RRJ2

Reading reaction journal 2
Reference:

Christie.L November, 6, 2009 “$8,000 homebuyers tax credit extended”. Retrieved November, 10, 2009 from
http://money.cnn.com/2009/11/06/real_estate/tax_credit_extended/index.htm

Summary:
President Obama promotes a bill to help the market of home. There are four functions can get 8,000 credit in buyer’s tax. The some Legislators and industry agree this bill. This bill is already reaction achievement on the market of home.
The S&P/Case-Shiller Home Price Index has litter grow last month. But someone thinks that the bill is interim procedures for help market of home because not all people buy house because of the tax advantage. But the housing industry also pleased that this bill will improve the market of home.
Reaction:
This is a good a bill for first one of buyer. This bill has some advantages. One of the advantages is tax. Most homebuyers do not have more money to buy their first house. This bill can help them save some money about 7000 to 8000. Second one of the advantages is stimulate consumption in housing market. The housing market of consumption is not good in the last few years. A lot of companies of home and extend credit’s stock price from high price to low price, for example FRE, FNM. They used to have high stock price in the last few years. But now their stock price is low.
In this way, one can see the government of the America want to save the market of home. I think that the companies of home and extend credit will get a lot of yield when this bill successful.