I actually believe quite the opposite. I think that yesterdays election will serve as a catalyst. I think that some in the democratic party are scared straight and now understand that there is one and only one thing Americans care about right now. Jobs. I believe we will see a substantial effort by the political establishment to get people back to work…. meaningful or not they will create jobs and this will be done in 2010. I do not see any huge downtrend and quite honestly I didn’t before yesterdays election. In fact, those in the know, understand the bulk of the stimulus money is targetted for 2010 anyways… anyone wonder why that was? Right now demand for SD real estate is still quite strong. I can EASILY see more govt programs, more incentives to buy homes, and more bond market shenanigans such that long term rates will not go up significantly.
You see… those in power do not like to give up power… dems or pubes… it doesnt matter. Unemployed masses vote for change. So the only way these guys remain in power is to get people employed.
In short the can will be kicked down the road some more.
It is not time yet. Soon, a few more years but the camels back is not quite ready to break. It can take a few more straws.
