Friday, June 17, 2022

Biden Recession Is Coming

Now that the Federal Reserve is raising interest rates in response to the inflation that feckless Joe Biden has caused through reckless spending and the implementation of the Green New Deal that has resulted in HUGE spikes in energy costs, we will go into a Recession.  It is only a matter of months if we are not already there.  The stock market is in a free fall.  Real Estate Prices have peaked and now we are starting to see price reductions.  

What will come next are people upside down on their mortgages.  That is if they only put 10 or 20% down, as prices fall, their homes could be worth less than the mortgage they owe on the home.  Sometimes, when that happens people attempt to sell in a short sale to just cover the cost of the mortgage pay-off losing all their equity in the process.  If they are very unlucky the home value has fallen even more in which case, they just walk away and hand the keys over the lender in a foreclosure.  

Joe Biden is clueless.  What he should do immediately is end bursome regulations on the energy industry to encourage more oil and natural gas production.  Bidenistas need to start approving new leases for drilling in the US including offshore drilling and in Alaska.  Biden must approve the Keystone Pipeline to bring more Canadian oil into the US.  These things must happen because the high cost of energy is factored into everything we do, eat, buy etc.   

Next, it would make sense to extend the Trump personal income Tax Cuts set to expire in 2025 to bring some certainty into the markets.  On the corporate side, it would be good to accelerate deductions for capital expenditures, which actually would be a tax cut without cutting rates.  

Sadly, Biden is a prisoner to the radical Socialist Fascists in his party.  As a result, Biden will do none of these things.  This will turn into the Jimmy Carter years all over again.  We will have Stagflation, which is inflation with low growth.  Don't be surprised if we don't end up with gas lines just as we did during the Carter years.   The end result will be a Red Wave Tsunami as Republicans take back control of the Congress in 2022 and the Presidency in 2024.  In the meantime, we are in for some tough times ahead.  Elections matter.   

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