Home buyers Tax Credit

[maat55]

May pending home sales tumble without tax credits - Yahoo! Finance

NEW YORK (AP) -- The number of buyers who signed contracts to purchase homes tumbled in May, a sign the housing recovery can't survive without government incentives.



The Home Buyers Tax Credit is proof that the economy is a Keynesian economics failure, just as it was during the New Deal in the 30's.

Home sales have dropped sharply due to its expiration. The free market does this naturally through deflation, which does not cost the next generation. The HBTC is like me buying on a credit card and passing the bill to my children.

I urge everyone to study the Depression of 1920.

YouTube - Why You've Never Heard of the Great Depression of 1920 | Thomas E. Woods, Jr.

[disneysteve]

Originally Posted by maat55

NEW YORK (AP) -- The number of buyers who signed contracts to purchase homes tumbled in May, a sign the housing recovery can't survive without government incentives.

I guess I understand why people were more apt to buy when they qualified for the credit. It is the difference between buying something on sale and paying full price. If you are going to buy, why not buy on sale?

But people still need houses. People continue to move. People continue to get married. People continue to outgrow their current homes. Stores still sell merchandise at full price. They just sell more of it when it is on sale. That really shouldn't be a surprise to anyone. Anyone who expected home sales to be as vigorous without the "sale" of an $8,000 credit as they were with the "sale" really didn't think that through too well.

I don't think it is accurate to conclude that there can't be a recovery without the government incentives.

[maat55]

Originally Posted by disneysteve

I guess I understand why people were more apt to buy when they qualified for the credit. It is the difference between buying something on sale and paying full price. If you are going to buy, why not buy on sale?

But people still need houses. People continue to move. People continue to get married. People continue to outgrow their current homes. Stores still sell merchandise at full price. They just sell more of it when it is on sale. That really shouldn't be a surprise to anyone. Anyone who expected home sales to be as vigorous without the "sale" of an $8,000 credit as they were with the "sale" really didn't think that through too well.

I don't think it is accurate to conclude that there can't be a recovery without the government incentives.

Study the Great Depression, then study the 1920 Depression. Even WWII was an temporary government recovery, after FDR died the country experienced a true recovery under free market forces. The government does not create prosperity, it provides only temporary drugs for the symtoms, but no cure.

[zhuwh]

The home it too expensive for people in financial crisis nowadays.They are waiting and seeing the prices of houses and...

[maat55]

Originally Posted by zhuwh

The home it too expensive for people in financial crisis nowadays.They are waiting and seeing the prices of houses and...

At this point (two years wasted), the housing market has to stand on it own feet. Once it hits its real value, the real recovery will begin.