Summary
Government intervention eliminates the "Free-Market" concept.
This is politics as usual...kicking the can down the road.
Pres. Obama is not bringing about change(I am not against him).
Cash for clunkers applied to home purchase will not fix the problem.
Analysis
We have a Senator in the state(Nevada) that is paying the price for rampant speculation, who is now leading the charge to extend the buyer credit. Doing so will certainly help him get re-elected, but will not solve the long-term problem that has been created by speculation and capital that is too easy to come by. The FHA is creating the same situation all over again, by requiring 3.5% down. Already they are experiencing a high default rate, but it seems the politicians never learn. By providing the credit, sellers will/are simply jacking up the price to put the money in their pocket. All NAR wants is more transactions, to keep it's 1 million agents happy, and paying their membership fees.
What is really in the best interests of America, is to let the free market work itself out. There is no way any of this is going to prevent the continued slide of real estate values. When you assess the data about the number of excess properties in the U.S., and couple this with the fact that income levels are going down, it will be impossible to retain the current price levels.
