Biden Proposal for Home Buyers Helps Explain Why Gov't Should NEVER Be Your Financial Adviser

A famous quote from Ronald Reagan holds true to this day: "The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help."

That brings us to the latest White House ploy to try and buy some votes (in addition to more "student loan forgiveness) with Biden down in the polls.

The "make things worse and then pretend to be helping 'fix' them" pandering continues, and this time it's via a tax credit proposal:

For homeowners looking for a new place but worried about giving up their lower mortgage rate, I'm proposing a $10,000 tax credit if they sell their starter homes.

That means more folks can get into houses that suit their needs, unlocking affordable homes for first-time buyers.
— President Biden (@POTUS) March 21, 2024

The government hasn't exactly proven itself to be a beacon of fiscal responsibility, so just in case this is a bad idea Carol Roth has the necessary disclaimer:

Disclosure: Not financial advice.
— Carol Roth (@caroljsroth) March 22, 2024

The federal government is about $34 trillion in debt (and climbing rapidly) which would indicate you might want to think twice before taking the financial advice of somebody who's been in public office for over 50 years, even if he's trying to buy your vote.

Dying to know who came up with this brilliant idea. https://t.co/h1fCtybkru
— 🫃🏼💉🇺🇦Hollaria Briden, Esq. (@HollyBriden) March 22, 2024

No doubt some of the same people who think racking up a trillion dollars in debt every 100 days is for the betterment of the nation.

Sell a home with a mortgage locked in below 3% a few years ago to buy a new house at 7%+ in exchange for a $10,000 tax credit.

You don't have to be a mathmagician to know that over the course of a decades long mortgage, that is a very, very lousy deal. https://t.co/EYULKIjMJC
— Mark Hemingway (@Heminator) March 22, 2024

Easily one of the dumbest ideas ever. Sell your $250,000 home you got at 2.5% interest with a 30 year amortization of $355K to buy a similar, now $400,000 home at 7% with an amortization of $958,000 and you’ll “save” $10,000.

Brilliant. https://t.co/5aJsW0tK9T
— Jay Caruso (@JayCaruso) March 22, 2024

To explain this idiocy as quickly as possible:
Not taking into account that home prices are higher than 4 years ago when people were getting mortgages at less than 3%…

The image on the left is buying the same home today vs the image on the right 4 years ago.

$10k would make up… https://t.co/RSohhrxspk pic.twitter.com/j80xw6LPSM
— Tandy (@dantypo) March 22, 2024

Add 3%-4% more mortgage points all to save $10K?

Math is hard. https://t.co/Aa7gEeiJxS
— IT Guy (@ITGuy1959) March 22, 2024

Do not do this if you have a low interest rate and can stay in your current house.

You will never come close to making up the difference and this stupidity will just do what subsidies always do: Raise prices. https://t.co/Wvs29jHn2X
— Bonchie (@bonchieredstate) March 22, 2024

Of course, this is an election year and the Biden White House is doing this to try and make you forget about something:

Here’s another take. If you have a house with a 3% mortgage, keep it.

What people should be focusing on is that we had 3% mortgages. Joe Biden destroyed that. https://t.co/pXkGFZFTlx
— Jeff Carlson (@themarketswork) March 22, 2024

This is yet another thing that blows Biden's "are you better off than you were four years ago" challenge out of the water.

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