Before we get bent out of shape, let’s see what they actually implement, otherwise it’s all just election year noise. I’m betting they pass counseling dollars to non profits, tax loss carryovers for builders, and maybe little tax break for buying a repo that you plan on living in. In the end, it will be more headline than substance and the prices will continue to go down.
Speaking of the four year carryover for builder losses, this one is going to to more to lower prices faster than anything. IF you were a builder, you can take a loss this year and carry it over for up to four years to offset profit in the next upswing. Guess what, drop all your prices drastically, cause the prices to plummet within a year, buy land on the cheap and cause the next upswing to start sooner, then you wont have to pay taxes on that years profit. It only works if you can get from now to bottom to the next top in 4 years, they will abandon keeping things inflated and do all they can to reach bottom as soon as possible. I say, BRING IT ON, Mr. Fed, any attempt to control the market will have the opposite effect, the builders will be fine and forclosures will skyrocket, no FB’s will survive and you will have succeded at making things worse for the very people you intended to help.
Since UCLA is in the final 4, I’m busting out John Wooden quotes all week.
“The worst thing you can do for a loved one is something they can and should do for themself.” -John Wooden
