Once again, government tinkering screws things up.  It gave out and $8000 home buyer’s tax credit earlier this year, which boosted sales a bit, but now they’ve crashed to the worst low point since the National Association of Realtors started keeping stats in 1999.

Just like Cash for Clunkers, all we’ve done is shift future buying to the present, and then pay the price not very far down the road.  Worse, I’m wondering how many of these sales were made by folks, spurred on by the additional money, bought more home than they could afford, which is what got us into this situation in the first place.

And what got folks back then buying too much home?  Government tinkering.  There’s a trend here.

Related posts:

  1. "Stop Tinkering" Exhibit A
  2. Obama’s Mortgage Plan: More Harm Than Good?
  3. "Unexpectedly"
  4. Bailout Profits
  5. The Financial Crisis Explained

Filed under: Doug • Economics & Taxes • Government

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