Monday I wrote a post on the existing home sales report and said I was going to go out on a limb and suggest that Tax Credit lll might come about if the housing market did start to tank. Looks like it wasn’t all that dangerous a limb to climb out on.

Ron Paul’s Congressional web site contains a press release proposing to make the tax credit permanent:

Washington, D.C. – Congressman Ron Paul (TX-14) today introduced legislation to permanently extend the first-time homebuyer tax credit and to make the credit available to people whose homes have been destroyed by a natural disaster, such as a hurricane.

Pretty weird coming from a conservative like Paul. If he sees political hay to be made here given his constituency, then one would suspect that those to his left (most of Congress) do as well.

I’m no expert on the plots, schemes and subterfuges that pass for honest work in Washington so there may be an angle I don’t see. If you do let me know.