Fritz Pfister

Now in my 24th year as a full time Realtor I have experienced several market cycles; good, bad, and ugly. Keeping a positive attitude and optimistic outlook are mandatory tools in all types of markets. Faith is the only tool greater than these two attributes.

The question has come to mind; is this a market cycle or an evolving market? Housing markets seem to run in cycles, but it can only be a cycle if the market is functioning within a similar economic environment as the previous cycle. Today’s housing market does not have the same economic environment compared to any other. This leads me to believe we are in an evolving market and not merely a cycle. In other words this ain’t your Daddy’s economy.

In fact it’s not just the housing market, it is the overall economic structure today. Unemployment is higher than reported due to people who give up and are no longer counted. The government has extended benefits to the unemployed to 96 weeks creating massive demands upon the government treasury. Money we don’t have.

Unemployment insurance was designed to last 26 weeks to tide a family over between jobs. What has changed today? The Obama administration’s $862 billion Stimulus plan has failed. It seems the administration is expanding the welfare state with these never seen before extensions, because they know there’s no place for these people to find work, due to their economic policies. The administration’s policies are putting people out of work.

A vicious cycle is in place. If history has taught us anything it is that if you want more of something, subsidize it. If you want less of something, tax it. Dr. Walter Williams published an excellent article in Thursday’s SJR showing how the government can make things worse while trying to help. He shares evidence that FDR’s government intervention into the private sector extended the Great Depression by seven to eight years. Obama is following the same blueprint, except on steroids.

The government caterwauls about businesses not creating jobs while sitting on record amounts of cash, and at banks for doing the same and not making loans. The National Federation of Independent Business and The Chamber of Commerce both say this is due to uncertainty. Boy howdy.

Since this is a blog and not a book, here’s a scratch on the surface of why the private sector is uncertain. Obamacare; costs unknown as congress will take years to write 100,000 pages of rules to go with the 2800 page bill. Financial Reform Bill. Same thing, Dodd says it will take two years to write the regulations and establish the eleven new bureaucracies to administer the 243 new rules in the 2600+ page bill. The Bush tax cuts expiring at the end of the year. This will impact primarily small business owners driving up their costs.

The Obama administration’s actions that defy past lawful precedent. Ignoring contract law and forcing rightful creditors to the back of the line for the government to buy GM for the UAW, and similar actions at Chrysler. The ordering of a private sector company to place billions in an escrow account without judicial overview, permission, or ruling. Suing a state over a law passed by democratically elected representatives.

Issuing new rules from the executive office to health insurance companies on what tests they must provide for free to their clients. Just another step to put health insurance companies out of business to get to the ultimate prize; single payer.

The oil drilling moratorium, ruled unlawful by two courts, ignores and institutes another moratorium. The executive branch through the Secretary of Treasury will be able to ‘deem’ a financial institution a risk to the economy, seize, close and liquidate that institution. Just a few examples of the abuse of power not granted the executive branch in the constitution. Do these actions make businesses, CEO’s, and investors nervous? Uncertainty rules the day in the private sector. All due to Obama economic policy.

This doesn’t take into consideration the Obama administrations stated desire to implement Cap and Trade or carbon restrictions mandated through EPA, either of which will place enormous economic burdens upon everyone. Amnesty for illegal immigrants that would place twelve to twenty million (voters to Democrats) people into our education, health, and welfare systems. The presidents Deficit Reduction Commission not reporting until after the elections in November. Why? Huge tax increase proposals are all but certain. Does this create uncertainty if you own a business?

No this ain’t your Daddy’s economy. The federal government has gone beyond their intended reach. These new entitlements are placed upon the backs of already unsustainable entitlements. Massive bills are passed with corrupt back room deals, businesses and investors coerced, taxes increased, reform that’s not reform, all add up to cast a pall across the economy, private sector, and individuals as they witness their liberty stolen by an authoritarian centralized federal government.

No this isn’t a market cycle, this is a manipulated evolving economy. One of command and control by the federal government which will lead to nothing less than economic calamity. A permanent lower standard of living, double digit unemployment, and double digit inflation, leading to double digit interest rates all around the bend.

You can maintain your positive attitude, and be optimistic. But you can’t ignore reality.

The solution? Take back the congress from liberals by electing people who believe in smaller government, lower taxes, and individual rights versus sacrificing those rights for ‘the common good’. Refuse to fund the monstrous new entitlements, limit the ability of Obama to cause more harm until the 2012 presidential elections. Then begin repealing and reversing the laws that are destroying the greatest economy in the world, along with the individual rights of its citizens. 

We can arise from the ashes of liberal rule. That’s why faith is important beyond a positive attitude, and optimism. Positive attitude and optimism will allow you to survive when clashing with the reality created by a liberal agenda. You must take a principled stand if we are to preserve America as the only nation founded upon individual rights and freedom in the world.

The opinions expressed here are solely those of Fritz Pfister, or identified sources,  and not those of RE/MAX Professionals of Springfield, or RE/MAX International.