Wednesday, July 13, 2011


$22 Billion Housing Tax Credit Program Utterly Failed as Economic Policy


JLM said...

Failed to "unleash animal spirits?" Weren't animal spirits what turned the boom into a bubble in the first place?

Jim Gust said...

Nope. The boom was pushed into a bubble by misguided government policies to push home ownership onto populations that couldn't handle the financial end of it. Portions of the population who lacked "animal spirits" were given the money to buy anyway, which bid up prices way beyond sustainable levels.