I came across an article from the Associated Press the other day, I thought I’d share ‘Lee Hindin’s Thoughts’:
AP Reports: Average U.S. rates on fixed mortgages rose slightly this week, staying near three-month lows. Rates could fall next week now that lawmakers reached a deal to avert a possible government debt default and reopen the federal government. (Click here for full article)
Clearly it’s good news the federal government is back open and that the debt ceiling crisis has been temporarily averted for a few more months. However, often lost in all this inside the beltway politics is the effect on Main Street and small business.
For example, I have been working on a real estate development project, which makes sense on all levels. However, due to the fiscal uncertainty in Washington the private financial markets that make their return on leveraged capital temporarily appeared to cease while watching what was happening in Washington. Postponing the issues for months may have taken the pressure off legislators and the White House, but it has left the private capital markets and construction development lenders rightly concerned about the two to three year landscape of real estate development financing commitments.
Washington, democrats and republicans collectively, say they are for more jobs and focused on the middle class. Yet their behavior during the government shut down and debt ceiling debate has had a negative impact on jobs in my business world. This particular project once financed would likely provide 150-250 construction related jobs and 20-30 development related jobs, along with dozens of permanent long term positions.
I hope our elected representatives will look at real life examples like this when they focus on the long term solution to our great country’s fiscal issues. If they can create governmental fiscal stability, in my humble opinion, it will unleash a plethora of great middle class jobs that they claim they are laser focused on creating.