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Title: Obama's Tax Credits Blamed for Continuing Housing Crisis
Source:
Newsmax
URL Source: http://www.newsmax.com/US/Obama-hou ... axcredits/2011/05/10/id/395814
Published: May 10, 2011
Author: Newsmax
Post Date: 2011-05-10 13:59:57 by Happy Quanzaa
Keywords: Obama-doma-ding-dong, Obamatuer Hour, Obamanomics in Action
Views: 3449
Comments: 3
President Barack Obama’s tax credits program for home buyers is the main reason the housing market is still in crisis, economic blogger Megan McArdle says. “All the Housing and Urban Development Department’s TCAP program did was distort the market by pulling demand forward from future years,” McArdle writes in The Atlantic. A new report from Zillow.com says home prices fell another 3 percent in the first quarter of 2011. Zillow pushed back its prediction of when the housing market will hit bottom from “the end of 2011” to “2012 at the earliest.” In a few markets such as Washington, D.C., the program caused prices to rise as a lot of buyers were chasing relatively few properties, McArdle says. Elsewhere, it stopped prices from falling. “We crowded a larger number of buyers into the market without enough time for supply to really respond, because too many of the houses that needed to be sold were encumbered by underwater mortgages,” writes McArdle, who acknowledges that she herself overpaid for a house while the program was in operation. “After the credit, it all collapsed again,” she writes. “There were a few months of confusion, because it took a while for prices to adjust to the new reality: supply was higher, but all the buyers were gone. Almost everyone who had intended to buy in the next few years had moved their purchase forward in order to get the tax credit.” McArdle concludes: “We simply moved some of the pain into the future. We didn't actually make the process less painful.” Read more on Newsmax.com: Obama's Tax Credits Blamed for Continuing Housing Crisis
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#1. To: Happy Quanzaa (#0)
Tax cuts don't work?
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Yep...my 16 year old bought a house...as did my 3 year old grandchild... There's stupid...there's Rudy stupid and then there's This is just so fucking stupid that some ODS moron out there is going to find it plausible simply because he has ODS. She found her audience in you...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." I was not aware of just how bad the flooding was; thanks for posting.
Not when they're the work of a usurping, commie Muslim darkie from Kenya. I think that expresses ngt's thought pattern accurately.
#2. To: Happy Quanzaa (#0)
“All the Housing and Urban Development Department’s TCAP program did was distort the market by pulling demand forward from future years,” McArdle writes in The Atlantic.
--GW Bush
#3. To: Godwinson (#1)
Tax cuts don't work?
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