The “ad hominem” attack is used only when you have nothing of value left to argue. And the racist remarks by some posters are beneath contempt.
I believe that the program cited in the article is fundamentally flawed. It violates basic economic law and logic. In the short-term it may help some families purchase some houses. In the long-term it will perpetuate overpriced housing and lead to a continuation of the very problem that it seeks to mitigate. By overpricing the market, this prevents other potential home buyers from purchasing. Over time, this program will have an opposite effect from that desired.
With certain extraordinary exceptions, whenever the government or some other outside entity attempts to control, manipulate, or otherwise “correct” a free market, it inevitably leads to unintended consequences — often the direct opposite of those intended.
One of the great ongoing real estate market disruptions is the mortgage interest deduction. When all other interest was taken off the list of allowed deductions in the 1986 “Tax Simplification Act” (a typical government sick joke, since it would be better termed the “CPA Full-employment Act”), the mortgage interest deduction was the only one left standing. Why? Hmmm…. realtors donate more money to politicians than almost any other group. What a coincidence! And so, in typical fashion, this law which was originally intended to make home ownership more affordable has lead to escalation in housing prices making home ownership less affordable.
