Sequestration Effect on Real Estate in Phoenix (sales, condos)

[bolatsara]

Hi There,


I am a Homeowner of 2 condos in Paradise Village and wanted to know what you guys think of the effect of the cut in Federal Budget on the Real Estate in Arizona.

Should we feel menaced?

Thanks,

Steve

[jdahunt]

IMO....it is going to be less than what we just saw with 100% of working americans seeing 2% less in take home pay from the fiscal cliff deal....the gov cut is going to be less than that and spread out over a bigger period of time.

There are always a few 100,000 dollar toliet seats and 50,000 dollar hammers that gov can do without right.

[hogsrul]

the fiscal cliff had nothing to do with the 2% social security tax increase. The 2% decrease was only supposed to be in effect for a year and it was extended another year. It had to end eventually.

[Burning Madolf]

Originally Posted by bolatsara

Hi There,


I am a Homeowner of 2 condos in Paradise Village and wanted to know what you guys think of the effect of the cut in Federal Budget on the Real Estate in Arizona.

Should we feel menaced?

Thanks,

Steve

Yes, you should sell everything you own. The sky is falling.

[MiamiRob]

Originally Posted by bolatsara

Hi There,


I am a Homeowner of 2 condos in Paradise Village and wanted to know what you guys think of the effect of the cut in Federal Budget on the Real Estate in Arizona.

Should we feel menaced?

Thanks,

Steve

I would feel more menaced by who your Governor is than "Sequestration" by Obama.

[Goober13]

We are in a dangerous situation. The sequestration was brought on by the Tea Party in an attempt to eliminate government instead of making government function more efficiently. The debt is not our problem. Lack of jobs, high paying ones is. The more people working, the more the debt decreases.

The real estate situation is tied into ordinary people having high paying jobs, and wage increases for the masses have been flat for over 25 years.

In a recession, heavy government spending to create jobs fuels economic growth and gives the states more tax revenue from payroll taxes, so that we as a people aren't burdened so much with higher taxes and less services.

Imagine owning a store where when the owners money is short, and he/she cuts back on orders instead of borrowing more money to stock the shelves. Eventually the customers will stop coming in and he/she will be out of business because the shelves are empty. If the store owner borrowed money to stock the store, the money collected on the sales of the goods would pay the loan payments and create a profit.

This is how government and an economy works. Austerity or spending cuts will bankrupt an economy. Money has to be spent to create revenue or profit.

We ALL depend on government services, and the government is a HUGE employer.

The ripple effect of this Tea Party craziness could be disasterous. Who is going to be able to buy a home or expand commercial development when the average consumer is short on money, and 750,000 more people are out of work?

We'll see what happens by March 27th when phase 2 of this budget fight continues.

We would be out of this damned recession if massive government employment programs that were proposed had been put in place and not blocked by the opposition.

[observer53]

Although Phoenix is mentioned in the title and the OP, this discussion is a general topic and not related to Phoenix (or Arizona, for that matter) real estate specifically. It's more appropriate for the general forums here. Closed.