Jobless Claims Up – Fed Admits Cash For Clunkers A Failure

San Diego housing market – Today’s video is about a rise in initial jobless claims. How does that affect the San Diego housing market? Actually, in two ways: #1, for the real estate market to build any kind of meaningful base, the unemployment numbers must improve;  #2, watch this video carefully, and you’ll see where the government admits that its’ cash for clunkers program was a failure. It has been my contention that the government’s home buyer credit of $8000, which was modeled after the cash for clunkers program, was also a dismal failure. I believe it’s just a matter of time before one of the regional Fed branches admits this fact like they did today with their cash for clunkers program.

In my June 2, 2011 post: Existing Home Sales Take Huge Drop I said “The problem is there was never any real recovery in the US economy or the US housing market. Both were boosted by artificial governmental stimulus. The $8,000 Federal housing rebate was nice for many San Diego home buyers. But, if that was their main impetus to purchase a San Diego home last year, they may now be sad to know that the value of their home has subsequently gone down well more that the amount of the tax rebate they received.” Read more