Homebuilders get a back-door bailout
Gretchen Morgenson: Lobbyists Win Again In Securing Tax Break For Home Builders
The New York Times's Gretchen Morgenson points out that lobbyists have won another victory that will lead to billions in taxpayer dollars being handed over to firms that helped spur the economic crisis.
The Worker, Homeownership and Business Assistance Act of 2009, which President Obama just signed into law, contains "a tax break that lets big companies offset losses incurred in 2008 and 2009 against profits booked as far back as 2004," Morgenson reports. (Read the full story here.)
The administration estimates that the tax breaks will be worth some $33 billion, and home builders -- who analysts say were key players in the financial crisis by building and financing too many homes -- stand to benefit enormously.
This is not a capitalist move. It's not even democratic... or even socialist. This is fascism at its finest.
What exactly is this bailout supposed to do? Save jobs? The housing market is already over built. This is a systemic problem that won't be solved by throwing more cash at it. This will make the problem of devaluation of the dollar even worse.
Thank you Obama!