I have to say this was a good day for the President. Not only was his health care plan declared constitutional, but also some signs of a true long lasting economic recovery are beginning to fall into place.
First to the Affordable Care Act. I think Roberts’ vote was the true mark of a great Chief Justice. He saw that his court was deeply in danger of becoming totally politicized and a tool of the Republican Party. I think he truly believe Congress has the power to tax and since Obama had made that as a back up argument to the Commerce Clause, he seized on it. Beyond that, I think it secures Obama’s place in history besides FDR (Social Security) and LBJ (Medicare).
Beyond healthcare I was struck by two articles in this morning’s paper. The first was on housing.
But roughly six years after the housing market began its longest and deepest slide since the Great Depression, a growing number of experts and people who actually put money into housing believe the end has come.The trend is clear in the data. The widely respected S.&P./Case-Shiller index reported earlier this week that sales prices for existing homes rose in April for the first time this year. Several other measures, including a seasonally adjusted version of the index, show that price increases began in February. The pace of housing construction has increased. And the National Association of Realtorssaid Wednesday that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.
It may be anecdotal, but you certainly feel in LA that the market has turned around. This would be a critical part of a sustained recovery. Continue reading