May 31, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on the 4.2 percent decline in home values in the first quarter as measured by the S&P/Case Shiller home price index:
"We are now officially in a double dip in housing. The Obama Administration promised that if trillions of dollars in fiscal and monetary 'stimulus' were injected into the economy, that it would turn the housing market around. Yet, despite the tremendous run up in government debt and money printing to prop up the economy, home values are now at their lowest point in this recession — lower than even April 2009.
"That means 3.3 million people who used the $22 billion homebuyer's tax credit, which temporarily juiced the market, are now likely already in negative equity on their new homes. What sort of 'recovery' is this? It's a failure. We should have just let prices hit the bottom in the first place. Instead of bailing out banks, it would have been better to let investors that bet poorly on housing to fail. If government had just gotten out of the way, we would already be in recovery.
Obama has prolonged the recession he swore to pull us out of, wasting over $2 trillion on a lie. Obama has been given everything he wanted — everything he said would turn the economy around. The 'stimulus' has failed. Now is the time for a new direction for America, and that will only come with new leadership on the economy, before we go bankrupt trying to 'stimulate' it."
S&P/Case-Shiller housing price index chart shows double-dip, May 31st, 2011 at http://www.getliberty.org/content_images/Case-Shiller5-31-11.PNG.
"Double Dip in House Threatens Obama Recovery," by ALG Senior Editor Robert Romano, May10th, 2011 at http://blog.getliberty.org/default.asp?display=3317.
"Double-Dip in Housing, Rising Inflation, and Soaring Debt Disprove 'Stimulus,' Threaten Ship of State," by ALG Senior Editor Robert Romano, April 27th, 2011 at http://blog.getliberty.org/default.asp?display=3281.