The reporters covering the stimulus have been so busy editorializing against it that they haven't had time to pay attention to what Congress is doing. Last night Congress approved the Isakson amendment which gives $15,000 (or 10 percent of the purchase price, whichever is lower) to every person who buys a home in 2009.

Somehow, Isakson puts the cost of his tax break at just $19 billion.... Even with weakness in the housing market, it is still virtually certain that we will sell close to 5 million homes in 2009. The overwhelming majority would qualify for the full credit. So, we get 5 million times $15,000. That sounds a lot like $75 billion.

And this is before we get to any gaming. It's hard to see why tens of millions of people wouldn't figure out a way to buy a house from a friend or relative and get their $15k. If we can get one-third of the country's homes to change hands (lots of jobs for realtors) that would be good for $375 billion.


tvsterling at 07:36 2009-02-06 said:
If congress has really passed this we should all just give up. This is insane. The country can't afford the giveaways now in place, let alone this madness. 15k per transaction out of our taxes just to try & halt the correction in housing prices. THAT CAN'T BE DONE. The correction is like a force of nature. It will be another nail in the coffin of whats left of our nation. The money will end up bulging the bank's coffers even more. More money for them to hoard. These fools are going to sink us. Permalink

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