Wouldn’t it be more efficient to just flush the money directly down the toilet and save on transactions fees? Seriously, this makes no sense, but it looks like more is on the way. – Ilene
THE MONEY PIT IS ALIVE AND WELL
Courtesy of The Pragmatic Capitalist
The government continues to throw money into that giant hole they keep in the Capitol’s basement. This time the money is going towards an extension of the first time homebuyers tax credit. CR is reporting that it’s essentially a done deal. I’d like to think that lobbyists aren’t the ones who pushed this through, but that’s just impossible to believe since anyone in their right mind can understand the incredible waste behind such a bill.
Aside from the fact that this is an expensive attempt to fix market prices (how Capitalist of them!) it’s easy to see that the program is not having a massive impact on new buyers (see here for more details). The beneficiaries of the program are homebuyers who would have purchased a house regardless of the program. And all of this is to provide the buyers with a 4.44% discount. I just can’t think of one single reason why anyone thinks this is a good idea.
This wasteful spending is getting to the point where I almost hope the economy falls off a cliff. Why, you ask? Because that seems to be the only way we can get the attention of these people in Washington who think they’re using Monopoly money up on Capitol Hill (our Monopoly money!). I really hope I am wrong that all of this wasteful spending will come back to bite us in the end, but common sense tells me I am not wrong….The beat goes on. Goldman Sachs wins! The housing market life support system just got turned back on and boy is it wasting a lot of time and energy….
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Must See: The Onion’s "The Money Hole"
In The Know: Should The Government Stop Dumping Money Into A Giant Hole?
