As Goes California, So Goes the United States

A wise man once told me "As goes the California economy, So goes the US economy".  With California such a large part of our economy, it only makes sense that until that state gets its act together, the country will continue to languish.  And by the looks of it, that isn't going to happen for quite some time.  And it also looks like the federal government is in no hurry to help out.

That same wise man also said that "As housing goes, so goes the economy".  That is another reason why this recession/depression will continue as long as President Obama wastes time on issues such as health care and green energy.

Think about it.  What is our biggest expense every single month?  Housing.  What is the biggest concern that most people have every day?  Housing.  What is the one area that has been the biggest drag on our economy for 3 years.  Housing.  And the biggest drain on consumer confidence?  The price of our houses going down with no end in sight.  

Yet Obama continues to push for national health care and green energy.  Does that matter if you are facing foreclosure?  When you are selling your house short to move into a tiny apartment?  When you have no more equity in your house and no hope for every getting back to zero?  When the majority of baby boomers are going to work until they die because the equity in their homes and retirement accounts are at zero.  How are they going to afford nationalized insurance and an electric car.

Am I missing something?

Comments

[real estate brochures]

Hi,

Great points raised on your post...particularly on how purchasing or renting can be the biggest expense, all the real estate brochures say this. Foreclosures are the trend and some are really making a profit from it. Baby boomers are postponing their retirement because of the current state of our economy. Here's to more creative ways and trudge on until the world's economy and world leaders, lets up.

[Eric]

I would argue the contrary, that it is government intervention, mainly by Congress, that is worsening the housing problem by trying to reinflate the bubble. Rather, the government should let market forces bring the market back to some semblance of normality. After a bubble caused by irresponsibility, greed, and a lemming mentality, it is entirely right that housing prices should fall. The President should indeed be spending time on issues such as health care and green energy now rather than wait for them to reach critical mass.