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Never Underestimate the Power of Government Intervention
2010 Aug 29, 11:37am 1,124 views 4 comments
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bubblesitter
2010 Aug 29, 1:22pm
Yeah they can always intervene. That does not mean they can prevent house price correction.
Electric_Jeff
2010 Aug 29, 1:58pm
While I would not like to see that happen, wouldn't it be interesting if they did another round and prices fell anyway? My belief is that they would. Even with a tax credit there aren't enough buyers.
bubblesitter
2010 Aug 29, 2:04pm
Why do we need banks? Government should start lending directly. 0% interest rate. May be that can prevent house price correction?
to OP:
"MIGHT" reinstate the credit? Guess what that means? It means there are lots of people that will **NOT** buy, because they are waiting for a tax credit.
Why do we need banks? Government should start lending directly. 0% interest rate. May be that can prevent house price correction?
Why stop at 0%? You're already making the government take a loss by borrowing at 4% and lending at 0%. How about a negative interest loan? Borrow at 4% and lend at -2%.
Take out a $300K mortgage, and only pay $9500/yr for 30 years. Pay off a $300K loan with only $285K in total payments!!!
Hell, why not just say government pays 1/2 of any homes cost. Buy a $100K home and get a $50K tax credit. That will fix the housing market right quick.
Saw at the tail end of 60 Minutes tonight that the home-buyer tax credit may be reinstated. Haven't been able to find much about it on the net though.
But I never underestimate the power of government intervention