Members of congress, Democrat and Republican' fell all over each other in their rush to extend the $8,000 first time homebuyer’s credit, even throwing in a $6,500 credit for existing home owners who decide to move up. (Story Here)
Meanwhile Mother Jones reports that economists from all political persuasions are arguing that it is a bad idea.(Here)
The National Association of Realtors estimates that only one in five people who received the credit under the existing program bought a home because of it. This means that the actual cost of the bill is over $40,000 for each "stimulated" home purchase.
Kind of reminds me of Edmunds.com’s estimate that each vehicle sold under the Cash for Clunkers program cost taxpayers $24,000. (Here) Recent data obtained under the Freedom of Information Act casts additional doubt about that program's impact on fuel savings. (Here)
Yet, Cash for Clunkers and the Homebuyer's Credit were wildly popular. I think it is that everyone just loves "free" money.
recommend this
email
print
link to this page
Comments: 12
-- somebody pays for it
~~~
~~~
Congress writes the nightmare up but it's at Obama's urging and will need his signature.
-- but Obama is just a puppet with no real power
-- who is pulling his strings?
~~~
http://www.nytimes.com/2009/11/06/opinion/06fri2.html?ref=opinion
(registration required to see article, but it is free)
~~~