Obama on “The View”

Senator Obama appeared on the popular ABC network daytime show called “The View” today and talked about his priorities if elected president of the United States:

1) Ending the war in Iraq
2) Health Care for All Americans
3) Energy independence

Obama nailed every topic to strong applause and also discussed his long relationship with the now retired Christian minister Jeremiah Wright.

His reasons for his focus on energy independence include not wanting to send profits to countries that fund terrorists, the desire to end global warming, and for increased security for the United States.

He sounded great, confident, and completely at ease talking with the hosts of The View.

The Economy as Related to Housing

One of the causes of the current housing bubble burst that no one seems to have noticed except for me is the reduction of the capital gains tax by George W. Bush. Investors are incented to flip houses as a means of fun and profit now that the capital gains tax is lower.

When houses are used as investments for those who want to buy, fix up, and sell instead of used as "homes" to live in by homeowners housing prices tend to drift upward. The quick rise in home prices makes it difficult for homeowners but more profitable for investors.

The problem is compounded when wages do not rise in direct proportion to the cost of housing.

My conclusion is let the investors go back to paying capital gains taxes on both long term and short term investments.