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| via sayanythingblog..............Analysts were quick to blame the sudden drop in new home sales on the absence of federal tax credits of up to $8,000. But double-digit unemployment and slow job growth have not helped the market, even with mortgage rates at near-historic lows.
“We fear that the appetite to buy a home has disappeared alongside the tax credit,” Paul Dales, U.S. economist with Capital Economics,” wrote in a note to clients. “After all, unemployment remains high, job security is low and credit conditions are tight.”
Subsidies create bubbles. If we go back and look at the housing market collapse it’s easy to see that the problem wasn’t greedy bankers so much as it was the government subsidizing home ownership, inflating the market to the point of collapse.
hmmmmmmm........in reality the vast majority of Americans have recieved housing subsidies............from the 8000.00 Obama Credit down to the annual IRS deduction on taxes for Mtg Interest paid...............any comparison to Ag subsidies that are railed against in the boiler room????? | |
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Nobodies talking about the New home sales?
