How the $8,000 Tax Credit Cost Home Buyers $15,000

[CountofTuscany]

I'm sorry, but whatever happened to the days when folks saved up down payments of 10%-20% or even more for a house and waited until they knew they would likely be in a place for at least 5-10 years and didn't use their equity as a piggy bank and planned to actually own the house outright at some point?

Now people buy homes with as little down payment as possible with no real commitment to living in the house for any length of time and they cash out their equity every chance they get. The same attitudes that helped bring down the housing market still persist.


A home isn't an "investment" in the way the real estate agents want you to think of it as - if its your HOME its value to OTHERS should be irrelevant, only its value to YOU should matter. If you bought a house 2 years ago with the credit hoping it would be worth more now so you could either sell it for a profit or cash out on some equity - then guess what? YOU ARE A MARKET LOSER, DEAL WITH IT. If you bought a home to live in 2 years ago and you're stilling living there and not expecting to need to move any time soon and not expecting to use it as a piggy bank - then you shouldn't be worried about the price decline.

That was all before we became a country of entitlements.

 

[The Rabbi]

Good point.

GM is doing quite well and is in line to be the number one auto company in the world again.

Obama and Congress saved the economy with the bailout and the stimulus package.

'challenged' is to light a word for your condition.

Hardly.

When an economy is in a deflationary spiral, the government must be the demand of last resort. Congress and Obama recognized that fact and turned things around.

Saved us from a second Great Depression.

Uh no.
The economy was beginnging to hit bottom and Obama's policies have prolonged the recession.
We have never had as much gov't interevention in a downturn as Team Obama provided. And the results are the weakest recovery on record.
Spin that any way you want, but those are the facts.

As for the housing credit: Housing prices have continued to decline, and will do so until banks get the foreclosure situation sorted out. The credit robbed demand from the future and did nothing to stimulate the housing market. Same with the cash for clunkers. Sales declined after the program ended and no more cars were sold overall.
Amazing how the Left can fool themselves into believing crap.

 

[The Rabbi]

Man, if you didn't have money for a down payment and couldn't document that you have sufficient income to PAY THE MORTGAGE, INSURANCE, AND TAXES maybe you shouldn't have bought a fucking house.

Well the 8 thousand couldnt' be applied to your downpayment. Ya either had the funds for a downpayment or you didn't.

Wow proving your cluelessness yet again.

 

[boedicca]

1) The tax credit hasn't cost any homebuyers anything - if they collected the credit, they haven't been able to realize any gains or losses on their home.

2) Home values in my area have remained steady or increased. I can't be held responsible for the mistakes of people half way across the country.

Tell that to the businesses that have cratered because of the drop in home equity values that has caused people to stop updating their homes.

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

 

[8537]

Man, if you didn't have money for a down payment and couldn't document that you have sufficient income to PAY THE MORTGAGE, INSURANCE, AND TAXES maybe you shouldn't have bought a fucking house.

Well the 8 thousand couldnt' be applied to your downpayment. Ya either had the funds for a downpayment or you didn't.

Wow proving your cluelessness yet again.

Eh, Rabbi? The 8K could not be applied to the downpayment.

Thanks and good night.

 

[8537]

Tell that to the businesses that have cratered because of the drop in home equity values that has caused people to stop updating their homes.

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

 

[The Rabbi]

Tell that to the businesses that have cratered because of the drop in home equity values that has caused people to stop updating their homes.

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's the broken window scenario all over again. Where did that money come from for the $8k subsidies? What investments were not made because those subsidies had to be paid for? Which workers were not hired?
Gov't cannot create demand. This is the fallacy of Keynesianism. And we have seen it in action and seen its failure.

 

[The Rabbi]

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

Hint: Housing prices are lower. The subsidy went nowhere but down the toilet.
But again, we are arguing economics with someone who thinks consumer spending is the key to recovery.

 

[Soggy in NOLA]

The tax credit saved the housing industry.

Believe me, I know from personal experience.

And the tax credit was the brainchild of Republican Senator Johnny Isakson of Georgia.

But don't let the facts interfere with your mythology.

Hey bucko, note to self, the housing industry is in the shitter.

 

[boedicca]

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

It's already been consumed with a net negative return due to the loss of wealth. And all we have left is THE DEBT.

 

[Soggy in NOLA]

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

Hey, Obama the gay cowboy.... no it didn't.

 

[Soggy in NOLA]

Fuck'n dumb Texas queer, I mean steer.

 

[8537]

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

It's already been consumed with a net negative return due to the loss of wealth. And all we have left is THE DEBT.

A net negative return?

How the hell did you calculate that? Don't worry, I can keep up...

 

[boedicca]

It's gone? Where'd it go?

Hint: It went into the economy.

It's already been consumed with a net negative return due to the loss of wealth. And all we have left is THE DEBT.

A net negative return?

How the hell did you calculate that? Don't worry, I can keep up...

No you can't. The answer is in the OP, which you clearly don't grok.

 

[8537]

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

Hey, Obama the gay cowboy.... no it didn't.

Really? If I gave you 8000 from under my mattress right now and you went to spend it at Home Depot, Lowes and your local gay bar - would that money be going into the economy and circulating?

 

[The Rabbi]

It's gone? Where'd it go?

Hint: It went into the economy.

It's already been consumed with a net negative return due to the loss of wealth. And all we have left is THE DEBT.

A net negative return?

How the hell did you calculate that? Don't worry, I can keep up...

If you buy something and its value goes down, that's a net negative return. Genius.

 

[8537]

It's already been consumed with a net negative return due to the loss of wealth. And all we have left is THE DEBT.

A net negative return?

How the hell did you calculate that? Don't worry, I can keep up...

No you can't. The answer is in the OP, which you clearly don't grok.

I "grok" the OP just fine, thanks. So perhaps you can tell me how you calculated a net negative return on investment.

 

[Meister]

The home equity market dried up...in 2006.

People who cater to folks updating their home LOVED the tax credit - it gave every new homebuyer 8 grand to go spend on updating kitchens, painting bathrooms etc..

In fact, it was jokingly called the Home Depot bailout.

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

Actually, it was just added on to our debt.

 

[The Rabbi]

A net negative return?

How the hell did you calculate that? Don't worry, I can keep up...

No you can't. The answer is in the OP, which you clearly don't grok.

I "grok" the OP just fine, thanks. So perhaps you can tell me how you calculated a net negative return on investment.

Oh the irony!

 

[8537]

And now it's gone. That worked out great...a temporary transfer of taxpayer money, a loss of equity for the chumps, and more public debt.

It's gone? Where'd it go?

Hint: It went into the economy.

Actually, it was just added on to our debt.

Indeed! There was an 8,000 transfer of money from cash reserves to consumers repaid at some of the lowest interest rates in history.

The consumers then took that money and used it to purchase goods and services - adding that money to the economy, removing it from reserves (Or, of course, having it monetized)