NAR's New Housing Subsidy

The line of supplicants at the government bailout window just got a little longer.

L.A. Land is reporting that the National Association of Realtors ended their annual convention today by suggesting the government subsidize an interest rate buy down for homeowners. They figure that buying down the 30 year fixed rate to 4.5% on the feds nickel should do the trick. Projected cost-$100 billion. Their economist Lawrence Yun explained their reasoning by noting that, "Given the $700 billion package (The TARP), $100 billion would seem reasonable." Sound economic analysis there.

Let's just inflate that balloon one more time with low rates.