Home Buyer Tax Credit - Extend or Not To Extend? Part #2

Let's take a little quiz. Who really benefited the most from the federal tax credits anyway?

A. First Time Home Buyers
B. Existing Home Buyers
B. Realtors
C. "To Big To Fail" Banks
D. All of the Above

HINT: Who gets the $6,500 or $8,000?

It doesn't take rocket science to figure out that the tax credits were created to help those "to big to fail" banks. If you think it was to help us little people on "Main Street" you are watching too much TV. The Fed and those in Washington bailed out the "to big to fail" banks and continues to do so. It is called the Home Buyer Tax Credits.

The nations largest mortgage lenders are still awash in foreclosures that need to get moved on down the road (e.g. "sold"). In all but rare circumstances those tax rebates are being used in the purchase of a new home and part of the purchase proceeds (e.g. goes to the seller). Who is the primary seller of real estate these days...you got it "The to big to fail" banks. Yes, it benefited some home buyers and the local real estate communities; and therein lies the question. Washinngton is focused on helping the "to big to fail" banks, but there have been some unintended consequences; people on Main Street are actually being benefited too.

I am starting to sound a little bitter (read disclaimer Part#1), but the question remains extend or not to extend? Is it better for the health of the real estate market to continue with credits through the end of the year or cut it off April 30th?