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.



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