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Comments on: Interest free loan lollyscramble part II http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/ The Visible Hand in Economics Thu, 14 May 2009 06:06:44 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Finance & Loan » Interest free loan lollyscramble part II http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19728 Thu, 14 May 2009 06:06:44 +0000 http://www.tvhe.co.nz/?p=3650#comment-19728 […] the original post here: Interest free loan lollyscramble part II Post Date:April 22, 2009, Category:Uncategorized Author: admin, . […]

]]> By: Serge Senna http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19359 Mon, 27 Apr 2009 18:25:01 +0000 http://www.tvhe.co.nz/?p=3650#comment-19359 I found your blog on google and read a few of your other posts.
You have a great Blog!!! I just added you to my Google News Reader.
Look forward to reading more from you in the future.

Keep up the good work.

]]> By: Topics about Lenders » Interest free loan lollyscramble part II http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19264 Thu, 23 Apr 2009 07:36:03 +0000 http://www.tvhe.co.nz/?p=3650#comment-19264 […] BlogsOfVideos.com added an interesting post on Interest free loan lollyscramble part IIHere’s a small excerpt…the interest free student … buyers and the people they are … builders are credit … just offer them loans (at a MARKET rate of […]

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19231 Thu, 23 Apr 2009 02:14:13 +0000 http://www.tvhe.co.nz/?p=3650#comment-19231 @Eric Crampton

Very very true.

@MikeE

Maybe – you are still a taxpayer after all 🙂

]]> By: MikeE http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19171 Wed, 22 Apr 2009 00:25:58 +0000 http://www.tvhe.co.nz/?p=3650#comment-19171 Yay, inflation on houses = just what I need to make some extra cash on the place I bought in 2007.

Shit policy, but good for me (in the short term)

]]> By: Eric Crampton http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19169 Tue, 21 Apr 2009 23:48:40 +0000 http://www.tvhe.co.nz/?p=3650#comment-19169 Definitely stronger effect at the lower tail of the market. All will be complicated by differential elasticity of construction to prices at different segments of the market.

I rather suspect that as a taxpaying homeowner I’m hurt more by this policy in tax cuts foregone than I’m helped by the slight unrealized capital gain…

]]> By: TVHE » Interest free loan lollyscramble part II http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19167 Tue, 21 Apr 2009 22:45:43 +0000 http://www.tvhe.co.nz/?p=3650#comment-19167 […] more here: TVHE » Interest free loan lollyscramble part II Posted in […]

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19165 Tue, 21 Apr 2009 21:56:24 +0000 http://www.tvhe.co.nz/?p=3650#comment-19165 @Eric Crampton

Indeed, it would also push up the price of other houses – it would be a pecuniary externality.

But, if there the houses first home buyers go for are different to the composition of the general market, the impact on prices will be heavier in those markets. That is why I just mentioned that side of the coin. I agree that people moving “up the ladder” will be able to bid up prices – but unless they extracted the full surplus from the sale I’m guess that the impact on demand will be weaker.

The main people that will lose out are people who really don’t want to buy a house – and people that aren’t eligible (I’m guessing immigrants) …

]]> By: Eric Crampton http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19164 Tue, 21 Apr 2009 21:46:23 +0000 http://www.tvhe.co.nz/?p=3650#comment-19164 Agree bad policy, but why would you expect it to hit only the section of the market first home buyers are in?

Loans for first homes –> price of starter homes is bid up (some leakage via new construction) –> folks who’ve SOLD their starter homes have more money –> price of second homes is bid up (some leakage via new construction) … It works its way up the chain I’d have reckoned.

]]> By: agnitio http://www.tvhe.co.nz/2009/04/22/interest-free-loan-lollyscramble-part-ii/#comment-19160 Tue, 21 Apr 2009 20:39:53 +0000 http://www.tvhe.co.nz/?p=3650#comment-19160 Woot, another policy that is silly on a macro level that I can benefit from personally:D

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