Even though Bush is no longer our fearless leader and the republicans are basically powerless, the democrats are making a bad situation worse.
I was really happy to hear about the first time home buyer credit of up to $15k. I was not happy with the limitation of financing past 4 houses. There are plenty of wealthy people who have cash on hand. Guess what these people want to do? They want to buy real estate!!! With interest rates where they are, people are wanting to exploit the buyers market that we find ourselves in. Inside the changes that are happening, one of them is a limitation on how many mortgages you can have. The limit WAS 10. It is now 4. What does this mean? Even the people with cash cannot get financing. The banks NEED to get back to lending. That is how they make their income; from interest off of loans. What is the ideal client? The ideal client is the investor who is well backed and leveraged with cash on hand. This is a huge mistake in my humble opinion.
I'm glad that George W Bush is out of office. He made a lot of mistakes. But I see some big mistakes being made since then. *sigh*
Friday, February 6, 2009
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Do you really think it's the best money spent on the SP this time around to give it to new home buyers and not to others who might also need it?
ReplyDeleteThere is a cap for a reason. There is only so much money for the entire package and I have to say that $60,000 to a wealthy person who can afford to buy four homes is almost more than I can bear.
The package needs to not before only the wealthy. There is over a 7.6% unemployment rate right now in this country and I would like to see the majority of that money to go to creation of jobs and an increase in jobless benefits.
Trickle-Down economics does not work. Regan proved that sufficiently. The wealthy hold onto the money we give in tax breaks and keep getting wealthier. Its time we did something for the lower middle class and people below the poverty level.
I mean even Republicans are on board with child health care. They don't want to be seen as monsters, but that is a form of universal health care.
New home buyers will help with the housing crisis. So, yeah, I do think it's a good idea. And the $60k idea you have is incorrect. It is only for a first time home buyer and it is only good once AFAIK. It's not only for the wealthy, again AFAIK. I would disagree with it being only for the wealthy. As long as it is for everyone, then I'm cool with it.
ReplyDeleteAfter further reading, I see that it no longer is qualified only to first time home buyers. (http://www.rightpundits.com/?p=2825 third sentence after Mr McConnell's photo) "Furthermore, the tax credit applies to all home buyers, instead of just first time home buyers, as under the old law." This makes the Chad sad. So, your $60k idea IS correct if passed in full. Hopefully, Obama will make a partial veto of that condition and sign it into law. We shall see if he does....