Does the Healthcare Push Mean A Market Drop?

Ok, I usually don’t prescribe to conspiracy theories, but…

Back in August, I said I thought the tax credit for first time home buyers and the Fed’s purchase of Mortgage Backed Securities would be extended becuase without them, the economy might slump which would end the chance for Congress and the President to enact healthcare (with a down economy, the people are more likely to resist a reach by the federal government for more control and power).  Like clockwork, both were extended to the end of March (April for the tax credit). 

Why is this important now?  Well, here we are in late March and the President is putting up a huge fight for healthcare ahead of the Spring Recess.  Why now?  With such a controversial bill that is unpopular in most polls, don’t you think he would want to send the Congress home to stump for it so they can come back with popular support and vote?  What could go wrong between now and April 12th that would make the bill less appealing and harder to pass?  The only thing I can think of is that the President and Congress believe that when the stimulous ends (especially the Real Estate portion of it), that the economy could start to slide again. 

Note that I am not saying healthcare will cause the economy to slow down.  I am guessing that healthcare is being pushed NOW because they now the economy is about to slow down and they want to push their pet project before sentiment against it and them turns more negative.

I know.  Sounds thin.   If it weren’t the fact that Congress is full of politicians, I would dismiss it completely.

Economy