The developer of a luxury condo in Downtown Brooklyn is slated to receive a $20 million bailout courtesy of the stimulus.
Granted, you don’t want huge unfinished condo projects anywhere. And yes, the competion of the project will create some jobs temporarily.
But what’s really maddening is that one of the very reasons we’re going through this recession/crisis is because of an overabundance of dumb, ill-thought out real estate projects. This is what the recession was for, to force us to stop. Yet most of the stimulus money (not to mention other measures, like Cash4Clunkers and the $8,000 homebuyer tax credit) has been about preserving old institutions.
If stimulus is going to have any effect, then, as Andy Xie pointed out, it must be combined with serious structural reform. Otherwise, we’re just running in place and, well, Hello Japan.
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