Poor Housing Numbers Demonstrate Futility of Subsidies

A subsidy by any other name is still a subsidy, and they don’t work no matter what you call them.

By giving buyers an $8k “tax credit” the hapless Obama administration, enabled by an incompetent congress, simply albeit artificially, propped up home prices to a level they would not have reached had the market been left to its own devices.

Now, when the tax credit goes away, millions of home buyers will instantly and simultaneously lose $8 grand in equity as the existing home market adjusts to the fact that most of the buyers have $8k less to work with.

Thanks for nothing!

Today’s housing numbers show a market that’s anticipating that inevitable evaporation of value.

Not only is this going to be a jobless recovery it’s likely to be a recovery-less recovery.

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2 Responses to “Poor Housing Numbers Demonstrate Futility of Subsidies”

  1. MasterPlan Capital LLC Says:

    UPDATE: Housing now worse than “pre recession”. Double Dip now official. See: “Double dip” declared as U.S. housing prices tumble
    click: http://www.rew-online.com/2011/05/31/double-dip-declared-as-u-s-housing-prices-tumble/

  2. Housing Tax Credit an Utter Waste of $20+ Billion – We Told You So « Commercial Mortgage Loan Blog Says:

    […] of Commercial Mortgage Loan Blog knew long ago that the housing tax credit was a dumb idea. We posted as much months and months ago. Now a study, by some academic types at Northwestern, have studied it and came to the same […]

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