Economic Lunacy - $8k exten (and vet owner additions!)

14 years ago

http://blogs.wsj.com/developments/2009/08/24/will-congress-extend-the-first-time-home-buyer-tax-credit/

Will Congress Extend the First-Time Home Buyer Tax Credit?

One big question looming over Congress when it returns from its summer recess next month: what to do about that $8,000 tax credit for first-time home buyers?

Not only are some legislators (and real-estate industry lobbyists) already pushing hard for an extension of the tax credit, which will expire Nov. 30, but theyÂre also arguing that it should be increased, to $15,000, and expanded to all buyers, and not just those who are first-timers. The current $8,000 tax credit emerged in the stimulus legislation that Congress passed in February, replacing an existing $7,500 credit that had to be repaid over 15 years.

When will we stop picking at the scabs of the bubble and simply let it heal?

We're giving away "free leverage" to newbie buyers already...

We have BEEN giving away "free leverage" to homeowners via income tax deductions...

How's that worked for us so far?

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I think any attempt to "go long" on housing based on this is playing with fire. Can't say it suggests any shorts either...

If it implies any particular trading strategy its selling option premium in a hedged manner... because we're going to see a lot more volatility, with no trend confirmations.

Luck to all!

Dave

Here is a link that might be useful: Pushing for more

Comments (2)

jlhug
14 years ago
Dave, for what it's worth, I'm also against extending the first time home buyers credit. Sooner or later, the stimulus money is going to run out. I'd rather get it over with and start rebuilding the economy.

The vet expense deduction, also know as the HAPPY act, is one of the most bizzare ideas I've heard yet.

Here is a link that might be useful: Happy act
Nancy in Mich
14 years ago
Oh lord... I am a lover of furry little things and I think this is silly. We need a SIMPLER tax code, not another set of receipts to save in search of a deduction!