Wednesday, November 26, 2008

Now the housing industry wants a bailout, too!

From the Hot Property blog:
Bailouts are in fashion. The financial industry got one. The automakers have their hands out. Now the National Association of Home Builders and the National Association of Realtors are pushing their own multi-billion-dollar stimulus proposals.

The proposals are designed to get buyers off the fence and rejuvenate the flagging home sale market. The more expensive proposal comes from the home builders who want a $250 billion Fix Housing First package, which calls for a home buyer tax credit of 10% of the purchase price (up to $22,000) and a heavy subsidy from the federal government that would bring 30-year mortgage rates down to 3% for homes bought in the first half of next year and 4% for purchases in the second half, according to The Wall Street Journal.

The Realtor plan sounds is somewhat modest by comparison. The group also wants taxpayers to subsidize mortgages to bring down rates by about 2% — at a cost to taxpayers of about $100 billion. And it wants the homeowner tax credit approved by congress this year to be changed so that the $7,500 credit can be given to all buyers, not just first-time buyers and that it no longer would have to be paid back. That part of the plan would cost another $40 billion, the group’s chief economist Lawrence Yun told me today, adding that he thought the builder plan was too expensive.

Finally, the Realtors want the higher limits for federally-backed jumbo loans of up to $729,000 to be permanently extended (They’re set to expire next year).
Enough with the bailouts!


  1. WTF!!!

    Short everything American. We are hosed. Dow 1000 by 2011. Dollar collapse a certainty.

  2. Wow. This could have the net effect of setting an artificial 'price floor' for the housing industry.

  3. Wow. This could have the net effect of setting an artificial 'price floor' for the housing industry.
    If that floor is beneath Satan's basement, sure.

  4. We tried your suggestion of no bailouts last time. It resulted in the great depression. Maybe it's time to try something that might actually work?

    I'd be happy to see a little inflation right now.

  5. Everyone's ideas about this thing is all wrong. You just haven't looked in the right place yet! Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Bailout is for you too!