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Thursday, August 16, 2012

The Trend

Whereas a recent report cited the historic sluggishness of the economic recovery, within this report was also a citation regarding historic declines in home values prior to recovery. Over a trillion dollars in equity was lost, equity that would have been used by people to drive consumption and demand. As such, the middle class was hurt by far the most, since this group has most of their wealth in their home value. This fact has much more to do with the recovery than tax policy, business incentives, the national debt and Mitt Romney's taxes. Having said this, the recent spate of economic news is trending better. Unemployment claims remain below 400,000, jobs are still being created, inflation remains low, retail sales as just reported were up, permits for home building reached a four year high and all this despite no policies from Washington DC. If you notice, the economic message that Republicans are using to replace the President, is not as much of an advantage as initially thought. This is why you are seeing racial matters, Medicare, statements about Presidential power grabbing and mean spirited personal attacks entering the political arena very aggressively. If the message shifts by Republicans and they cede ther advantage to Democrats because of improving numbers, it will be a lost cause for them. They may actually have to deal with a Congress significantly in play in the election. All they have left is the hope of economic failure, a huge gaffe by the President, or a cataclismic unanticipated event. I am sure this is what they are praying for, certainly not a good news trend. Where are you Americans for reason and truth?

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