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Originally Posted by Tribesman
So when the government gives incentives to buy houses it is fueling the bubble which leads to an economic crash , and when it takes away incentives it is stopping people spending money which will lead to an economic crash .
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Close but not quite, what caused the bubble was the goverment "suggesting" that the banks make bad loans to people whom obviously could not afford them, artifically inflating the demand, driving up the home prices. Tax incintives had little to do with that.
When these artifically priced houses forclosed or devalued due to market adjustment has a lot to do with the economic crash. Tax incintives had nothing to do with that.
The other factor driving the market down down down is all the doom and gloom and trepidation over the massive debt the Oministration is saddeling the country with. Taxes have a lot to do with that.
Tax incintives for buying a new home should be left alone. After all arent we trying to create jobs? Now is not the time to be dicking around and slapping even more hurt on the people trying to do things 'the right way'.
But cash strapped and in debt beyond measure every feasable way to tax american citizens will be conisidered.