Can a housing market on life support survive without it?

So are the 'tea baggers' going to march on the White House to demand an end to "socialized housing ?"

Probably not, as critical choices are in the offing. Many would have us believe the housing market is stabilizing on its own accord as we begin to see a turnaround in the macro-economy. The reality that housing is supported by a house of cards, hopefully buying us time to backfill the foundation, means an errant pass or legislative gust could trigger the next wave down.

Lever #1: First-time home buyers tax credit

http://www.nytimes.com/2009/09/16/business/16home.html?_r=1&hp

Absolutly not,the past administration did not care like other
thing in the past 8 years,they could do something aboout it
in 2006 but they did not so the problem is huge!

From Calculated risk about the housing tax credit.....

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.

You can calculate the new $15 billion projection; 1.9 million times $8,000.

But this only resulted in 350,000 additional sales. Divide $15 billion by 350 thousand, and the program cost is about $43,000 per additional buyer. Very expensive

Many would argue that the original subsidies to housing helped create this mess. More subsidies is like curing a hang-over with more liquor.

Last time I checked many people recommend a little liquor in the morning to help get over last night.

Very true...hair of the dog that bit you. Though I'm not sure if what works for booze directly translates to real estate.

Analogy only works if the person in question is an alcoholic. This is not a one-day, short-term problem. We are feeding a nasty habit.

"But this only resulted in 350,000 additional sales. Divide $15 billion by 350 thousand, and the program cost is about $43,000 per additional buyer. Very expensive"

This is completely untrue. If there are not enough buyers to spend all of the money allocated for the housing credit, then the reamineder of the money simply does not get spent.