Sunday, March 28, 2010

Housing Credit. Was it worth it?

The article discusses the extension of the housing tax credit that was passed in early November 2009. The vote in both the Senate and House were nearly unanimous but can it be called successful? Was the bill stipulated during the right time? The credit did boost the market in a very small way but I do not believe it can be labeled as successful. There was and is to many infrastructure problems with the housing credit market for this tax credit to be labeled as successful. The bill should have been held off until the rest of the credit market was restructured because it did give consumers incentive to buy but unfortunately there was not enough supply for housing loans. The real question is will this be re-initiated once the credit market shows improvement in the future.

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