From the people who banned light bulbs without mercury in favor of light bulbs with mercury comes another really stupid idea:
[Georgia Sen. Johnny] Isakson is pitching an idea to his colleagues in Congress: a $15,000 tax rebate check to anyone who agrees to buy a home.
Congressional budget analysts project the program would cost $14 billion over the next few years. But Isakson said the rebate checks are well worth the hefty price tag. “If we can convince buyers to come back to the marketplace and buy these houses, then the houses aren’t vacant. It’s replaced by an owner-occupant, who is there making payments on a loan and helping all of the other houses around.”
No, no, NO!
Of course housing prices are too freaking high! They’ve been unnaturally inflated by years of cheap credit and government encouragement of home ownership, even when it made little economic sense.
As a longtime Realtor, Sen. Isakson (and the powerful lobbies supporting Realtors, mortgage lenders, and the financial high rollers who speculate in mortgage-backed securities) are all in favor of the idea.
Of course! It’s more corporate welfare from you and me, courtesy of their bought-and-paid-for federal government. Those $15,000 checks would end up in the coffers of the bankers and investors who’ve created this ugly financial meltdown in the first place!
The fact that a lot of government revenue is generated by property taxes, which are due to take a hit as real estate values sag, has a lot to do with this, too.
Memo to Congress: LEAVE IT ALONE. Let the real estate market correct itself. Cut your budgets and let the banksters take their lumps.
Every time you “help” us, like with credit card reform and bankruptcy reform, it’s the guys with all the money who win.