Stubborn Politicians Play Games With The Economy

Right now thousands of home buyers can't get approvals for their mortgages because of the government shutdown. Pessimists think this will pour cold water on the US housing market's recovery. 

The Internal Revenue Service, the Social Security Administration  and much of the Federal Housing Administration, banks and other mortgage lenders can't make loans for now and do not want to take the risk.  Even private none federal lenders need Social Security number's to confirm a borrower's identity.

Mortgage and interest rate approvals are piling up at the rate of 15,000 every day and refinancing at about 18,000 per day and this is not only putting a spoke in a buyer's wheels it is also distressing for sellers and others who just want to raise a loan.

As this political dispute drags on mortgages, refinancing on other loans are all in limbo and ordinary people are at risk of losing out on selling their home just when they thought they waited until the time was right.

"This can't drag on indefinitely" I hear you cry into your beer and the politicians can't play chicken until Uncle Sam goes bust.  So they will have to compromise at some point sooner rather than later.  It's not just about healthcare there is a need to agree about the debt ceiling for another year and if that is not agreed the politicians will take the US economy back over the cliff edge playing games with the economy like kids playing a game of snakes and ladders.

Let's hope the politicians think about the national interest and stop behaving like spoilt kids as the consequences for the majority are unthinkable.

In the worst case scenario if the economy collapses and the housing market follows in its train with house prices dropping back down (there has been no bubble to burst with this recovery).  There will always be some investors waiting in the wings to help out motivated but distressed sellers and making themselves a fast buck in the process.

There is a saying: "one man's meat is another man's poison."

In this case it should be said the other way round as deals would fall through and dreams and aspirations shatter.  But there will always be someone waiting in the wings with a wad of cash to make you an offer you wish you could refuse.