I will not delve into endless statistics or explanations why I believe it is working. I will just point to one thing, and you decide if you agree.
The only thing, besides the stock market, that saw strong improvements in the past half year, is the housing industry. No, not the full real estate market got better, but only the housing industry has now better days. Their improvements (through constant positive statistics) are actually fueling partially the market rally, and are expected to play a major role in a better economic growth (GDP) report due out tomorrow.
Credited by every objective economist for this housing improvement, are two things. 1) Cheap home prices. 2) The $8,000 tax credit for first time homebuyers that was placed into the Stimulus Bill after requested so by Republicans. This gives for Conservatives and Republicans two major points, economically and politically.
Economically: we see once again that tax cuts work, and work very well. In fact, from the whole stupid stimulus package, it appears that the homebuyer’s tax cuts are the only thing that had swift and strong positive results, thus helping to heal the economy in general.
Politically: I think the Republicans need to get/take credit for this considering that it was their idea, and they need to point out that they wanted an even more robust and wide-ranging homebuyers tax credit plan than what the Dems actually agreed to place into the stimulus.
