I am not a gambling man, but I would bet the farm on this one.
This is the least expensive method they have used to help the economy, and it is working better than any other method.
Unlike the bank bailouts, which have been received very badly and which have helped the rich bankers and investors, the $8,000 tax credit is really helping normal Americans.
Regular people, like you and me, use the credit and save $8,000 in taxes. That is a lot of money.
This money sells houses, and is helping lenders, realtors, inspectors, appraisals and many others.
It is selling bank properties that are toxic assets, and helping, at the same time, the loan officers and lenders by creating new loans, with fees and other benefits.
The $8,000 is a direct infusion into the bloodstream of the American economy.
The cost is so small, compared to the absurd bank bailouts, that it is almost inconsequential. The cost for the original $8,000 tax credit was under $12 Billion Dollars. That is a drop in the bucket for the incredible benefit it has been to the real estate industry and to home buyers and sellers.
This is a Government Program that actually worked.
I am sure they will extend it to the end of 2010. What will happen then will depend on the economy and the feedback from the public.
Time will tell. I hope they do extend it. Without it the market will be in serious trouble, again.
Randy Brown
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