REALTORS opposed to $8,000 Tax Credit

Real Estate Webmasters Blogs beats Neil Cavuto on this story by 20 plus days! 

Yep, yesterday Neil Cavuto on Fox News claimed to have found one of the only RELTORS opposed to the $8,000 First Time Home Buyer Credit. 

In the interview, the agent that reportedly serves Gazillionaires and one of the most prominent REALTORS in the country, stated that we would all be better off if the markets found their natural levels or equilibrium. Exactly the same message left in the comments of Jolenta's fine write up on the pros of the program and countered by Robert Worthington and myself approximately 20 days before.

These are the 2 comments opposing the $8,000 tax credit:

• From Robert - Jolenta, I do respect your opinion very much.  I also respect you very much.  I do disagree with extending the tax credit.  Simply put, extending the tax credit is a great way to devalue the dollar even further.  I also do not feel like paying for anyones homes other than mine.  Eventually the real estate market will have to be without the tax credit, so why not pay the price now and get on with our lives.  We have to pay the price at some point right?  So why make our countries debt load increase more?
• From Cal -  What many of us forget or never realized is that the real estate bubble and over building was directly attributable to stimulus in the form of excessively low interest rates from Greenspan and company.

   

  However well intentioned it was to push rates low to deal with huge capital expenditues dealing with Y2K, the internet bubble, Worldcom, Enron, 9/11, and so on, the resulting delima was an over pumped economy based on record levels of debt, negative savings, can't lose attitudes, and a general la la land view of sound economics and monetary policy.

  People holding cash could not deploy it conservatively and safely and obtain any real return after taxes and inflation, yet risk takers with little or no equity to lose were able to obtain control of property and leverage it to the hilt buying Harleys and Humers with phantom equity increases.  The real equity holder could get no real return and the gamblers with nothing at risk were getting phenomenal returns (on paper) until the great train wreck when the greater fool theory came into play.

  None the less, when family economies find themselves in a financial hole, it is often wise to quit digging the hole deeper if you want to get out of it.  The same holds true for other economies being Cities, Counties, States, and Nations.  Each of those have dug huge holes for themselves as well and they must stop digging the whole deeper.

  The stimulus is nothing more than robbing Peter to pay Paul and Peter more than likely was one of those that missed out on the glory of quick riches that Paul was enjoying, yet ends up losing in the huge chain of events that unfolded from that rampant behavior.

  This is not a new phenomenon, and it should have been well understood by our politicians, The Fed, The Treasury, beaureucrats, regulators, lenders, professors, and the citizenry if they had been educated by our education system as they should have been.

  Please take the time to read Thomas Sowell's Basic Economics which just came out this past year. It is fascinating reading and just reiterates where the problems usually begin and that is in elected persons (regardless of party) trying to do their constituency right by implementing well intentioned programs that have unintended consequences and propagate big government but never really cure the problem and often times making it worse or extending the duration.

Cavuto's guest like Robert and myself understands that tampering with natural supply and demand ALWAYS brings unintended consequences! 

More often than not,

• negative consequences for the economy as a whole come with this tampering
• the consequences are usually bourne more so by an innocent class that was impacted by the decisions
• non- beneficiaries end up paying the freight.

Moving further along into the interview Cavuto revealed that the program is already rampant with fraud. 

It was stated that over 3000 non-residents (I think it was stated as "illlegals") had received the credits and that over 50 IRS Agents (yes Internal Revenue Sevice) had illegally participated in the program.  The IRS is reporting over 100,000 doubtful claims for the First Time Home Buyer Credit!

The solution to our problems are honest and responsible behavior. 

Our government and politicians, regardless of party, are squandering our future and it must be stopped.  If you are interested in just how this Country is being robbed, please read "National Suicide" and discover how all of these programs also lead to corruption and theft by those in the public sector that are being paid to look out after our interests.

The best way to stop this theft is to take away these programs and let the beaureaucrats that are pilfering the treasury find a real job creating something tangible that will drive the economy instead of sucking the life out of it. 

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