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What is sequestration? Automatic spending cuts. However, even with sequestration, the government will still spend more this year than they did last. So there are no real spending cuts, only a slow down in the increase of spending.
There is no need for any doom and gloom. In fact most if not all of the observed effects are engineered. It's a political game and we are the pawns. The effect on the economy will be minimal, and on the housing market, even less so.
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