Oy (OR WTF?)

Buy a house, get $15,000. The Senate just approved an amendment to the stimulus bill that will do just that.

Dean Baker thinks “it’s hard to see why tens of millions of people wouldn’t figure out a way to buy a house from a friend or relative and get their $15k”

This seems like an absolutely terrible idea…

I could see it spurring some home purchases, but there’s so much supply currently, it’s not like it would spur new building (which is really where housing related jobs come in). But what happens next year? With no incentive, no one is going to buy since prices still have some deflating to do.

In the meantime, everyone can come up with some scheme to “buy” a house and get free money from the government (which, to be fair, is better than giving it without strings to Wall Street…  but it should probably come from TARP funds).

So, Dave, whaddaya say? You buy my house, I buy yours and we’re both $15,000 richer?


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