Oct

18

 Out here in SoCal land, specifically San Diego, life has been good. 70 degrees every day, no rain, usually no clouds, etc. But all is not as it appears: the housing market is weakening.

For those not aware, in San Diego, the military is a major employer. By some estimates, directly or indirectly, between 20 and 30 percent of the economy of San Diego is based on federal spending. The home base for the USN Pacific Fleet is in San Diego. Also Miramar (think Top Gun), Camp Pendleton, among others (and there are others).

While the softness in the housing market out here isn't solely due to the sequester, even local economists of the conservative persuasion acknowledge that the sequester is having an impact locally. The assertions from some that the effects of the sequester are minor do not seem to ring true, at least not out here. I expect that while there are housing markets that will be less affected by the sequester than San Diego's, there will be an affect.

Staying away for the moment from housing-related stocks seems a prudent course of action.

a commenter adds: 

Second best city in the world behind Sydney.


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  1. Steve on October 18, 2013 3:56 pm

    “The assertions from some that the effects of the sequester are minor do not seem to ring
    true, at least not out here.”

    Don’t worry, soon or later, the US government will dust off some new enemy to scapegoat its problems upon followed by sanctions, invasion, and occupation.

    The military base economy should benefit as well as its ladies of the night, pawn shops and liquor stores.

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