AP: "The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan."
We got into our current financial crisis because the government created too many incentives for home ownership, such as the mortgage interest deduction, subsidized interest rates, the Community Reinvestment Act, and others. These subsidies and incentives created a real-estate bubble which inevitably burst, bringing down the entire world economy with it.
Instead of letting house prices fall to their real value, the government wants to prop them up. They are simply repeating the same mistake that caused this problem.
"Insanity: doing the same thing over and over again and expecting different results." Albert Einstein