New GDP numbers and the real economy:

So here we are with the new GDP numbers saying the economy grew by 3.5 percent. Where did it grew I don’t know because I don’t see it anywhere near my house, or my town or my county or my state. People are still hurting with few jobs to go around.

Then this unemployment reports comes out today that the rate of application for unemployment benefits dropped less than expected . As it has been mentioned several times before that if people’s unemployment benefits runs out, he or she is not considered unemployed.

For example I was unemployed for three months last year I did not apply for unemployment benefits because I got a layoff package, so I am technically not considered unemployed. I am under the radar so to speak. So the unemployment numbers are totally out of sync with reality.

Another news came out that the Congress is set to extend the first time home buyers credit beginning December 1 and ending in April plus another $6,500.00 for people who already have the house (living in it for the last five years our of eight years) but wants to move out of the existing one to buy the next one. Since winter months are usually slow for the housing market, by the time spring arrives (usually the peak time for house buying) it may be extended again. Although the votes are not sure on this new piece of legislation but keep your fingers crossed about it. If I want to buy a new house (since I already have a new house for the last two years) where is my credit?

People will always buy houses whether there is credit or no credit. Let us just let this credit expire on November 30, 2009 and see what happens to the housing market. If people have jobs they will buy the house anyway and if not, no amount of credit will make them do it since they have scrap together the down payment and the closing costs, not to mention moving costs and taking time off from their jobs (which are hidden costs).

If the legislation is so near and dear to the legislators, let them extend it during the time when it will have the most effective (i.e. in the spring season).