One of the many factors putting pressure on the housing market is a glut of inventory caused by extremely aggressive new construction in recent years. Rather than take responsibility for their own bad business decisions, the homebuilders are lobbying for a massive taxpayer-funded bailout to stimulate home sales. The National Association of Homebuilders is pushing for a $250 billion stimulus package called "Fix Housing First" that would subsidize the interest rates on government backed mortgages and offer people a tax credit of up to $22,000 for buying a home.
The Wall Street Journal points out (subscription required) that "any federal assistance would require policy makers to figure out how to stimulate demand for housing -- the problem at the root of the global financial meltdown -- without artificially propping up home values."
But that's the whole point! Any "stimulus package" will, by definition, artificially prop up homes. If it doesn't, what's the point?
Lawmakers need to stop kidding themselves and make a decision: Either they believe in free markets and the idea that the market is the best mechanism for sorting out problems, or they don't. But a massive bailout aimed at stimulating home buying is completely incompatible with the notion of not propping up home prices.
Shameless homebuilders push for a bailout
Posted Nov 24th 2008 9:57AM by Zac Bissonnette
Filed under: Politics, Housing
Reader Comments (Page 1 of 1)
11-24-2008 @ 11:06AM
Richard said...
Hmmm.. Does anyone at all remember the drumbeat of media complaints regarding the HOUSING SHORTAGE?
11-24-2008 @ 11:13AM
Jerry said...
The hell with the home builders, they were
as big a part as anyone in inflating property prices.
They made a killing with price setting (fixing), lotteries and wouldn`t pay a dime in closing costs.
They fined buyers who didn`t close on time and
laughed about it.
Now they want a bailout, they can go out of business for all I care.
11-24-2008 @ 11:16AM
BHarrison said...
The "bottom line" is: "Lawmakers need to stop kidding themselves and make a decision: Either they believe in free markets and the idea that the market is the best mechanism for sorting out problems, or they don't. "
Otherwise, our government is merely complicit in aiding the wealthy at the costs of the average middle class, and lower class citizens. It IS time for an economic and political "revolution" by the middle classes and lower classes of citizen. this has become a matter of "survival" for the vast majority of American people's standards of living.
The ONLY SOLUTION is for the American people to "over throw" the INEPT, INCOMPETENT, AND CORRUPT Congressmen who have sold out to the special interests groups. Make no mistake about it, this is a pivatol moment in American history . . . economically and politicaly. The American people need to deluge their Congressmen with telephone calls, emails, faxes, and letters . . . and it is time to initiate "re-call elections" to rid us of the likes of Barney Frank (D-MA), Mel Martinez (R- FL), Ms pelosi, Mr. Reid, Andrew Cuomo, etc., etc., etc. We've reached the point that "it is either them or us . . . ." You need to take actions to protect your and your family's best interests.