James Pethokoukis

Politics and policy from inside Washington

Stealing economic growth from the future

September 1, 2009

Fellow Reuters columnist Rolfe Winkler has it. Exactly. Right:

What Cash 4 Clunkers did for cars, the first time home buyer credit is doing for housing — pulling future demand into the present. Count on home sales to head back down after this tax credit disappears.

Comments

James, you can add Frank Shostak, chief economist of MF Global as an economist who ‘supports’ auditing/ ending the fed.

And don’t tell me Frank works for a whole in the wall sweatshop!

http://mises.org/story/3669

Posted by dvictr | Report as abusive
 

Cars are fungible, houses, in the greater view, are not.

As a Realtor, I see the desire of 1st Time Buyers wanting to enter the market to take advantage of the Tax Credit, but they are restricted severely by the very poor inventory, and competition from Investors.

I know that in So. California & the Las Vegas Metro area, there is a shortage of inventory that is keeping those buyers from the American Dream. Until the Banks begin releasing the “Hidden Inventory” of properties on their books, we will not see any improvement in the real estate market. Although, we may even experience a greater decline in values if dumping takes place.

The Tax Credit should be extended to allow absorption of the inventory once the investors have exhausted their funds or met their porfolio needs.

Posted by Jack in San Diego | Report as abusive
 

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