Well the party is over (for now) with the $8,000 new-homebuyer credit. Many expect the small burst in new-home construction will drop and we will return to the doldrums. I do not think so.
the party is over (for now) with the $8,000 new-homebuyer credit. Many expect
the small burst in new-home construction will drop and we will return to the
doldrums. I do not think so.
beginning of a recovery never feels much like a recovery. But my money is on
the prognosticators who are calling the recession over. Even the more
optimistic of them admit the recovery will be gradual and long and probably
will not feel much like a recovery for a while. But this blog is supposed to be
about government interference.
the other day I heard of a builder advertising a “match” for the $8,000
new-homebuyer credit that the feds were handing out. Interesting approach; I
hope they make it work. While the government “stimulus” program did put some
real money in some peoples pockets and arguably helped the market to rise, it
is the MARKET that needs the help. And I think the market is better off without
to their own devices, homebuilders will build. Lenders will lend. I acknowledge
that the federal government does need to regulate the industries such as
banking and local governments need to regulate construction (and to some extent
the constructors). But government goes way past regulating right into meddling
as fast as you can say “TARP.”
the stimulus money stimulated some home sales artificially early. These people
would have bought homes eventually. Now we have to help them pay for it. If the
government wants to do something, they need to finish up with their banking
reform and let those people get on with their lives (lending money to our
customers so we can build). Even some bad legislation would be better than
should probably stay out of the business of criticizing and commenting on
government, so this is the end of this disconnected two-part series. But we
should all be wary. Government employment and paychecks should be down at the
same rate as the rest of the economy, and it is not happening. What does that
tell you? Have the inmates already taken over the asylum? Not to sound alarmist
(like so many are these days … to be expected in tough economic times), but it
could happen, and if it the growth of government does not slow down soon we may
all end up working for the same company.