bobbyw24
03-05-2010, 06:47 AM
First a quote from a Bloomberg story: U.S. Economy: Pending Sales of Existing Homes Decline
“When you take away all the support from the housing market, the underlying demand for housing is a lot weaker than we thought,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We clearly pushed some demand forward, and there wasn’t that much demand to pull forward anyway. The housing recovery is going to be very, very slow.”
This is no surprise and suggests that the extension and expansion of the home buyer tax credit will probably cost taxpayers over $100,000 for each additional home sold.
Just about every economist opposed the tax credit as expensive and ineffective. Here are some quotes from a post last September from an article by Patrick Coolican in the Las Vegas Sun: Economists say extending tax credit for first-time homebuyers is bad policy
It’s terrible policy,” says Mark Calabria of the libertarian Cato Institute.
“It’s awful policy,” says Andrew Jakabovics, associate director for housing and economics at the liberal Center for American Progress. “It’s incredibly expensive. It’s not well targeted."
http://www.businessinsider.com/the-homebuyer-tax-credit-will-cost-taxpayers-over-100000-for-every-home-sold-2010-3
“When you take away all the support from the housing market, the underlying demand for housing is a lot weaker than we thought,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We clearly pushed some demand forward, and there wasn’t that much demand to pull forward anyway. The housing recovery is going to be very, very slow.”
This is no surprise and suggests that the extension and expansion of the home buyer tax credit will probably cost taxpayers over $100,000 for each additional home sold.
Just about every economist opposed the tax credit as expensive and ineffective. Here are some quotes from a post last September from an article by Patrick Coolican in the Las Vegas Sun: Economists say extending tax credit for first-time homebuyers is bad policy
It’s terrible policy,” says Mark Calabria of the libertarian Cato Institute.
“It’s awful policy,” says Andrew Jakabovics, associate director for housing and economics at the liberal Center for American Progress. “It’s incredibly expensive. It’s not well targeted."
http://www.businessinsider.com/the-homebuyer-tax-credit-will-cost-taxpayers-over-100000-for-every-home-sold-2010-3