Monday, October 26, 2009

Senate attempting to extend homebuyers' credit

Senator Bill Nelson of Florida told Bloomberg that he expects to extend the first-time homebuyers' credit.

“We should be able to extend that later this week,” Nelson, a Democrat, told reporters traveling today with President Barack Obama on Air Force One to a speech in Jacksonville, Florida.

My argument against this, from the beginning, is that it takes money from one taxpayer to subsidize speculation by another, all thanks to massive lobbying by the National Association of Realtors, and the Mortgage Bankers Association.

Last week the Government Accountability Office put out an interim report on the people who've taken advantage of the program. On the low end, how can we expect people making under $25k to be able to pay for these mortgages? And on the higher-end, why are people making over twice the national average salary enjoying a subsidized (by their poorer neighbors) gift for real estate speculation?

The full report:

GAO report on the FTHBC

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