HOUSING CREDIT OF $8,000 THE FACTS

04/28/10 Maui HI, USA



The New York Times recently had an article about the "true facts" involving the usage of the $8,000 Tax Credit by "first time home buyers". Following is a short synopsis:



1-the rush is on to complete deals by the end of April 30, 2010

2-the deal must close by June 30, 2010

3-approximately 1.8 million bought homes

4-$12.6 billion in credit were collected

5-these group of buyers would have bought anyhow and some were inelegible

6-the ratio was 1:3 (one legitimate and three did not need it)

7-the true legimitate buyer received from the Fed about $30,000 or more

8-thousands that were not qualified received the credit



In conclusion, the Treasury Department performed an audit and found-out that hundreds of million of dollars went to buyers who had not yet bought a house or

who were not true first time home buyers and were not qualified based on the rules and regulations of the program.



What really happened here? Hypothetical insinuation, the people are depending more on the Fed (Socialist Capalism), to provide them with income incentives to sustain or increase their "cash flow", regardless of whether the applicable regulations pertain to legal ramifications with pernicious consequences projectively. The money received will be injected into the economy, use by the people to purchase staples and other necessities and consequently the $8,000 will be spent. You may want to speculate that the standard of living and wages are not at par with inflation and any amount handed over is better than nothing to sustain your monthly expenses. You can only speculate, that other programs such as the unemployment benefits have the same effect.