http://www.nytimes.com/2009/09/16/busine...
When Congress passed an $8,000 tax credit for first-time home buyers last winter, it was intended as a dose of shock therapy during a crisis. Now the question is becoming whether the housing market can function without it.
As many as 40 percent of all home buyers this year will qualify for the credit. It is on track to cost the government $15 billion, more than twice the amount that was projected when Congress passed the stimulus bill in February.
In the view of the real estate industry and some economists, all that money is well spent. They contend the credit is doing what it was meant to do, encouraging a recovery in the housing market that is gathering steam. Analysts say the credit is directly responsible for several hundred thousand home sales.
Skeptics argue that most of the money is going to people who would have bought a home anyway. And they contend that unless it is allowed to expire on schedule in late November, the tax credit is likely to become one more expensive government program that refuses to die.
The real estate industry, including the powerful 1.1 million-member National Association of Realtors, wants Congress to extend the credit at least through next summer. The group hopes to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market for at least three years, to qualify. The price tag on that plan: $50 billion to $100 billion.
This is as much money as fixing health care will cost
So when this 15k runs out, do we up it to 20k? Or is that about the time that inflation kicks in? Or is that when the floor finally collapses?
I remember reading about how August sales were great thanks to Cash for Clunkers. I wonder how sales will be the rest of the year.
The boost to housing or car sales w/government assistance will help as it's supposed to. But what happens when the government stops funneling money? Or as the story suggests, will it just be a program that never ends.
Free. Free houses for every one !
Toooootally sustainable, dude. No problemo
This just drives me crazy. In one breath Greenspan (perhaps smoking green shoots) says the recession is over. Okay. Let's go w/it and say unemployment is a lagging indicator. If the recession is over, WHY do we need this continued credit, increased credit, no less.
I just can't get my head around this. People talking bottom, recession over, sales up, yada, yada, yada, but we need more credit incentives to buy. Psycho babble.
And of course it's working. People buying cars and houses. The brain washing continues. Resistance is futile.
Crazy insane. When does it stop? Kill my income taxes. I promise I'll spend it wisely.
I want a kickback (in addition to commission and a commission on the kickback) from the govt for every deal I close.
Also, I want a pony.
This is why I am a liberal.
zThey know the recession isn't over. Banks aren't lending, Assets
are still deflating, jobs are still being lost and christmas is setting up as
a bad year.
Yes, of course the recession isn't over. It's all a mind control. "You are sleepy. The recession is over. Green shoots everywhere. There, there. All is well in the universe. Buy now. Now's the time. When you wake, get in a bidding war."
Why is this only obvious to us? Are the bulls in complete denial or well under the hypnotic spell? Why are people falling for this? I feel like screaming, "Wake up, America! Snap out of it!" Toss in a couple of slaps for good measure.
Also, I want a pony.
This is why I am a liberal.
And the original sponsor of this is?
Senator Johnn Isakson of Georgia (Republican).
See, Liberals live in the Reality-Based community, where we check
facts and look up things, while you are like most modern conservatives,
shrieking like a monkey and hurling feces at passers-by.
Also, I want a pony.
This is why I am a liberal.
Feces tossing monkey. Are you one of the Glenn Beck people too?
I always love a good feces flinging monkey analogy
i felt the prior credit was too low. also, wasn't a round number. 15,000 is a decent sized credit. I'd prefer 20,000.
Also, I want a pony.
This is why I am a liberal.
"The real estate industry, including the powerful 1.1 million-member National Association of Realtors, wants Congress to extend the credit at least through next summer. "
Question for urbanrealtor:
So, are you going to stop paying your NAR dues?
I'm sure you at least wrote the NAR expressing your outrage over their support of this.
Also, I want a pony.
This is why I am a liberal.
And the original sponsor of this is?
Senator Johnn Isakson of Georgia (Republican).
See, Liberals live in the Reality-Based community, where we check
facts and look up things, while you are like most modern conservatives,
shrieking like a monkey and hurling feces at passers-by.
Thank you for that.
My coffee came out of my nose.
I actually am a liberal and I thought it was a fun joke at myself.
Thank you though.
YOu did make it better.
Also, I want a pony.
This is why I am a liberal.
"The real estate industry, including the powerful 1.1 million-member National Association of Realtors, wants Congress to extend the credit at least through next summer. "
Question for urbanrealtor:
So, are you going to stop paying your NAR dues?
I'm sure you at least wrote the NAR expressing your outrage over their support of this.
Honestly, I don't have rage at this.
It seems like a dumb idea but not so much it actually angers me.
I do actually believe in government intervention in the economy.
I think the success of China in the last 15 years is an example of how beneficial government interference can be when coupled with capitalist initiative.
And I don't think it is mutually exclusive with democracy.
Further, if the $15k measure succeeds, while being a dumb idea, it is in my material self interest.
I care more about putting food on the table than making a point.
Oh, and thats part of why I am still a member of NAR.
It really is a practical necessity.
Honestly, I don't have rage at this.
It seems like a dumb idea but not so much it actually angers me.
I do actually believe in government intervention in the economy.
I think the success of China in the last 15 years is an example of how beneficial government interference can be when coupled with capitalist initiative.
And I don't think it is mutually exclusive with democracy.
Further, if the $15k measure succeeds, while being a dumb idea, it is in my material self interest.
I care more about putting food on the table than making a point.
Oh, and thats part of why I am still a member of NAR.
It really is a practical necessity.
i believe if the prices were allowed to hit their equilibrium level,
the market would suck up these houses.
They are selling REO's in DC and everytime one hits for under 100K/Bedroom
it sells in a week,
the problem is the overhang of excess inventory needs to be worked out.
If the feds would stop underwriting jumbo mortgages, stop insuring
high risk mortgages, insist people buy for 20% down, then we would
have real substantial house sales.
And fast nickels are as good as slow dimes.
China is a real mess, looks good on the surface like this.
http://www.fcproductions.net/chinalbeit/...
it's crap underneath.
The chinese are wrecking their environment, poisoning their people
and building crap.
Now a muscular regulatory environemnt would help, as well
as public sector investment in long term programs.
if the feds would invest into renewable energy, that would help,
have energy standards so you could have zero energy homes,
that would help and tax credits for this,
I would replace all mortgage credits with energy credits.
if youpaid people for solar panels on rooftops, you could
power america in under 3 ears.
power america in under 3 ears.
That would disrupt the entire food chain and it will never happen. I know, never is a big number.