Wealth Xfer in the Works?

[don]

"In debate this week, the Senate added provisions aimed at spurring major purchases, including a tax credit for home buyers of up to $15,000 that Republicans had championed as addressing a root cause of the recession.
The homebuyer tax break, which would cost about $18.5 billion and which the Senate approved by voice vote without opposition, was the second amendment in two days intended to encourage consumers to make major purchases."

When this goes into effect, check the housing listing price graphs. Will there be a "Hudson" bump, a grab of as much of that public tax $$$ by the lenders as they can get, or will that price bump be trumped by the crashing housing market :eek:

[FRED]

Re: Wealth Xfer in the Works?

"In debate this week, the Senate added provisions aimed at spurring major purchases, including a tax credit for home buyers of up to $15,000 that Republicans had championed as addressing a root cause of the recession.
The homebuyer tax break, which would cost about $18.5 billion and which the Senate approved by voice vote without opposition, was the second amendment in two days intended to encourage consumers to make major purchases."

When this goes into effect, check the housing listing price graphs. Will there be a "Hudson" bump, a grab of as much of that public tax $$$ by the lenders as they can get, or will that price bump be trumped by the crashing housing market :eek:

Unemployment trumps tax breaks. This is brain-dead FIRE Economy interests sending another $18.5 billion of claims on future household and business cash flow into the ten trillion horsepower asset price deflation cash dispose-all.

[Penguin]

Re: Wealth Xfer in the Works?

Having Sam Kinison flashbacks: "Good answer... I like the way you think."

Will

[charliebrown]

Re: Wealth Xfer in the Works?

In 1998 I was highly paid and bought my house for 250. 5 years later houses on my block which are similar are going for 370. I scratched my head and said how can people afford that? It was a stretch for me going to 250. Houses must go back to a level where people can afford them. The dream of house flipping or asset appreciation is gone. That is why people were willing to purchase at 370, for the dream of future wealth. I will be ok, but I wish I had bought less house. If I have to move, I will compare rent vs. own costs before buying anything else.
Dont the knuckle head in congress realise this? you cant prop up asset prices that nobody else can afford to buy.

[antiserf]

Re: Wealth Xfer in the Works?

Of course, the miracle of modern finance will ensure that the tax credit gets applied to the down payment.

If Congress makes the credit a bit larger, the bill could be renamed The Robert G. Allen Plan.