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First Read is an analysis of the day's political news, from the NBC News political unit. First Read is updated throughout the day, so check back often.

Chuck Todd, NBC Political Director

Mark Murray, NBC Deputy Political Director

Domenico Montanaro, NBC News Political Reporter



Admin. backs housing tax credit

Posted: Thursday, October 29, 2009 11:51 AM by Mark Murray
Filed Under: ,

From NBC's Chuck Todd
The Obama administration, via a statement from the Treasury Department, is officially asking Congress to extend the tax credit for first-time homebuyers.

From the release:


Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan called on Congress to approve three important measures to improve housing and the housing market for Americans: extension of the First Time Homebuyers Tax Credit for a limited period, extension of higher loan limits for home mortgages, and secure funding for the Housing Trust Fund. "We welcome efforts taken by Congress to extend the First Time Homebuyers Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Secretaries Geithner and Donovan.

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Comments

What does Geithner know about taxes except how to avoid them.

Stop the Rangel-ing, pay your "fair" share (Sent Thursday, October 29, 2009 11:55 AM)

Just like Pelosi says about her health care reform scheme is 'fully funded', is the government housing program also 'fully funded'? I guess if the Chinese loan us the money, then that qualifies as 'fully funded'.

Simon Pierce, Ft. Wayne IN (Sent Thursday, October 29, 2009 11:55 AM)

We just got done with wild spending spree in the housing market that caused a housing bubble and a housing collapse. So what does the government do? It creates another housing bubble by providing a crutch to the market, which in turn again over-inflates the values of houses, which will lead to another housing collapse.

Not the smartest bunch in Washington. Not at all.

Brightest Bulb (Sent Thursday, October 29, 2009 11:58 AM)

Tax cheat (twice) Tim Geithner has an idea. There's a first time for everything.

First time buyers get a break.
I'm wondering why it's always first time buyers that get that break.

The country runs on consistency, which is not Geithner's forte. Obama's either. Give that break to everyone who buys a new home.

Red Rider (Sent Thursday, October 29, 2009 12:00 PM)

We saw a jump in car sales with Cash4Clunkers, but after it ended, the auto market crashed again. The same will happen with housing.

What the country needs is jobs so people can buy houses/cars on their own without federal assistance. And we see the results of the governments jobs program - none to be had.

Jill T., Houston (Sent Thursday, October 29, 2009 12:01 PM)

Moving right along. We need all of the help we can get and we are getting it.

Hats off!!!!

Andrea, New York City (Sent Thursday, October 29, 2009 12:02 PM)

Keynesian economics is the art of giving money to people that don't produce anything in the hope they'll buy things from people that do produce. The problem is - pretty soon you run out of money. And that's what we're seeing with Obama and his economic team. The country is flat broke, so they print more money, write more IOUs to the Chinese and continue to spend money they do not have. We see the result - massive/record deficits. Massive/record debt. But Obama and the Democrats in Congress just cannot stop themsleves.

Something for the Children (Sent Thursday, October 29, 2009 12:04 PM)

Moving right along. We need all of the help we can get and we are getting it.

Hats off!!!!
Andrea, New York City

There was a story a day or so ago that New Yorks tax base is dwindliing because NY raised taxes on the "rich" so high that the "rich" are moving out. No rich people, no tax revenue. No tax revenue, no government give-aways. Get ready to tighten that belt of yours another notch Andrea.

Cal Winters, MN (Sent Thursday, October 29, 2009 12:07 PM)

What does Geithner know about taxes except how to avoid them.
Stop the Rangel-ing, pay your "fair" share


You make it sound like that's not important.

C. Rangel, NY (Sent Thursday, October 29, 2009 12:09 PM)

40% of the money used to fund the housing tax credit is being siphoned off from fraud schemes. 40%! How is that even possible?

Your Government At Work (Sent Thursday, October 29, 2009 12:11 PM)

It's not fair that only people who can afford cars and houses are getting free money.  I just want to buy my kids some food and clothes and replace the worn-out washer and dryer I have.  Where is my $4500? or $8000??

Not Fair (Sent Thursday, October 29, 2009 12:17 PM)

I think that Bernanke and Geithner should get credit for saving our economy, and us, from the Busaney train wreck.They deserve a medal for the work they had to do to repair the damage the Oil Cowboys did.Hats off to the these two Real Americans.There ideas have gotten us off the mat to fight another day,we are on the right track,and by next summer the jobs will return.But there will still be all the Wingers singing the blues,and whinning 24=7.Oh and one more thing,thanks for the cash for clunkers,the deal i got was to good to pass up,Love my new Chevy pick=up.

jesse St Paul MN (Sent Thursday, October 29, 2009 12:19 PM)

Latest update is Senate leaders of both parties as well as key Senate Finance Committee members along with Senators Dodd, Liebermann and Isakson have reached an agreement on extending and expanding the tax credit..need to determine whether to introduce it to full Senate as stand-alone bill or as an amendemnt to another bill, such as the unemployemnt bill...I include complete details in an updated post a few minutes ago at:              

http://realestateconsumernews.com/financing/home-buyer-tax-credit-update/

Dennis Norman, St Louis (Sent Thursday, October 29, 2009 12:20 PM)

Red Rider - "Give that break to everyone who buys a new home."
VVVVVVVVVVVVVVVVVVVVVVV
First Time Buyer does not mean ever.
Off the top I don't recall the qualifying years but I think it is 5 since you last bought a single family house.

This law is in place, partly, to prevent flipping.

Dennis, Columbus, Ogio (Sent Thursday, October 29, 2009 12:20 PM)

Where's the story about the $4000 rebates to buy $10000 golf carts?  Golf carts???

The demand is so high in the south that us northerners can't get in on the deal.  

Does this favoritism have anything to do with Obie's penchant for golfing all the time?  Does he have buddies in the golf cart business??  Do the American people know where their money is REALLY going?

Keep the Change (Sent Thursday, October 29, 2009 12:21 PM)

With all the GEENOPEE whine being spilled around here by the righties today...

It's time to grap a 'mop' and start cleaning up the mess we're in rather than the constant crying & criticism!

Feisty Redhead Roselle, IL (Sent Thursday, October 29, 2009 12:25 PM)

We need tax "rate" cuts. Tax "credits" do nothing but pick and choose winners and losers.

Cicero (Sent Thursday, October 29, 2009 12:26 PM)

Keep the Change,

What is wrong with golfing?

Some people read, some people watch ball games, some people work out, some people go for walks, some people work on their ranch, away from DC and the White House.

WHAT IS WRONG WITH PLAYING GOLF?

Pat, Boston, MA (Sent Thursday, October 29, 2009 12:29 PM)

Ha! First time home-buyers credits. That doesn't help very much if people don't have jobs. When is this administration going to get it that jobs is more important than healthcare, climate bills, our mortgage assistance. Oh, I forgot. This administration would prefer to give the people services and control them, rather than them having jobs and being independent.

DG, Houston, TX (Sent Thursday, October 29, 2009 12:30 PM)

It's not fair that only people who can afford cars and houses are getting free money.  I just want to buy my kids some food and clothes and replace the worn-out washer and dryer I have.  Where is my $4500? or $8000??
Not Fair



The "Washer and Dryer Recovery Act of 2009" is in committee. Look for that one soon.

As for your kids, they'll be employed by the government run work "farms". Free food will be provided to them, with Wednesday being Meat Day. They'll also be issued standard clothing.

Middle Manger (Sent Thursday, October 29, 2009 12:31 PM)

WHAT IS WRONG WITH PLAYING GOLF?
Pat, Boston, MA

Ask the loony libs that complained about Bush playing golf. I'm certain they'll have some answers for you.

Par Four (Sent Thursday, October 29, 2009 12:32 PM)

It's time to grap a 'mop' and start cleaning up the mess we're in rather than the constant crying & criticism!


Feisty Redhead Roselle, IL

That mopping will give the people on welfare something to do. But who will provide training to show them what end to hold?

Mops are Made In Brazil (Sent Thursday, October 29, 2009 12:33 PM)

Juan Ft. Lauderdale: Oh and one more thing,thanks for the cash for clunkers,the deal i got was to good to pass up,Love my new Chevy pick=up.
**************************************
Why are you thanking the government for your new car? It would be more prudent to thank me and every other American that paid for your great deal on your new truck. Just like a liberal. Ignoring the fact that hard working Americans are paying for your sweeheart services.

DG, Houston, TX (Sent Thursday, October 29, 2009 12:35 PM)

My husband and I are in the process of purchasing our first house. We are not rich, we are not poor - we are the working middle class. We were willing to purcase the house even though the closing date looks like it will be after the deadline .... but the extended tax credit will really come in handy for the reovations we want to do to this house (it is a bit old). Therefore, our tax credit will help employ people in our community, thereby stimulating the economy, which is what it was meant to do. Yah to the extended tax credit!!!

Leann, Boston, MA (Sent Thursday, October 29, 2009 12:37 PM)

More welfare for those who won't save to buy a home the old fashioned way, with 20% down and a proven credit record. Whats the default rate on the cash for houses program? About the same as an ALT A loan i'll bet.

Where the heck is my bailout (Sent Thursday, October 29, 2009 12:39 PM)

How long do we intend on artificially inflating the price of houses?

With artificially inflated prices (such subsidies help support a price, just as does abnormally low interest rates) won't continued artificial support be needed to make artificially inflated homes more affordable?

What is the difference in artificially supporting the prices of houses with tax credits and artificially supporting them with easy loan money, artificial payment schedules and artificial loan underwriting and eligibility standards?

What happens when the artificial stimuli just simply run out?  Or has an $8,000 tax credit become the birthright of every first time home buyer now and in all future generations?




Richard, Washington State (Sent Thursday, October 29, 2009 12:44 PM)

My husband and I are in the process of purchasing our first house. We are not rich, we are not poor - we are the working middle class. We were willing to purcase the house even though the closing date looks like it will be after the deadline .... but the extended tax credit will really come in handy for the reovations we want to do to this house (it is a bit old). Therefore, our tax credit will help employ people in our community, thereby stimulating the economy, which is what it was meant to do. Yah to the extended tax credit!!!
Leann, Boston, MA


Leann, do plan on having children? If so, they'll be the ones that pay for that extended tax credit. Be sure to thank them.

Sherry Joyce, Cleveland (Sent Thursday, October 29, 2009 12:48 PM)

WHAT IS WRONG WITH PLAYING GOLF?
Pat, Boston, MA (Sent Thursday, October 29, 2009 12:29 PM)



You tell me Pat
It seems there was a lot wrong with it back when Bush was the one golfing.
I think its the Hypocricy that we have the issue with not the golf per say.

What_you_Selling (Sent Thursday, October 29, 2009 12:48 PM)

More welfare for those who won't save to buy a home the old fashioned way, with 20% down and a proven credit record. Whats the default rate on the cash for houses program? About the same as an ALT A loan i'll bet. Where the heck is my bailout (Sent Thursday, October 29, 2009 12:39 PM)
----------------------------------------------------

Actually the program they had before the tax credit is what they should go back to.  It was a 7500.00 no interest loan for 15 years.  And I know many hard working families that have taken advantage of the first time homeowners credit.

Most of them would pay the same in rent, and it now allows them to build equity at no additional expense.
They paid quite a bit in taxes throughout their life, and worked more hours than could be counted.  It's good that they finally are able to realize the dream of owning a modest home.

I would bet this is the situation with a majority of those who are taking advantage of this program.  

Greg P. NW Indiana (Sent Thursday, October 29, 2009 12:51 PM)

Look at the fear in the republican posts. To scared to post their names. To scared to use any type of fact to justify their position. To scared to deabate or discuss issues. To scared to stand up for their beliefs. Republicans are always afraid. Fear justifies their hate. Thus hate justifies their fears. Do you see why republicnas are so easily manipulated by the rich and elite. HCR will provide affordable health insurance to the average american, but threse idiot republicans parrot RNC talking points out of fear. They need a liberal boogieman to justify their hatred of their fellow americans. Republicans do not care about the average american, Republicans only care about the rich and elite.
REMEBER EVERY COWARD IS A REPUBLICAN AND REPUBLICANS LOVE COWARDS. COWARDS ARE CONTROLED BY FEAR.
FEAR IS THE ULTIMATE REPUBLICAN WEAPON. FEAR CAN CONTROL PEOPLE, FEAR CAN MAKE PEOPLE HATE THEIR FELLOW AMERICANS. FEAR IS WHY REPUBLICANS DO NOT DEBATE. FACTS PUT THE FEAR OF GOD IN A REPUBLICANS. HONESTLY LOOK AT THE REPUBLICAN POSTS, WHAT IS THE TWO CONSTANTS IN EVERY REPUBLICAN POST:
FEAR AND HATE  
THIS IS THE EXACT DEFINITION OF A COWARD.

bobf (Sent Thursday, October 29, 2009 12:51 PM)

Leann, Boston:

I would suggest that if you can buy the house without the credit, you can find a way to come up with $8,000 on your own for renovations to employ your locals, without getting it from the rest of the taxpayers.

Maybe you'll have to do the renovations a bit slower, or delay them, but your situation doesn't seem to rule out doing it on your own over time.  If $8,000 is going to make or break your long term plans, you probably shouldn't be jumping into this.

You will already benefit from the tax deduction for interest and points on your mortgage, like all Americans currently do.

Your justification for taking the money is interesting.  

Richard, Washington State (Sent Thursday, October 29, 2009 12:55 PM)

Par Four: Oh, I see. Another example of ... the LIBS DID IT!!!!!
_________________
Chris Matthews - Please. Forget the show for one night! Your team is in the World Series. GO TO TONITE'S GAME.

The NYY fans are a little down today. They really shouldn't be. I have a feeling the Yanks are going to win tonite.  

Pat, Boston, MA (Sent Thursday, October 29, 2009 12:56 PM)

Ignoring the fact that hard working Americans are paying for your sweeheart services.
DG, Houston, TX (Sent Thursday, October 29, 2009 12:35 PM)

And just who the Hell do you think you are?  Accusing people of not working!! You seem to be on here quite a bit!! Just WHAT do you do for a living, except complain a lot and offer zero solutions?!?!

Pam, San Pedro, California (Sent Thursday, October 29, 2009 12:57 PM)

Most of them would pay the same in rent, and it now allows them to build equity at no additional expense.
They paid quite a bit in taxes throughout their life, and worked more hours than could be counted.  It's good that they finally are able to realize the dream of owning a modest home.

I would bet this is the situation with a majority of those who are taking advantage of this program.  
Greg P. NW Indiana


The problem of course with your "build equity" idea is that housing prices are being artifically inflated from the home tax credit. When that credit expires, a lot of equity will be lost as housing prices are reduced again to real market values.

F. Towns-Homes (Sent Thursday, October 29, 2009 12:58 PM)

Where the heck is my bailout (Sent Thursday, October 29, 2009 12:39 PM)

George W. Bush gave it to AIG!!

Pam, San Pedro, California (Sent Thursday, October 29, 2009 12:59 PM)

Plantation New York setting traps for people out in the cotton fields.
I see the Plantation even has their best house whores out there promising to take their clothes off if we sign on to their Gorebull warming scam. bahahahaha

Dave, Tn (Sent Thursday, October 29, 2009 12:59 PM)

How long do we intend on artificially inflating the price of houses?
Richard, Washington State (Sent Thursday, October 29, 2009 12:44
---------------------------------
For as long as they inflate Obama's popularity numbers, inflate the "Stimulus" benefits and hype the double counted (even fradulent) job creation numbers Obama recently announced.

And, last, but not least, as soon as the 600,000 summer jobs of 2009 materialize along with the three million new, high-wage, high-tech green energy jobs to offset the 17% aggregate unemployment numbers as of Sept 2009.

Groundskeeper Willie’s enemy Seamus (Sent Thursday, October 29, 2009 1:00 PM)

THIS IS THE EXACT DEFINITION OF A COWARD.
bobf

Wah! FoxNews! Wah, Glenn Beck! Wah, Bush’s fault! Wah, we inherited problems! Wah, FoxNews! Wah, Bush and Cheney! Wah, wah, wah!”

Man up, Obama butt kissers. You look truly incompetent.

Don't Tread On Me (Sent Thursday, October 29, 2009 1:01 PM)

Paging Dr. Mark Murray, Paging Dr. Mark Murray
Time to turn off Barack’s Propofol drip. He needs to wake up and start GOVERNING!

Paging Dr. Mark Murray (Sent Thursday, October 29, 2009 1:01 PM)

My husband and I are in the process of purchasing our first house. We are not rich, we are not poor - we are the working middle class. We were willing to purcase the house even though the closing date looks like it will be after the deadline .... but the extended tax credit will really come in handy for the reovations we want to do to this house (it is a bit old). Therefore, our tax credit will help employ people in our community, thereby stimulating the economy, which is what it was meant to do. Yah to the extended tax credit!!!
Leann, Boston, MA (Sent Thursday, October 29, 2009 12:37 PM)
*****************************************************
Yeah Leann....thank for the "reasonable" post.  Your plan is EXACTLY what the rebate was intended for..NOT just to sell houses but let money trickle down to others.
And Leann, congrats on your new home!
********************

To all those who CONTINUALLY complain about the programs set up to "stimulate"...can you PLEASE THINK before spewing garbage? All I hear is that someone else is getting something you're not. One home purchase alone creates work for many...add some renovations...many more. And, OMG...jobs are created...look at that!!

A little critical thought will go a long way.....

Vermont Girl (Sent Thursday, October 29, 2009 1:02 PM)

Richard, Washington State (Sent Thursday, October 29, 2009 12:44 PM)

Giving tax credits to people who actually have jobs and can pay their mortgage is completely different that what the banks were allowed to do under Dubya!! Banks lent money to people who a.)  Didn't have a job; B.)  Didn't have any way to pay the loan.

Tax credits are completely different than loaning money to people currently unemployed!!Imagine how "shocked" Dubya and Company were when the housing market crashed;  what a brilliant idea loaning money to people not working!! Please!!

Pam, San Pedro, California (Sent Thursday, October 29, 2009 1:02 PM)

DG:

Juan is thanking the government for taking it from you and giving it to him.  He apparently likes it when that happens.

Meanwhile I can't thank Juan for the same because my cars weren't eligible for CFC and I can't take advantage of the first time home buyer's credit.

Nevertheless, he's welcome.

Richard, Washington State (Sent Thursday, October 29, 2009 1:04 PM)

Everything 'old' becomes 'new' again...

Here's the latest GEENOPEE whine...

'What about our children'?  

Okay... where was your 'concern' for the children the last 8 years while those 'fiscal' conservatives were driving the bus off a cliff?

Sheesh!  It was just a matter of time... lol lol lol

Nothing's beneath being used by them including 'the children'!

Feisty Redhead Roselle, IL (Sent Thursday, October 29, 2009 1:05 PM)

You tell me Pat
It seems there was a lot wrong with it back when Bush was the one golfing.
I think its the Hypocricy that we have the issue with not the golf per say.
What_you_Selling (Sent Thursday, October 29, 2009 12:48 PM)

No, it wasn't Dubya playing golf that bothered us; it was his 879 vacation days, some of which were taken when foreseen disasters were on the horizon, like Hurricane Katrina!!  

Okay??

Pam, San Pedro, California (Sent Thursday, October 29, 2009 1:05 PM)

News: Fueled by government stimulus, the economy grew last quarter for the first time in more than a year. The question now is, can the recovery last?

Long term outlook for the economy is a sell. Unemploymment is way too high and the economy will collapse after the trillions Obama has pumped in to it, all borrowed money by the way, ends.

And the worst possible thing the government could do is raise taxes, like for health care reform, or letting the Bush tax cuts expire.

CRoberts (Sent Thursday, October 29, 2009 1:05 PM)

Keynesian economics is the art of giving money to people that don't produce anything in the hope they'll buy things from people that do produce. The problem is - pretty soon you run out of money. And that's what we're seeing with Obama and his economic team. The country is flat broke, so they print more money, write more IOUs to the Chinese and continue to spend money they do not have. We see the result - massive/record deficits. Massive/record debt. But Obama and the Democrats in Congress just cannot stop themsleves.
Something for the Children (Sent Thursday, October 29, 2009 12:04 PM)

Just like two wars whose cost was omitted from the budget presented to Congress by Dubya and his motly mob. Usually wars are paid for with temporary taxi increases, war bonds or no tax decrease at a minimum but Dubya seemed to think he could spend the surplus he was handed by Clinton and even more but so long as he offered tax cuts he was a great guy. Why is it tax cuts, tax cuts, tax cuts and nothing else from the right? Somebody is going to pay for the wars. At least in the case of HCR and housing credit (sort of a tax break for middle and lower income people, but righties don't approve of that unless the tax break is for the wealthiest)we are helping ordinary Americans. I know that gets in the craw of the right wing radical extremists but they'll have their greedy little hands out along with those they hate.

Don't even think of telling me people like Dubya and Sinister Sister Sarah got rich because they worked for it. What a dillusional person would say but not someone who actually has open eyes, open ears and above all, an open mind.

eagle1776 (Sent Thursday, October 29, 2009 1:06 PM)

WHAT IS WRONG WITH PLAYING GOLF?
Pat, Boston, MA (Sent Thursday, October 29, 2009 12:29 PM)

Nothing, Pat!! If I recall, Bush and his Daddy played quite frequently and I don't remember these people whining!!

These people hate President Obama; these people will find anything he does wrong!! The fact is they cannot, and will not, accept that President Obama is our president period!! So they resort to these ridiculous attacks and juvenile antics!!

For eight years, all Bush did was go on vacation at his ranch; Obama takes a few days to take his wife to dinner or play golf and it's "blah, blah, blah"!! If he didn't play golf, they would call him a racist; if he wasn't involved with his children's activities, they would call him a "horrible father," and if he didn't take his wife to dinner, they would accuse him of being a "negligent husband."  

Personally, it's the insults like this I find comical; you know you're ahead when you see them resorting to attacking the president for asinine things like this!!

Pam, San Pedro, California (Sent Thursday, October 29, 2009 1:07 PM)

If every car sold through Cash for Clunkers is costing the taxpayer $24,000 and every first time home purchase through this program is costing the taxpayer $43,000 how can this make good economic sense and isn't it only making the GDP look better when it's actually not?

Is this not Smoke and Mirrors type economics?

America Wants To Know, USA (Sent Thursday, October 29, 2009 1:10 PM)

First Read, would you please post an article explaining that this is the first time America has faced an economic crisis because of deflation since 1929?

I'm amazed how many people keep saying government shouldn't spend in a deflation.  They keep look at Reagan.  Every time I remind them that Reagan faced inflation (skyrocketing gas prices, housing, ...), they say I'm wrong.

For the sake of America's future, please explain this.

Dan, Madison, WI (Sent Thursday, October 29, 2009 1:11 PM)

Look at the fear in the republican posts. To scared to post their names.  
bobf (Sent Thursday, October 29, 2009 12:51 PM)

Mr F (Sent Thursday, October 29, 2009 1:13 PM)



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