What drives the economy? Consumer spending. Does consumer confidence affect consumer spending?

When the president of the U.S. holds a prime time speech and announces that the financial markets are on the verge of collapse that would throw the economy into deep recession, what does that do for consumer confidence?

The president has requested a $700,000,000,000 bailout of Wall Street financial institutions by recommending the government purchase mortgage backed securities, with unknown value, from these firms.

As you know a massive government bailout was passed with the goal of saving the economy. The Oct. 4, 2008 front page headlines in the SJR "Bailout is coming, but will it work?" Good question. In my opinion the headline should have been "Bailout coming, was it necessary?"

The bailout represents much more than the $857 billion dollars of your tax money pledged to be spent to save the economy.

Do you remember the movie, It's a Mad Mad Mad Mad World? This past week Obama, Pelosi, Reid, Collins, Snowe, Schumer, and Specter starred in the 2009 version.

The ending to this latest episode is no laughing matter for the American people. The three Republicans delivered every pet project the left has wanted the past forty years, in the most arrogant display of callous disregard for taxpayers in history.

While people were mourning the passing of Farah Fawcett, and Michael Jackson this week a battle raged in congress over the cap and trade bill that could become the largest tax increase on the American people in history. The bill narrowly passed in spite of an overwhelming Democrat majority.

Why wasn't this bill a slam dunk if it is such good legislation? Why the rush to pass this bill, and why was a 300 page amendment added to the bill at 3am? Why do our representatives rush to pass bills they haven't even had the time to read? Because if the American people had an opportunity to know what was in this bill it would die an instant death.

It was another good news bad news week. The good news is that the local real estate market is as hot as it has been in almost two years. Closed home sales are nearly even with 2008 year to date, sales pending are running 21% ahead of last year on this date, prices remain affordable, and there are 15% fewer homes listed for sale than last year on this date.

The official numbers were released by The Capital Area Association of Realtors (CAAR) for the month of September. It was great news both locally and nationally on home sales. The local market finished up 14.1% to 364 closed home sales, and the median sale price was up 7.9% to $109,000 September over September. Nationally the number of home sales jumped 9.

Local Realtors in Springfield Illinois have posted the fifth consecutive month over month increase in the number of home sales June through October. Good news. Or is it? Has the local housing market returned to normal, or is it a false market driven by financial incentives provided by the government with your tax dollars?

Unemployment jumped in September in Springfield to 7.

All is well in the Land of Lincoln. The Springfield Illinois economy is doing better than most with unemployment second lowest in the state, home sales up, home prices up, and running on optimism.

As the spokesperson for the University of Illinois Economics department said of their rating on the local economy, they are cautiously optimistic.

The year 2010 will reveal which direction our economy, housing market, and culture are headed. The greatest economy in the world when left to its own recuperative powers will rebound. After all, people need to earn a living. Historically, no matter the challenge, the American worker and small business owner have led the way to recovery. The engine to employment and success for the economy, and all of America is the entrepreneur and small business owner.

Most people would agree that from the announcement of the financial crisis in September of 2009 through the first months of the Obama administration, the country was griped with uncertainty at best, and fear at worst.

There are tell tale signs one can observe from their own local vantage point. We watched the housing market shrink the fourth quarter of 2009 through the first five months of 2009 in Springfield, and then rally on the first time buyer tax credits, and record low interest rates through the end of the year.

Last week The Capital Area Association of Realtors released the official numbers for 2009. There was much joy as a four year slide in the number of home sales was stopped as 2009 bested 2008 by 6.5% with 3716 home sales. Throw in a 4.8% increase to a new record high $109,000 median sale price, and it appears the local housing market is in great shape going forward.