New President Offers Economic Optimism?
I remember once reading that when a new president is elected, but only if that new president is a democrat, the economy traditionally gets boosted. Well, now I’m reading that if any new president is elected, whether it’s after the incumbent’s two term run or if it’s cutting off an incumbent’s opportunity at a second term, the economy generally bounces up for a bit after they are elected into office.
With this coming election, which many people are calling the most important and historic election in our lifetime or perhaps throughout history, not only because it is the first time a black candidate is running on a major ticket, but also because we are faced with so many challenges today, not just the economy. Some are saying that the new president may have a huge impact on the economy, but are not sure how long it’s effects will last. One thing’s for sure, the economy sure could use a dose of long term optimism, not just a short term dose like the little rallies we’ve seen here and there that fake us into thinking there may be a long term recovery.
While a new president may shoot the arm of the economy, many say that they cannot help with the current housing situation, that is a situation that is going to take years to heal because essentially the damage is already done. Apparently the two presidential hopefuls have a bit of a different agenda when it comes to the mortgage and housing situation, with Barack Obama wanting the government to step in a bit more and John McCain wanting to take a more hands off approac to let the housing market heal itself.
Some say that the McCain approach may be better, because when the government intervenes it actually throws the market into more of a spiral and takes a longer time for recovery. I’m no economy or financial expert, but I tend to agree that the government’s area is not to get into private affairs that the public needs to heal on their own, but that’s just my two cents. I agree that the federal mortgage rate cuts were probably good, but even that has been hotly contested by economists.
