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Here we go again

September 17th, 2008 — Book Updates

While I said recently I would not get political (much) on this blog, I will now change that for a few paras. The prime minister is totally wrong to start priming the real estate pump, like he did this week.

The Conservatives, in the heat of an election campaign, unveiled a new plan to give a tax credit to first-time homebuyers on up to $5,000 worth of closing costs. The plan is aimed at wiping away up to 15% of those costs, to a maximum of $750, and will be phased in over four years. The cost of this to taxpayers will be $200 million.

Why is this a stupid idea from an economic, financial and societal point of view?

Authored by Garth Turner — Greater Fool – The Troubled Future of Real Estate