With one of the biggest drivers of our economy in the dumper, someone (Herman Cain) needs to roll out a plan to address the backlog of homes currently on the market and the shadow inventory on the banks books.
One idea---instead of throwing money down a hole by extending unemployment benefits at a cost of $257 billion of the $450 billion Obama wants, lets do this instead.
1. Leverage the private investor with tax credits up to $100K on the first $1M in existing real estate inventory purchases and a cap of $500K on $5M. This allows more people to participate with good credit that is locked up in the bank looking for the next opportunity. (Now these are tax credits--dollar for dollar not tax deductions which are .28 cent on the dollar)
2. Require that you must have an 85% occupancy level (renters) in order to receive the credits.
3. Rinse and Repeat next year and sun-set the program after 4 years.