The dictionary defines sequestration as “the act of seizing property.” But as we all know from the news, sequestration also is synonymous with some serious budget slashing. the sequestration in place which may take months, the Obama administration is warning that the $85 billion in automatic budget cuts designed to help reduce the national debt will have far reaching effects that could cripple an economy that is finally starting to make a comeback. (For a little light reading click here to read the 394-page OMB Report on Sequestration.
Sequestration will come on the backs of government employees and result in cuts from education, healthcare, research, defense, etc. Where will a big part of these cuts be felt? Ironically, in a geographic region that essentially has suffered the least from the economic downturn – Washington D.C.
While most of the rest of the country’s housing market suffered during the recession – with foreclosures becoming the rule instead of the exception — the Beltway has had one of the strongest housing markets in the country.
During my many trips to the area during the economic crisis, it always struck me as odd how little suffering there seemed to be when compared to the rest of the nation and in particular Detroit, Arizona, Las Vegas and of course Florida.