How Bad Policy Gets Made

"The home buyer tax credit is a plus for the housing market, but only a small plus," says Mark Zandi of Moody's Economy.com. "The credit … covers only a part of the down payment needed to make a purchase. The housing market will take any help it can get, but it needs more."

I saw this on one of the news sites regarding the new home buyer tax credit. This guy seems to think that $8k isn't enough because it's only part of the down payment.

Dood, we don't need folks buying homes who can't afford or can't manage to save a down payment. That's part of how we got into trouble in the first place!

This is an INCENTIVE, not an indemnification. It's designed to get fence sitters off and taking some inventory off the market (perhaps forclosures, as first timers tend to be younger and more open to fixing problems having been schooled on HGTV and TOH). It's also focused on folks who are likely to spend. Much more and I think you get into waste or are just building savings, which doesn't help stimulate any more.

Anyway, I'm amazed at the attitude of someone who at least apparently ought to have a clue.

Mark

A friend of ours recently met with her tax preparer and she was encouraged to buy a house because of the benefits in the new stim-u-less bill.

How many others will get that same little nudge and began looking?

I'm amazed at the attitude of someone who at least apparently ought to have a clue.

SPEAKING OF STUPID...

Did you see "Idiocracy" last night on Comedy Central?
I thought I was watching the nightly news.

"Private Joe Bauers, the definition of "average American", is selected by the Pentagon to be the guinea pig for a top-secret hibernation program. Forgotten, he awakes 500 years in the future.
He discovers a society so incredibly dumbed-down that he's easily the most intelligent person alive."

TRAILER LINK

Edited by Rogerdodger, 16 February 2009 - 11:39 AM.

They are "facilitating the illusion of an imaginary common interest" . ...to borrow the words of a great one.

BW

"The home buyer tax credit is a plus for the housing market, but only a small plus," says Mark Zandi of Moody's Economy.com. "The credit … covers only a part of the down payment needed to make a purchase. The housing market will take any help it can get, but it needs more."

I saw this on one of the news sites regarding the new home buyer tax credit. This guy seems to think that $8k isn't enough because it's only part of the down payment.

Dood, we don't need folks buying homes who can't afford or can't manage to save a down payment. That's part of how we got into trouble in the first place!

This is an INCENTIVE, not an indemnification. It's designed to get fence sitters off and taking some inventory off the market (perhaps forclosures, as first timers tend to be younger and more open to fixing problems having been schooled on HGTV and TOH). It's also focused on folks who are likely to spend. Much more and I think you get into waste or are just building savings, which doesn't help stimulate any more.

Anyway, I'm amazed at the attitude of someone who at least apparently ought to have a clue.

Mark