I predicted $20k a while back, but $15k would likely do it.
How we payin' for this by the way?
So...
1) You tempted now to buy a house or a car?
2) Will this stop the crash?
Obama economic plan now tops $900 billion
In a victory for auto manufacturers and dealers, Sen. Barbara Mikulski, D-Md., won a 71-26 vote to allow most car buyers to claim an income tax deduction for sales taxes paid on new autos and interest payments on car loans. The break would cost $11 billion over the coming decade but could mean savings of $1,500 on a $25,000 car.
"Just as we need to get the housing market going, we need to get auto sales going," said Sen. Debbie Stabenow, D-Mich.
Wednesday's session could produce even more generous savings for homebuyers.
Sen. Johnny Isakson, R-Ga., is pressing for a tax credit of up to $15,000 for everyone who buys a home this year, at a cost of $18.5 billion.
Posts
79 comments:
Woo Hoo! Free money!
I'll buy your house if you buy mine.
Lets get real...$1500 on a 25K car will not cover the depreciation you lose before you even get off the lot.
Now if they reduce the sticker and make it 15K...Then give me $1500,We can sit down and talk.
15k for a house? That's like throwing a bucket of water on a grease fire...
LMAO!!!!!
This new scam is not good for buyers! It’s designed so that slimy car dealers and realtwhores start making money again and deflate the number of the unemployed.
For those tempted to take the plunge and rid homedebtors or the banks of the houses they are eagerly looking to unload, google what Professor Robert Shiller is saying about the future of US housing market, and then make up your mind.
Shiller told the German newspaper Handelsblatt last week that this housing downturn may become more severe than that of the Great Depression.
"We are still experiencing a record price decline," he said. "It is quite possible that house prices fall more strongly than they did during the global economic crisis of 80 years ago. The real estate crisis could last 10 more years."
Other respected scholars are predicting that home prices won't bottom out until they go back to their 1997 value, meaning a 35% decline from their 2006 peak.
Any moron drooling over a quick 15K bribe now will end up losing between 25K or 250K, depending on the price of the house. This loss does not include the realtwhore commission and obvious closing costs, which will wipe out the 15K bribe at the time of purchase and when, a year or so from now, the new victim needs to get out of that bad deal!
>Obama economic plan now tops $900 billion.
And he's only been in office two weeks. Give it a while and it'll be double that figure.
I'm not buying. $15,000 for a $200,000 House? I'm still in debt $185,000 on a declining asset.
It's like those cash back deals for buying a car. Wow, $1,000 cash for putting myself in debt for $18,000.
As I understand it, this "tax credit" must be paid back over a number of years. So, its a bit misleading.
Hmm,
How about we get a tax credit on the purchase of yoghurt provided we throw it all at our President, Congressmen and Treasury Secretary? Oh and don't forget members of the Federal Reserve!
It's clear the PTB want this to be an absolute train wreck and will keep swinging all the way down. God help us all!
-Mike
I think you have to look at it two ways
1) What would S&A'ers do?
2) What would Sheeple do?
Anyone who buys a new car is a fool, or doesn't care about money. You're right, $1500 is gone by the time you drive off the lot.
On the $15,000 for housing - if it's a credit that then has to be paid back, it's stupid. If it's a REAL tax credit, then it's substantial.
Let's see what they come up with. I think a real $15k tax credit would be a big thing. We'll see.
Here in Canada, homeowners have this subisdy for isntalling energy efficient stuff... well guess what, the price of all these renos have increased by the same amount as the value of the subsidy!
They did the same thing with fuel efficient cars. The price of the targeted cars increased by the same amount of the subsidy also.
Moral of the story: when governement gives out subisidies it just creates inflation and the only winners are the firms selling the target of ther subsidy.
Oh God! I fucking give up!!!!!!!!!!!!!
It seems like the monkeys in Washington are hell bent on reviving the consumer bubble. We are spending so much money what will happen to our nation's future? Out national debt officially is 11 trillion dollars and that is NOT counting the unfunded mandates of Social Security, Medicare, etc...
We are indeed screwed. For every dollar the government spends/throws at this crisis now, they are robbing future generations of $6 to $10.
Anyone who decides to rush out and buy a home because the government is going to give them 15K is a fool. We are still in the bottom of the 2nd inning in terms of this real estate crash. We still have seven innings left!!!
This crash is just getting started. Be patient, be very patient. I think prices are still overvalued. The government can come up with gimmicks, but there is nothing they can do about falling incomes (they have been falling for thirty years!).
Does it have to be a new car?
My buddy Burley's got a 93 Ford F150 he said he'll sell me for $1,500. If I git $1,500 back from the guvment I can git it fer free!
Am not sure, but tired of sitting on sideline eating popcorn.
My snuggy is getting too tight.
snuggie.
Yeah, just intution says they aren't going to let home prices stay low much longer. 50 year mortgage, anything to keep them jacked up. Biggest thing anyone will ever buy, so it HAS to cost a fortune.
F*ck.
Am going to buy a trailer.
Let's see, IF I get my adjusted Gross low enough with these new bribes the AMT kicks in and fucks me in the anus anyway?
Gee, A Deal only stupid imbecile Americans would buy.
America Sucks and Hopefully will DIE some more soon.
Fuck America
Now the sellers will delay dropping their prices like they otherwise would have. Net effect is that fewer houses will sell than if congress did nothing. The buyers get nothing out of the deal. The few sellers that do sell will make a little more money than they would have otherwise, and the realtors will get an extra $900 (6% of $15K).
Wow, my tax dollars are subsidizing bankers AND realtors. Who could be more deserving. Makes me proud to be an American.
I agree with some of the other posts, $1500 of a new car is hardly worth noting, and 15K off a house? Here in the lovely, overpriced state of Connecticut, these jokers are still trying to get 600-700k for a 2 bedroom starter home with a view of the interstate. Compare this to the great deal we just got on a rental: $2800 month to rent, 1.2 million to buy. Gee, lemme think about this ...
How about this ... if you have no debt and you have some assets (meaning you also have a good credit history) the government rewards you as the pivot point to base the new economy on. They are continuing to go the other way on this and the economy will fully collapse if they don't stop this insanity. The first rule is not to punish those who were right and reqard those who were wrong. The fix on this is not tough to figure out folks. The implemenation just requires gutts, patience, and honesty from our us and our leadership.
Don Payne
Question: is this a credit or an interest free loan that must be paid back?
They tried that horsecrap last time, but it was only $7,500 to be paid back starting the next tax year.
The government should give us a subsidy for snuggies so we can all save heating electricity while we watch our big screen plasma tvs and eat cheezedoodles.
During an economic firestorm it's the government's role to set Backfires.
How else do you spend your way out of a debt fueled collapse?
The $15,000 flat is kinda funny
$15k in California is a rounding error, won't help, it's 2%
$15k in Iowa is all the money in the world, will make people rush to buy a home (at 15% off)
15K ain't crap in DC / NoVA to purchase a home
Wake me up when it's 50K, I might be convinced to at least look at some foreclosures !!
Since I can't afford the 25,000 for a new car, can I just have the write-off and call it an intangible asset? Isn't that what Time Warner just did? Maybe I’m just confused again.
I'm still wondering what’s going to happen when the banks bring off-balance-sheet assets such as mortgages and credit-card receivables back onto their books?
”FASB, the Norwalk, Connecticut-based panel that sets U.S. accounting standards, voted 5-0 today to delay the rule change until fiscal years starting after Nov. 15, 2009.”
So, does that mean we have until November to dig our caves and stock-up on ammo, food and GOLD?
"I'm still wondering what’s going to happen when the banks bring off-balance-sheet assets such as mortgages and credit-card receivables back onto their books?"
Oh no. That is simply awful. Another sign of how totally screwed up everything is economically.
How much longer can this continue? How much can an economy be sustained on smoke and mirrors, ambiguity, and corruption? And we wonder why things are falling apart.
15k and 1.5k?
that is not enough.
My snuggy is getting too tight.
-------------------------------
i wanted a snuggy for christmas but they were sold out at the local retailers.
I don't think the sheeple will fall for this one.
15k that has to be paid back? uh, that is called a loan, isn't it?
even the sheeple are coming around that saving is good, spending is bad.
Yes, the monkeys are hell bent on re-inflating the consumer bubble. that is all they have known for a couple of decades now. They will drive the economy into the ground. my concern is that it will get so bad that any republican idiot (palin) could get elected in 2012 because the voters will be fed up with the dems.
DEC 2008
Keith,
It costs $12k to have just one severed finger re-attached, (unless you have insurance then its $16k).
Even the smallest of knives at this early point in the housing price correction will take at least 3 fingers, so the math does not work out.
GT cHarlie
$1500 might help on car repairs.
Let's see:
I live in California, worked hard at something actually productive (non-government) and am due a tax refund NOW.
I planned to use that refund money to invest in my business and hire another employee (since they will now work cheap and they are everywhere)...
OOPS, the State declared BK yesterday and has begun welsching on its debts and issuing worthless IOU's instead of holdable, foldable, spendanle CASH,
Well, guess what? Another useless grossly mismanaged by an actor piece-of-shit dishonest corrupted dishonest farce.
This morning we will begin negotiating with neighboring Nevada to relocate our small yet very profitable green business to a more hospitable, yet still mismanaged and corrupt base of operations.
Fuck America. What a turd-world shithole.
DIE
Yeah - $15,000 is going to make me buy a house. It'll only be worth about $300,000 less a couple years from now. What a deal!
Gold just looks cheaper and cheaper.
Unemployed people don't buy cars or houses. . . enough said??
15k as Keith says is a rounding error in my neighborhood. That's true of most bubblezones. Causing a housing stampede in Dubuque is not going to solve the problem.
There's no more free lunch and after Denny's gave away the Grand Slam, no more free breakfast.
Cars kill more people than just about any disease.
Cars cause more pollution than just about anything on the earth.
Hey guys, let's subsidize that.
I knew the Democrats could prove they are just as bad as the Republicans, but it didn't know they could do it in the first couple weeks. Very impressive.
National Automobile Dealers Association says the average price of a new car sold in the U.S. is $28,400...
Edmunds car buying guide says you lose up to 20% of the value of your new car as soon as you drive it off the lot...
Which comes out to a loss of up to $5,680 once you drive that new $28,400 car home from the dealership...
And a $1,500 tax break is supposed to get Americans to start shelling out money again for that new-car smell?
"It seems like the monkeys in Washington are hell bent on reviving the consumer bubble."
This is the problem and you are correct sir.
The goal here is to keep housing prices up so people don't lose the equity and get people to spend and the banks to loan. If, and I mean if, they are successful at this in the short term it is only going to explode even worse in the future. This is more "creative financing". It is a way to manipulate the system and the manipulation for decades is what has gone wrong. This is more of the buy now pay later bullshit that has us broke.
If your nextdoor neighbor was broke and up to his eyeballs in credit card bills and debt would you run nextdoor and give him a personal loan and tell him that he could pay you back later? I sure as hell would not because I would assume he wuld never be able to pay me back. It would be a bad investment. So why is our gov trying to do this.
I have one more question. If they are successful at keeping housing values up, how will future generations and current home buyers be able to afford these inflated prices? We have already proven that the masses cannot afford them. Andf how will future generation be able to afford them while paying of the unreal amounts of debt that we are leaving behind?
We do not have a sustainable plan and this new administration of Obama's has already proven to be as big of a joke as Bushco.
So how will the government operate when they basically give back sales tax? It isn't as if they're going away...
Can I but one of those $1.00 homes in Detroit and get the 15K tax credit?
That would be great because I would finally be getting something out of this whole mess. Actually, I wouldn't really be getting anything other than MY money and would probably still end up paying more in income taxes than 90% of you parasites.
But, it would be $14,999 in my pocket.
The housing crash continues - regardless of any "knife-catchers" now entering the market.
In fact, so many of the ones rushing in now to catch those "great deals" will be in foreclosure a year or two down the road.
This is getting very ugly, and there really is no way now to prevent the massive carnage from happening.
As many have accurately predicited, the crash in commercial realestate will make the residential crash seem like a walk in the park.
People who can only afford a POS $25k won't get excited with a $1,500 tax voucher, which they have to wait more than a year to collect. Geez, why not just buying the same POS car, in an older model, like three years old, and save $14,000 instead of the stupid $1,500. Oh, and the crooked car salesmen will fleece you on something else to keep that $1,500.
Well, you know there are a lot of engineered NWO zombies out there, so they might fall for this scam.
Politicians are busy like crazy now, trying to get more financial slaves to support Zionist bankers and the global elite. After all, they need their limos, expensive hookers, fancy dinners, luxury pads!
Run zombies to become financial slaves for the global elite and crooked politicians! Look look, Hollywood-high school-dropout celebs just endorsed something, so run brainwashed women to give your hard earned money to their coffers, so they can rent a Caribbean Island for $50k per night, buy a $10k handbag, or spend most of the money in Europe. Run zombie slaves!
Gee...
All of you wanted left-wing Obama and the Democrats in Comgress. Stop complaining; you're getting exactly what was expected.
My snuggy is getting too tight.
LOL Do you know they've sold 4 million of those things in 2008? No recession for that inventor.
.
THE MAGIC PAPER. HIGHEST UNEMPLOYMENT EVER (AND CLIMBING), BUT THE STOCK MARKET RALLIES. IT'S ALL RIGGED!
.
Perverse. More debt to a country already drowning in debt.
Debt being forced on the public side to promote excessive consumption. Debt on the private side to promote excessive consumption.
They just don't get it. They want to go back to business as usual. Somebody should show them the ave. family's shrinking income and networth statements. Sickening. Immoral. Evil. The United States Federal Govt.
All the crooked insurance companies must be drooling over this proposal, to get retards chained to an iron ball.
Insurance for my 10-year old Japanese is $400 per year. No thanks, I pass on your scam, politicians. Oh, and good luck squeezing that 1,500 bucks out from the car salesmen, who will add it on to the total, hidden from you.
Stay away from car dealerships, let those bottom feeders die.
.
HEY MESSIAH, LOTS OF "GETTING TOUGH" ON MICROPHONE, LOTS OF PROPOSALS, BUT NOTHING SOLID GETTING DONE. TALK CONTINUES CHEAP AND THE SHEEP WET.
.
900 Billion!
I won't see one penny,
and my Taxes will go up!
Where is Andrew Hac
I wonder if he has seen this
http://www.youtube.com/watch?v=Gn8EQ0azXpQ
.
$15,000 dollars to buy a house that's still over-priced by $250k
Genius I'm tellin ya
Genius!
The funny thing about the tax credits for buying homes and cars is that it phases out for people that make very good incomes. Thus the only people who are provided with an intensive to buy houses and cars are the people who are less able to afford them. If we are trying to create an intensive to spend money, then these credits should be extended to the rich, because they are the people who could best afford to purchase a new car and/or house.
Why does Obama insist on driving American consumers further into debt? Can't he see what everyone else sees, that debt is the problem and not the solution?
"I'm still wondering what’s going to happen when the banks bring off-balance-sheet assets such as mortgages and credit-card receivables back onto their books?"
=================================
that is what BO and the government is fighting to keep from happening. The banks are insolvent. they keep pushing out the date for when to implement the accounting rule change that would force this to happen. it was suppose to be implemented last year.
so, BO and his wall street cronies keep allowing the banks to keep stuff of the balance sheets to make the banks look healthy. this is market manipulation and control. Once started down that slippery slope there will only be more and more control and manipulation by the government. BO controlling executive pay is an example of increasing government control of the system. The government also wants to tell the banks how much they should be loaning out. that is the next step. they will say, if you receive 5 billion in help, you must use 1 billion for mortgages, 500 million for student loans, etc etc. this is a recipe for disaster.
In a free market, the banks would have to put this crap on their balance sheets, forcing them out of business. The CEOs then would be fired, reducing their salaries to ZERO.
Instead, they are being rewarded with 500k a year for driving their companies into the ground while the tax payers get laid off and have to pick up the tab for bailing these insolvent companies out.
DEC 2008
"President Obama said Wednesday the recession will turn into "a catastrophe" if the economic stimulus is not passed quickly, lobbying anew for the plan as its price tag climbed above $900 billion and drew more criticism."
=======================================
well, that didn't take long to start playing the fear card.
meet the new boss, same as the old boss.
fact is, the disaster is already happening and will continue regardless of the BS stimulus packages. the only thing that will fix it is proper and correct change and even that will be painful.
but that would require a president who really means CHANGE when he says it and not some empty suit spewing out empty promises.
We are in a depression, it started in december 2008
DEC 2008
I am getting ready to build a house-have been renting for 2 1/2 years and sold at the peak in 2005. Yeah, the tax credit would be great for me becasue I am building my house no matter what.
Hoooweee, that global warming must be making you stay all day in the ocean, right Keith?
"Britain faces another 10 inches of snow as new Arctic weather front blows in
Britain is facing a fresh wave of travel chaos and school closures after warnings that a fresh band of snow is on its way.
Much of the country was returning to normal today but the Met Office says as much as 10 more inches of snow could build up in some areas tomorrow.
Several inches are possible in the West, southern Midlands and northern Home Counties, with the band of weather sweeping over the South-East again on Friday.
In the meantime, plummeting overnight temperatures coupled with daytime thaws will keep conditions treacherous."
PONZIIIIIIIII...Goldman Sachs & Co. wants you paying lots of carbon taxes tot he global elite, suckers!
It might, might, might be worth shopping for a new car this year.
A house? No.
$15K is squat in the house world.
You can go through that your first year just keeping up with undisclosed problems.
It will take a whole lot more seducing before I roll over.
15K tax credit.....LOL!!!
The way prices are dropping you can lose 15K in one month.
Catching a falling knife is still catching a falling knife and gravity has kicked back in with a vengence.
Like usual, government attempts to prop up artificially high prices/demand will fail. Always has, always does, always will.
First, you have to be able to afford to buy a new house and a new car.
Is anybody really surprised by this "charity?" It is the way that the rich get richer.
"(Reuters) Argentine glacier thrives
LOS GLACIARES NATIONAL PARK, Argentina - Climate change appears to be helping Argentina's mighty Perito Moreno glacier, which is thriving in defiance of the global warming.
The Perito Moreno ice field, known as "The White Giant", is gaining as much as 3 meters (10 feet) a day in some parts, pushed forward by heavy snowfalls in the Patagonia region.""
It's not enough
Anon said...Wow, my tax dollars are subsidizing bankers AND realtors. Who could be more deserving. Makes me proud to be an American.
The RealtWhores have been listing and selling their own shit mortgages/short sales, AND SHARING IN THE COMMISSION! That is how dumb ass the banks and govt. are.
You can bet with them doing their own BPO's (what banks are using as VALUE estimate), they are pricing them at rock bottom to sell quickly so they don't get foreclosed. I wouldn't buy a tent from a RealtWhore.
Un-F'ing Real!!!
If Isakson's bonehead idea passes, every seller will intantly increase their asking price $15,000
"the State declared BK yesterday and has begun welsching on its debts and issuing worthless IOU's instead of holdable, foldable, spendanle CASH."
What is the difference between a Federal Reserve Note and an IOU issued by the State of California?
For my taxes this year on April 15th, I plan on sending the Gov't an IOU, like CA. I won't plan on paying any interest or penalties, just sending the IOU.
Let's see how that flies.
They can do it to you. But you can't do it to them. And then they call themselves our 'servants'.
Revolution. NOW!
BTW, when's the paycuts going to Congress & the WH?
Housing porn commercial back on again.
The one where this rich, bitch snobby lady goes to some high rise steel and metal architectural firm, slams a Koeler faucet on the counter and says dryly 'build a house around this'.
PUKE, PUKE, PUKE,PPPUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUKE!!!!!!!!have the dry heaves now.
This is the kind of thing that makes regular people feel like paupers, like they have to compete.
THIS IS WHY I HATE, I MEAN HATE, ADVERTISING.
'nuff said I guess.
How about $15,000 credit to buy guns made in America and American Eagle Gold/Silver coins. Looks like Guns and Gold are going to be the only security once Washington Bankrupts the Nation.
Since when was it a good sign when you're bribed to make a purchase?
Offering people money to buy houses and cars just screams "this suckers going down, jump on board!"
Tax breaks are the Republicans solution to everything.
Keith,
All I wanna know is when are they going to subsidize me with cash to buy more cash? When the day hits that they offer you 1000 bucks to take out a 10,000 dollar loan, then we know we are past the point of no return.
"...All of you wanted left-wing Obama and the Democrats in Comgress. Stop complaining; you're getting exactly what was expected."
Rube says "would have been different with McCain/Palin/Coleman..."
Heh.
A more cynical person might suspect the GOP knew when to take a dive.
Yippeee!!!
I now get to unload my house near peak pricing in Eastern Pa before we crash. Obama is a complete disapointment and I am now afraid that a long depression is more likely than not. He's Bush 2.0 with the same types of people calling the shots.
I guess I'll put my money in the mattress and buy my house back in 2years for 40 cents on the dollar.
and the bank that loaned the householder/owner money to buy..has lost 98 percent of its price/value...and stocks have historicaly done better than real estate?
not to worry about the house prices and 3 times income thing when they all are fired and making 6,000 a year>>>>>>>>>>>>>>>>>>>
in better times the "bad" bank of theory and todays salvation would have been just called a common "spin off", and pardon my future shilling but i am gonna need to breakeven some day ........
Let's see...I need 20 percent down payment. The median home price in my area is still $350,000. That's 70,000 down. Minus 15 leaves me with 55,000 cash i need to lay out. Plus, the median price will drop another 10 percent this year after I buy it. That is an additional loss of 35,000. Hmm...
Or I could keep paying 1700/month for this sweet 5 bedroom 3000 square foot rental 2 miles from the office. Hmm...
hey if the sheeple are coming around to the idea that saving is better than debt the ruling elites will continue with their zero interest policy to in effect make savers continue to lose money with every bit of saving.....screwed sheeple for diner?
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