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Just a few minutes ago we got breaking news that according to Federal Housing Finance Agency home prices.
By its measure we're actually up point 3% in July from June.
So that does ask the question with the first time home buyer tax credit getting ready to expire with those -- racing to the finish line.
To move people trying to claim that 8000.
Dollar tax credit should we expand it and open it even more people.
He says yes that is Georgia senator Johnny Isaacson.
Senator -- you to be here if housing seems to -- be improving in the economy seems to be turning a corner.
Why don't we need more spending to get housing gallon.
Well first of all.
The improvement is relative you just set an average of point 3% increase in home values.
You have to remember that's off of base of an average 28% decrease over the last eighteen months.
Housing markets in the tank 47%.
Of houses in America are under water they're worth less and so on.
And economic stimulus likes a tax credit which is your tax money.
It's out of it and set about you to make an investment -- an appreciable last will move the market Ford and -- accelerate recovery.
I senator Brian -- you know here's the thing we get from from viewers why should people who either on their home or haven't purchased -- don't wanna buy a home.
Theoretically fund people who wanna buy a home what Walt -- why -- -- just move the money around we'll.
Well first of all the person that tax credits to the person goes to taxes is not to the taxpayer.
You're not talking about a cash for clunkers were you took other people's money.
David somebody else about fuel efficient are.
You're talking about given somebody who -- -- tax obligation.
A tax credit against that obligation to invest an appreciable last that's a world of their.
Yeah but that's less money coming into the federal government if you -- you know instead of just paying all the taxes that you would normally -- they're gonna get a credit back which is -- But that means a lot of money for the treasury which means the money have to be made up someplace else.
And in part it's made up by the seven -- -- are on the housing purchases because of all the component parts that go win because the additional things that are spent.
Because of the people there are employed as a seven to one economic both are.
Government generally prosperous and economic prosperity is rising that's where you get your revenue from this but -- raising taxes or lowering credits is a false outrage.
But senator we already have.
We have a massive buying program going on keep mortgage rates low we already have incredible.
On mortgage interest up to one point one million dollars in home debt and you add on like to buy it now.
Energy efficient quiet appliances for your house even.
Why do we need more incentive for some -- go out by house.
We've had four recessions in the last half of the twentieth century there were debilitating all of them housing let us out.
Housing led us into this one and it will lead us -- you can -- track -- recovery or you can accelerated and accelerating it makes sense the American and.
But wolf this just defer their inevitable necessary home price correction.
Once the 151000.
Dollars expires which is the amount that you want.
-- it eventually happen anyway.
Well -- the 8000 that's expiring first of all not -- fifty no you're you're advocating for 151000.
That I am right.
Which which equates to precisely what the government did in 1975.
To return -- housing market there was almost as bad as this one.
Back to full recovery.
So it's a matter have been -- about -- the recovery.
Movement forward purchases it might be in the out years.
Getting the housing market moving again so that every other thing.
Stabilizing home values stabilizing equity lines of credit stabilizing families happens now.
Let's move on the TARP if we can I know there's been some move out there and -- you signed the letter basically saying to Tim Geithner -- When the TARP authorization is done.
Did any remaining money back to the treasury don't extend the TARP program he signed off on that letter.
Why do you think this is a good idea.
For the same reason Bank of America and BB NT in most of the banks to try to pay back their TARP money as fast as possible.
We did the right thing to put stabilize the financial system in September of last year it was the right thing to do.
Now that is stabilized now there is some stability in the marketplace.
We don't need the government running the banks and so I think it's best.
Just to judiciously in the TARP program I'm not creating new programs -- money that's paid back or by deploying the last of those assets that are in the bank.
But Saturday you want the government the way deeper into the housing market when many would argue it was the government's involvement in the first place.
Encourage people to take on too much rest.
Well I don't argue the fact that those that -- created the sub prime market affordable housing requirements made Fannie Mae buyout loans that they really didn't want about that was wrong.
But that is totally different from telling an American taxpayer.
To invest their money into an appreciable assets that they -- -- -- their home to give them a credit to percent of us do that what do you think it would hardly different.
Senator what do you say to renters that.
What I -- -- -- yes they would not look that they would not benefit from that tax write.
Well they benefit in a lot of ways wanna stable housing market and many people who -- -- and I don't wanna get into.
Labeling be one way or another but a lot of people employed in the housing construction market.
Or more often than not runners and they are owners it helps them to have a job it helps and have construction going.
There are benefits that surround around the housing investment that not true with any other investment.
By the American fans and senator of getting you to be here thank you start right -- -- not have.
To -- thank you.
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