The Challenges Ahead: Jobs, Mortgages, Debt

Perhaps, the June jobs number will be revised upwards next month, showing a large (and expected) gain in employment instead of the paltry 18,000 increase we saw on Friday. As any mortgage banker knows, a consumer (usually) needs a job to purchase a house unless he’s using cash. But it might be argued that America is in a conundrum. The GOP wants to cut spending, which will destroy government jobs (state/local/federal) and exacerbate the employment picture. Then again, cutting spending can be good – as long it somehow stimulates growth. Of course, runaway spending is bad for the nation too. (Blame the Democrats on that one.) But if the government cannot hire and the private sector will not hire – then where does that leave us? Tax breaks to spur hiring sound nice (in theory) but that will result in less revenue to the Treasury and right now Uncle Sam needs every dollar he can get his hands on. Is there a workable solution? We’ll know by August 2 when the Treasury will have to make a choice: pay U.S bond holders or tell Granny that her Social Security check is going to be a bit light this month --and the month after that, and the month after that…