were there calls for windfall profits taxes on homebuilders, banks, and other technology companies who all reported higher profits on sales. The oil companies have become the government’s new whipping boy for government-created inflation. The object of course is distraction and shifting the blame.

Politicians Ruin Local Economy

Casinos were indefinitely closed in Atlantic City today, until politicians can decide how to fill a $4.5 billion budget deficit. Basically thousands of people are going to be out of work and many small businesses will suffer. Of course, the casinos are estimating a daily loss of around $20 million and the state loses around $1.3 million in lost taxes per day!!!

What better way to solve a budget deficit? Just close down the town and drive the tourists out!