Wednesday, March 25, 2009

BizzyBlog claims today's housing market news is evidence market is recovering on its own... EPIC FAIL.

This is just sad. I mean, it's getting too easy to predict this guy. As I stated just last week, here's Bizzyblog Tom Blumer's ridiculous world view: 1) Everything that happened in the economy that was bad (even though at the time Bizzy adamently denied it was bad) since July 2008 is the Democrats fault not because of anything they actually did, but because of what they were saying they were going to do once Obama became President seven months later; 2) Conversely anything positive that occurs in the economy during Obama's actual Administration is in spite of anything the Administration actual did.

And as if right on cue:

The above good-news cites are examples of the economy attempting a recovery on its own, thanks largely to lower energy prices and lower mortgage rates.

Certainly no one can legitimately claim any stimulus/Porkulus-related impact on the above results. Based on estimates of when the mislabeled “stimulus” money will actually be spent, no one will be able to do so until sometime this fall, if even then.

Sigh. So there's absolutely no way today's news about a better-than-expected rise in 22% increase in new housing starts and an increase in durable good orders by 3.4% last month could have anything to do with the Democratic leadership in Washington? (Both of which were expected to show DECREASES by 3 and 2% respectively.)

Absolutely none, Bizzy? Is that your FINAL answer?

So, I guess the housing bill that the Democrats passed over Bush's veto threat last July might not having anything to do with today's news, then? Not only did that bill restore investor confidence in housing lenders FannieMae and FreddyMac by bailing them out and forcing significant reforms in their operations and oversight, the bill also:
  • "Provided some $15 billion in housing-related tax incentives, including a $7,500 tax credit for first-time home buyers who meet certain income qualifications.
  • Permanently increased the so-called conforming-loan limit, which typically qualifies mortgages for lower rates, to $625,500 in the nation’s most expensive housing markets.
  • Granted authority for state and local housing agencies to issue $11 billion in tax-exempt bonds to refinance bad mortgages,
  • Called for stricter oversight of mortgage brokers; and
  • Set new disclosure requirements to make loan terms more transparent.

Of course, Bizzy stated in his blog post that nobody could claim the recent stimulus package passed by Congress this year was responsible for it. But that's a strawman's argument. Because nobody has claimed that the most recent stimulus package was responsible. However, whether the Democratic housing bill passed last summer is responsible is not so easily dismissed.

The fact that last month's stimulus bill couldn't be responsible for today's positive economic news doesn't mean that recent positive economic signs are not the result of earlier, less recent government actions. Let's not forget that the FannieMae/FreddieMac bailouts in July predate even the TARP program enacted in October.

Much like the stimulus package, the Democratic housing bill was passed despite widespread Republican opposition that it would not help the housing market improve. Opposition dittoed by idiots with keyboards like.... you guessed it, Bizzyblog! People who would have preferred a further paralysis of the housing market by allowing Fannie/Freddy to fail, but now applaud the news of a post-bailout housing market in recovery as evidence of the free market at work!

Bizzy will continue to delude himself and his tiny band of sheeplike readers that when the economy is bad, Obama is to blame, but when it's good, it's not Obama we should thank. What's utterly sad is to see such a delusional mind twist and contort itself to try to make sense in an economy that continues to debunk him.

After being a recession-denier, Bizzy now has added bailout-denier to his opus.

1 comment:

Jeff Lehner said...

You take a lot of shots at that guy. I notice he never responds.