Bailout bill helps Fannie Mae and Freddie Mac, but not home buyers
Jul 30, 2008 economy, news, politics
I certainly don’t agree with any bailout program, whether it be for corporations or for private citizens - however I do support tax breaks and tax incentives. That is, if they are actually tax breaks and not gimmicks under guise of tax breaks, like the upcoming housing bill includes. The bill, in addition to preventing Freddie Mac’s and Fannie Mae’s insolvency, includes a 10% tax credit up to $7,500 for homes purchased between April 9, 2008, and July 1, 2009. The credit sounds nice, but the $7500 actually has to be paid back in installments over 15 years - making it essentially an interest-free loan. An interest-free loan is better than nothing, but in light of a multi-billion dollar bailout of Fannie Mae and Freddie Mac, it is a meager consolation to potential first time home buyers.
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