Another Housing Bubble Pump
Home purchases are typically financed by 30-year mortgages - a financing option seldom - if ever - available for any other kind of investment. Plus, mortgage interest - alone among all types of consumer interest payments - is a tax deduction. As if these incentives for home ownership weren't enough, capital gains on home sales are also exempt from taxation. Then, on top of all these incentives, the government - the Bush Whitehouse in particular - was pushing no-downpayment loans. In retrospect, how much more obvious could the housing bubble have been?