It’s REALLY Still the Economy Stupid!
By now, whatever stimulus effect the Obama Stimulus Plan has had is nearly gone or gone. It is certain that the approximately $200 million in Democratic Middle Class Tax Cuts are gone which was the price Republicans demanded as part of the re-authorization of the Bush tax breaks for the top 2% of wage earners near the end of last year. The states have spent all the federal monies given to them which allowed states to initially avoid laying-off police, firefighters, emergency medical technicians and teachers and now states are going through lay-offs in droves further depressing the economy. And see here. There were only 18% of the Stimulus Plan dollars which went to “infrastructure” and those dollars are gone, too. The economy was treading water, and now growth is slipping. More federal dollars for bridges, roads and schools are needed and proposed by President Obama but, Republicans apparently will not vote for anything but cutting federal spending or cutting taxes for corporations and millionaires. 15 year fixed mortgage rates for well qualified borrowers are approximately 3.375 % as of the writing of this piece. Some broker/lenders will quote lower rates if you buy points. What’s there for the merely “decently” qualified borrowers? You might get 3.5% for a 15 year fixed rate. But, there’s a way to get all of those amongst us who are current on our loans and the loans are owned by FHLMC (“Freddie Mac”) and FNMA (“Fannie Mae”) (recently combined into the FHLA), FHA and VA an immediate break which will stimulate the economy. [More. . . ]
