It seems that all we are hearing about lately is the economy and what is wrong with it. What is wrong with the economy? Interest rates are the lowest they have been in years, property is affordable and it hasn't been a better time to buy a home in years, so what is missing?
The answer is "Consumer confidence". We have several presidential hopefuls making their bid for the white house and they all have the same message, "The economy is bad and I can fix it". This makes people scared and sets them in the "Wait and see" mood. As long as that is going on, money will not change hands and the economy will remain stagnant.
We went down this road before during the first Gulf war, the other Bush was president and the news was constantly reporting that there was a recession. President Bush lowered the interest rates to stimulate the economy. What that means is stimulate people to borrow money to get money changing hands, flowing, trickling down. However, with the news creating fear of recession and an election coming up, people waited. It wasn't until Clinton took office that people decided that they better act before rates go back up. Before you knew it, America was singing praises of President Clinton for getting us out of the recession. The truth of the matter is that it was actually Bush who did the work Clinton just restored "Consumer confidence".
Here we are again, in the same situation, interest rates are low, housing is affordable and an election is on the horizon. It really doesn't matter who takes office, people will know that it is now the time to start borrowing and spending money and the economy will recover.