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Thread: Another Stimulating Failure

  1. #1
    Banned Eric Stoner's Avatar
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    Default Another Stimulating Failure

    Has anyone looked at the housing market lately ? Wall Street certainly has. The Dow is dropping today on news of a further decline in housing prices and sales. As predicted, all the First Time Home Buyer Credit did was push this year's summer home sales into the spring. All the Cash for Clunkers and other car buying stimulus programs did was to advance auto sales to collect the credits. Now that the housing credits have expired, existing home sales have DROPPED to 1995 levels.

    Would someone point to a single "demand" stimulus program that generated long term growth ? There aren't any. Yet every time I listen to Robert Reich and other former Clintonians or current Obamanistas, that is all they have to recommend. More stimulus programs that don't and won't work.
    Last edited by Eric Stoner; 08-25-2010 at 07:52 AM.

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    Banned Eric Stoner's Avatar
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    Default Re: Another Stimulating Failure

    Some more data from yesterday's housing report. Some of it VERY instructive :

    - Sales of homes selling for at least $1 million went UP. Why ? No Fannie. No Freddie. No First
    Time Home Buyer Credit.

    - The First Time Home Buyer Credit caused sales to balloon in March and April.

    - 30% of sales of million dollar homes were "cash only". The rest came with jumbo mortgages.

    - A lot of the higher priced sales went to INVESTORS. Unlike the last bubble, the sales were not to "flip" but so the houses could be rented out.

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