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Government Determined To Get Housing Market To Function One Way Or Another

With the national credit card just about maxed out, Congress is looking to add some more wiggle room just in case spending cuts aren't enough to offset the potential doubling down on the home buyer tax credit program. In the race to beat inflation, Congress appears set to do its best to force the residential real estate market to clear before the clock strikes midnight and interest rates start heading north. A proposal set forth by the National Association of Realtors asks Congress to increase the home buyer tax credit from $8,000 to $15,000 and open it up to everybody, not just first time buyers. While adding a meagre $50 to $100 billion to an existing $11.8 trillion tab seems like rounding error, there is a more disturbing undercurrent at work.
Should the government blink in its game of chicken with inflation and keep rates low too long in the name of housing, there's a real problem when the inevitable happens. House prices will become artificially inflated, people will start to borrow against that inflated value and then hope their homes will appreciate even more to pay off their loans. This personal Ponzi scheme sounds vaguely familiar.