Comments on: THE MONEY PIT IS ALIVE AND WELL

By: Doug Terpstra

Doug Terpstra — Wed, 28 Oct 2009 17:41:27 +0000

Indeed. I believe that is exactly what is happening—a brilliant play on the gambling psyche of American society. It’s a great deal for the banksters, who enjoy great leverage as speculators rush back in and bid up property 20% or more, dwarfing the value of the credit. We’re seeing a mini-bubble here in Phoenix, where once again, 30% of sales are by investors and the remainder are low-down, high risk FHA (government) loans. If the banksters are benefitting, it’s a safe bet the “Home Sellers Tax Credit” will be extended, even expanded directly to investors.

By: JTodd

JTodd — Wed, 28 Oct 2009 14:59:21 +0000

Convenient timing passing this on Friday following the GDP numbers (which GS just announced will be worse than expected). Maybe they can push up the vote to coincide exactly with the GDP number.

By: tradeking13

tradeking13 — Wed, 28 Oct 2009 14:20:17 +0000

“And all of this is to provide the buyers with a 4.44% discount”

Rather than providing buyers with a discount, it is providing sellers with a premium. It should be called the Home Sellers Tax Credit.

By: TPC

TPC — Wed, 28 Oct 2009 05:07:28 +0000

It’s going to pass by Friday. That’s the rumor.

By: Paul

Paul — Wed, 28 Oct 2009 04:52:28 +0000

There have been many rumors that the first time home buyers tax credit extension would be part of a bill with the unemployment benefits extension but at this point this does not seem likely. Senate Majority Leader Harry Reid is adamant about having the home buyers tax credit extended before the expiration of November 30th.

By: FDO15

FDO15 — Wed, 28 Oct 2009 04:37:29 +0000

this stuff makes me sick. Nothing about this program makes sense to anyone with any knowledge of economics. It’s sickening how easily politicians can be bought by lobbyists.

By: TPC

TPC — Wed, 28 Oct 2009 03:13:20 +0000

nice….

By: TPC

TPC — Wed, 28 Oct 2009 03:13:09 +0000

No one cares. 10 billion here. 10 billion there. The only thing that has come of this whole crisis is more recklessness.

By: Doug Terpstra

Doug Terpstra — Wed, 28 Oct 2009 02:43:39 +0000

Oh, goody. More Cash for Shacks. “Free” money from Benny and Timmy’s helicpoters for the “free” market. Yippee! They’re coming to take me away…ha-ha, hee-hee, ho-ho…

By: gregg

gregg — Wed, 28 Oct 2009 01:47:27 +0000

More money from the money pit:

“In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said.

The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government’s 35.4% stake in the company could increase if existing shares eventually are converted into common equity.”

http://online.wsj.com/article/SB125668489932511683.html