Personal Liberty Digest™ will be upgraded this weekend to reflect a dynamic new look and mobile-friendly viewing to enhance your experience! Plus, we'll be providing even more of the compelling content you've come to expect, delivered in a whole new way!

  Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Housing industry to join the bailout line

November 25, 2008 by  

Industries fight for government fundsFirst, it was the financial industry requesting federal funds. Next, automakers said they needed a bailout, too. And now, the housing sector is apparently gearing up to ask the government for a $250 billion rescue package.

House-builders are lobbying for a Fix Housing First stimulus, including a 10 percent tax credit for homebuyers and a federal subsidy to lower mortgage rates, the Wall Street Journal reports.

The sector claims that action is needed to prevent the country from falling into a cycle in which declining home prices negatively affect banks that hold mortgage-backed securities, which in turn depresses the economy further.

However, some critics argue that the plan favors encouraging new home purchase, instead of modifying existing loans held by homeowners.

They raise concerns about the danger of artificially inflating the housing market, creating demand that does not exist.

"The government does not have the tools to rewrite the laws of supply and demand. By artificially increasing prices, we are encouraging more building," Harvard economist Edward Glaeser told the news provider.

It is still uncertain how Capitol Hill would respond to the homebuilder’s request. Congress recently denied funds to automakers, saying that companies needed to present a viable plan before they could receive taxpayers’ money.
ADNFCR-1961-ID-18895553-ADNFCR

Personal Liberty News Desk

Facebook Conversations

Join the Discussion:
View Comments to “Housing industry to join the bailout line”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.