Monday, September 2, 2013

8 Headwinds For Economy, Housing and Mortgage Markets

The US economy is straying further and further away from a free-market model and towards a government-controlled, crony economy. We can see the results of the move to government control of the economy in the headwinds. Like in the movie “Idiocracy” where the government orders Brawndo, a green liquid that resembles Gatorade, be used instead of water for crops, the government’s solution to all problems is more government, more regulation, more taxes, etc. Government is what statists crave.
Here is a partial list (the actual list is way too long) of headwinds facing the economy, the housing market and the mortgage market.
1. Declining Labor Force Participation Rate. Labor force participation has been declining since the 2001 recession and has fallen back to mid-1970s levels. Partly it is the effect of an aging population where more and more Americans retire and drop out of the labor force. Partly it is the effect of corporations moving out of the US to benefit from reduced labor costs and reduced regulations. Whichever explanation you choose (both is the correct answer), it is a troubling trend.

http://confoundedinterest.wordpress.com/2013/09/01/brawndo-recovery-8-headwinds-for-economy-housing-and-mortgage/

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