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Manhattan Awash in Office Space; Residential Gridlock in California
Mish's Global Economic Trend Analysis ^ | May 27, 2009 | Mike "Mish" Shedlock

Posted on 05/28/2009 9:40:36 PM PDT by Lorianne

Even though there is massive housing oversupply in California, the homebuilder industry lobbied for tax credits to build new homes.

California Tax Credits For New Home Purchases

Inquiring minds are investigating the California Tax Credit for New Home Purchase program.

California has wasted $65 million of a planned $100 million wastage.

It is beyond reckless to waste money like this in the midst of a fiscal crisis. If you want to know why California is broke and looking to increase taxes, such idiocy is always at the heart of the matter.

Moreover, note that the California credit is on top of the Federal First-Time Home Buyer Tax Credit.

A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

There is a massive oversupply of housing and the Federal government and states are attempting to stimulate home building!

The most amazing thing to me in all this is the number of people who blame regulation for the current crisis. The creation of Fannie Mae, Freddie Mac, idiotic programs like these, and the existence of the Fed itself are what regulation brings.

Yet complete fools and many people I otherwise consider brilliant are screaming for more regulation.


TOPICS: Business/Economy
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1 posted on 05/28/2009 9:40:37 PM PDT by Lorianne
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To: Lorianne
Yet complete fools and many people I otherwise consider brilliant are screaming for more regulation.

Then who's the fool? (Hint: Contradictions don't exist in reality.)

2 posted on 05/28/2009 9:49:00 PM PDT by Talisker (When you find a turtle on top of a fence post, you can be damn sure it didn't get there on it's own.)
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To: Lorianne

I sense the birth of a new industry. Home deconstruction. All paid for by the taxpayer, along with huge slabs of $$$ being doled out to return the land to it’s better-than-it-ever-was pristine state.


3 posted on 05/28/2009 10:50:34 PM PDT by kittycatonline.com
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