Well, here we go again! As home sales in the United States plunge to their lowest level in 15 years, with existing home sales tanking 27.2 percent in July 2010 alone, surely even the most dumb of hydraulic Keynesian economists – even Lawrence Summers, Christina Romer, Timothy Geithner and Ben Bernanke - can see the writing on the wall! If they cannot do so by now, then I strongly recommend that they refresh their knowledge by attending an undergraduate economics 101 class at George Mason University; preferably one focused on Austrian economics; but almost anything is better than what they currently have on board.
Economics 101, properly taught, will educate those mired in the Keynesian fallacy that temporary home-buyer tax credits in the sum of $8,000 will induce potential home-buyers to accelerate ther purchases of houses, providing a purely temporary uptick in the house market. When the tax break expires, the market will down-tick to reflect underlying realities. There has been no fundamental change in market equilibrium. So why hang on to the impossible dream that government can wave a magic wand, and induce an unsustainable market expansion? That it can do so in the auto market, in the housing market, in the green-is-good market, or in any other market that temporary government subsidies can penetrate?
Wake up hydraulic Keynesians, pull your heads out of the sand, and look around you at the economic mess that you have created for the American people and for Americans yet unborn. Have you no shame? No shame, at all?