Lovely… Because the subsidization of home-ownership wasn’t, like, key in getting us into this mess, the homebuilders are asking Congress for more subsidies for homeowners! The homebuilder lobby is urging $250 billion to be spent on a “Fix Housing First!” (clever) package, reports, The Journal.
The argument: Because the financial crisis is a function of ever-declining home prices, we need to Fix Housing First! The banks should thank the homebuilders for being so magnaminous. Maybe the homebuilders could pitch in and cease building homes, though that would just mean the end of many companies.
Here are two details of their plan:
- Home owners would get a tax credit equal to 10% of their home’s value, capped at $22,000.
- They want subsidies on interest rates for 30-year conforming government-backed mortgages, essentially cutting the interest rate in half.
Yep, It sounds like a return to the go-go housing days of encouraging consumers to take on debt they can’t afford, just on steroids.
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