The U.S. government has no business subsidizing the purchase of multiple homes (I would actually end all government subsidies for housing so that housing could once again be affordable for all) so I think this is a great move by our government. The U.S. government should also end the subsidy of cash-out refis.
What public policy is served by making it easier for rich a-holes to buy multiple homes? What public policy is served by making it easy for people to do cash-out refis? Answer: None. There is no reason for the government to subsidize the purchase of any home, much less the purchase of multiple homes or cash-out refis.
The government’s focus on housing has been disastrous for our country. So many resources have been needlessly diverted from more productive uses to housing. Our government needs to focus once again on promoting real innovation instead of the sham that is ‘financial’ innovation. Let’s get back to funding useful research in our universities so that the U.S. can once again be a great innovative powerhouse. Take all that Fannie Mae/Freddie Mac/Ginnie Mae/FHA/FHLB money and spread it around to our universities in the form of research grants and watch how it is repaid 10x or 100x over with kick-ass innovations.
All of this focus on housing is just a waste in my opinion.
