good part of stimulus package

[td parker 1]

got mine on Wed. Smart idea, gets money moving quick, spent mine already to mostly working class people, roofers, locksmiths, carpenters.

[Strike 4,125]

No, stupid as was almost all of the "stimulus". All this credit does is continue to keep the prices of houses artificially high, which was one of the driving force behind this mess to begin with. The markets need to correct. The sooner the corrections the sooner the recovery. Pretty simple really.

[td parker 1]

No, stupid as was almost all of the "stimulus". All this credit does is continue to keep the prices of houses artificially high, which was one of the driving force behind this mess to begin with. The markets need to correct. The sooner the corrections the sooner the recovery. Pretty simple really.

A house is worth what someone is willing to pay, in my market (Boston south suburnban) homes are priced pretty high and selling. I'll agree that it inflates prices by a additional $8,000, But that is about 45 dollars a month on your mortgage payment compared to $8,000 now. That is a big free advance on your investment taking into account the inflated price. I look at it as a long term investment and would prefer the 8 Gs now as opposed to getting it in 45 dollar increments for 14 years.

[KSB2424 3,087]

I'm a little torn on the homebuyer tax credit. Does it "artificially" inflate housing prices? I guess in theory it would, however I don't think that tax credit would really inflate it THAT much. 8k on a 300k house is like 3% of what you're paying.

 

While in theory I agree with Strike, I think this very small inflation may be worth it as a jump start. I don't think this tax credit is big enough to do lasting damage. Rather a small boost to push homebuyers already thinking of buying over the edge. I don't think it is large enough to get a person not already looking to buy into the market.

 

[Strike 4,125]

I'm a little torn on the homebuyer tax credit. Does it "artificially" inflate housing prices? I guess in theory it would, however I don't think that tax credit would really inflate it THAT much. 8k on a 300k house is like 3% of what you're paying.

 

While in theory I agree with Strike, I think this very small inflation may be worth it as a jump start. I don't think this tax credit is big enough to do lasting damage. Rather a small boost to push homebuyers already thinking of buying over the edge. I don't think it is large enough to get a person not already looking to buy into the market.

 

 

Then there was no point in doing it in the first place since that's it's stated purpose.

[KSB2424 3,087]

Then there was no point in doing it in the first place since that's it's stated purpose.

You may know more about it than me. I always thought it was to get the people casually looking to buy, the first time homeowners thinking about it, and those in the market to take the plunge. More than to get people not looking to buy at all to all the sudden say "hey we can get a 8k tax credit lets buy a house!@#!"

 

Like I said, I'm torn. I agree with you in theory, but I think this may actually be okay the way it has been implemented.

[parrot 789]

We already had a very expensive welfare program ostensibly to bolster home sales, it's called the mortgage interest deduction. This tax credit is just throwing good money after bad.

[KSB2424 3,087]

We already had a very expensive welfare program ostensibly to bolster home sales, it's called the mortgage interest deduction. This tax credit is just throwing good money after bad.

That's a tax deduction on taxes you pay (have earned). Kinda different than getting something for free (welfare). You are just reducing the huge amount of taxes you already pay. I find that wholly different.

[parrot 789]

That's a tax dedection on taxes you pay. Kinda different than getting something for free (welfare). You are just reducing the huge amount of taxes you already pay. I find that wholly different.

 

Fine, it's 'kinda different'. It's still the government helping people pay their expenses. That's close enough to welfare for me.

[KSB2424 3,087]

Fine, it's 'kinda different'. It's still the government helping people pay their expenses. That's close enough to welfare for me.

I guess if you think the gov't letting me keep a little more of my own money that I earned myself as welfare then I guess you have a point.

[parrot 789]

I guess if you think the gov't letting me keep a little more of my own money that I earned myself as welfare then I guess you have a point.

 

Sorry, I'm not interested in a silly semantics debate. The point is that home buyers - those who incur enought debt anyway - already receive a tremendous tax break, and piling a large credit on top of that is superfluous overkill.

[KSB2424 3,087]

Sorry, I'm not interested in a silly semantics debate. The point is that home buyers - those who incur enought debt anyway - already receive a tremendous tax break, and piling a large credit on top of that is superfluous overkill.

You may be right about the bolded. I was under the assumption you thought the mortgage interest tax credit was a bad idea and welfare. I don't think arguing otherwise is silly semantics.

[td parker 1]

my original point was to say what this does to stimulate the economy housing market aside was a smart plan, in my case, 3 days and the money is gone, in someone elses hand such as my local roofer, locksmith and buddies who work in construction. They will likely spend it too. As opposed to other plans that sent money to local governemnts to find a way to waste or give away.

[parrot 789]

You may be right about the bolded. I was under the assumption you thought the mortgage inetrest tax credit was a bad idea and welfare. I don't think arguing otherwise is silly semantics.

 

I do think it's a bad idea, a horrible one actually. Whether it's welfare or not would be the semantical debate.

[KSB2424 3,087]

my original point was to say what this does to stimulate the economy housing market aside was a smart plan, in my case, 3 days and the money is gone, in someone elses hand such as my local roofer, locksmith and buddies who work in construction. They will likely spend it too. As opposed to other plans that sent money to local governemnts to find a way to waste or give away.

See this is why I'm torn. I like something like the homebuy tax credit much much more than the bolded in terms of economic stimulation. Which is why I give it a

 

Giving the money back to the people to spend rather than the other ways we've seen is better.

 

However it does artificially inflate the housing market (not sure how much really). Which is one of the main reasons this crap all started in the first place. So that gets a

 

In conclusion if the gov't is gonna dish out monies ANYWAY, I would rather them do it by giving it to the people via a tax credit than other ways inwhich they are wasting it. The better of the two evils if you will.

[surferskin 30]

Oh, now the government letting you keep your own money is welfare? Nigga pleaze.

[parrot 789]

Oh, now the government letting you keep your own money is welfare? Nigga pleaze.

 

Fine, you guys win. It's not welfare, it's just a horribly misguided and unfair abuse of the tax code using tax dollars to subsidize the living expenses of a select class of people.