Gambling and Losing in Las Vegas Housing, With Help

The median price of new and resale houses and condos sold in Las Vegas in July dropped by over $9,000 relative to (gulp) the prior month. The federal tax incentive to purchase a house was worth up to $8,000, meaning there are no doubt people in Sin City who have already had that inducement’s value wiped out. In the rush to save realtors and homebuilders, the government created a program that tempted many Americans into making a lousy investment during a sucker’s rally.

Author: Keith Humphreys

Keith Humphreys is the Esther Ting Memorial Professor of Psychiatry at Stanford University and an Honorary Professor of Psychiatry at Kings College Lonon. His research, teaching and writing have focused on addictive disorders, self-help organizations (e.g., breast cancer support groups, Alcoholics Anonymous), evaluation research methods, and public policy related to health care, mental illness, veterans, drugs, crime and correctional systems. Professor Humphreys' over 300 scholarly articles, monographs and books have been cited over ten thousand times by scientific colleagues. He is a regular contributor to Washington Post and has also written for the New York Times, Wall Street Journal, Washington Monthly, San Francisco Chronicle, The Guardian (UK), The Telegraph (UK), Times Higher Education (UK), Crossbow (UK) and other media outlets.

3 thoughts on “Gambling and Losing in Las Vegas Housing, With Help”

  1. Blog post pull quote: "In the rush to save realtors and homebuilders…"

    In a rush eh?

    All I've been reading and hearing is:

    Why won't the government do something?

    And from the linked article there is this pull quote:

    "Yet, the real “organic” market forces are not tricked by such tomfoolery."

    Yes…

    Market forces can't be tricked.

    That's why bubbles are such a rare thing…

  2. koreyel, market forces can be tricked, but that tomfoolery certainly didn't trick it.

    Or it did for a very short time.

    The housing bubble was quite a bit different

  3. If they bought a home, foolishly at this point, as an investment then yes they got suckered. However if they bought homes simply for the utility of having a place to live then fluctuations in price simply do not matter in the short term AT ALL.

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