This past Friday, President Obama signed into law H.R. 3548. This bill, at it’s heart a bill to extend unemployment benefits {which, by the way, is being completely overlooked as the critical step it was to help the unemployed workers in this country, but that’s a topic foranother day(see, I’m overlooking it too!)} contained a roundly supported amendment to Extend and Expand the First Time Home Buyer Tax Credit that was set to expire this month. Unless you were hiding under a rock, by now you’ve no doubt heard countless talking heads telling you that this bill will either (A) Save the US Economy or (B) Leadthe US Economyinto a head on Collision with the ever growing Mountain of National Debt.
Well, if you were looking for someone to supportChoice (B), you should probably look elsewhere. But if you were looking for someone to explain just why this bill is critical to the recovery of the nation’s housing market and just may save our entire economy, then keep on reading!
The 99 Cent effect, maybe you’ve heard of it, maybe not, but did you ever wonder why prices end in 99? Turns out there is a proven psychological effect (dating all the way back to 1800’s) with prices that end in 9. Researchers at the Rutgers School of Business found that prices ending in .99 communicate low price to consumers and consumers are then more likely to buy.