There are two big things happening this week.  The election, which looks to bring us back to a divided government and the Fed’s Quantitative Easing II.  The election will have no immediate impact on housing,  but does potentially play into the long-term health of our housing market.  The Republicans espouse less government spending and intervention.  The impact they actually have on policy will likely be minimal.  The Tea Party and the grass-roots movement surrounding them, will be interesting to watch.  Let us not forget that it was the under-regulated and under-enforced policies of the free marketeers that got us into this housing mess in the first place.  Free market greed clearly cannot be left unchecked.  Conversely, over involvement in the “saving of homeowners” is a failed policy too.  Perhaps any shift in this election will bring us a sense of balance; though I hate switching horses mid stream.

As for QE II, I just hope the effect is the desired one in which rates remain low.  I am always concerned with the concept of “already priced in”.  This is where Wall Street investors have already priced in the Fed action and anything below their expectations, end up having the opposite of the desired effect.  Watch the bond markets Wednesday and Thursday for your answers.

With all of that said, it’s hard not to feel a sense of pride on a day like today.  We peacefully vote, we cheer, we groan, but in the end, we are still in the best place on earth to live.