Bailout Home Builders?
$150 billion for bailing out AIG. Automakers want another $25 billion. How long was it going to take for home builders to want a bailout of the area that they claim is the root cause? We now know that answer. The Wall Street Journal reports that home builders are indeed making a plea for federal aid to the tune of $250 billion.
The builders’ lobby is ramping up its sales pitch for a $250 billion stimulus package called “Fix Housing First,” arguing that financial markets won’t recover until home prices stop falling. They are calling for a generous tax credit for home purchases and a federal subsidy that would lower a homeowner’s mortgage rate. – WSJ
There are some pretty nifty graphs showing the housing correction has already moved prices back in line with historical price to income ratios. However, price to rental ratios are still a bit out of line. The Realtors and National Association of Home Builders are running these newspaper ads in Washington in support of the “Fix Housing First” proposal.
I’m not a big fan of bailouts. We’ve already spent $350 billion. Do you think it has helped? How about spending another $25 billion on automakers? We spend nearly $80 billion every year on farm subsidies and supports through the Department of Agriculture and according the the Cato Institute and many experts, it doesn’t have any positive impact. Shouldn’t other industries be asking for their share? What industry do you think will be asking next and what will be left to tax to pay for any of it?
Discussion Area - Leave a Comment
You must be logged in to post a comment.