Hey, who’s up for another homebuyer tax credit?

posted at 10:55 am on June 25, 2010 by Ed Morrissey

The popular definition of insanity is doing the same thing over and over again and expecting a different result.  After the Cash for Clunkers program failed to do anything more than steal sales from the future and two successive homebuyer tax credits had the same effect while burning up billions of taxpayer dollars, what would the truly insane suggest as a response?  Oh, let’s not always see the same hands (via King Banaian):

Cristian de Ritis, a director at Moody’s Economy.com, told SNL that the consensus estimate was for a pace of 420,000, with Moody’s Economy.com projecting a rate of 425,000. He expected the tax credit to pique buyer interest in a manner that would carry over for months following the credit’s expiration.

“In effect, I think what we’ve done is pull ahead a lot of sales,” de Ritis said. “And we’re just realizing now that we’ve pulled ahead many more of the sales than we had anticipated.”

Still, the number is so bad that it makes a decent case for an extension and retuning of the tax credit, de Ritis said.

Michael Widner, an analyst with Stifel Nicolaus & Co., told SNL that the tax credit did nothing to help housing fundamentals and only pulled demand forward. In a June 22 report, Widner predicted the new-home sales rate would hit 295,000 in May, just 5,000 units off the actual pace.

“The tax credits just add noise. The tax credits don’t create more households, they don’t create more people, they don’t create more families,” Widner said. “They just give people incentives to buy houses sooner rather than later. And at the end of the day, there’s no substitute [for fundamentals]. It’s a long, slow trudge through 10 years of overbuilding.” …

Even though he is not in favor of another tax credit, Widner said May’s exceptionally low number means plenty of industry insiders will push for one.

Of course they will.  Democrats in Congress, who are somehow married to the concept that government intervention creates growth despite all of the evidence of the last two years to the contrary, will almost certainly demand yet another homebuyer tax credit to steal future sales that will replace the present-day sales they stole in the past.  All they need are several billion dollars in taxpayer monies, and their dream can come true.

Don’t believe me?  This is the same group of people who offered a second tax credit after seeing the results of the first, as this Bloomberg chart shows for both:

There is a more Machiavellian motive at play here, too.  If Congress pushes a tax credit now that expires at the end of the year, housing sales will drop again just as the new Congress comes into session.  Assuming Democrats lose control of the House, they can then blame the next crash on the GOP.  The only problem with that scenario is that economic growth may not create any more qualified homebuyers, who appear to have bought mostly in November and the rest this spring, where the the sales curve failed to meet the previous spike.   There may not be enough left in the tank in this economy to spur any more sales at all.

We don’t need another homebuyer tax credit.  We need to get capital back into the market and regenerating growth in order to get people employed and in position to buy houses.  That is the epicenter of the housing markets’ woes.


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Hair of the dog?

Apt. It’s going to be one hangover by the time sane thinking returns to government. When Germany is suggesting financial restraint to us – Germany, a social democracy – it’s obvious how out of step our Regime is.

Drained Brain on June 25, 2010 at 10:58 AM

GROUNDHOG DAY!

percysunshine on June 25, 2010 at 11:01 AM

The popular definition of insanity is doing the same thing over and over again and getting a different result.

Actually, the definition is doing the same thing over and over again and expecting a different result.

TexasAg03 on June 25, 2010 at 11:01 AM

No. Like everything else the government does the mismanagement is appalling:

Roughly 14,100 Americans have received erroneous credits—totalling more than $26.7 million—through the program, the Treasury Inspector General for Tax Administration estimated in a report Wednesday. Notably, more than $9 million in credits went to prisoners who were locked up when they reported buying a house. J. Russell George, the Treasury’s inspector general, called the findings “very troubling.”

http://money.usnews.com/money/personal-finance/real-estate/articles/2010/06/25/home-buyer-tax-credit-fraud-errors-persist.html

Cody1991 on June 25, 2010 at 11:02 AM

Actually, the definition is doing the same thing over and over again and expecting a different result.

TexasAg03 on June 25, 2010 at 11:01 AM

Oy. Yeah, you’re right, I fixed it.

Ed Morrissey on June 25, 2010 at 11:02 AM

This surprises me not at all. They’re desperate to prop up the economy in any way they can. In the end, it’ll all come crashing down, but they’re hoping to delay it long enough so that it doesn’t cost them in the midterms or 2012.

Doughboy on June 25, 2010 at 11:03 AM

REPARATIONS!

lm10001 on June 25, 2010 at 11:03 AM

I blame the American voter for this nonsense. There is no way this idiocy would have flown politically even 10 years ago.

Asher on June 25, 2010 at 11:03 AM

When are they going to figure out a way for buying a home while on extended unemployment compensation? There could be one hell of a boom in the housing market if unemployment was a condition for qualifying for a mortgage.

fourdeucer on June 25, 2010 at 11:03 AM

btw…Insanity is doing the same thing over and over again and expecting a different result.

percysunshine on June 25, 2010 at 11:04 AM

I know the occupants of Attica down the road here I are up for the credit.

Caper29 on June 25, 2010 at 11:04 AM

SNL = Saturday Night Live?

BKeyser on June 25, 2010 at 11:04 AM

nooooooooooooooooo!!! Good Gawd!!!! stop the insanity!!!

ginaswo on June 25, 2010 at 11:04 AM

The Democrats do nothing to benefit this country, they do things soley to benefit the Democrat Party.

Democrats should be imprisoned for this nonsense. They are clearly over the line.

I don’t give a damn whether they can use their weasel words and the judges in their pocket to deem this stuff legal, Democrats deserve far harsher punishment than imprisonment for this kind of theft.

NoDonkey on June 25, 2010 at 11:05 AM

We need to get capital back into the market…well, that’s not going to happen with the new financial bill, even tho Dodd really doesn’t know how it’s going to work. Brilliant!

Kissmygrits on June 25, 2010 at 11:05 AM

watch Sen Johnny Isaakson on this, he is the nitwit that keeps bringing these bills up, Former RE playah is Isaakson

ginaswo on June 25, 2010 at 11:06 AM

Obamao and company are determined not to let the housing market find it’s ‘bottom’, thus prolonging the problem. Everything these communists do to try and fix problems that they themselves created only make matters worse. Lather, rinse, repeat.

Pelosi delende est on June 25, 2010 at 11:06 AM

I’m sure Jimmy Carter is proud of his second administration.

jaime on June 25, 2010 at 11:06 AM

PS Isaakson is, a Republican. get him to get on board the fiscal conservatism train puuuleze!

ginaswo on June 25, 2010 at 11:07 AM

It’s a long, slow trudge through 10 years of overbuilding.” …

I would argue it has been more than 20 years of overbuilding for the industry.

Johnnyreb on June 25, 2010 at 11:07 AM

Please, Gang of 41, just keep voting no until November. Reinforcements are on the way.

GnuBreed on June 25, 2010 at 11:08 AM

The payment to prison inmates was bad. How about the 67 people that received the money on the SAME house? That was a totally avoidable mistake. Did they not have anything programmed to double check this?

Oleta on June 25, 2010 at 11:08 AM

Time for a 12 step program.

forest on June 25, 2010 at 11:09 AM

That is the epicenter of the housing markets’ woes.

spot on. robbing next year to prop up this year is insanity.

by the way, i quoted 4.25% on a 30 year fixed rate yesterday. what better incentive is there to buy a home than the lowest rate ever offered to the american consumer?

leave our market alone, you keynsian maniacs.

DrW on June 25, 2010 at 11:09 AM

They are desperate. Their biggest problem in unemployment which is not improving. Since they stubbornly (or purposely) refuse to do what’s necessary to help the private sector the numbers will not improve much, if any, prior to November. There simply isn’t enough time.

Cody1991 on June 25, 2010 at 11:09 AM

As someone who’s actually in the market for a house, I CAN’T BUY right now because my job situation is too tenuous to think that I can a> tie myself to a geographic location that might not be conducive to employment, b> Transfer my nest egg into a house thus greatly reducing the amount of cash on hand I have to survive a period of unemployment.

Tax credits aren’t going to help me with that.

Skywise on June 25, 2010 at 11:10 AM

‘Potemkin Village’ economics doesn’t work, even on a national scale.

But you knew that.

CPT. Charles on June 25, 2010 at 11:10 AM

Even though I benefit from mortgage interest tax deduction, I would be in favor of a phase out IF the fed cut deep spending, shut down some dept, and enforced the border.

But this tax credit is going the opposite way. Renters should be PO’ed.

Oil Can on June 25, 2010 at 11:12 AM

What better way to flush capital back into the market than by stimulating sales? And get the glut of houses off the market, which reins in a core problem in the housing market. A tax credit is equal to a reduction in taxes. Put that way, what’s wrong with that? I don’t think focusing on the political aspects of this serves the American people. On the other hand, we see the results of doing nothing. Sorry, Ed, I don’t agree with you on this one.

~ Halli Casser-Jayne

The CJ Political Report on June 25, 2010 at 11:13 AM

Money is like nachos, you can always make more.

Bishop on June 25, 2010 at 11:13 AM

Renters should be PO’ed.

Oil Can on June 25, 2010 at 11:12 AM

Not just renters. People who bought a first home just a few months outside of what the government favors have just as much ire.

myrenovations on June 25, 2010 at 11:15 AM

The popular definition of insanity is doing the same thing over and over again and expecting a different result.

It is also the definition of persistence and dogged determination. Never give up!

By artificially propping up the market, by stealing sales from the future, Obama can help his re-election chances if he can do that for another two years. If it works, he gets re-elected. If it doesn’t, he has stolen sales from a GOP president. Either way, it’s not insanity. It’s a tactic that has no downside for a corrupt man.

keep the change on June 25, 2010 at 11:16 AM

What better way to flush capital back into the market than by stimulating sales?

The CJ Political Report on June 25, 2010 at 11:13 AM

The current problem was caused by artificial demand, over-stimulated sales.

You are advocating more of the same? Let’s just keep on doing what got us here?

jaime on June 25, 2010 at 11:17 AM

When Germany China is suggesting financial restraint to us – Germany China, a social democracy communist/fascist dictatorship – it’s obvious how out of step our Regime is.

Drained Brain on June 25, 2010 at 10:58 AM

FIFY.

Rebar on June 25, 2010 at 11:19 AM

I blame the American voter for this nonsense. There is no way this idiocy would have flown politically even 10 years ago.

Asher on June 25, 2010 at 11:03 AM

Agreed. A decade ago, the voting public would have thrown out the creators of this nonsense on their kiesters before they could say “veto”.

Now? Darned if they won’t get praised for it.

Dark-Star on June 25, 2010 at 11:20 AM

Yea because I’m sure the government has figured out how to keep inmates from cashing in on the program

http://money.usnews.com/money/personal-finance/real-estate/articles/2010/06/25/home-buyer-tax-credit-fraud-errors-persist.html

scalleywag on June 25, 2010 at 11:20 AM

It’s not enough that we are borrowing trainloads of money.

Now we’re borrowing future economic activity.

The coming crash will make September 2008 look like an ABC After School Special.

CDeb on June 25, 2010 at 11:20 AM

What’s the definition of insanity? doing the same thing over and over again, but expecting different results??

I R A Darth Aggie on June 25, 2010 at 11:21 AM

We don’t need another homebuyer tax credit. We need to get capital back into the market and regenerating growth in order to get people employed and in position to buy houses. That is the epicenter of the housing markets’ woes.

we also need a massive drop in the price of homes. Deflation is the consumers friend. the CEO’s bane and the unemployed’s savior.

unseen on June 25, 2010 at 11:21 AM

O/T..but great news:


Yesterday, milblogger Michael Yon announced that he was invited to embed with US and British troops in Afghanistan again.

http://gatewaypundit.firstthings.com/2010/06/now-that-mcchrystal-is-gone-michael-yon-invited-to-embed-again-in-afghanistan/

Michael Yon has been invited to embed again by both Great Britain and the US.Michael Yon isn’t a correspondent who sparks a neutral reaction in the reader. You either love him or you don’t. There’s not much of an in-between.

…..Now how about addressing the disastrous ROE’s

Baxter Greene on June 25, 2010 at 11:23 AM

The coming crash will make September 2008 look like an ABC After School Special.

CDeb on June 25, 2010 at 11:20 AM

2011 will be devastating…….

Baxter Greene on June 25, 2010 at 11:24 AM

“In effect, I think what we’ve done is pull ahead a lot of sales,” de Ritis said. “And we’re just realizing now that we’ve pulled ahead many more of the sales than we had anticipated.”

This is an admission that (a) the housing market is truly horrible at the moment and (b) the experts grossly overestimated the market.

If they are just realizing that the sales THEY WERE SEEING were not massively over what they expected, their estimation of the market was way off. Apparently the numbers they were seeing were consistent with what they thought IF THE PULLED AHEAD SALES WERE CONSISTENT WITH WHATEVER POST-CREDIT ACTIVITY THEY EXPECTED.

The credit, therefore, did what we knew it would do, create a massive vacuum drawing in far more future sales in a very depressed market than the experts expected… resulting in the collapse we are now experiencing.

Any chance they’ll consider this the next time they want to bankrupt the country with another tax credit scheme? Nah.

The Left lives by and gets votes with static analysis.

mankai on June 25, 2010 at 11:25 AM

It’s not enough that we are borrowing trainloads of money.

Now we’re borrowing future economic activity.

CDeb on June 25, 2010 at 11:20 AM

Cannot be emphasized enough.

And if we borrow too much…I don’t even want to think about it.

Dark-Star on June 25, 2010 at 11:25 AM

Completely OT, why is there still no Hot Air comment on the DISCLOSE act? I enjoin all NRA members to renounce their memberships until NRA repudiates their part in this blatant power grab by the Democrat tyranny.

Tyrone Slothrop on June 25, 2010 at 11:25 AM

2011 will be devastating…….

Baxter Greene on June 25, 2010 at 11:24 AM

Partly because we are already “pulling ahead” economic activity into 2010 (as weak as it is) before the Bush Tax Cuts expire on December 31.

I’m sure the “experts” will be shocked again when that happens.

mankai on June 25, 2010 at 11:27 AM

OT: Who the Left Hates.

http://media.glennbeck.com/docs/100americans-pg1.pdf

Ed: #49.

Allah: #65.

BuckeyeSam on June 25, 2010 at 11:28 AM

“The popular definition of insanity is doing the same thing over and over again and expecting a different result.”

You mean like applying the same intentions over and over again and then wondering why you never see different actions?

They. aren’t. expecting. different. results.

Let me put it differently,

They! aren’t! expecting! different! results!

Dusty on June 25, 2010 at 11:29 AM

Completely OT, why is there still no Hot Air comment on the DISCLOSE act? I enjoin all NRA members to renounce their memberships until NRA repudiates their part in this blatant power grab by the Democrat tyranny.

Tyrone Slothrop on June 25, 2010 at 11:25 AM

You mean this thread?
http://hotair.com/archives/2010/06/24/hank-johnson-we-need-to-pass-the-disclose-act-to-stop-republicans-from-winning-elections/#comments

Skywise on June 25, 2010 at 11:29 AM

2011 will be devastating…….

Baxter Greene on June 25, 2010 at 11:24 AM

Not if this administration keeps borrowing sales from the future. Like the borrowing of money to finance the interest on previously borrowed money, this scheme can go on a long, long time.

keep the change on June 25, 2010 at 11:29 AM

They just give people incentives to buy houses sooner rather than later. And at the end of the day, there’s no substitute [for fundamentals]. It’s a long, slow trudge through 10 years of overbuilding.” …

That’s right, and the unqualified buyers they were built for are gone. These tax credits are just delaying the inevitable by spending even more money we don’t have in order to mask the full extent of the government created damage.

There is such an over supply now that eventually many homes will simply have to be bulldozed, which has already happened with completely worthless properties and neighborhoods in Detroit, for example.

Ironically, most of this will occur in the Blue States people are fleeing.

RadClown on June 25, 2010 at 11:29 AM

I was looking to buy a house in Texas (DFW) in the next few months, will prices bottom out by then, or will they fall even further later on?

Rebar on June 25, 2010 at 11:31 AM

TANSTAAFL (or House)

Laura in Maryland on June 25, 2010 at 11:31 AM

Sorry to be O/T also,
I would like to say thank you to all the men and women who served in the Korean War, 60 years ago today. God bless each of them.
I would not have remembered this date, but I heard it on Fox news this morning.
L

letget on June 25, 2010 at 11:32 AM

As someone who’s actually in the market for a house, I CAN’T BUY right now because my job situation is too tenuous to think that I can a> tie myself to a geographic location that might not be conducive to employment, b> Transfer my nest egg into a house thus greatly reducing the amount of cash on hand I have to survive a period of unemployment.

Tax credits aren’t going to help me with that.

Skywise on June 25, 2010 at 11:10 AM

That’s exactly what millions of us are thinking. There’s no way I’d buy right now. There’s going to be a second dip in the housing market toward the end of the year. When that happens, I’m going Galt.

Key West Reader on June 25, 2010 at 11:32 AM

I was looking to buy a house in Texas (DFW) in the next few months, will prices bottom out by then, or will they fall even further later on?

Rebar on June 25, 2010 at 11:31 AM

There will be a second dip, the bottoming out of the market. Those who are strategically defaulting will be scapping up houses for cash, no financing needed.

Key West Reader on June 25, 2010 at 11:33 AM

Sure, we need more capital, but not worry–Timmy G. said today that the finance bill will provide capital for business!

What could go wrong…?

PattyJ on June 25, 2010 at 11:34 AM

There will be a second dip, the bottoming out of the market.

Key West Reader on June 25, 2010 at 11:33 AM

So, toward the end of the year, say Oct./Nov./Dec., is what you think?

Rebar on June 25, 2010 at 11:37 AM

@Skywise

Thanks. I’ve been away from the keyboard for a day or so, and when I looked at “All Headlines” I didn’t see anything. I still think there should be a little more outrage at HA.

Tyrone Slothrop on June 25, 2010 at 11:38 AM

So… if I set up 50 or so LLCs, and sell my home to… myself 50+ times… Seems like I can come out ahead here…

Neo-con Artist on June 25, 2010 at 11:40 AM

I was looking to buy a house in Texas (DFW) in the next few months, will prices bottom out by then, or will they fall even further later on?

Rebar on June 25, 2010 at 11:31 AM

Prices are what they are here, my friend.
The DFW job market is one of the most robust in the country and Dallas is the fastest growing city in the country, so demand is up.
I wouldn’t wait too long for prices to dip much more in the future.

Jenfidel on June 25, 2010 at 11:42 AM

Sorry to be O/T also,
I would like to say thank you to all the men and women who served in the Korean War, 60 years ago today. God bless each of them.
I would not have remembered this date, but I heard it on Fox news this morning.
L

letget on June 25, 2010 at 11:32 AM

Yeah, you’d think the President of the United States or the houses of congress would issue a statement or something for the sacrifices the men made for this country…

I guess they don’t do that anymore…

Skywise on June 25, 2010 at 11:44 AM

Who is SNL? I could actually see talks of a new homebuyer credit making it onto Saturday Night Live.

hawksruleva on June 25, 2010 at 11:45 AM

Yeah, you’d think the President of the United States or the houses of congress would issue a statement or something for the sacrifices the men made for this country…

I guess they don’t do that anymore…

Skywise on June 25, 2010 at 11:44 AM

And the Korean War museum is stalled due to a lack of funding. Acceptable government spending, to me, would include spending money to complete that and fast track development and construction at Ground Zero in New York.

hawksruleva on June 25, 2010 at 11:47 AM

@Skywise

Thanks. I’ve been away from the keyboard for a day or so, and when I looked at “All Headlines” I didn’t see anything. I still think there should be a little more outrage at HA.

Tyrone Slothrop on June 25, 2010 at 11:38 AM

I agree but let’s see what’s happened in the last 24 hours.

Geithner says we’re no longer a superpower.
The Democrats have figured out how to socialize the US Economy and take control of any company at any time they deem fit without jurisprudence.
The Democrats have unconstitutionally destroyed the first amendment by delineating who or what gets to actually exercise their right to free speech.
The GDP has drastically dropped again.
Gold is, once again, at an all time high.
Obama has replaced a general in the Afghanistan war and nobody can even figure out if that’s a good or bad thing.
Florida’s shut down its first beach due to an oil spill that Obama, who took full responsibility for, is now distancing himself from.
Oh and Obama’s top story yesterday? Taking the Russian President to a hole-in-the-wall burger joint to demonstrate “the real America” Classy.

Skywise on June 25, 2010 at 11:48 AM

I was looking to buy a house in Texas (DFW) in the next few months, will prices bottom out by then, or will they fall even further later on?

Rebar on June 25, 2010 at 11:31 AM

Another factor to think about are the mortgage rates. Will the national debt cause a dollar collapse and increase interest rates and mortgage rates? Historically, rates in the 8% to 9% range. I’m waiting off a few years to purchase another house. I’d rather purchase a cheaper house at a higher mortgage rate in the future.

Oil Can on June 25, 2010 at 11:48 AM

Jenfidel on June 25, 2010 at 11:42 AM

I don’t know, I’ve been seeing a lot of properties sitting on the market for a long time. Getting a mortgage is ridiculously difficult for most people, which should drive prices down some. When those ARMs come due from a few years ago, I would expect a sizable increase in foreclosures.

Or am I reading things wrong?

Rebar on June 25, 2010 at 11:50 AM

Cristian de Ritis, a director at Moody’s Economy.com, told SNL

SNL? Saturday Night Live?

Just asking because the economic thinking we have going on by the people smarter than us surely is about as unfunny & scripted as the SNL show.

PalmettoPatriot on June 25, 2010 at 11:50 AM

Hair of the dog.

more like hair of the ass……as in Jackass

PatriotRider on June 25, 2010 at 11:55 AM

So, toward the end of the year, say Oct./Nov./Dec., is what you think?

Rebar on June 25, 2010 at 11:37 AM

Depends… if they pass through another credit bill you’ll see the market get inflated again which will only push out the bottoming out again.

Alot depends on what happens in November. It the Republicans don’t get control of the government then the Democrats will let the housing market collapse or nationalize it altogether.

If the Republicans do get control and the credit bill gets passed, figure the bottom will hit around spring/next summer once the propped up credit ends and the demand starts picking up after the rush.

If the Republicans get control and no credit bill, I’m guessing the bottom will be around the winter…

The next *big* thing I’m hearing is the commercial real estate market is about to collapse in late summer and once THAT’S done, then the real estate market should be fully bottomed out and economists are predicting recovery from there.

But, don’t take my advice… I’m making better returns from my local casino then my investments these days… :(

Skywise on June 25, 2010 at 11:56 AM

I don’t know, I’ve been seeing a lot of properties sitting on the market for a long time. Getting a mortgage is ridiculously difficult for most people, which should drive prices down some. When those ARMs come due from a few years ago, I would expect a sizable increase in foreclosures.

Or am I reading things wrong?

Rebar on June 25, 2010 at 11:50 AM

I tend to think that those with ARMS that accelerated have already been foreclosed on…the DFW market is kind of special for the reasons I gave you: the economy here has weathered the downturn pretty well, there are jobs being added here and people are moving here from everywhere else, thus keeping demand and prices higher than they are in most other big cities in the U.S.

I just heard on the news that the mortgage rate is at a new low (4 and 3/4%?).
I’d go for it if you can qualify for a mortgage and while I’d love to see you get a great house here, I hate to think you did so because you “cashed in” on someone else’s misfortune, i.e. their foreclosure, to do so.
We have lots of good houses here at reasonable prices.

Jenfidel on June 25, 2010 at 12:00 PM

Hey, who’s up for another homebuyer tax credit?

About 1000 inmates in Folsom….

jbh45 on June 25, 2010 at 12:05 PM

REPARATIONS!

This statement is more truer than you know.

Van Jones is behind the prisoners receiving those tax credits….anyone who thinks the IRS is actually going ot get that money back is blind.

We have had a quiet coup over the last 15 years with unions and community groups like ACORN and immigrant rights groups have completely co-opted state legislatures, Congress and the regulating bodies Congress creates that direct the flow of tax dollars.

Where is Michelle Obama?

rickyricardo on June 25, 2010 at 12:13 PM

REPARATIONS!

This statement is more truer than you know.

Van Jones is behind the prisoners receiving those tax credits….anyone who thinks the IRS is actually going ot get that money back is blind.

We have had a quiet coup over the last 15 years: unions, community groups like ACORN and immigrant rights groups have completely co-opted state legislatures, Congress and the regulating bodies that Congress creates – syphoning off the flow of middle class tax dollars.

Where is Michelle Obama?

rickyricardo on June 25, 2010 at 12:16 PM

Like the passengers on the Titanic, Americans can’t calculate how this all turns out. After all, it doesn’t feel like we’re sinking.

Come on, let’s head to the bar and have a brandy.

jeff_from_mpls on June 25, 2010 at 12:17 PM

Oh, let’s not always see the same hands

You mean doing the math in base 8 doesn’t help?

The Monster on June 25, 2010 at 12:25 PM

Please, Gang of 41, just keep voting no until NovemberJanuary 4, 2011. Reinforcements are on the way.

GnuBreed on June 25, 2010 at 11:08 AM

FIFY

Those clowns will have 2 months to run wild after they lose their elections.

iurockhead on June 25, 2010 at 12:28 PM

Partly because we are already “pulling ahead” economic activity into 2010 (as weak as it is) before the Bush Tax Cuts expire on December 31.

I’m sure the “experts” will be shocked again when that happens.

mankai on June 25, 2010 at 11:27 AM

….well according to Obama, all the exprts agree with him…..or is this just another lie to add to the total con job known as “Hope and Change”….

…listening to this guy was hard to do at first because he seemed to exaggerate a little to much, but looking at economic conditions as they are today and Calente’s track record….he could be closer to reality than a lot of us care to admit:


Video: Obamageddon in 2012?

http://hotair.com/archives/2009/08/21/video-obamageddon-in-2012/

posted at 2:55 pm on August 21, 2009 by Ed Morrissey
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The Right Scoop has Fox News’ interview with Trends Research president Gerald Celente, an economic prognosticator with a long history of prescience, in which Celente predicts an economic collapse for the US in the next few years. Despite his track record, New York Magazine pooh-poohed his predictions, calling them “pessimism porn” last February. Considering the direction of the economy since February, it seems that Celente at least has an argument:

VIDEO:
http://www.youtube.com/watch?v=EOnrdyY_nXY&feature=player_embedded

This has been long in the making, but now it’s being accelerated, by these programs of stimulus packages, bailouts, buyouts, government takeovers. By the way, people are calling it — is it nationalism, is it socialism? The merger of state and corporate powers, according to Mussolini who knew a thing or two about it, is called fascism. So what we’re doing is we’re looking at the disintegration of the empire in terms of, “This used to be the entrepreneurial empire of the world.” And now, it’s become a place of the “too big to fails.”


“Yes We Can!!!!!!”

Baxter Greene on June 25, 2010 at 12:40 PM

2011 will be devastating…….

Baxter Greene on June 25, 2010 at 11:24 AM

Not if this administration keeps borrowing sales from the future. Like the borrowing of money to finance the interest on previously borrowed money, this scheme can go on a long, long time.

keep the change on June 25, 2010 at 11:29 AM

…I see your point, but I don’t believe these irresponsible attempts to mortgage our future to create short term political victories today will be enough to stave off the economic disaster this socialist has brought on our Nation:

Down the Roller Coaster in 2011
http://spectator.org/archives/2010/02/10/the-coming-crash-of-2011/print

But, Laffer rightly continues, “when the U.S. economy comes to 2011, the train’s going to come off the tracks.”

Not only will the slingshot effect of recovery from the deep recession be over. The positive effect of the enormous Fed monetary expansion will be petering out. Monetary expansion does not create long-term economic growth. The Fed has to press the accelerator faster and faster to maintain the same stimulative effect. But if it does, then inflation starts to arise, accelerating faster and faster if the Fed continues. Indeed, the runaway expansion of the monetary base the Fed has already engineered will generate explosive inflation if the Fed does not pull it out in time

.

But if the Fed pulls back, interest rates will start to rise sharply. The borrowing needs of Obama’s record-shattering deficits will exacerbate this effect, as will the borrowing needs of a newly growing economy. Those higher interest rates will squelch the recovery. Or as Laffer says, “Any attempt to rein in excessive monetary expansion would lead to an immediate and precipitous economic collapse.”

And we haven’t even begun to talk about the tax rate increases of 2011. These purely ideological abuses of economic policy will end up punishing working people nationwide. The top income tax rate is scheduled to increase by close to 20%, the capital gains tax rate by at least 33%, and the top dividends tax rate by 164%. Further tax increases in the pending health care legislation would raise these tax rates still more. Laffer adds that starting at the end of 2010,

….add the VAT to this also.

………no wonder the democrats refuse to carry out their responsibilities in putting together a budget.

.….all of this will be fine for Obama…..who will walk away from this disaster only to be greeted as a hero by the UN.
…….what better way to cement your position of power at the UN than to be the person responsible for bringing America to it’s knees.

Baxter Greene on June 25, 2010 at 12:44 PM

We have lots of good houses here at reasonable prices.

Jenfidel on June 25, 2010 at 12:00 PM

Not that I’m looking to cash in on others misfortune, but it’s my responsibility to get the best deal possible for my family’s sake. And better me than some liberal nitwit who’d vote to turn Texas into another California or Massachusetts.

I’m looking at Grapevine, nice central location, great schools, and easy access for fishing. Kind of pricy though, which is why I’m looking to hit the bottom of the market.

Rebar on June 25, 2010 at 12:54 PM

All these hairs from the dog.

Does it have mange?

ajacksonian on June 25, 2010 at 1:10 PM

I’m looking at Grapevine, nice central location, great schools, and easy access for fishing. Kind of pricy though, which is why I’m looking to hit the bottom of the market.

Rebar on June 25, 2010 at 12:54 PM

Get a good realtor! (And D/FW has zillions!)
Good luck and God bless your home hunt!
I’ll say a prayer and I’ll be delighted to welcome you to my town! ;-)

Jenfidel on June 25, 2010 at 1:15 PM

Asher on June 25, 2010 at 11:03 AM

While not a government program, how long have Americans expected to get rebates on cars? No, Americans would have fallen for this 10 years ago.

chemman on June 25, 2010 at 1:19 PM

I bought a house in November to take advantage of the original $8000 credit before it was extended. I was already planning to buy a house within the next year anyway – I had started a five-year plan in 2005 to save up money for a down payment. I just ended up buying a little bit earlier than originally planned with a little bit less of a down payment than if I had waited an extra 6-12 months.

Alia on June 25, 2010 at 1:33 PM

If you can’t beat them . . .

What the heck, I guess its time for us to look into refinancing our house, might as well get in on the lowest interest rates ever. We are at about 5.75% for 15yrs now, so a 4.5% or lower for 15 yrs might make sense, especially if we can get a tax credit (free money – yeah!!).

My daughter and new son-in-law would like to buy a home too, so a credit for them would be nice too (MORE free money – double yeah!!!!)

And we laughed when that lady pre-election said Obama would pay her mortgage and utilities

::sighs sadly::

Fatal on June 25, 2010 at 2:46 PM

Well if we have one next summer It would be great for my finacnes, even though its the stupidest form of public policy imaginable. I plan on selling my house next year and buying a new one.

So who’s up for financing my change of address?

MJBrutus on June 25, 2010 at 4:25 PM