Why the new $6,500 homebuyer tax credit is wrong (The Christian Science Monitor)

If the tax credit wasn't renewed, our Real Estate and related business revenue would drop by 40%. If there is no demand- we are all screwed!!

Does Obama think he can buy any votes with our money? Why do we keep trying these stupid giveaway programs? Why doesn't he just cut taxes?

It pains me to no end to see the continued self-destruction of this great nation by its own naive people. Every time I see an article that refers to the "bubble" in the United States, it reveals how ignorant the author is about what has happened in the rest of the world. Home prices have not even doubled in 20 years in most of the USA, and have only tripled in the so called "bubble" areas along the coasts. Compare that with India and China, where home prices have gone up SEVERAL HUNDRED times in the past 20 years. This has created enormous wealth amongst its people, and has thus driven their economies to boom. This is despite the fact that the mean home price in Indian and Chinese metros is several hundred times the mean annual income.
Europe, Australia, South America...all have seen tremendous appreciation in real estate prices.

Here in the USA, we state that the mean home price should be less than 3 times the median annual income, and term as bubble anything that does not fit that expectation.Why don't we all open our eyes and compare ourselves with the rest of the world. People from the rest of the world will laugh their heads off if they understand our definition of a home price bubble.

While there are times that tax credits are a good idea this isn't one of em. After the debacle that's been Fannymay And Freddy Mac we don't need to make the problem any worse. More than helping first time home buyers they wound up getting loans for those who had no business taking out any kind of loan in the first place. Fiscal responsibility is going to go go a long way to getting us back on our feet.

Japan never has had a real estate bubble? Ahh?

I bought my house 3 years ago and paid the full asking price. Is this tax credit retroactive for those who bought a house recently? I also bought a new car a while back before the cash for clunkers deal. My timing seems to be very poor.

Increased debt with no long term gains. Until the citizenry begin to spend at levels that are above the present rate the recession will continue. Their must be a relook at taxes and what happens to the economy when tax rates go up. The congress is in the process of increasing federal spending from 18 to 25%. Tax rates and collections will have to go up which will have a negative effect on the economy.

My wife and I wanted a home, were paying 900/mo in rent so we could definately afford the monthly payments due on a small home, but just couldn't put together the 10,000 needed for a down-payment. This tax credit allowed us to borrow from the folks, purchase a home, and repay them. We have never missed a payment. This bill allowed us to have a home we could afford, and kept a few people employed in the home construction industry. BTW, we are conservative Christians, not liberal wackjobs. This article is trash.