If it takes a few extra four or five months that's only two million new unemployed and with two hundred thousand American's losing their homes each month that's only a million homes and four million more people on the pyre. I bet the market for black trash bags is doing great. There is a stimulus idea, how about a tax credit for small business on black trash bags?
Existing home sales, which make up ninety percent of the market, fell twenty seven percent to the lowest level in the modern era. Almost one quarter of sales where foreclosures and another ten percent were short sales. The worst month in the modern era and thirty-five percent of those sales were distressed sales? It is a page straight out of the Great Depression and Mr. Obama's extraordinary answer to most every question is tax cuts for business.
There is an odd statistic left over rattling around in my head from my days as a Real Estate agent that says, "two thirds of all wealth is held in Real Estate." Thirty-five percent of home sales as distressed sales? Two hundred thousand foreclosures each month and we are talking about the largest wealth transfer in American history. The banks get a tax credit when a mortgage fails they take the deed to the troubled asset relief program and are given credit by the Federal Reserve for the amount of their loss. The bank can then take that in new cash or in the form of a gift certificate.
TARP then bundles and sells these properties at auction and the banks may bid to purchase these properties back at zero percent interest and zero money down. The FDIC then promises that if the purchasers don't make any money on the properties in three years the federal government will give them a rebate on the purchase price. Call it a tax cut on a tax cut, on a tax cut.
Boy oh boy, with all these extraordinary programs on tap good times will be right around the corner. Wait, who was it that said that? Prosperity is just around the corner! A chicken in every pot and a new car in every garage! What was that fellow's name again? He was a mining engineer and a good speaker and he tried to build coalitions between government and industry, but what was his name?
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