Tuesday, November 24, 2009


If this trend continues, it could affect the outcome of the currently pending healthcare reform legislation.

"Never mistake activity for achievement."


This graph shows how your tax dollars, which are being used to give $8000 to new homeowners, are being wasted because the homebuyers are not buying new homes- they're buying existing homes. This means that new homes aren't being built- it's just a bunch of homeowners selling their house and buying someone else's house. The people who bought homes during the housing bubble are trading up again, and the new homeowners are just buying their leftovers. If you think about it, it makes sense, because with the U-6 unemployment rate at 17.5%, how many people can feel safe about buying their first home and signing a 30-year mortgage? So, much like the Cash-for-Clunkers debacle, the new homeowner tax credit is just more taxpayer money down the rathole- rapidly increasing the national debt while having virtually no stimulative impact on the economy.
Calculated Risk: Existing Home Sales: Distressing Gap