Stimulus a real kickstarter or just temporary spending?

[Archaea]

http://online.wsj.com/article/SB125686010435717399.html

Okay, Chino is challenging me to get back to academics instead of relying upon hatred and instincts.

From what my instincts say and review of journals, it seems as if spending will cause temporary spending by consumers but it doesn't seem as if the economy is feeling any internal stimulus to expand.

[MikeWaters]

Obama is putting 6500 in tax credits directly in my pocket, just because I am buying a home.

I promise to spend some of this money on toys, entertainment and relaxation. Just doing my patriotic duty as my President asks of me.

[Archaea]

Originally Posted by MikeWaters

Obama is putting 6500 in tax credits directly in my pocket, just because I am buying a home.

I promise to spend some of this money on toys, entertainment and relaxation. Just doing my patriotic duty as my President asks of me.

Are you buying because of the credit, or are you just taking advantage of something you would have done any way?

[MikeWaters]

Originally Posted by Archaea

Are you buying because of the credit, or are you just taking advantage of something you would have done any way?

We already had a contract signed when I learned about the credit.

Does that answer your question?

[Archaea]

Originally Posted by MikeWaters

We already had a contract signed when I learned about the credit.

Does that answer your question?

That's what I thought.

The stimulus isn't creating a need, it's only perhaps affecting the timing of purchases. However, it's not affecting the malaise situate deep within our economy.

[MikeWaters]

Originally Posted by Archaea

That's what I thought.

The stimulus isn't creating a need, it's only perhaps affecting the timing of purchases. However, it's not affecting the malaise situate deep within our economy.

It can help inflate housing prices a bit. It can also time-shift purchases. You might see some people jump into the market sooner than they would have.

And in some cases, will motivate people to jump into the market.

For someone like you, $6500 is something you might lose in the couch cushions. For others, it's a big deal.

With the $6500 tax credit, plus getting 1% back from our realtor on the purchase price, plus getting a fixed loan at 4.25% (no points), we are fairly happy with our purchase. Not to mention that we are getting into a MUCH nicer neighborhood and the best school district in the area. Of course, it's not all that hard for us to move up. Our current home has iron bars on the windows and doors.

[Tex]

Originally Posted by MikeWaters

It can help inflate housing prices a bit. It can also time-shift purchases. You might see some people jump into the market sooner than they would have.

This is what "virtually every" economist has estimated the Cash-For-Clunkers boondoggle accomplished.

[MikeWaters]

Housing in Texas never got all that expensive, even at the height of the bubble.

So, it's not cratered like other parts of the country. Down, but not cratered.

But all the federal help still applies to Texas.

Housing in DFW is extremely affordable compared to most big cities.

I invite you to take a look:
http://ebby.com