patrick.net

I wonder how much the government gets per house sold. They give up 10K.

How much do they make? In taxes, on Realtor income, on Realtor spending, on moving company incomes, etc. I'm betting they make more than 10K.

'Extend and pretend'... the bagholder is joe over-extended landlord who continues to pay property taxes on his vacant rental.

pkennedy says

I wonder how much the government gets per house sold. They give up 10K.

Its different this time, the buyer gets in 3 years, CA does pay 3400 or so only for the first 2 years meaning(until dec 2011). I think this is much wiser move than 10K handout last year. Still, I dont like govt handing out to prop up home sales. We are where we are. Another point increase in tax, are you ready?

I think CA already in creases tax. The dependent credit are slashed in 2009 tax year. That means CA is getting more money from those family with kids.
I'm really confused with extend and pretend part by the banks. If the loans are not performing, investors still want their share of profit. Where do the banks get the money to pay the dividend, interest and etc. for all the security that consists of mortgage? Someone in the chain will demand return and profit from their investment. Are these investors OK with their investment that generates $0 or negative profit?

dont_getit says

Its different this time, the buyer gets in 3 years, CA does pay 3400 or so only for the first 2 years meaning(until dec 2011). I think this is much wiser move than 10K handout last year. Still, I dont like govt handing out to prop up home sales. We are where we are. Another point increase in tax, are you ready?

You got that right. It's not 10K upfront. It is 33% of 10K for 3 years, and that is considered as an income in your tax return. Thus, you gotta pay taxes for it. Let's say it's about 6K after tax, and still is better than nothing. Collecting it back in 10 yeare or so is not that difficult, I think and thus it makes sense. floating home price high by handing money over is better than letting home price plunge.

kimtitu says

I think CA already in creases tax. The dependent credit are slashed in 2009 tax year. That means CA is getting more money from those family with kids.

I noticed that as well. Bast?#$s, I had to pay 250 extra this time.

that would only count if it were a brand new home creating a brand new APN to get taxed. Any, and I do mean any, exisiting APN is already taxed, will be taxed continually, and shall remain taxed indefinitely --- so this move is a simple hand-over to the REmafia by the politicos, to support higher-than-market prices by opening up the market to non-buyers -- thereby keeping REmafioso in the pink.

Welfare Warfare

pkennedy says

I wonder how much the government gets per house sold. They give up 10K.
How much do they make? In taxes, on Realtor income, on Realtor spending, on moving company incomes, etc. I’m betting they make more than 10K.

Well I think they'd make money from realtors regardless if they give the tax credit or not. I'll be honest. A 10k non refundable tax credit is not going to make me buy a home. And surely won't make me overbid like a madman to get into a home since there are so many multiple offers. Maybe they should give these credits when banks unload their supposed shadow inventories.

kimtitu says

I’m really confused with extend and pretend part by the banks. If the loans are not performing, investors still want their share of profit. Where do the banks get the money to pay the dividend, interest and etc. for all the security that consists of mortgage? Someone in the chain will demand return and profit from their investment. Are these investors OK to with their investment that generates $0 or negative profit?

Well, they can borrow from the Fed at 0% and all that bailout money went straight into their vaults. That's the money they're paying depositors and investors with. They'll keep it up as long as they can, hoping that values will recover to make their books whole again. That's what happened in Japan. Tons of zombie banks.

pkennedy and the rest on here, who think this credit generates more income than it costs might consider a few simple proposals:
1. Make it a law that EVERYBODY has to sell the home they own and buy another one. This won't cost anything to the government since it isn't a credit, but will sure generate a ton of economic activity!
2. Break a bunch of windows out of every 5th home or so. The owners would have to buy windows, generating tons of income for window installers.

the fallacy of the broken window... Its only been around since 1850 but that isn't enough time for patrick posters to have learned anything from it yet.

It must be harder to be so much smarter than everyone else around...

Yea - he could make a phone and a car too, but couldn't build a boat to get them off the island. Something else I always wondered - why didn't the camera crew help them? Every time they send the film reels to the network, someone could have hopped in the trunk and soon they all would've been home.

You just gotta be smarter than everyone else.

So azrob00, I guess you're not a Keynesian?

Maryann

even now?

(courtesy of the smoking gun website)

Nomograph says

That radio ran for like ten seasons on coconut batteries. Can’t we power cars the same way?

Nuclear, Its cleaner!

elliemae says

even now?

especially now ; )

middleman says

elliemae says

even now?

especially now ; )

I"m not gay - not that there's anything wrong with that - but I'd go for Maryann. Prissy is boring, and ya'll have no idea what we farm/ranch girls learned in the hay. Better than band camp.

:)

Maryann was on an island in a show

The photo is of an actress in Jail not named Maryann

Huge difference

In today terms, I'd say Vida Gurra.
In yesterday terms, I'd say Lynda Carter
In yersteryear terms, I'd say Sofia Loren

But, on that dang island I'd say Maryann. lol