Sales dive with end of tax credits. Duh.

WASHINGTON – Sales of new homes collapsed last month, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer get government incentives.

via New home sales plunge 33 pct with tax credits gone – Yahoo! News.

Got news for you.  It’s not the tax credit that’s the problem with home sales.  It’s the stupidly insane fiscal policies of this country that have the housing market still in a slump.  Matter of fact, it’s those same policies that have much of this country’s economy in the crapper.

As I’ve seen written and heard said in many places, it’s not a matter of Democrats vs. Republicans, or Liberal vs. Conservative.  It’s the stupid idea that we as a country can spend money we don’t have.

Of course fewer people are going to buy houses if they don’t have the money to pay for them.  So tell me why the 535 members of Congress can’t get that idea through their heads….still.  No money = no spending.  Economics 101 my friends.  A course our government employees either didn’t take, or failed gloriously.  If you give an incentive to spur something along like say, buying homes, and it works then take the incentive away only to see fewer home sales, why is that surprising?