Hi everyone, I missed writing to you. It has been over a week which surprised me actually, but all us writers need some intimate time with our muses, you know. Well I am happy to say that all is well in Muse land which may not be true on our land, judging from the reports of late. It looks like the problems are coming home to roost, but I also wonder how long it will be before they kick it yet again down the road.
Let's examine that the housing problems, as predicted, are not over. Let's also examine that the Congress continues to ignore and not restructure FNM and FRE making it more likely by the day that the taxpayers will be stuck with even more record holding debt, and let's consider that they have yet to change the rules for those CRA type loans. Do taxpayers know that they are on the hook for owing all that debt? Just wondering?
The perpetual growing debt is made even worse by extension of the first home buyers credit because it gives a distorted report of home sales. Whether these credits are scammed, we have yet to know the cost, but I have witnessed such attempts. Do you even know how it works? It basically gives $8000 to first time home buyers provided they stay in their "new" homes for minimum of 3 years. In addition, now, homeowners who owned their home for longer term, like minimum of 5 years, and lived there during the entire time, and wish to sell and buy another home, are now also eligible for the credit. Okay it is "only" $6000 for those people. Does that sound like they are encouraging flipping to you? It sure should. Do you think it is why perhaps housing prices are on the increase again and foreclosed homes are being bid on again? I am not saying yeah or nay.. just wondering?
Yep, it not a tax credit, it is a subsidy as in handout and you apply for it via the tax return.. Does that sound like a handout perpetuating itself? It should. This is the 3rd time they have extended it. Did you notice that the housing sales report showed a large activity of home sales during the last couple of weeks? There was a reason for that: The credit was supposed to expire July 1st.
Well I was not going to return with an article of bad news or a reminder of such, but just had to get it out since I feel like the lone rooftop dweller here: In other words people, it seems, most just wish to keep their head in the sand, and I keep sitting on the rooftop looking for hope and change.
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