The Friday edition of the JRS, 7-25-08, reported unemployment figures rising, falling housing prices nationwide, and home sales for June the Capital Area Association of Realtors. There is much good news to be found in these articles, because that's the way it is. A review of reality if you will.
So today's headlines on the first page state gas can easily go back to $ 4 per gallon. You can connect the dots here very easily. High gas prices lead to higher prices of food, consumers spend less, to sending unemployment, home sales down and home prices down.
Podlasek Research Professor Bob Bradley University confirmed what I said is the reason for high gas prices, to cite the teacher: "We are in a shortage at this time. When supply is down, prices go up. It's as simple as that."
I've said here that as gas, food and utility prices go, so goes the economy. That means everything if you are a home owner. Whether you will be able to sell home, and what the value of your home will be.
As stated by the teacher about gas prices, the same is true for your home. If the supply is high and we record levels of homes for sale, and demand is weak, sales have declined at a rate unprecedented locally since 2002, its value decreases. It's as simple as that. A reality check.
The next presidential elections will have a substantial impact on the gas, utility and food prices, all of which will directly impact the value of your home, and the possibility of selling your home.
Here are the positions. Barack Obama says he is against the additional drilling and building nuclear power plants. He wants to raise taxes to fund the "green industries" to develop sources alternative energy to oil. Obama also has stated that it opposes higher fuel prices, just wish had not risen so quickly. Would preferred a more gradual increase.
This plan will do nothing to increase supply and thus keep prices high. The result will be reduced disposable income, as families pay a greater share of its revenue on more gas, utilities, and food prices. This will lead to less spending consumers, higher unemployment and inflation leads to higher interest rates. This will result in fewer home buyers with limited purchasing power, and the value of your home will fall.
John McCain supports drilling and building nuclear power plants.
This plan does not bring relief in the short term, because it will take two to three years to see the increased supply hits the market. However, futures traders hesitate to raise prices with an imminent increase in oil supplies.
The construction of nuclear power plants will stabilize electricity rates, and drilling is currently prohibited will have access to one reported 1.8 trillion cubic feet of natural gas deposits that will result in utility costs stabilized at home.
Propose add the following. Immediately approve all permits for refinery expansion have been stalled by environmental groups. Cut the seven-year process of implementation new refineries to 60 days.
Open drilling in ANWR, offshore, and the U.S. Continental
Eliminate the corporate tax 35% of the oil producing companies to explore and discover oil in these areas now prohibited.
Eliminate Federal Law of 18 cents per gallon tax to gasoline.
Replace the tax on gasoline at the pump with a 10% tax on sales of oil producers of oil delivered to U.S. refiners. Impose a 35% tax on the oil went on sale on the world market.
Retaining 25% of tax revenues to improve infrastructure is now paid by the federal gasoline tax.
Withhold 5% of tax dollars to provide grants to science departments in each University College and the U.S. to research into a viable replacement for petroleum as an energy source.
Keep 1 / 2% of tax dollars in a pool to pay a premium for the science department that success in the discovery or invention of a viable, affordable alternative to petroleum fuel.
The race would in the same as when Kennedy said we're going to put a man on the moon. Oil companies will race to deliver more oil, and science departments race to discover a viable substitute fuel. We all will win.
The reality is that our economy, jobs for working families, the values from their homes, the ability to sell their homes, industry, transport and prosperity depends on oil. Oil affordable. Like it or not, that is the reality. Oil the economy is like oxygen is to our body.
We have the resources available to increase the supply of oil, natural gas and build plants nuclear energy in a manner respectful of the environment, until the altruistic environmentalists dream of when the oil is replaced as our main source of fuel.
This November you can vote. You can vote for a plan that reflects the economic realities of today, or you can vote for a plan that ignores the reality altruistic economic. Your choice. You can vote for higher prices or you can vote for lower prices. It's as simple as that. A reality check.
About the Author:
Fritz Pfister is a licensed Realtor with RE/MAX Professionals Springfield Illinois.
Fritz is a leader in the local real estate market and hosts a live one hour radio program, now in its’ 13th year.
Fritz’s website is
SpringfieldHome.com
Fritz hosts home buyer and home seller seminars that have been attended by hundreds of consumers.
Fritz provides advice that helps consumers succeed in the sale or purchase of homes.
Article Source: ArticlesBase.com – The Price of Oil and The Price of Your Home
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This post was written by admin on December 20, 2008
