Tax credit dying, let’s celebrate the good news [OPINION]

Stop crying already!

Yes (for the umpteenth time), the $8,000 tax credit is ending this week and it’s a blessing sent from above. Why do I say this? Not just because the country has been hanging from the teet of the federal government since the great crash, but because it has allowed the lending world to become dependent and outside of the game of risk for far too long.

Without the federal goverment’s aid, it’s true that most financial institutions would have fallen in the midst of crisis. The $8k tax credit (and TARP) gave institutions a chance to catch their breath, and a much needed steady flow of loans, but it’s time for these little birdies to fly once again, and put the old saying of “lenders lend” back into practice.

As evidenced by these reports here and here, consumers are telling the entire real estate industry loudly and clearly that it ain’t about the damn tax credit, it’s about actually qualifying for an affordable loan.

Fly, baby bird…

As I said, the teet of the U.S. government is dried up and Mama Washington is putting her old bra back on, and it’s cause to celebrate! Although there may be a short lull as lenders react and learn to find food on their own, the great news is that they will, and what you’ll get once that baby bird flies is (hopefully) smarter lending, smarter incentives, a more practical housing market, and solvency in values.

I suppose now the question is, which bird leaves the nest first in search for food? Who’s going to lead in this new real estate market and who will simply die?

April 30th should be a new national holiday, an Independence Day if you will, and it will be, so long as the White House keeps their hands off of the free market…

CC Licensed image courtesy of ttstam via Flickr.com.