Calculated Risk has a post on how the Executive Branch is feeling these days about renewing the $8K home buyer bribe. The new news is that the HUD Secretary Shaun Donovan apparently is sounding rather ambivalent about it. My personal suspicion is that it doesn't matter what the White House thinks -- the November 30th deadline is way too soon for them to make a decision on an issue of this magnitude. (They need extra weeks to "study the government data on the cost," according to the HUD Secretary). But Senators Dodd and Isakson want it renewed (and in the latter's case, expanded) rather badly.
CR points out some pitfalls of the continuance of this scheme:
"There are other reasons to oppose the tax credit (other than it is expensive and poorly targeted). An extension of the tax credit will increase the apartment vacancy rate, push down rents, and lead to more defaults for CMBS (with falling rents).CR also reminds us from Reuters: "The agency [IRS] has opened 107,000 civil cases related to the credit and identified 167 criminal schemes."