There are things like the law of gravity that we can't suspend by mere wish or whim. If I step off the side of the cliff or building without safety gear, a chute or glider wings, no amount of wishing would keep me from falling. There are laws of economics that work as silently yet powerfully as gravity. Violate them, and the fall will come.
Which is why loyal, die-hard Democrats – as well as Republicans, Independents and minor party backers – ought to rally now to mitigate the damage from what could otherwise become the legacy of President Obama's agenda, a “perfect storm.”
Just as you can spot a storm system moving inland using satellite and radar, so too, you can spot the challenges coming to the president's agenda items.
*** As soon as professionals realize that we can have differing viewpoints on subjects as sensitive as politics – and that we can do it respectfully and without rancor – we have taken a major step towards healing any ill that confronts us. ***
Because indeed we are on the leading edge of what could develop into a new, full-blown perfect storm.
The good news is, we can navigate the storm, take steps to dissipate the impact of the economic head-winds and storm surge, or we can wait for the it to wreck havoc!
Either way, what we do is consequential.
Calling Die-Hard Democrats
Richard M. "Dick" Nixon was a Republican President. Nixon violated the hidden laws of a free economic society when he imposed wage and price controls during his administration. Those polices failed. Our nation paid the economic price.
When Sam Zell warns against Federal Reserve Policy, it is no mere opinion. The only thing that keeps the negative effects of QE3 from being more clear is that other nations around the world are debauching their currency too. Bernanke has served both Republican and Democratic administrations.
The point is that this ISN'T about party politics, this is about economic laws that when disturbed will bite you as surely as the policies in Detroit have caused a great city to fall into economic bankruptcy.
As an independent, this is not parroting some Republican, fiscally conservative Democratic (or Libertarian, etc.) talking point. This is about seeing reality for what it is.
We need thinking Democrats – along with thinkers from all political or no political affiliation – to rally around the cause of our country, which in turn will be a major boost to our economy and thus our industry!
Taking off the Rose-Colored Glasses, the Perfect Economic/Political Storm
Some people are so hyper-political, they will ignore reality in favor of party or whatever position they happen to favor. Ours is a country based upon the ideals of freedom, so I respect the rights of others to see this or that topic differently. In fact, we will and do publish differing political or economic viewpoints from our readers.
That said, here is the snapshot of some of the elements of the impending perfect storm:
ObamaCare: everyone agrees that the website has been a train wreck, but arguably worse still are the policies that created the website. Over 5 million canceled insurance policies, a 29 hour work week, sky rocketing premiums and higher deductibles are all a recipe for an economic slow down. The National Retail Federation already stated that Thanksgiving/Black Friday shopping was down from last year.
Dodd-Frank and the CFPB. Sorry, but those who think that all of Dodd-Frankenstein is a good thing are sincerely mistaken. Our economy operates in large measure upon lending. To whatever degree you choke off lending, to that degree home values will be impacted or drop. The radio host, Charlie Sykes, is talking about Dodd-Frank at this podcast link. Without mentioning manufactured housing – Sykes and his call-in guests do a good job of explaining why the economy is about to hit another wall due to policies created by Dodd-Frank.
Massive federal deficits. When interest rates rise, the percentage of our budget that will go to sustaining the debt will naturally rise. Obama was right – as a candidate – to criticize massive deficits and borrowing by the Bush Administration. That means his own words about how un-Patriotic huge deficits are find his fingers pointing at his own even larger deficits and failing economic policies. As one industry pro and CEO told us off the record, “I've been through 4 recessions. Each time, the economy has coming bouncing or roaring back after about 12-18 months. Clearly, this time is different.”
FED Policy. The stock market is not a pure bubble, because there is real value to most of the corporations on the exchanges. But markets are being inflated by cheap money, and that same cheap money makes home values in cities around the country seem to be "rising." In fact, cheaper dollars means you have to spend more of those dollars to do the same thing. A depreciated dollar robs retirees, mid-to-low income and those on fixed incomes the most.
When Dodd-Frank regulations fully kick in starting January, 2014, our economy will begin to hit another invisible wall. Combined with the effects of ObamaCare and the rest of the items noted above, all are sound fiscal reasons why Democrats running for re-election in 2014 are nervous.
This is why thinking Democrats need to sound the alarm, along with thinkers in all other political groups.
We are all in the same boat.
And the Good News for Manufactured Housing is…
Sam's Zell's tongue in cheek observation about a negative economy could boost manufactured housing is right on target! Here are the links to our two Sam Zell reports.
You can see for yourself what he said, and what it means.
Our take here at MHProNews is simple. Almost anything that happens economically can benefit our industry, at least for those professionals who know how to position our amazing housing product!
But that doesn't mean we should wish for a bad economy. Quite the opposite, because misery is not what made America a great nation. We don't need a weak or crashing economy to do well. We did better when the economy was roaring in the 1990s.
Next Steps for Die Hard Democrats, Republicans and Independents
Some commentators mistakenly think that pointing out problems is the same as a solution, wrong! We want to be solution oriented professionals here at MHProNews.
So this analysis is a way of saying, please send the link below to your Congressman or Senators. This article lays it out for you, step by step.
If you are a Democrat with a Democratic Congressman or Senator, we need you now!
Even if you disagree with the wording, tell your House or Senate members, you may not like how this article was written, you may favor health care reform, etc. But the facts are that Dodd-Frank and the CFPB are about to choke off lending to housing, and the biggest choke point will be to the most affordable housing.
Quality, affordable manufactured homes!
This article above has been a wildly popular read. A number of association and other leaders in our industry are sharing it. Please join them in sharing it with others.
Out industry can weather this next (avoidable) storm. As this article showcases, our industry can continue to grow. But it would be much better for tens of millions if we could navigate around it now. There is still time to do so! Take 3 words from Nike: email/Tweet/FB the link above about HR 1779 and the Preserving Access to Manufactured Housing Act of 2013 to your Congressman and Senators; "Just do it." ##
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