Tag Archives: Spending

New-home sales plunge 33% to record low in May

Story from CBS Marketwatch. (H/T ECM)

Excerpt:

Sales of new single-family homes plunged 33% in May to a record-low level after a federal subsidy for home buyers expired, according to data released Wednesday by the Commerce Department.

Sales dropped to a seasonally adjusted annual rate of 300,000, the lowest since records began in 1963. April’s sales pace was revised down to 446,000 compared with the 504,000 originally reported. March’s sales were also revised lower.

The results were much worse than expected, and economists had expected a 20% decline to a seasonally adjusted annual rate of 405,000.

[…]Sales fell sharply in all four regions, with sales down more than 50% in the West.

The median sales price in May was $200,900, down 9.6% from a year earlier and the lowest since December 2003.

[…]Housing data in May have been dismal. Housing starts fell 10%, building permits fell 5.9%, mortgage applications dropped, and the home builders’ index fell by five points. The only bright spot was mortgage rates, which stayed very low.

Obama’s solution to this problem was government spending in the form of an $8000 federal tax credit “stimulus” for people who bought homes between February and April. How did that government-run top-down Keynesian stimulus solution work out?

Excerpt:

The tax credit likely pulled many sales forward into the first four months of the year. Sales increased a cumulative 29% between February and April. But once the credit expired, sales collapsed in May.

I guess maybe they were hoping to “prime the pump” which of course doesn’t work any more than “cash for clunkers” works.

Obama flip-flops on health care mandates – now it IS a tax

Here’s the deal. In order to get the health care bill to pass, Obama had to trick people into thinking that it was not going to result in higher taxes.

So, you would see him on ABC News before the bill was passed saying that forcing people to buy things they don’t want is not a tax:

OBAMA: No. That’s not true, George. The — for us to say that you’ve got to take a responsibility to get health insurance is absolutely not a tax increase.

OBAMA: My critics say everything is a tax increase. My critics say that I’m taking over every sector of the economy. You know that. Look, we can have a legitimate debate about whether or not we’re going to have an individual mandate or not, but…

STEPHANOPOULOS: But you reject that it’s a tax increase?

OBAMA: I absolutely reject that notion.

So forcing people to buy health insurance and fining them if they don’t is NOT A TAX, he says.

And so the bill was passed.

But the thing is, the government can’t legally force people to buy health care coverage – it’s unconstitutional! And people are suing them for having passed an unconstitutional law. So now the Obama regime has to argue in court that it really is a tax in order to escape court challenges that they overstepped their bounds by passing a health care mandate.

The American Spectator explains. (H/T Hot Air)

Excerpt:

In order to protect the new national health care law from legal challenges, the Obama administration has been forced to argue that the individual mandate represents a tax — even though Obama himself argued the exact opposite while campaigning to pass the legislation.

Late last night, the Obama Department of Justice filed a motion to dismiss the Florida-based lawsuit against the health care law, arguing that the court lacks jurisdiction and that the State of Florida and fellow plaintiffs haven’t presented a claim for which the court can grant relief. To bolster its case, the DOJ cited the Anti-Injunction Act, which restricts courts from interfering with the government’s ability to collect taxes.

The Act, according to a DOJ memo supporting the motion to dismiss, says that “no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.” The memo goes on to say that it makes no difference whether the disputed payment it is called a “tax” or “penalty,” because either way, it’s “assessed and collected in the same manner” by the Internal Revenue Service.

It actually is a tax, and just another one of the many ways that Obama broke his campaign promise not to tax the middle class. How else is he going to pay for the trillion-dollar deficits he is creating? He has to raise taxes – or devalue our savings with inflation. There is no third way. The money has to come from somewhere – and if you tax the rich you just end up losing jobs.

Conservative MEP Daniel Hannan admits he was wrong to support Obama

Conservative MEP Daniel Hannan

You all remember Daniel Hannan, who chastised the Labor Party for spending the UK into oblivion, right?

Here’s a refresher:

Here are more videos dealing with the aftermath of that rant.

But yeah, like the title of the post says, he supported Obama in 2008.

Well not any more. Check out the latest from the UK Telegraph.

Excerpt:

The credit crunch occurred during the dying days of the Bush administration, and it was the 43rd president who began the baleful policy of bail-outs and pork-barrel stimulus packages. But it was Obama who massively extended that policy against united Republican opposition. It was he who chose, in defiance of public opinion, to establish a state-run healthcare system. It was he who presumed to tell private sector employees what they could earn, he who adopted the asinine cap-and-trade rules, and he who re-federalised social security, thereby reversing the single most beneficial reform of the Clinton years.These errors are not random. They amount to a comprehensive strategy of Europeanisation: Euro-carbon taxes, Euro-disarmament, Euro-healthcare, Euro-welfare, Euro-spending levels, Euro-tax levels and, inevitably, Euro-unemployment levels. Any American reader who wants to know where Obamification will lead should spend a week with me in the European Parliament. I’m working in your future and, believe me, you won’t like it.

But it’s not just domestic policy that infuriates him, it’s foreign policy:

All these things are minor irritants compared to the way the Obama administration is backing Peronist Argentina’s claim to the Falkland Islands – or, as Obama’s people call them, “the Malvinas”. British troops were the only sizeable contingent to support the US in Iraq and Afghanistan. We have fought alongside America in most of the conflicts of the past hundred years. Yet, when the chips are down, Obama lines up with Hugo Chávez and Daniel Ortega against us.

Not that we should feel singled out. The Obama administration has scorned America’s other established friends. It has betrayed Poland and the Czech Republic, whose Atlanticist governments had agreed to accept the American missile defence system at immense political cost, only to find the project cancelled. It has alienated Israel and India. It has even managed to fall out with Canada over its “Buy American” rules and its decision to drill in disputed Arctic waters. Never has there been a worse time to be a US ally.

Indeed. Not only are we the economic laughingstock of the world, following quickly along in the footsteps of Greece, but we are despise by our former allies and our emboldened enemies, alike.