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soooo is it Obama's fault someone bought a 200k house for 250k only because they wanted an $8,000 tax credit? I can't remember how many bidding wars people got into over houses for a tax credit. I guess it's Obama's fault these dummies didn't understand basic math Or maybe they've been watching too many episodes of "Flip This House" and thought they were going to get the tax credit...and make a profit on the house...in a lagging economy...only a year later...
It is not the place of the federal government to be getting involved in such subsidies and market manipulations to begin with. Get it yet?
You cannot blame farmers for taking advantage of federal crop insurance or CRP payments for not planting as long as the government is incentivising them to do just that. Just as you cannot blame wannabe homeowners for taking advantage of government offered subsidies to purchase a home. Yes, it is the fault of the government for offering the subsidies to begin with.
You realize subsidies only serve as payola for votes to whichever group they are offered, right?
How can they force the market? I didn't realize someone put a gun to the heads of all those banks forcing them to loan to those who were unqualified.
Really, you still refuse to see it? They force a market by offering the subsidy and the use thereof within a certain time frame.
How many people did energy improvements to their homes by 2010 who would not have done so otherwise had the government not underwritten up to 1/3rd of it (or more in certain cases)?
The government's recent $8,000 cash incentive for first-time home buyers has proved even more costly for recipients than for taxpayers, according to data released Monday. Typical buyers have lost twice as much to price declines as they received from the program.!
And why is this a surprise?
One thing we know to be true: EVERY government program is fraught with waste and fraud.
And another thing we know to be true: The bigger the program, the bigger the waste and fraud (see FEMA at Katrina).
It is not the place of the federal government to be getting involved in such subsidies and market manipulations to begin with. Get it yet?
You cannot blame farmers for taking advantage of federal crop insurance or CRP payments for not planting as long as the government is incentivising them to do just that. Just as you cannot blame wannabe homeowners for taking advantage of government offered subsidies to purchase a home. Yes, it is the fault of the government for offering the subsidies to begin with.
You realize subsidies only serve as payola for votes to whichever group they are offered, right?
ok ok i get it the government shouldn't offer any advantages or tax breaks to anyone...guess I should not try having kids or stop paying my student loans for all those tax incentives......
First time home buyer's credit + historically low mortgage rates + interest deduction + energy tax credits = good deal for me. It has put over $20,000 in my pocket via credits or deductions since I bought my house in October 2009.
Incenting economic activity does not equate to forcing people to make stupid financial decisions. If someone makes a bad financial decision; it's on them, not a federal tax credit.
Location: Georgia, on the Florida line, right above Tallahassee
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Quote:
Originally Posted by marcopolo
The side-effects of both were lousy: usable vehicles were crushed, driving up prices for those at the lower end of the market and home prices were arbitrarily inflated for a spell, delaying the market mechanism that would have brought prices to the right level so that a true recovery could begin. It was middle-class welfare.
I could not say that any better. In fact, I've been saying that since day one for both these programs.
First time home buyer's credit + historically low mortgage rates + interest deduction + energy tax credits = good deal for me. It has put over $20,000 in my pocket via credits or deductions since I bought my house in October 2009.
Incenting economic activity does not equate to forcing people to make stupid financial decisions. If someone makes a bad financial decision; it's on them, not a federal tax credit.
As long as Freddie/Fannie are in tact bad decisions and defaults are on the taxpayer. Or had you not noticed the previous Freddie/Fannie housing debacle yet?
Now please answer this question honestly: Had those taxpayer funded incentives not been there, would you still have purchased the same house and made the same energy upgrades had the money come solely from your own pocket?
First time home buyer's credit + historically low mortgage rates + interest deduction + energy tax credits = good deal for me. It has put over $20,000 in my pocket via credits or deductions since I bought my house in October 2009.
According to Zillow the average price of a home in the U.S. is about 8 percent lower than it was a year ago and that it continues to fall about 1 percent a month.
Who said you had to take the tax credit? Nobody forced anyone to participate.
Whether you took the credits or not, had no bearing on the fact that the average housing price continues to fall
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Or maybe they've been watching too many episodes of "Flip This House" and thought they were going to get the tax credit...and make a profit on the house...in a lagging economy...only a year later...
