The Pentagon, War Funding, DC Real Estate, and "Won't Someone Please Think of the Children!"
Cue Mrs. Lovejoy voice.
Won't someone please think of the Children?!
That's about the substance of the latest Pentagon sob story aimed at trying to shame Congress into passing another $200 billion (unpaid for, of course) in war funding.
"The Defense Department warned yesterday that as many as 200,000 contractors and civilian employees will begin receiving layoff warnings by Christmas..."
Awwww... See! You must pass this bill, otherwise some people might lose their jobs. (And at only $1,000,000 per job, this defense department job entitlement plea is a real bargain!)
I have two thoughts on this. The first is, "Good." Let the savings commence. Taxpayers are being soaked incredibly by all this endless and wasted military spending, and in the DC area, where much of this money goes, a lot of it is being wasted on houses that sell for $600,000 or more, houses that would bring in $200,000 anywhere else in the country. (When capital seems free, it tends to be allocated in horribly wasteful fashion.)
The second is, what if the layoffs actually come? The RE market in DC is already dying a slow death. Take away a pile of jobs, when there's already a ton of inventory on the market, and builders continue to pump out supply -- especially condos -- and there's bound to be a real crash, especially since lending, particularly Jumbo, is tight, and refinancing won't be an option because prices have dropped and many housing bagholders are sitting on a significant pile of negative equity.